Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Feb. 28, 2014 | Jun. 28, 2013 | |
Document And Entity Information [Abstract] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'PFIS | ' | ' |
Entity Registrant Name | 'PEOPLES FINANCIAL SERVICES CORP. | ' | ' |
Entity Central Index Key | '0001056943 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 7,549,557 | ' |
Entity Public Float | ' | ' | $101,076,379 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Assets: | ' | ' |
Cash and due from banks | $30,004 | $15,581 |
Interest-bearing deposits in other banks | 11,846 | 32,263 |
Federal funds sold | 9,460 | ' |
Investment securities: | ' | ' |
Available-for-sale | 299,715 | 161,391 |
Held-to-maturity: Fair value 2013, $17,175; 2012, $16,774 | 17,295 | 15,902 |
Total investment securities | 317,010 | 177,293 |
Loans held for sale | 1,757 | ' |
Loans, net | 1,176,617 | 623,530 |
Less: allowance for loan losses | 8,651 | 6,950 |
Net loans | 1,167,966 | 616,580 |
Premises and equipment, net | 26,119 | 15,137 |
Accrued interest receivable | 5,866 | 2,862 |
Goodwill | 63,370 | 26,398 |
Intangible assets | 6,835 | 838 |
Other assets | 47,988 | 31,090 |
Total assets | 1,688,221 | 918,042 |
Deposits: | ' | ' |
Noninterest-bearing | 279,942 | 151,121 |
Interest-bearing | 1,099,565 | 570,827 |
Total deposits | 1,379,507 | 721,948 |
Short-term borrowings | 22,052 | 8,019 |
Long-term debt | 36,743 | 45,397 |
Accrued interest payable | 723 | 716 |
Other liabilities | 10,404 | 9,516 |
Total liabilities | 1,449,429 | 785,596 |
Stockholders' equity: | ' | ' |
Common stock: par value $2.00, authorized 25,000,000 shares, 2013, issued 7,806,789 shares; 2012, issued 4,467,261 shares | 15,614 | 8,935 |
Capital surplus | 146,109 | 40,003 |
Retained earnings | 84,008 | 83,798 |
Accumulated other comprehensive loss | -698 | -290 |
Less: treasury stock, at cost: 2013, 253,845 shares | 6,241 | ' |
Total stockholders' equity | 238,792 | 132,446 |
Total liabilities and stockholders' equity | $1,688,221 | $918,042 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Statement Of Financial Position [Abstract] | ' | ' |
Held-to-maturity, fair value | $17,175 | $16,774 |
Common stock, par value (in dollars per share) | $2 | $2 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 7,806,789 | 4,467,261 |
Treasury stock, shares (in shares) | 253,845 | ' |
Consolidated_Statements_of_Inc
Consolidated Statements of Income and Comprehensive Income (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest and fees on loans: | ' | ' | ' | ' | ' |
Taxable | ' | ' | $31,102 | $30,852 | $32,398 |
Tax-exempt | ' | ' | 1,674 | 1,687 | 1,187 |
Interest and dividends on investment securities: | ' | ' | ' | ' | ' |
Taxable | ' | ' | 1,793 | 2,282 | 2,724 |
Tax-exempt | ' | ' | 2,625 | 2,660 | 3,273 |
Dividends | ' | ' | 88 | 63 | 64 |
Interest on interest-bearing deposits in other banks | ' | ' | 86 | 47 | 59 |
Interest on federal funds sold | ' | ' | 2 | ' | 2 |
Total interest income | 11,050 | 9,171 | 37,370 | 37,591 | 39,707 |
Interest expense: | ' | ' | ' | ' | ' |
Interest on deposits | ' | ' | 2,876 | 3,424 | 4,958 |
Interest on short-term borrowings | ' | ' | 34 | 38 | 83 |
Interest on long-term debt | ' | ' | 1,259 | 1,900 | 2,298 |
Total interest expense | 1,223 | 1,212 | 4,169 | 5,362 | 7,339 |
Net interest income | 9,827 | 7,959 | 33,201 | 32,229 | 32,368 |
Provision for loan losses | 1,036 | 147 | 2,361 | 924 | 2,381 |
Net interest income after provision for loan losses | 8,791 | 7,812 | 30,840 | 31,305 | 29,987 |
Noninterest income: | ' | ' | ' | ' | ' |
Service charges, fees and commissions | ' | ' | 4,092 | 3,680 | 4,470 |
Merchant services income | ' | ' | 3,936 | 4,290 | 4,670 |
Commission and fees on fiduciary activities | ' | ' | 1,735 | 1,481 | 1,563 |
Wealth management income | ' | ' | 505 | 264 | 253 |
Mortgage banking income | ' | ' | 363 | 905 | 585 |
Life insurance investment income | ' | ' | 968 | 504 | 490 |
Net gain on sale of investment securities available-for-sale | ' | ' | 163 | 317 | 666 |
Other-than-temporary impairment of investment securities | ' | ' | ' | ' | -78 |
Total noninterest income | 2,852 | 2,811 | 11,762 | 11,441 | 12,619 |
Noninterest expense: | ' | ' | ' | ' | ' |
Salaries and employee benefits expense | ' | ' | 15,983 | 14,121 | 13,951 |
Net occupancy and equipment expense | ' | ' | 3,988 | 2,946 | 3,561 |
Merchant services expense | ' | ' | 2,490 | 2,742 | 3,166 |
Amortization of intangible assets | ' | ' | 326 | 267 | 304 |
Acquisition related expense | ' | ' | 4,609 | ' | ' |
Other expenses | ' | ' | 9,000 | 9,023 | 8,059 |
Total noninterest expense | 15,050 | 7,158 | 36,396 | 29,099 | 29,041 |
Income before income taxes | -3,407 | 3,465 | 6,206 | 13,647 | 13,565 |
Income tax expense | -1,277 | 757 | 485 | 3,058 | 3,034 |
Net income | -2,130 | 2,708 | 5,721 | 10,589 | 10,531 |
Other comprehensive income (loss): | ' | ' | ' | ' | ' |
Unrealized gain (loss) on investment securities available-for-sale | ' | ' | -3,882 | 1,223 | 4,873 |
Reclassification adjustment for net gain on sales included in net income | ' | ' | -163 | -317 | -666 |
Reclassification adjustment for other-than-temporary impairment | ' | ' | ' | ' | 78 |
Change in pension liability | ' | ' | 3,642 | -924 | -1,497 |
Other comprehensive income (loss) | -403 | -18 | -403 | -18 | 2,788 |
Income tax expense (benefit) related to other comprehensive income (loss) | ' | ' | -5 | -6 | 948 |
Other comprehensive income (loss), net of income taxes | ' | ' | -408 | -12 | 1,840 |
Comprehensive income | ' | ' | $5,313 | $10,577 | $12,371 |
Net income: | ' | ' | ' | ' | ' |
Basic | ' | ' | $1.21 | $2.37 | $2.36 |
Diluted | ' | ' | $1.21 | $2.37 | $2.36 |
Average common shares outstanding: | ' | ' | ' | ' | ' |
Basic | ' | ' | 4,733,059 | 4,467,261 | 4,467,261 |
Diluted | ' | ' | 4,733,059 | 4,467,714 | 4,467,261 |
Dividends declared | ' | ' | $1.23 | $1.23 | $1.23 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Treasury Stock [Member] |
In Thousands | ||||||
Balance at Dec. 31, 2010 | $120,466 | $8,935 | $39,963 | $73,686 | ($2,118) | ' |
Net income | 10,531 | ' | ' | 10,531 | ' | ' |
Other comprehensive income (loss), net of income taxes | 1,840 | ' | ' | ' | 1,840 | ' |
Dividends declared | -5,504 | ' | ' | -5,504 | ' | ' |
Balance at Dec. 31, 2011 | 127,333 | 8,935 | 39,963 | 78,713 | -278 | ' |
Net income | 10,589 | ' | ' | 10,589 | ' | ' |
Other comprehensive income (loss), net of income taxes | -12 | ' | ' | ' | -12 | ' |
Dividends declared | -5,504 | ' | ' | -5,504 | ' | ' |
Stock based compensation | 40 | ' | 40 | ' | ' | ' |
Balance at Dec. 31, 2012 | 132,446 | 8,935 | 40,003 | 83,798 | -290 | ' |
Net income | 5,721 | ' | ' | 5,721 | ' | ' |
Other comprehensive income (loss), net of income taxes | -408 | ' | ' | ' | -408 | ' |
Dividends declared | -5,511 | ' | ' | -5,511 | ' | ' |
Stock based compensation | 25 | ' | 25 | ' | ' | ' |
Retirement of treasury stock | ' | -28 | -384 | ' | ' | 412 |
Fair value of consideration exchanged | 106,519 | 6,707 | 106,465 | ' | ' | -6,653 |
Balance at Dec. 31, 2013 | $238,792 | $15,614 | $146,109 | $84,008 | ($698) | ($6,241) |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Dividends declared (in dollars per share) | $1.23 | $1.23 | $1.23 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $5,721 | $10,589 | $10,531 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation of premises and equipment | 924 | 855 | 1,050 |
Amortization of intangibles | -326 | -267 | -304 |
Amortization of purchase accounting adjustments on tangible assets | -70 | -285 | -345 |
Provision for loan losses | 2,361 | 924 | 2,381 |
Net loss on sale of other real estate owned | 91 | 5 | 262 |
Net loss on disposal of equipment | 438 | ' | ' |
Net amortization of investment securities | 737 | 383 | 494 |
Net gain on sale of investment securities | -163 | -317 | -666 |
Other-than-temporary impairment of investment securities | ' | ' | 78 |
Life insurance investment income | -968 | -504 | -490 |
Deferred income tax expense (benefit) | -1,143 | 353 | 217 |
Stock based compensation | 25 | 40 | ' |
Net change in: | ' | ' | ' |
Loans held for sale | -421 | ' | ' |
Accrued interest receivable | 621 | 390 | 557 |
Other assets | 1,406 | 607 | 1,221 |
Accrued interest payable | -466 | -294 | -118 |
Other liabilities | 1,048 | 123 | -931 |
Net cash provided by operating activities | 9,815 | 12,602 | 13,937 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sales of investment securities available-for-sale | 4,573 | 5,821 | 15,318 |
Proceeds from repayments of investment securities: | ' | ' | ' |
Available-for-sale | 24,221 | 47,500 | 23,325 |
Held-to-maturity | 5,405 | 7,730 | 19,883 |
Purchases of investment securities: | ' | ' | ' |
Available-for-sale | -15,262 | -46,297 | -28,312 |
Held-to-maturity | -6,873 | ' | ' |
Net increase (decrease) in lending activities | -50,746 | 7,268 | -19,420 |
Purchases of premises and equipment | -614 | -2,897 | -739 |
Proceeds from investment in life insurance | 1,226 | ' | ' |
Purchases of investment in life insurance | ' | -1,242 | ' |
Proceeds from sale of other real estate owned | 761 | 1,778 | 1,141 |
Net cash received from acquisition | 22,392 | ' | ' |
Net cash provided by (used in) investing activities | -14,917 | 19,661 | 11,196 |
Cash flows from financing activities: | ' | ' | ' |
Net increase in deposits | 28,949 | 1,390 | 29,348 |
Repayment of long-term debt | -11,166 | -12,823 | -10,615 |
Net decrease in short-term borrowings | -3,704 | -1,962 | -18,101 |
Cash dividends paid | -5,511 | -5,504 | -5,504 |
Net cash provided by (used in) financing activities | 8,568 | -18,899 | -4,872 |
Net increase in cash and cash equivalents | 3,466 | 13,364 | 20,261 |
Cash and cash equivalents at beginning of year | 47,844 | 34,480 | 14,219 |
Cash and cash equivalents at end of year | 51,310 | 47,844 | 34,480 |
Cash paid during the period for: | ' | ' | ' |
Interest | 4,635 | 5,656 | 7,457 |
Income taxes | 2,700 | 2,260 | 2,315 |
Noncash items: | ' | ' | ' |
Transfers of loans to other real estate | 273 | 867 | 1,647 |
Assets acquired excluding cash: | ' | ' | ' |
Investment securities available-for-sale | 156,435 | ' | ' |
Restricted equity securities | 997 | ' | ' |
Loans, net | 504,002 | ' | ' |
Accrued interest receivable | 3,625 | ' | ' |
Premises and equipment | 11,737 | ' | ' |
Core deposit and other intangible assets | 6,323 | ' | ' |
Other assets | 18,647 | ' | ' |
Assets acquired excluding cash, net | 701,766 | ' | ' |
Liabilities assumed: | ' | ' | ' |
Deposits | 628,304 | ' | ' |
Short-term borrowings | 17,737 | ' | ' |
Long-term debt | 2,516 | ' | ' |
Accrued interest payable | 473 | ' | ' |
Other liabilities | 5,976 | ' | ' |
Liabilities assumed, net | $655,006 | ' | ' |
Summary_of_significant_account
Summary of significant accounting policies | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Summary of significant accounting policies | ' | ||||||||||||||||||||||||
1. Summary of significant accounting policies: | |||||||||||||||||||||||||
Nature of operations: | |||||||||||||||||||||||||
Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), including its subsidiaries, Peoples Advisors, LLC and Penseco Realty, Inc. (collectively, the “Company” or “Peoples”). On November 30, 2013, Penseco Financial Services Corporation, a financial holding company incorporated under the laws of Pennsylvania (“Penseco”), merged with and into Peoples Financial Services Corp., with Peoples Financial Services Corp. being the surviving corporation (the “Merger”), pursuant to an Agreement and Plan of Merger dated June 28, 2013 (the “Merger Agreement”). In connection with the Merger, on December 1, 2013, Penseco’s former banking subsidiary, Penn Security Bank and Trust Company, merged with and into Peoples Neighborhood Bank (the “Bank Merger”), and the resulting institution adopted the name Peoples Security Bank and Trust Company. The Company services its retail and commercial customers through twenty-six full-service community banking offices located within the Lackawanna, Luzerne, Monroe, Susquehanna, Wayne and Wyoming Counties of Northeastern Pennsylvania and Broome County of New York. | |||||||||||||||||||||||||
Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Peoples Bank’s primary product is loans to small- and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering open time deposits to commercial enterprises and individuals. Other deposit product offerings include certificates of deposits and various demand deposit accounts. | |||||||||||||||||||||||||
Peoples Advisors, LLC, a member-managed limited liability company, provides investment advisory services through a third party to individuals and small businesses. Penseco Realty, Inc. holds and manages real estate assets on behalf of Peoples Bank. | |||||||||||||||||||||||||
Peoples Advisors, LLC and Penseco Realty, Inc. did not meet the quantitative thresholds for required segment disclosure in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Peoples Bank’s twenty-six community banking offices, all similar with respect to economic characteristics, share a majority of the following aggregation criteria: (i) products and services; (ii) operating processes; (iii) customer bases; (iv) delivery systems; and (v) regulatory oversight. Accordingly, they were aggregated into a single operating segment. | |||||||||||||||||||||||||
The Company faces competition primarily from commercial banks, thrift institutions and credit unions within the Northeastern Pennsylvania market, many of which are substantially larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. | |||||||||||||||||||||||||
The Company and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations. | |||||||||||||||||||||||||
Basis of presentation: | |||||||||||||||||||||||||
Under the acquisition method of accounting, in a business combination effected through an exchange of equity interests, consideration of the facts and circumstances surrounding a business combination that generally involve the relative ownership and control of the entity by each of the parties subsequent to the merger must be made in determining the acquirer for financial reporting purposes. Based on a review of these factors, the aforementioned merger between the Company and Penseco was accounted for as a reverse acquisition whereby Penseco was treated as the acquirer for accounting and reporting purposes. As a result, the historical financial information included in the Company’s consolidated financial statements and related notes as reported in this Form 10-K is that of Penseco. | |||||||||||||||||||||||||
The consolidated financial statements of the Company have been prepared in conformity with GAAP, Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding Peoples Financial Services Corp. (“Parent Company”). Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. | |||||||||||||||||||||||||
The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2013, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. | |||||||||||||||||||||||||
Estimates: | |||||||||||||||||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, determination of other-than-temporary impairment losses on securities, impairment of goodwill and fair value of assets acquired and liabilities assumed in business combinations. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Investments securities are classified and accounted for as either held-to-maturity, available-for-sale, or trading account securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held-to maturity when management has the positive intent and ability to hold such securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available-for-sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value. Estimated fair values for investment securities are based on quoted market prices from a national electronic pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums are amortized and discounts are accreted using the interest method over the contractual lives of investment securities. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Trading account securities are carried at market value. Interest on trading account securities is included in interest income. Profits or losses on trading account securities are included in noninterest income. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. | |||||||||||||||||||||||||
Management evaluates each investment security to determine if a decline in fair value below its amortized cost is an other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant an evaluation. Factors considered in determining whether an other-than-temporary impairment was incurred include: (i) the length of time and the extent to which the fair value has been less than amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether a decline in fair value is attributable to adverse conditions specifically related to the security or specific conditions in an industry or geographic area; (iv) the credit-worthiness of the issuer of the security; (v) whether dividend or interest payments have been reduced or have not been made; (vi) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security; (vii) whether management intends to sell the security; and (viii) if it is more likely than not that management will be required to sell the security before recovery. If a decline is judged to be other-than-temporary, the individual security is written-down to fair value with the credit related component of the write-down included in earnings and the non-credit related component included in other comprehensive income or loss. The assessment of whether an other-than-temporary impairment exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time. | |||||||||||||||||||||||||
Loans held for sale: | |||||||||||||||||||||||||
Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan. All loans are sold without recourse. The aggregate cost of these loans was lower than their estimated market value at December 31, 2013 accordingly, no valuation allowance was deemed necessary. | |||||||||||||||||||||||||
Loans, net: | |||||||||||||||||||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income when chargeable, assuming collectability is reasonably assured. | |||||||||||||||||||||||||
Transfers of financial assets, which include loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company; (ii) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||||||||||||||
The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial and commercial real estate loans. Retail loans consist of residential real estate and other consumer loans. | |||||||||||||||||||||||||
The Company makes commercial loans for real estate development and other business purposes required by the customer base. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. The assets financed through commercial loans are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include long-term loans financing commercial properties. Repayment of these loans are dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans typically require a loan to value of not greater than 75% and vary in terms. Commercial and commercial real estate loans generally have higher credit risk compared to residential mortgage loans and consumer loans, as they typically involve larger loan balances concentrated with single borrowers or groups of borrowers. In addition, the payment expectations on loans secured by income-producing properties typically depend on the successful operations of the related business and thus may be subject to a greater extent to adverse conditions in the real estate market and in the general economy. | |||||||||||||||||||||||||
Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. The majority of these loans are secured. | |||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as service charges, fees and commissions and are included in noninterest income when earned. The Company records an allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. No allowance was deemed necessary at December 31, 2013 and 2012. | |||||||||||||||||||||||||
Nonperforming assets: | |||||||||||||||||||||||||
Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans, troubled debt restructured loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. However, if the nonaccrual loan is charged-off, the accumulated interest is applied as a reduction to principal at the time the loan is charged-off. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months. | |||||||||||||||||||||||||
Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered can generally fall within the following categories: | |||||||||||||||||||||||||
• | Rate Modification — A modification in which the interest rate is changed to a below market rate. | ||||||||||||||||||||||||
• | Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. | ||||||||||||||||||||||||
• | Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. | ||||||||||||||||||||||||
• | Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. | ||||||||||||||||||||||||
• | Combination Modification — Any other type of modification, including the use of multiple categories above. | ||||||||||||||||||||||||
The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: | |||||||||||||||||||||||||
• | Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. | ||||||||||||||||||||||||
• | Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||
• | Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||
• | Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||
• | Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loans is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. | ||||||||||||||||||||||||
Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the allowance for loan losses. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense. | |||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses account is maintained through a provision for loan losses charged to earnings. Loans, or portions of loans, determined to be confirmed losses are charged against the allowance account and subsequent recoveries, if any, are credited to the account. A loss is considered confirmed when information available at the financial statement date indicates the loan, or a portion thereof, is uncollectible. Nonaccrual, troubled debt restructured and large delinquent commercial and real estate loans are reviewed monthly to determine if carrying value reductions are warranted or if these classifications should be changed. Consumer loans are considered losses when they are 120 days past due, except those expected to be recovered through insurance or collateral disposition proceeds. | |||||||||||||||||||||||||
Management evaluates the adequacy of the allowance for loan losses account quarterly. This assessment is based on past charge-off experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Regulators, in reviewing the loan portfolio as part of the scope of a regulatory examination, may require the Company to increase its allowance for loan losses or take other actions that would require the Company to increase its allowance for loan losses. | |||||||||||||||||||||||||
The allowance for loan losses is maintained at a level believed to be adequate to absorb probable credit losses related to specifically identified loans, as well as probable incurred losses inherent in the remainder of the loan portfolio as of the balance sheet date. The allowance for loan losses consists of an allocated element and an unallocated element. The allocated element consists of a specific allowance for impaired loans individually evaluated under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310, “Receivables,” and a formula portion for loss contingencies on those loans collectively evaluated under FASB ASC 450, “Contingencies.” | |||||||||||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Factors considered by management in determining impairment include payment status, ability to pay and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company recognizes interest income on impaired loans, including the recording of cash receipts, for nonaccrual, restructured loans or accruing loans depending on the status of the impaired loan. Loans considered impaired under FASB ASC 310 are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. If the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent, is less than the recorded investment in the loan, a specific allowance for the loan will be established. | |||||||||||||||||||||||||
The formula portion of the allowance for loan losses relates to large pools of smaller-balance homogeneous loans and those identified loans considered not individually impaired having similar characteristics as these loan pools. Loss contingencies for each of the major loan pools are determined by applying a total loss factor to the current balance outstanding for each individual pool. The total loss factor is comprised of a historical loss factor using a loss migration method plus a qualitative factor, which adjusts the historical loss factor for changes in trends, conditions and other relevant factors that may affect repayment of the loans in these pools as of the evaluation date. Loss migration involves determining the percentage of each pool that is expected to ultimately result in loss based on historical loss experience. Historical loss factors are based on the ratio of net loans charged-off to loans, net, for each of the major groups of loans evaluated and measured for impairment under FASB ASC 450. The historical loss factor for each pool is a weighted average of the Company’s historical net charge-off ratio for the most recent rolling twelve quarters. Management adjusts these historical loss factors by a qualitative factor that represents a number of environmental risks that may cause estimated credit losses associated with the current portfolio to differ from historical loss experience. These environmental risks include: (i) changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices; (ii) changes in the composition and volume of the portfolio; (iii) changes in national, local and industry conditions, including the effects of such changes on the value of underlying collateral for collateral-dependent loans; (iv) changes in the volume and severity of classified loans, including past due, nonaccrual, troubled debt restructures and other loan modifications; (v) changes in the levels of, and trends in, charge-offs and recoveries; (vi) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (vii) changes in the experience, ability and depth of lending management and other relevant staff; (viii) changes in the quality of the loan review system and the degree of oversight by the board of directors; and (ix) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the current loan portfolio. Each environmental risk factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. | |||||||||||||||||||||||||
The unallocated element is used to cover inherent losses that exist as of the evaluation date, but which have not been identified as part of the allocated allowance using the above impairment evaluation methodology due to limitations in the process. One such limitation is the imprecision of accurately estimating the impact current economic conditions will have on historical loss rates. Variations in the magnitude of impact may cause estimated credit losses associated with the current portfolio to differ from historical loss experience, resulting in an allowance that is higher or lower than the anticipated level. Management establishes the unallocated element of the allowance by considering a number of environmental risks similar to the ones used for determining the qualitative factors. Management continually monitors trends in historical and qualitative factors, including trends in the volume, composition and credit quality of the portfolio. The reasonableness of the unallocated element is evaluated through monitoring trends in its level to determine if changes from period to period are directionally consistent with changes in the loan portfolio. | |||||||||||||||||||||||||
Management believes the level of the allowance for loan losses was adequate to absorb probable credit losses as of December 31, 2013. | |||||||||||||||||||||||||
Premises and equipment, net: | |||||||||||||||||||||||||
Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: | |||||||||||||||||||||||||
Premises and leasehold improvements | 7 – 40 years | ||||||||||||||||||||||||
Furniture, fixtures and equipment | 3 – 10 years | ||||||||||||||||||||||||
Business combinations, goodwill and other intangible assets, net: | |||||||||||||||||||||||||
The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years | |||||||||||||||||||||||||
Loans that the Company acquires in connection with acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. | |||||||||||||||||||||||||
Goodwill and other intangible assets are tested for impairment annually or when circumstances arise indicating impairment may have occurred. In making this assessment that impairment has occurred, management considers a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of impairment. Changes in economic and operating conditions, as well as other factors, could result in impairment in future periods. Any impairment losses arising from such testing would be reported in the Consolidated Statements of Income and Comprehensive Income as a separate line item within operations. There were no impairment losses recognized as a result of periodic impairment testing in 2013, 2012 and 2011. | |||||||||||||||||||||||||
Mortgage servicing rights: | |||||||||||||||||||||||||
Mortgage servicing rights are recognized as a separate asset when acquired through sales of loan originations. The Company determines a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value. | |||||||||||||||||||||||||
Restricted equity securities: | |||||||||||||||||||||||||
As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets. | |||||||||||||||||||||||||
Bank owned life insurance: | |||||||||||||||||||||||||
The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by Peoples Bank on certain of its employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies and is included in other assets. Income from increases in cash surrender value of the policies is included in noninterest income. | |||||||||||||||||||||||||
Pension and post-retirement benefit plans: | |||||||||||||||||||||||||
The Company sponsors various pension plans covering substantially all employees. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices. | |||||||||||||||||||||||||
Statements of Cash Flows: | |||||||||||||||||||||||||
The Consolidated Statements of Cash Flows are presented using the indirect method. For purposes of cash flow, cash and cash equivalents include cash on hand, cash items in the process of collection, noninterest-bearing and interest-bearing deposits in other banks and federal funds sold. | |||||||||||||||||||||||||
Fair value of financial instruments: | |||||||||||||||||||||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. | |||||||||||||||||||||||||
In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. | |||||||||||||||||||||||||
Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. | |||||||||||||||||||||||||
In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: | |||||||||||||||||||||||||
• | Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||||||||||
• | Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||||||
• | Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||
The following methods and assumptions were used by the Company to construct the summary table in Note 13 containing the fair values and related carrying amounts of financial instruments: | |||||||||||||||||||||||||
Cash and cash equivalents: The carrying values of cash and cash equivalents as reported on the balance sheet approximate fair value. | |||||||||||||||||||||||||
Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model. | |||||||||||||||||||||||||
Loans held for sale: The fair values of loans held for sale are based upon current delivery prices in the secondary mortgage market. | |||||||||||||||||||||||||
Net loans: For adjustable-rate loans that reprice frequently and with no significant credit risk, fair values are based on carrying values. The fair values of other nonimpaired loans are estimated using discounted cash flow analysis, using interest rates currently offered in the market for loans with similar terms to borrowers of similar credit risk. Fair values for impaired loans are estimated using discounted cash flow analysis determined by the loan review function or underlying collateral values, where applicable. | |||||||||||||||||||||||||
In conjunction with the Merger, the loans purchased were recorded at their acquisition date fair value. In order to record the loans at fair value, management made three different types of fair value adjustments. A market rate adjustment was made to adjust for the movement in market interest rates, irrespective of credit adjustments, compared to the stated rates of the acquired loans. A credit adjustment was made on pools of homogeneous loans representing the changes in credit quality of the underlying borrowers from the loan inception to the acquisition date. The credit adjustment on distressed loans represents the portion of the loan balance that has been deemed uncollectible based on the management’s expectations of future cash flows for each respective loan. | |||||||||||||||||||||||||
Mortgage servicing rights: To determine the fair value, the Company estimates the present value of future cash flows incorporating assumptions such as cost of servicing, discount rates, prepayment speeds and default rates. | |||||||||||||||||||||||||
Accrued interest receivable: The carrying value of accrued interest receivable as reported on the balance sheet approximates fair value. | |||||||||||||||||||||||||
Restricted equity securities: The carrying values of restricted equity securities approximate fair value, due to the lack of marketability for these securities. | |||||||||||||||||||||||||
Deposits: The fair values of noninterest-bearing deposits and savings, NOW and money market accounts are the amounts payable on demand at the reporting date. The fair value estimates do not include the benefit that results from such low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. The carrying values of adjustable-rate, fixed-term time deposits approximate their fair values at the reporting date. For fixed-rate time deposits, the present value of future cash flows is used to estimate fair values. The discount rates used are the current rates offered for time deposits with similar maturities. | |||||||||||||||||||||||||
The fair value assigned to the core deposit intangible asset represents the future economic benefit of the potential cost savings from acquiring core deposits in the Merger compared to the cost of obtaining alternative funding such as brokered deposits from market sources. Management utilized an income valuation approach to present value the estimated future cash savings in order to determine the fair value of the intangible asset. | |||||||||||||||||||||||||
Short-term borrowings: The carrying values of short-term borrowings approximate fair value. | |||||||||||||||||||||||||
Long-term debt: The fair value of fixed-rate long-term debt is based on the present value of future cash flows. The discount rate used is the current rate offered for long-term debt with the same maturity. | |||||||||||||||||||||||||
Accrued interest payable: The carrying value of accrued interest payable as reported on the balance sheet approximates fair value. | |||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||
The majority of commitments to extend credit, unused portions of lines of credit and standby letters of credit carry current market interest rates if converted to loans. Because such commitments are generally unassignable of either the Company or the borrower, they only have value to the Company and the borrower. None of the commitments are subject to undue credit risk. The estimated fair values of off-balance sheet financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of off-balance sheet financial instruments was not material at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Advertising: | |||||||||||||||||||||||||
The Company follows the policy of charging marketing and advertising costs to expense as incurred. Advertising expense for the years ended December 31, 2013, 2012 and 2011 was $350, $287 and $494, respectively. | |||||||||||||||||||||||||
Income taxes: | |||||||||||||||||||||||||
The Company accounts for income taxes in accordance with the income tax accounting guidance set forth in FASB ASC Topic 740, “Income Taxes”. ASC Topic 740 sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. | |||||||||||||||||||||||||
Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2013. | |||||||||||||||||||||||||
As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various states’ jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2010. | |||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
The components of other comprehensive income (loss) and their related tax effects are reported in the Consolidated Statements of Income and Comprehensive Income. The accumulated other comprehensive loss included in the Consolidated Balance Sheets relates to net unrealized gains and losses on investment securities available-for-sale and the unfunded benefit plan amounts which include prior service costs and unrealized net losses. | |||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options, and are determined using the treasury stock method. | |||||||||||||||||||||||||
Stock options for 13,636 shares of common stock were not considered in computing diluted earnings per share for each of the years ended December 31, 2012 and 2011, because they were anti-dilutive. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Year ended December 31 | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Net Income (Numerator) | $ | 5,721 | $ | 5,721 | $ | 10,589 | $ | 10,589 | $ | 10,531 | $ | 10,531 | |||||||||||||
Average common shares outstanding (Denominator) | 4,733,059 | 4,733,059 | 4,467,261 | 4,467,714 | 4,467,261 | 4,467,261 | |||||||||||||||||||
Earnings per share | $ | 1.21 | $ | 1.21 | $ | 2.37 | $ | 2.37 | $ | 2.36 | $ | 2.36 | |||||||||||||
Stock-based compensation: | |||||||||||||||||||||||||
The Company recognizes all share-based payments to employees in the consolidated statement of operations based on their fair values. The fair value of such equity instruments is recognized as an expense in the historical consolidated financial statements as services are performed. The Company uses the Black-Scholes Model to estimate the fair value of each option on the date of grant. The Black-Scholes Model estimates the fair value of employee stock options using a pricing model which takes into consideration the exercise price of the option, the expected life of the option, the current market price and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company typically grants stock options to employees with an exercise price equal to the fair value of the shares at the date of grant. The fair value of restricted stock is equivalent to the fair value on the date of grant and is amortized over the vesting period. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, all stock options were fully vested and there are no unrecognized compensation costs related to stock options. The Company has not granted stock options after 2005. | |||||||||||||||||||||||||
Recent accounting standards: | |||||||||||||||||||||||||
In 2013, the FASB Emerging Issues Task Force (“EITF”) issued EITF Issue No. 13-E, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” A creditor will be considered to have physical possession of residential real estate property that is collateral for a residential mortgage loan and therefore should reclassify the loan to other real estate owned when it obtains legal title to the collateral or it completes a deed in lieu of foreclosure or similar legal agreement. The amendments are effective for all entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of EITF Issue No. 13-E is not expected to have a material effect on the operating results or financial position of the Company. |
Merger_accounting
Merger accounting | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Merger accounting | ' | ||||||||||||
2. Merger accounting: | |||||||||||||
On June 28, 2013, the Company and Penseco announced the execution of an agreement of merger, providing for the merger of Penseco with and into the Company. This merger became effective prior to the start of business on December 1, 2013. Pursuant to the terms of the merger agreement, the merger was effected by the issuance of shares of Peoples stock to Penseco shareholders. Each share of Penseco common stock was converted into the right to receive 1.3636 shares of Peoples common stock, with cash in lieu of fractional shares. The Merger provided an expanded geographic footprint for the Company and increased the size of the balance sheet wherein the combined companies can realize economies of scale and other operating efficiencies. | |||||||||||||
The Merger has been accounted for as a reverse merger using the acquisition method of accounting. For accounting purposes, Penseco is considered to have acquired Peoples in this transaction with the surviving legal entity operating under Peoples articles of incorporation. Immediately following the holding company merger, Penn Security Bank and Trust Company, merged with and into Peoples Neighborhood Bank, the wholly-owned subsidiary of Peoples, under the name Peoples Security Bank and Trust Company. Peoples Bank is, therefore, the wholly owned subsidiary of Peoples and operates under the prior Peoples Neighborhood Bank charter. To determine the accounting treatment of the Merger, management utilized the following facts in concluding that the transaction would be treated as a reverse merger, with Penseco as the accounting acquirer: | |||||||||||||
• | The role of Chief Executive Officer of the post-combination entity has been assumed by the executive officer of Penseco; | ||||||||||||
• | Upon the effective date of the Merger, the Peoples Board of Directors consists of fourteen members, of which six of the members have been appointed from the historical Peoples Board of Directors with the remaining eight directors having been appointed from the Penseco Board of Directors; | ||||||||||||
• | After the closing of the Merger and as a result of the fixed share exchange ratio of 1.3636 shares of Peoples common stock for each Penseco common share, the former Penseco shareholders, as a group, held approximately 59.1 percent of the outstanding shares of Peoples stock; | ||||||||||||
• | Penseco contributed greater than fifty percent of the total assets and tangible equity to the combined entity. | ||||||||||||
As a result of accounting for the Merger as a reverse acquisition, People’s assets and liabilities have been incorporated into Penseco’s historical balance sheet based on the fair values of the net assets acquired as of the closing date, November 30, 2013. Prior to the Merger the balance sheets, statements of income and comprehensive income, and statements of cash flows reflect only the operations of Penseco. Following the Merger, the statements of operations reflect the operations of both Penseco and Peoples. The number of shares issued and outstanding, additional paid-in capital and all references to share quantities of the Company in these notes have been retroactively adjusted to reflect the equivalent number of shares issued by the Company in the Merger. | |||||||||||||
In a reverse acquisition, the accounting acquirer usually issues no consideration for the acquired entity. Rather, the accounting acquiree issues its equity shares to the owners of the accounting acquirer. Accordingly, the acquisition-date fair value of the consideration transferred by Penseco for its interest in Peoples is based on the number of equity interests Penseco would have to issue, measured on the transaction closing date, to give the owners of Peoples the same percentage equity interest in the combined Peoples entity that results from the reverse acquisition. The Company has utilized the closing price of Peoples’s common stock on November 29, 2013, the last trading day prior to the merger, of $34.50 per share to determine the acquisition date fair value of the consideration transferred. Immediately prior to the merger, Peoples owned 9,928 shares of Penseco which were retired on the acquisition date. The table below illustrates the calculation of the consideration effectively transferred. | |||||||||||||
Penseco shares outstanding at November 30, 2013(A) | 3,275,217 | ||||||||||||
Exchange ratio | 1.3636 | ||||||||||||
Peoples shares issued to Penseco shareholders(B) | 4,465,538 | ||||||||||||
Peoples shares outstanding at November 30, 2013 | 3,087,406 | ||||||||||||
Total Peoples shares outstanding at November 30, 2013 | 7,552,944 | ||||||||||||
Penseco % ownership | 59.12 | % | |||||||||||
Peoples % ownership | 40.88 | % | |||||||||||
Theoretical Penseco share to be issued as consideration | |||||||||||||
Penseco shares outstanding at November 30, 2013(A) | 3,275,217 | ||||||||||||
Ownership % held by Penseco shareholders | 59.12 | % | |||||||||||
Theoretical Penseco shares after consideration paid | 5,539,653 | ||||||||||||
Ownership % by legacy Peoples shareholders | 40.88 | % | |||||||||||
Theoretical Penseco shares issued as consideration | 2,264,436 | ||||||||||||
Fair value of Penseco shares at November 30, 2013 ($34.50 multiplied by 1.3636) | $ | 47.04 | |||||||||||
Fair value of theoretical Penseco shares offered | $ | 106,519 | |||||||||||
Cash paid for fractional shares | 17 | ||||||||||||
$ | 106,536 | ||||||||||||
(A) | Excludes 9,928 shares of Penseco common shares owned by Peoples which were retired. | ||||||||||||
(B) | Excludes payment for fractional shares. | ||||||||||||
The acquired assets and assumed liabilities were measured at fair value as of the acquisition date. In many cases, determining the fair value of the acquired assets and assumed liabilities required the Company to estimate cash flows expected to result from those assets and liabilities and to discount those cash flows at appropriate rates of interest, which required the utilization of significant estimates and judgment in accounting for the acquisition. As of November 30, 2013, goodwill totaled $36,972, which is equal to the excess of the consideration transferred over the fair value of the identifiable net assets acquired in connection with the Merger. Goodwill recorded in the Merger resulted from the expected synergies of the combined operations of the newly merged entities as well as intangibles that do not qualify for separate recognition such as the acquired workforce. There is no tax deductible goodwill in the transaction. While the Company believes that the accounting for the merger is complete, FASB ASC 805 does allow for adjustments to goodwill for a period of up to one year following the acquisition date should new information come to light that reflects circumstances that existed at the acquisition date. | |||||||||||||
Total Purchase Price | $ | 106,536 | |||||||||||
Net Assets Acquired: | |||||||||||||
Cash and due from banks | $ | 6,982 | |||||||||||
Federal funds sold | 15,410 | ||||||||||||
Investment securities available-for-sale | 156,435 | ||||||||||||
Restricted equity securities | 997 | ||||||||||||
Loans, net | 504,002 | ||||||||||||
Accrued interest receivable | 3,625 | ||||||||||||
Premises and equipment | 11,737 | ||||||||||||
Core deposit and other intangible assets | 6,323 | ||||||||||||
Other assets | 18,647 | ||||||||||||
Deposits | (628,304 | ) | |||||||||||
Short-term borrowings | (17,737 | ) | |||||||||||
Long-term debt | (2,516 | ) | |||||||||||
Accrued interest payable | (473 | ) | |||||||||||
Other liabilities | (5,976 | ) | |||||||||||
Net assets acquired | 69,152 | ||||||||||||
Treasury stock acquired | 412 | ||||||||||||
Goodwill resulting from merger | $ | 36,972 | |||||||||||
The estimated fair values of cash and due from banks, federal funds sold, other assets and other liabilities approximate their stated value. | |||||||||||||
The estimated fair values of the investment securities available for sale were calculated primarily using level 2 inputs. The prices for these instruments are obtained through an independent pricing service and are derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviewed the data and assumptions used in pricing the securities to ensure the highest level of significant inputs are derived from market observable data. | |||||||||||||
Land and buildings, included in premises and equipment, net, and real estate acquired through foreclosure, included in other assets, were primarily valued based on appraised collateral values. | |||||||||||||
The most significant fair value determination related to the valuation of acquired loans. Management measured loan fair values based on loan file reviews including borrower financial statements or tax returns, appraised collateral values, expected cash flows and historical loss factors. The business combination resulted in the acquisition of loans with and without evidence of credit quality deterioration. | |||||||||||||
Peoples Bank’s loans without evidence of credit deterioration were assembled into groupings by characteristics such as loan type, term, collateral and rate and fair valued by discounting both expected principal and interest cash flows using an observable discount rate for similar instruments that a market participant would consider in determining fair value. The discount rate utilized was the average of market rates for similar loans obtained from various external data sources. Additionally, consideration was given to management’s best estimates of default rates and payment speeds in projecting the expected cash flows. A general credit risk fair value adjustment was calculated using a two part general credit fair value analysis: (1) expected lifetime losses, using an average of historical losses of the Company, Penseco and peer banks; and (2) an estimated fair value adjustment for qualitative factors related to general economic conditions and the risk related to lack of familiarity with the originator’s underwriting process. At acquisition, Peoples Bank’s loan portfolio without evidence of credit deterioration was recorded at a current fair value of $496,650. | |||||||||||||
Peoples’ loans were deemed impaired at the acquisition date if the Company did not expect to receive all contractually required cash flows due to concerns about credit quality. Such loans were fair valued by discounting the expected cash flows at acquisition by an observable discount rate for similar instruments that a market participant would consider in determining fair value. The difference between contractually required payments at the acquisition date and cash flows expected to be collected was recorded as a nonaccretable difference. | |||||||||||||
The following is a summary of the acquired nonimpaired and impaired loans from the merger with Peoples: | |||||||||||||
Acquired | Acquired | ||||||||||||
Nonimpaired | Impaired | ||||||||||||
Loans | Loans | ||||||||||||
Contractually required principal and interest at acquisition | $ | 501,423 | $ | 19,353 | |||||||||
Contractual cash flows not expected to be collected (nonaccretable discount) | (10,873 | ) | |||||||||||
Expected cash flows at acquisition | 501,423 | 8,480 | |||||||||||
Interest component of expected cash flows (accretable discount) | (4,773 | ) | (1,128 | ) | |||||||||
Fair value of acquired loans | $ | 496,650 | $ | 7,352 | |||||||||
The Company recorded a core deposit intangible asset related to a value ascribed to demand, interest checking, money market and savings account, referred to as core deposits, acquired as part of the acquisition. The value assigned to the acquired core deposits represents the future economic benefit of the potential cost savings from acquiring the core deposits, net of operating expenses and including ancillary fee income, compared to the cost of obtaining alternative funds from available market sources. Management used estimates including the expected attrition rates of depository accounts, future interest rate levels, and the cost of servicing various depository products. The Company also recorded a trade name intangible asset using relief from royalty method. The value assigned to the trade name represents the present value of the potential cost savings of paying a royalty for the use of a trade name. Both the core deposit intangible and trade name intangible are being amortized over an estimated useful life of 10 years. | |||||||||||||
Time deposits are not considered to be core deposits as they are assumed to have a low expected average life upon acquisition. The fair value of time deposits was calculated as the present value of the certificates’ expected contractual payments discounted by market rates for similar time deposits. | |||||||||||||
The Company recorded the fair value of borrowings based on prepayment amounts obtained from the Federal Home Loan Bank. | |||||||||||||
In connection with the acquisition, Peoples incurred merger-related expenses in regards to personnel, professional fees, occupancy and equipment and other costs of integrating and conforming acquired operations. Those expenses consisted largely of costs related to professional and consulting services, employment severance and early retirement charges, termination of Penseco’s core system contractual agreement and conversion of systems and/or integration of operations, initial communication expenses, printing and filing costs of completing the transaction and investment banking charges. | |||||||||||||
A summary of merger related costs included in the consolidated statements of income for the year ended December 31, 2013 is summarized as follows: | |||||||||||||
December 31, | 2013 | ||||||||||||
Accounting | $ | 65 | |||||||||||
Legal and consulting | 1,011 | ||||||||||||
Salaries and benefits | 1,851 | ||||||||||||
Equipment disposition and contract termination | 709 | ||||||||||||
System conversion/deconversion costs | 956 | ||||||||||||
Other | 17 | ||||||||||||
Total | $ | 4,609 | |||||||||||
There were no merger related costs incurred for the years ended December 31, 2012 and 2011. | |||||||||||||
Pro Forma Condensed Combined Financial Information: | |||||||||||||
The following table presents unaudited pro forma information as if the merger between Peoples and Penseco had been completed on January 1, 2011. The pro forma information does not necessarily reflect the results of operations that would have occurred had the Company merged with Penseco at the beginning of 2011. Supplemental pro forma earnings for 2013 were adjusted to exclude $4,609 of merger related costs incurred for the year ended December 31 2013. The results for 2011 were adjusted to include these charges. The expected future amortizations of the various fair value adjustments were included beginning in 2011. Cost savings are not reflected in the unaudited pro forma amounts for the periods presented. The pro forma financial information does not include the impact of possible business model changes, nor does it consider any potential impacts of current market conditions on revenues, expense efficiencies, or other factors. | |||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Net interest income after loan loss provision | $ | 52,734 | $ | 52,917 | $ | 51,312 | |||||||
Noninterest income | 16,080 | 16,287 | 18,186 | ||||||||||
Noninterest expense | 52,295 | 49,827 | 56,319 | ||||||||||
Net income | $ | 16,519 | $ | 19,377 | $ | 13,179 | |||||||
Net income per share | $ | 2.19 | $ | 2.55 | $ | 1.73 | |||||||
The amounts of net interest income after loan loss provision, noninterest income, noninterest expense and net income attributable to Peoples since the acquisition date included in the consolidated statement of income for the year ended December 31, 2013 were $2,248, $363, $3,115, and $(261), respectively. |
Cash_and_due_from_banks
Cash and due from banks | 12 Months Ended |
Dec. 31, 2013 | |
Cash And Cash Equivalents [Abstract] | ' |
Cash and due from banks | ' |
3. Cash and due from banks: | |
The Federal Reserve Act, as amended, imposes reserve requirements on all depository institutions. The Company’s required reserve balances, which were satisfied through the restriction of vault cash, were $6,921 and $777 at December 31, 2013 and 2012, respectively. |
Investment_securities
Investment securities | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Investments Debt And Equity Securities [Abstract] | ' | ||||||||||||||||||||||||
Investment securities | ' | ||||||||||||||||||||||||
4. Investment securities: | |||||||||||||||||||||||||
The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agencies | $ | 207 | $ | 3 | $ | 204 | |||||||||||||||||||
U.S. Government-sponsored enterprises | 113,221 | $ | 296 | 472 | 113,045 | ||||||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | 16,664 | 160 | 126 | 16,698 | |||||||||||||||||||||
Tax-exempt | 96,194 | 2,267 | 380 | 98,081 | |||||||||||||||||||||
Corporate debt securities | 4,433 | 32 | 78 | 4,387 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 20,179 | 113 | 63 | 20,229 | |||||||||||||||||||||
U.S. Government-sponsored enterprises | 45,251 | 763 | 40 | 45,974 | |||||||||||||||||||||
Common equity securities | 756 | 351 | 10 | 1,097 | |||||||||||||||||||||
Total | $ | 296,905 | $ | 3,982 | $ | 1,172 | $ | 299,715 | |||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | |||||||||||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | $ | 7,372 | $ | 11 | $ | 777 | $ | 6,606 | |||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 117 | 2 | 119 | ||||||||||||||||||||||
U.S. Government-sponsored enterprises | 9,806 | 644 | 10,450 | ||||||||||||||||||||||
Common equity securities | |||||||||||||||||||||||||
Total | $ | 17,295 | $ | 657 | $ | 777 | $ | 17,175 | |||||||||||||||||
December 31, 2012 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | $ | 83,927 | $ | 757 | $ | 2 | $ | 84,682 | |||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | 53,846 | 4,991 | 58,837 | ||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | 15,962 | 839 | 16,801 | ||||||||||||||||||||||
Common equity securities | 801 | 281 | 11 | 1,071 | |||||||||||||||||||||
Total | $ | 154,536 | $ | 6,868 | $ | 13 | $ | 161,391 | |||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | |||||||||||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | $ | 1,083 | $ | 16 | $ | 1,099 | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 136 | 4 | 140 | ||||||||||||||||||||||
U.S. Government-sponsored enterprises | 14,683 | 852 | 15,535 | ||||||||||||||||||||||
Common equity securities | |||||||||||||||||||||||||
Total | $ | 15,902 | $ | 872 | $ | 16,774 | |||||||||||||||||||
The Company had net unrealized gains of $1,826, net of deferred income taxes of $984 at December 31, 2013, and $4,524, net of deferred income taxes of $2,331, at December 31, 2012. Proceeds from the sale of investment securities available-for-sale amounted to $4,573 in 2013, $5,821 in 2012 and $15,318 in 2011. Gross gains of $163, $317 and $666 were realized on the sale of securities in 2013, 2012 and 2011, respectively. There were no gross losses realized on the sale of securities in 2013, 2012 and 2011, respectively. The income tax provision applicable to net realized gains amounted to $55, $108 and $226 in 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at December 31, 2013, is summarized as follows: | |||||||||||||||||||||||||
December 31, 2013 | Fair | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Within one year | $ | 22,544 | |||||||||||||||||||||||
After one but within five years | 104,683 | ||||||||||||||||||||||||
After five but within ten years | 29,066 | ||||||||||||||||||||||||
After ten years | 76,122 | ||||||||||||||||||||||||
232,415 | |||||||||||||||||||||||||
Mortgage-backed securities | 66,203 | ||||||||||||||||||||||||
Total | $ | 298,618 | |||||||||||||||||||||||
The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at December 31, 2013, is summarized as follows: | |||||||||||||||||||||||||
December 31, 2013 | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | |||||||||||||||||||||||||
After one but within five years | $ | 157 | $ | 160 | |||||||||||||||||||||
After five but within ten years | 342 | 350 | |||||||||||||||||||||||
After ten years | 6,873 | 6,096 | |||||||||||||||||||||||
7,372 | 6,606 | ||||||||||||||||||||||||
Mortgage-backed securities | 9,923 | 10,569 | |||||||||||||||||||||||
Total | $ | 17,295 | $ | 17,175 | |||||||||||||||||||||
Securities with a carrying value of $202,407 and $150,620 at December 31, 2013 and 2012, respectively, were pledged to secure public deposits and repurchase agreements as required or permitted by law. | |||||||||||||||||||||||||
Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At December 31, 2013 and 2012, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. Government agencies and sponsored enterprises that exceeded 10.0 percent of stockholders’ equity. | |||||||||||||||||||||||||
The fair value and gross unrealized losses of investment securities with unrealized losses for which an OTTI has not been recognized at December 31, 2013 and 2012, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
December 31, 2013 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Government agencies | $ | 204 | $ | 3 | $ | 204 | $ | 3 | |||||||||||||||||
U.S. Government-sponsored enterprises | 66,391 | 468 | $ | 3,114 | $ | 4 | 69,505 | 472 | |||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | 10,621 | 126 | 10,621 | 126 | |||||||||||||||||||||
Tax-exempt | 36,471 | 1,157 | 36,471 | 1,157 | |||||||||||||||||||||
Corporate debt securities | 1,095 | 78 | 1,095 | 78 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 12,774 | 63 | 12,774 | 63 | |||||||||||||||||||||
U.S. Government-sponsored enterprises | 5,624 | 40 | 5,624 | 40 | |||||||||||||||||||||
Common equity securities | 137 | 10 | 137 | 10 | |||||||||||||||||||||
Total | $ | 133,317 | $ | 1,945 | $ | 3,114 | $ | 4 | $ | 136,431 | $ | 1,949 | |||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | $ | 3,169 | $ | 2 | $ | 3,169 | $ | 2 | |||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | |||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | |||||||||||||||||||||||||
Common equity securities | 141 | 9 | $ | 48 | $ | 2 | 189 | 11 | |||||||||||||||||
Total | $ | 3,310 | $ | 11 | $ | 48 | $ | 2 | $ | 3,358 | $ | 13 | |||||||||||||
The Company had 153 investment securities, consisting of 79 tax-exempt state and municipal obligations, 16 taxable state and municipal obligations, 39 U.S. Government-sponsored enterprise securities, 15 mortgage-backed securities, one corporate debt security, one U.S. Government agency and two common equity securities that were in unrealized loss positions at December 31, 2013. Of these securities, one U.S. Government-sponsored enterprise security was in continuous unrealized loss positions for 12 months or more. The unrealized losses on the common equity securities were a direct reflection of reductions from historical levels in stock values in the financial industry sector, as a whole, and was not a result of credit or other issues that would cause the Company to realize an OTTI charge. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at December 31, 2013. There was no OTTI recognized for the year ended December 31, 2013. | |||||||||||||||||||||||||
The Company had 5 investment securities, consisting of one U.S. Government-sponsored enterprise security and four common equity securities that were in unrealized loss positions at December 31, 2012. Of these securities, one common equity security was in continuous unrealized loss positions for 12 months or more. There was no OTTI recognized for the year ended December 31, 2012. | |||||||||||||||||||||||||
OTTI of $78 was recognized for the year ended December 31, 2011. The impairment was the result of writing down certain common equity securities based on quoted market prices. In reaching the determination to record the impairment, management reviewed the facts and circumstances available surrounding the securities, including the duration and amount of the unrealized loss, the financial condition of the issuers and the prospects for a change in market value within a reasonable period of time. Based on its assessment, management determined that the impairments were other-than-temporary and that a charge to operating results was appropriate for the securities. The charges were recognized based entirely on the assessment of the credit quality deterioration of the underlying companies. |
Loans_net_and_allowance_for_lo
Loans, net and allowance for loan losses | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Loans, net and allowance for loan losses | ' | ||||||||||||||||||||||||||||
5. Loans, net and allowance for loan losses: | |||||||||||||||||||||||||||||
The major classifications of loans outstanding, net of deferred loan origination fees and costs at December 31, 2013 and 2012 are summarized as follows. Net deferred loan costs were $24 December 31, 2013. | |||||||||||||||||||||||||||||
December 31 | 2013 | 2012 | |||||||||||||||||||||||||||
Commercial | $ | 350,680 | $ | 91,724 | |||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 413,058 | 217,496 | |||||||||||||||||||||||||||
Residential | 322,062 | 261,912 | |||||||||||||||||||||||||||
Consumer | 90,817 | 52,398 | |||||||||||||||||||||||||||
Total | $ | 1,176,617 | $ | 623,530 | |||||||||||||||||||||||||
Loans outstanding to directors, executive officers, principal stockholders or to their affiliates totaled $15,513 and $14,205 at December 31, 2013 and 2012, respectively. Advances and repayments during 2013 totaled $12,429 and $13,737 respectively. These loans are made during the ordinary course of business at the Company’s normal credit terms. There were no related party loans that were classified as nonaccrual, past due, or restructured or considered a potential credit risk at December 31, 2013 and 2012. | |||||||||||||||||||||||||||||
At December 31, 2013, the majority of the Company’s loans were at least partially secured by real estate in Northeastern Pennsylvania. Therefore, a primary concentration of credit risk is directly related to the real estate market in this area. Changes in the general economy, local economy or in the real estate market could affect the ultimate collectability of this portion of the loan portfolio. Management does not believe there are any other significant concentrations of credit risk that could affect the loan portfolio. | |||||||||||||||||||||||||||||
The changes in the allowance for loan losses account by major classification of loan for the year ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
December 31, 2013 | Commercial | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 799 | $ | 2,304 | $ | 2,981 | $ | 866 | $ | 6,950 | |||||||||||||||||||
Charge-offs | (5 | ) | (15 | ) | (508 | ) | (313 | ) | (841 | ) | |||||||||||||||||||
Recoveries | 1 | 20 | 111 | 49 | 181 | ||||||||||||||||||||||||
Provisions | 1,213 | 85 | 551 | 512 | 2,361 | ||||||||||||||||||||||||
Ending balance | $ | 2,008 | $ | 2,394 | $ | 3,135 | $ | 1,114 | $ | 8,651 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 1,500 | 300 | 224 | 2,024 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 508 | 2,094 | 2,911 | 1,114 | 6,627 | ||||||||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | $ | 350,680 | $ | 413,058 | $ | 322,062 | $ | 90,817 | $ | 1,176,617 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 5,209 | 5,317 | 3,658 | 90 | 14,274 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 342,719 | 403,560 | 317,946 | $ | 90,727 | 1,154,952 | |||||||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 2,752 | $ | 4,181 | $ | 458 | $ | 7,391 | |||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
December 31, 2012 | Commercial | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 793 | $ | 2,294 | $ | 2,855 | $ | 769 | $ | 6,711 | |||||||||||||||||||
Charge-offs | (78 | ) | (33 | ) | (431 | ) | (275 | ) | (817 | ) | |||||||||||||||||||
Recoveries | 1 | 6 | 67 | 58 | 132 | ||||||||||||||||||||||||
Provisions | 83 | 37 | 490 | 314 | 924 | ||||||||||||||||||||||||
Ending balance | $ | 799 | $ | 2,304 | $ | 2,981 | $ | 866 | $ | 6,950 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 351 | 550 | 325 | 1,226 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 448 | $ | 1,754 | $ | 2,656 | $ | 866 | $ | 5,724 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | $ | 91,724 | $ | 217,496 | $ | 261,912 | $ | 52,398 | $ | 623,530 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 655 | 2,160 | 2,425 | 31 | 5,271 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 91,069 | $ | 215,336 | $ | 259,487 | $ | 52,367 | $ | 618,259 | |||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
December 31, 2011 | Commercial | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,957 | $ | 2,067 | $ | 753 | $ | 1,723 | $ | 6,500 | |||||||||||||||||||
Charge-offs | (100 | ) | (663 | ) | (1,275 | ) | (262 | ) | (2,300 | ) | |||||||||||||||||||
Recoveries | 3 | 18 | 58 | 51 | 130 | ||||||||||||||||||||||||
Provisions | (1,067 | ) | 872 | 3,319 | (743 | ) | 2,381 | ||||||||||||||||||||||
Ending balance | $ | 793 | $ | 2,294 | $ | 2,855 | $ | 769 | $ | 6,711 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 443 | 215 | 658 | ||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 350 | $ | 2,294 | $ | 2,640 | $ | 769 | $ | 6,053 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | $ | 88,188 | $ | 208,875 | $ | 281,643 | $ | 52,816 | $ | 631,522 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 845 | 591 | 2,006 | 92 | 3,534 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 87,343 | $ | 208,284 | $ | 279,637 | $ | 52,724 | $ | 627,988 | |||||||||||||||||||
The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
December 31, 2013: | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
Commercial | $ | 332,257 | $ | 7,025 | $ | 11,398 | $ | 350,680 | |||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 386,825 | 10,701 | 15,532 | 413,058 | |||||||||||||||||||||||||
Residential | 314,544 | 861 | 6,657 | 322,062 | |||||||||||||||||||||||||
Consumer | 90,718 | 9 | 90 | 90,817 | |||||||||||||||||||||||||
Total | $ | 1,124,344 | $ | 18,596 | $ | 33,677 | $ | 1,176,617 | |||||||||||||||||||||
December 31, 2012: | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
Commercial | $ | 90,128 | $ | 876 | $ | 720 | $ | 91,724 | |||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 204,513 | 6,440 | 6,543 | 217,496 | |||||||||||||||||||||||||
Residential | 259,869 | 2,043 | 261,912 | ||||||||||||||||||||||||||
Consumer | 52,153 | 245 | 52,398 | ||||||||||||||||||||||||||
Total | $ | 606,663 | $ | 7,316 | $ | 9,551 | $ | 623,530 | |||||||||||||||||||||
Information concerning nonaccrual loans by major loan classification at December 31, 2013 and 2012 is summarized as follows: | |||||||||||||||||||||||||||||
December 31, | 2013 | 2012 | |||||||||||||||||||||||||||
Commercial | $ | 4,038 | $ | 304 | |||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 4,503 | 145 | |||||||||||||||||||||||||||
Residential | 3,535 | 1,800 | |||||||||||||||||||||||||||
Consumer | 90 | 31 | |||||||||||||||||||||||||||
Total | $ | 12,166 | $ | 2,280 | |||||||||||||||||||||||||
The major classification of loans by past due status are summarized as follows: | |||||||||||||||||||||||||||||
December 31, 2013 | 30-59 Days | 60-89 Days | Greater | Total Past | Current | Total | Loans > 90 | ||||||||||||||||||||||
Past Due | Past Due | than 90 | Due | Loans | Days and | ||||||||||||||||||||||||
Days | Accruing | ||||||||||||||||||||||||||||
Commercial | $ | 1,052 | $ | 105 | $ | 4,044 | $ | 5,201 | $ | 345,479 | $ | 350,680 | $ | 6 | |||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 1,641 | 75 | 4,703 | 6,419 | 406,639 | 413,058 | 200 | ||||||||||||||||||||||
Residential | 3,676 | 985 | 4,213 | 8,874 | 313,188 | 322,062 | 678 | ||||||||||||||||||||||
Consumer | 798 | 313 | 661 | 1,772 | 89,045 | 90,817 | 571 | ||||||||||||||||||||||
Total | $ | 7,167 | $ | 1,478 | $ | 13,621 | $ | 22,266 | $ | 1,154,351 | $ | 1,176,617 | $ | 1,455 | |||||||||||||||
December 31, 2012 | 30-59 Days | 60-89 Days | Greater | Total Past | Current | Total | Loans > 90 | ||||||||||||||||||||||
Past Due | Past Due | than 90 | Due | Loans | Days and | ||||||||||||||||||||||||
Days | Accruing | ||||||||||||||||||||||||||||
Commercial | $ | 23 | $ | 49 | $ | 304 | $ | 376 | $ | 91,348 | $ | 91,724 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 1,448 | 200 | 145 | 1,793 | 215,703 | 217,496 | |||||||||||||||||||||||
Residential | 2,680 | 1,198 | 2,043 | 5,921 | 255,991 | 261,912 | $ | 243 | |||||||||||||||||||||
Consumer | 498 | 270 | 245 | 1,013 | 51,385 | 52,398 | 214 | ||||||||||||||||||||||
Total | $ | 4,649 | $ | 1,717 | $ | 2,737 | $ | 9,103 | $ | 614,427 | $ | 623,530 | $ | 457 | |||||||||||||||
The following tables summarize information concerning impaired loans at December 31, 2013, 2012 and 2011 by major loan classification: | |||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||
December 31, 2013 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 3,009 | $ | 7,506 | $ | 3,855 | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 3,923 | 6,777 | 3,522 | ||||||||||||||||||||||||||
Residential | 2,874 | 3,308 | 2,484 | ||||||||||||||||||||||||||
Consumer | 90 | 90 | 95 | ||||||||||||||||||||||||||
Total | 9,896 | 17,681 | 9,956 | ||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial | 2,200 | 2,200 | $ | 1,500 | 2,182 | $ | 95 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 1,394 | 1,394 | 300 | 1,409 | 76 | ||||||||||||||||||||||||
Residential | 784 | 784 | 224 | 672 | 13 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Total | 4,378 | 4,378 | 2,024 | 4,263 | 184 | ||||||||||||||||||||||||
Commercial | 5,209 | 9,706 | 1,500 | 6,037 | 95 | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 5,317 | 8,171 | 300 | 4,931 | 76 | ||||||||||||||||||||||||
Residential | 3,658 | 4,092 | 224 | 3,156 | 13 | ||||||||||||||||||||||||
Consumer | 90 | 90 | 95 | ||||||||||||||||||||||||||
Total | $ | 14,274 | $ | 22,059 | $ | 2,024 | $ | 14,219 | $ | 184 | |||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||
December 31, 2012 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 304 | $ | 304 | $ | 152 | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 145 | 145 | 201 | ||||||||||||||||||||||||||
Residential | 928 | 928 | 1,152 | ||||||||||||||||||||||||||
Consumer | 31 | 31 | 68 | ||||||||||||||||||||||||||
Total | 1,408 | 1,408 | 1,573 | ||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial | 351 | 351 | $ | 351 | 351 | $ | 17 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 2,015 | 2,015 | 550 | 2,104 | 114 | ||||||||||||||||||||||||
Residential | 1,497 | 1,497 | 325 | 1,040 | 44 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Total | 3,863 | 3,863 | 1,226 | 3,495 | 175 | ||||||||||||||||||||||||
Commercial | 655 | 655 | 351 | 503 | 17 | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 2,160 | 2,160 | 550 | 2,305 | 114 | ||||||||||||||||||||||||
Residential | 2,425 | 2,425 | 325 | 2,192 | 44 | ||||||||||||||||||||||||
Consumer | 31 | 31 | 68 | ||||||||||||||||||||||||||
Total | $ | 5,271 | $ | 5,271 | $ | 1,226 | $ | 5,068 | $ | 175 | |||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||
December 31, 2011 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | $ | 591 | $ | 591 | $ | 390 | |||||||||||||||||||||||
Residential | 806 | 806 | 1,081 | ||||||||||||||||||||||||||
Consumer | 92 | 92 | 107 | ||||||||||||||||||||||||||
Total | 1,489 | 1,489 | 1,578 | ||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial | 845 | 845 | $ | 443 | 1,000 | $ | 28 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Residential | 1,200 | 1,200 | 215 | 1,057 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Total | 2,045 | 2,045 | 658 | 2,057 | 28 | ||||||||||||||||||||||||
Commercial | 845 | 845 | 443 | 1,000 | 28 | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 591 | 591 | 390 | ||||||||||||||||||||||||||
Residential | 2,006 | 2,006 | 215 | 2,138 | |||||||||||||||||||||||||
Consumer | 92 | 92 | 107 | ||||||||||||||||||||||||||
Total | $ | 3,534 | $ | 3,534 | $ | 658 | $ | 3,635 | $ | 28 | |||||||||||||||||||
There were no amounts of interest income recognized using the cash-basis method on impaired loans for the years ended December 31, 2013, 2012 and 2011. | |||||||||||||||||||||||||||||
As a part of the Merger, an adjustment was made to reflect the elimination of the allowance for loan losses related to the Peoples Bank loan portfolio, as required by purchase accounting standards. As a result, the acquired loan portfolio was evaluated based on risk characteristics and other credit and market criteria to determine a credit quality adjustment to the fair value of the loan acquired. The acquired loan balance was reduced by the aggregate amount of the credit quality adjustment in determining the fair value of the loans. The credit quality adjustment does not account for acquired loans deemed to be impaired in accordance with Accounting Standard Codification 310-30-30, previously known as Statement of Position (SOP) 03-3, “Accounting for Certain Loans Acquired in a Transfer.” These impaired loans are accounted for in the credit adjustment on distressed loans, which represents the portion of the loan balance that has been deemed uncollectible based on the management’s expectations of future cash flows for each respective loan. Based on management’s evaluation of the acquired loan portfolio, 29 loans were deemed impaired resulting in a credit adjustment on distressed loans of $7,826. As of December 31, 2013, there were a total of 29 loans remaining with a credit adjustment of distressed loans of $7,787. | |||||||||||||||||||||||||||||
At December 31, 2013, the Company had total impaired loans of $14,274. The impaired loan balance includes $7,391 of impaired loans acquired as part of the merger net of a remaining fair value adjustment of $7,787. Management performed an evaluation of expected future cash flows, including the anticipated cash flow from the sale of collateral, and compared that to the carrying amount of the impaired loans. Based on these evaluations, the Company has determined that no additional reserve was required against the impaired loans at December 31, 2013. | |||||||||||||||||||||||||||||
The changes in the accretible yield and nonaccretible difference of acquired loans accounted for under ASC310 for the years ended December 31, 2013, 2012 and 2011, were as follows: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Year ended December 31 | Accretible | Nonaccretible | Accretible | Nonaccretible | Accretible | Nonaccretible | |||||||||||||||||||||||
Beginning Balance, January 1 | $ | $ | $ | $ | 211 | $ | $ | 229 | |||||||||||||||||||||
Additions | 934 | 6,892 | |||||||||||||||||||||||||||
Amortization | (39 | ) | |||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||
Payments | (211 | ) | (18 | ) | |||||||||||||||||||||||||
Ending Balance | $ | 895 | $ | 6,892 | $ | $ | $ | $ | 211 | ||||||||||||||||||||
Included in the commercial loan and commercial real estate categories are troubled debt restructurings that were classified as impaired. Trouble debt restructurings totaled $2,487, $351 and $368 at December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||||||
There were no payment defaults within the previous 12 months on loans considered troubled debt restructurings for the years ended December 31, 2013, 2012 and 2011. There were no charge-offs as a result of the troubled debt restructurings and the impact on interest income was minimal for the three years ended December 31, 2013. There were no loans modified as troubled debt restructurings for the years ended December 31, 2013 and 2012. |
Offbalance_sheet_financial_ins
Off-balance sheet financial instruments | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Off-balance sheet financial instruments | ' | ||||||||
6. Off-balance sheet financial instruments: | |||||||||
The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, unused portions of lines of credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated balance sheets. | |||||||||
The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit, unused portions of lines of credit and standby letters of credit is represented by the contractual amounts of those instruments. The Company follows the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. | |||||||||
The contractual amounts of off-balance sheet commitments at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Commitments to extend credit | $ | 221,138 | $ | 128,540 | |||||
Unused portions of lines of credit | 52,257 | 46,377 | |||||||
Standby letters of credit | 29,914 | 14,440 | |||||||
$ | 303,309 | $ | 189,357 | ||||||
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. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include personal or commercial real estate, accounts receivable, inventory and equipment. | |||||||||
Unused portions of lines of credit, including home equity and overdraft protection agreements, are commitments for possible future extensions of credit to existing customers. Unused portions of home equity lines are collateralized and generally have fixed expiration dates. Overdraft protection agreements are uncollateralized and usually do not carry specific maturity dates. Unused portions of lines of credit ultimately may not be drawn upon to the total extent to which the Company is committed. | |||||||||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Essentially, all standby letters of credit expire within twelve months. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending other loan commitments. The Company requires collateral supporting these standby letters of credit as deemed necessary. Collateral supporting standby letters of credit amounted to $25,756 at December 31, 2013, and $11,522 at December 31, 2012. The carrying value of the liability for the Company’s obligations under guarantees for standby letters of credit was not material at December 31, 2013 and 2012. |
Premises_and_equipment_net
Premises and equipment, net | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Premises and equipment, net | ' | ||||||||
7. Premises and equipment, net: | |||||||||
Premises and equipment at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Land | $ | 5,309 | $ | 4,503 | |||||
Premises and leasehold improvements | 34,177 | 20,863 | |||||||
Furniture, fixtures and equipment | 22,975 | 17,806 | |||||||
62,461 | 43,172 | ||||||||
Less: accumulated depreciation | 36,342 | 28,035 | |||||||
$ | 26,119 | $ | 15,137 | ||||||
Depreciation and amortization included to noninterest expense amounted to $924, $855 and $1,050 in 2013, 2012 and 2011, respectively. | |||||||||
Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2013, pertaining to banking premises and equipment, future minimum annual rent commitments under various operating leases are summarized as follows: | |||||||||
2014 | $ | 275 | |||||||
2015 | 262 | ||||||||
2016 | 214 | ||||||||
2017 | 158 | ||||||||
2018 | 68 | ||||||||
Thereafter | 455 | ||||||||
$ | 1,432 | ||||||||
The leases contain options to extend for periods from one to ten years. The cost of such options is not included in the annual rental commitments. Rent expense for the years ended December 31, 2013, 2012 and 2011 amounted to $216, $103 and $98, respectively. |
Intangible_assets_net
Intangible assets, net | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Intangible assets, net | ' | ||||
8. Intangible assets, net: | |||||
The gross carrying amount of core deposit intangible assets totaled $8,150 at December 31, 2013 and $2,027 at December 31, 2012. The gross carrying amount of trade name intangible assets totaled $200 at December 31, 2013. The accumulated amortization on core deposit intangible assets was $1,512 and $1,189 at December 31, 2013 and 2012, respectively. The accumulated amortization on trade name intangible assets was $3 at December 31, 2013. Amortization expense amounted to $326, $267 and $304 in 2013, 2012 and 2011, respectively. | |||||
The estimated amortization expense on intangible assets in years subsequent to December 31, 2013, is as follows: | |||||
2014 | $ | 1,333 | |||
2015 | 1,182 | ||||
2016 | 1,030 | ||||
2017 | 879 | ||||
2018 | 726 | ||||
Thereafter | $ | 1,685 |
Other_assets
Other assets | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Other assets | ' | ||||||||
9. Other assets: | |||||||||
The major components of other assets at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Other real estate owned | $ | 648 | $ | 656 | |||||
Investment in residential housing program | 3,211 | ||||||||
Mortgage servicing rights | 880 | 491 | |||||||
Bank owned life insurance | 29,198 | 17,616 | |||||||
Restricted equity securities | 4,102 | 4,212 | |||||||
Other assets | 9,949 | 8,115 | |||||||
Total | $ | 47,988 | $ | 31,090 | |||||
The Company originates one-to-four family residential mortgage loans for sale in the secondary market with servicing rights retained. Mortgage loans serviced for other are not included in the accompanying Consolidated Balance Sheets. The unpaid principal balances of mortgage loans serviced for others were $169,450 at December 31, 2013 and $113,340 at December 31, 2012. |
Deposits
Deposits | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Banking And Thrift [Abstract] | ' | ||||||||
Deposits | ' | ||||||||
10. Deposits: | |||||||||
The major components of interest-bearing and noninterest-bearing deposits at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Interest-bearing deposits: | |||||||||
Money market accounts | $ | 229,626 | $ | 166,273 | |||||
Now accounts | 194,931 | 102,722 | |||||||
Savings accounts | 372,101 | 126,618 | |||||||
Time deposits less than $100 | 168,085 | 93,359 | |||||||
Time deposits $100 or more | 134,822 | 81,855 | |||||||
Total interest-bearing deposits | 1,099,565 | 570,827 | |||||||
Noninterest-bearing deposits | 279,942 | 151,121 | |||||||
Total deposits | $ | 1,379,507 | $ | 721,948 | |||||
The aggregate amounts of maturities for all time deposits at December 31, 2013, are summarized as follows: | |||||||||
2014 | $ | 174,362 | |||||||
2015 | 41,110 | ||||||||
2016 | 29,691 | ||||||||
2017 | 16,075 | ||||||||
2018 | 23,104 | ||||||||
Thereafter | 18,565 | ||||||||
$ | 302,907 | ||||||||
The aggregate amount of deposits reclassified as loans was $405 at December 31, 2013, and $193 at December 31, 2012. Management evaluates transaction accounts that are overdrawn for collectability as part of its evaluation for credit losses. During 2013 and 2012, no deposits were received on terms other than those available in the normal course of business. |
Shortterm_borrowings
Short-term borrowings | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Short-term borrowings | ' | ||||||||||||||||||||
11. Short-term borrowings: | |||||||||||||||||||||
Securities sold under agreements to repurchase and FHLB advances generally represent overnight or less than 30-day borrowings. Short-term borrowings consisted of the following at December 31, 2013 and 2012: | |||||||||||||||||||||
At and for the year ended December 31, 2013 | |||||||||||||||||||||
Ending | Average | Maximum | Weighted | Weighted | |||||||||||||||||
Balance | Balance | Month-End | Average | Average | |||||||||||||||||
Balance | Rate for | Rate at End | |||||||||||||||||||
the Year | of the Year | ||||||||||||||||||||
Repurchase agreements | $ | 22,052 | $ | 10,105 | $ | 25,898 | 0.33 | % | 0.67 | % | |||||||||||
FHLB advances | 51 | 0.33 | |||||||||||||||||||
$ | 22,052 | $ | 10,156 | $ | 25,898 | 0.33 | % | 0.67 | % | ||||||||||||
At and for the year ended December 31, 2012 | |||||||||||||||||||||
Ending | Average | Maximum | Weighted | Weighted | |||||||||||||||||
Balance | Balance | Month-End | Average | Average | |||||||||||||||||
Balance | Rate for | Rate at | |||||||||||||||||||
the Year | End of the | ||||||||||||||||||||
Year | |||||||||||||||||||||
Repurchase agreements | $ | 8,019 | $ | 10,633 | $ | 13,280 | 0.33 | % | 0.34 | % | |||||||||||
FHLB advances | 826 | 8,625 | 0.36 | ||||||||||||||||||
$ | 8,019 | $ | 11,459 | $ | 21,905 | 0.34 | % | 0.34 | % | ||||||||||||
Peoples Bank has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At December 31, 2013, Peoples Bank’s maximum borrowing capacity was $214,756 of which $36,743 was outstanding in long-term borrowings. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. This rate resets each day. | |||||||||||||||||||||
Securities sold under repurchase agreements are retained under Peoples Bank’s control at its safekeeping agent. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. |
Longterm_debt
Long-term debt | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Long-term debt | ' | ||||||||||||||||
12. Long-term debt: | |||||||||||||||||
Long-term debt consisting of advances from the FHLB at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Interest Rate | |||||||||||||||||
Due | Fixed | Adjustable | 2013 | 2012 | |||||||||||||
Feb-13 | 3.1 | % | $ | 179 | |||||||||||||
Feb-13 | 3.49 | % | 7,000 | ||||||||||||||
Mar-13 | 3.74 | % | 1,282 | ||||||||||||||
Aug-14 | 2.66 | % | $ | 141 | 348 | ||||||||||||
Mar-15 | 3.44 | % | 919 | 1,678 | |||||||||||||
Mar-15 | 3.48 | % | 197 | 348 | |||||||||||||
Nov-15 | 4.67 | % | 527 | ||||||||||||||
Feb-16 | 4.86 | % | 301 | ||||||||||||||
Feb-16 | 4.86 | % | 301 | ||||||||||||||
Feb-17 | 4.99 | % | 1,311 | ||||||||||||||
Sep-17 | 2.36 | % | 6,500 | 6,500 | |||||||||||||
Apr-18 | 3.83 | % | 480 | 581 | |||||||||||||
Dec-19 | 1.81 | % | 3,000 | 3,000 | |||||||||||||
Dec-19 | 1.45 | % | 6,300 | 6,300 | |||||||||||||
Mar-23 | 4.69 | % | 16,766 | 18,181 | |||||||||||||
$ | 36,743 | $ | 45,397 | ||||||||||||||
Maturities of long-term debt, by contractual maturity, in years subsequent to December 31, 2013 are as follows: | |||||||||||||||||
2014 | $ | 2,725 | |||||||||||||||
2015 | 2,392 | ||||||||||||||||
2016 | 2,057 | ||||||||||||||||
2017 | 8,616 | ||||||||||||||||
2018 | 3,047 | ||||||||||||||||
Thereafter | 17,906 | ||||||||||||||||
$ | 36,743 | ||||||||||||||||
None of the advances from the FHLB are convertible. Long-term debt consist of $27,443 at fixed rates and $9,300 at adjustable rates which reset quarterly based on three-month Libor plus 1.21% to plus 1.57%. |
Fair_value_of_financial_instru
Fair value of financial instruments | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||||||
13. Fair value of financial instruments: | |||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2013 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
U.S. Government-agencies | $ | 204 | $ | 204 | |||||||||||||||||
U.S. Government-sponsored enterprises | 113,045 | 113,045 | |||||||||||||||||||
State and Municipals: | |||||||||||||||||||||
Taxable | 16,698 | 16,698 | |||||||||||||||||||
Tax-exempt | 98,081 | 98,081 | |||||||||||||||||||
Corporate debt securities | 4,387 | 4,387 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | 20,229 | 20,229 | |||||||||||||||||||
U.S. Government-sponsored enterprises | 45,974 | 45,974 | |||||||||||||||||||
Common equity securities | 1,097 | $ | 1,097 | ||||||||||||||||||
Total | $ | 299,715 | $ | 1,097 | $ | 298,618 | |||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2012 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
U.S. Government-agencies | |||||||||||||||||||||
U.S. Government-sponsored enterprises | $ | 84,682 | $ | 84,682 | |||||||||||||||||
State and Municipals: | |||||||||||||||||||||
Taxable | |||||||||||||||||||||
Tax-exempt | 58,837 | 58,837 | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||
U.S. Government-sponsored enterprises | 16,801 | 16,801 | |||||||||||||||||||
Common equity securities | 1,071 | $ | 1,071 | ||||||||||||||||||
Total | $ | 161,391 | $ | 1,071 | $ | 160,320 | |||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2013 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired loans | $ | 2,354 | $ | 2,354 | |||||||||||||||||
Other real estate owned | $ | 437 | $ | 437 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2012 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired loans | $ | 2,637 | $ | 2,637 | |||||||||||||||||
Other real estate owned | $ | 237 | $ | 237 | |||||||||||||||||
Fair values of impaired loans are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. | |||||||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
December 31, 2013 | Fair Value | Valuation Techniques | Unobservable Input | Range | |||||||||||||||||
Estimate | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 2,354 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Other real estate owned | $ | 437 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
December 31, 2012 | Fair Value | Valuation Techniques | Unobservable Input | Range | |||||||||||||||||
Estimate | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 2,637 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Other real estate owned | $ | 237 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 Inputs which are not identifiable. | |||||||||||||||||||||
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 carrying and fair values of the Company’s financial instruments at December 31, 2013 and 2012 and their placement within the fair value hierarchy are as follows: | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
December 31, 2013 | Carrying | Fair | Quoted | Significant | Significant | ||||||||||||||||
Value | Value | Prices in | Other | Unobservable | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(level 1) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 51,310 | $ | 51,310 | $ | 51,310 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Available-for-sale | 299,715 | 299,715 | $ | 1,097 | $ | 298,618 | |||||||||||||||
Held-to-maturity | 17,295 | 17,175 | 17,175 | ||||||||||||||||||
Loans held for sale | 1,757 | 1,757 | 1,757 | ||||||||||||||||||
Net loans | 1,167,966 | 1,180,387 | $ | 1,180,387 | |||||||||||||||||
Accrued interest receivable | 5,866 | 5,866 | 5,866 | ||||||||||||||||||
Mortgage servicing rights | 880 | 1,440 | 1,440 | ||||||||||||||||||
Restricted equity securities | 4,102 | 4,102 | 4,102 | ||||||||||||||||||
Total | $ | 1,548,891 | $ | 1,561,752 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,379,507 | $ | 1,381,946 | 1,381,946 | ||||||||||||||||
Short-term borrowings | 22,052 | 22,052 | 22,052 | ||||||||||||||||||
Long-term debt | 36,743 | 37,468 | 37,468 | ||||||||||||||||||
Accrued interest payable | 723 | 723 | $ | 723 | |||||||||||||||||
Total | $ | 1,439,025 | $ | 1,442,189 | |||||||||||||||||
December 31, 2012 | Carrying | Fair Value | Fair Value Hierarchy | ||||||||||||||||||
Value | Quoted | Significant | Significant | ||||||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(level 1) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 47,844 | $ | 47,844 | $ | 47,844 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Available-for-sale | 161,391 | 161,391 | $ | 1,071 | $ | 160,320 | |||||||||||||||
Held-to-maturity | 15,902 | 16,774 | 16,774 | ||||||||||||||||||
Loans held for sale | |||||||||||||||||||||
Net loans | 616,580 | 627,712 | $ | 627,712 | |||||||||||||||||
Accrued interest receivable | 2,862 | 2,862 | 2,862 | ||||||||||||||||||
Mortgage servicing rights | 491 | 879 | 879 | ||||||||||||||||||
Restricted equity securities | 4,212 | 4,212 | 4,212 | ||||||||||||||||||
Total | $ | 849,282 | $ | 861,674 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 721,948 | $ | 724,771 | 724,771 | ||||||||||||||||
Short-term borrowings | 8,019 | 8,019 | 8,019 | ||||||||||||||||||
Long-term debt | 45,397 | 48,625 | 48,625 | ||||||||||||||||||
Accrued interest payable | 716 | 716 | $ | 716 | |||||||||||||||||
Total | $ | 776,080 | $ | 782,131 | |||||||||||||||||
Stock_plans
Stock plans | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Stock plans | ' | ||||||||||||||||||||||||
14. Stock plans: | |||||||||||||||||||||||||
The Company has a stock option plan covering non-employee directors and a stock incentive plan for certain officers and key employees. The plans are administered by a committee of the Board of Directors. The activity under the plans for each of the years in the three-year period ended December 31, 2013, is summarized as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
December 31 | Options | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Outstanding, beginning of year | 25,227 | $ | 29.66 | 25,227 | $ | 29.66 | 25,227 | $ | 29.66 | ||||||||||||||||
Options associated with merger | 8,900 | 30.93 | |||||||||||||||||||||||
Granted | |||||||||||||||||||||||||
Exercised | (3,150 | ) | 26.38 | ||||||||||||||||||||||
Forfeited | (150 | ) | 27.5 | ||||||||||||||||||||||
Outstanding, end of year | 30,827 | 30.37 | 25,227 | 29.66 | 25,227 | 29.66 | |||||||||||||||||||
Exercisable, end of year | 30,827 | $ | 30.37 | 25,227 | $ | 29.66 | 25,227 | $ | 29.66 | ||||||||||||||||
The Company granted 13,636 stock appreciation rights “SAR” to an executive on January 3, 2006 at a strike price of $31.50 per share. The rights were fully vested as of January 2, 2011 and are expected to be settled in cash when exercised. The current assumptions in calculating the vesting rights fair value used an expected volatility of 14.55%, expected annual dividend yield of 4.54%, a risk-free interest rate of 0.72%, and an expected term of 0.5 years. The Company granted 11,591 SAR to an executive on February 29, 2008 at a strike price of $27.50 per share. The rights vest on a straight-line basis over a five year period and are expected to be settled in cash when exercised. The grant date fair value was computed assuming expected volatility of 22.21%, expected annual dividend yield of 4.00%, a risk-free interest rate of 3.53%, and an expected term of 7.50 years. The Company calculates the value of the vested rights using the Black-Scholes method and has recorded an expense of $34 in 2013, $2 in 2012 and $(2) in 2011. The Company acquired options issued by Peoples to certain employees on November 12, 2004 at a strike price of $34.10 per share and on October 3, 2005 at a strike price of $30.75 per share. All of the stock options are fully vested and the weighted-average remaining contractual life of the options outstanding was approximately 1.50 years at December 31, 2013. | |||||||||||||||||||||||||
The Long-Term Incentive Plan allows for named executive officers to be granted equity awards, the plan was a legacy plan of Penn Security Bank and Trust Company. Under the 2008 Long-Term Incentive Plan (“2008 Plan”), the Compensation Committee of the board of directors has broad authority with respect to awards granted under the 2008 Plan, including, without limitation, the authority to: | |||||||||||||||||||||||||
• | Designate the individuals eligible to receive awards under the 2008 Plan. | ||||||||||||||||||||||||
• | Determine the size, type and date of grant for individual awards, provided that awards approved by the Committee are not effective unless and until ratified by the board of directors. | ||||||||||||||||||||||||
• | Interpret the 2008 Plan and award agreements issued with respect to individual participants. | ||||||||||||||||||||||||
Persons eligible to receive awards under the 2008 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries, except that incentive stock option may be granted only to individuals who are employees on the date of grant. | |||||||||||||||||||||||||
There are 146,451 shares of the Company’s common stock available for grant as awards pursuant to the 2008 Plan, including existing awards. | |||||||||||||||||||||||||
The 2008 Plan authorizes grants of stock options, stock appreciation rights, dividend equivalents, performance awards, restricted stock and restricted stock units. There were restricted stock grants awarded with a total cost of $50, $300 and $55 during the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||||||||||
The activity related to restricted stock for each of the years ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Nonvested, January 1 | 15,425 | 4,883 | 2,936 | ||||||||||||||||||||||
Granted shares | 1,820 | 10,542 | 1,947 | ||||||||||||||||||||||
Vested shares | |||||||||||||||||||||||||
Forfeited shares | |||||||||||||||||||||||||
Nonvested, December 31 | 17,245 | 15,425 | 4,883 | ||||||||||||||||||||||
Restricted stock granted to officers are fully vested after five years. The weighted average period over which these expenses will be recognized is approximately four years. | |||||||||||||||||||||||||
The Company began to expense the fair value of all-share based compensation over the requisite service periods commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. The Company classifies share-based compensation for employees within “salaries and employee benefits” on the Consolidated Statements of Income. | |||||||||||||||||||||||||
The Company recognized $25, $40 and $55 of compensation expense for stock awards granted in the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, the Company had $243 of unrecognized compensation expense associated with restricted stock awards. |
Employee_benefit_plans
Employee benefit plans | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Employee benefit plans | ' | ||||||||||||||||
15. Employee benefit plans: | |||||||||||||||||
The Company provides an Employee Stock Ownership Plan (“ESOP”), a Retirement Profit Sharing 401(k) Plan, an Employees’ Pension Plan, which is currently frozen, a supplemental executive defined benefit plan, a supplemental executive defined contribution plan , non-qualified supplemental executive retirement plans (“SERP”), a Postretirement Life Insurance Plan, which was curtailed in 2013, and a Long-Term Incentive Plan. | |||||||||||||||||
Under the Penn Security Bank and Trust Company ESOP, amounts voted by the Company’s Board of Directors are paid into the ESOP and each employee is credited with a share in proportion to their annual compensation. All contributions to the ESOP are invested in or will be invested primarily in Company stock. Distribution of a participant’s ESOP account occurs upon retirement, death or termination in accordance with the plan provisions. | |||||||||||||||||
At December 31, 2013 and 2012, the Penn Security Bank and Trust Company ESOP held 104,964 and 102,623 shares, respectively, of the Company’s stock, all of which were allocated to specific participant accounts. These shares are treated the same for dividend purposes and earnings per share calculations as are any other outstanding shares of the Company’s stock. The Company contributed $218 and $105 to the ESOP plan during the years ended December 31, 2013 and 2012, respectively. The Company did not make a contribution for the year ended December 31, 2011 to the ESOP Plan. | |||||||||||||||||
Under the Penn Security Bank and Trust Company Retirement Profit Sharing Plan, amounts approved by the Board of Directors have been paid into a fund and each employee was credited with a share in proportion to their annual compensation. Upon retirement, death or termination, each employee is paid the total amount of their credits in the fund in one of a number of optional ways in accordance with the plan provisions. Effective July 1, 2008, the Retirement Profit Sharing Plan became a 401(k) Deferred Compensation and Profit Sharing Plan for eligible employees. Eligible employees may elect deferrals of up to the maximum amounts permitted by law. | |||||||||||||||||
The Penn Security Bank and Trust Company Retirement Profit Sharing Plan’s contributions included a Safe Harbor contribution of $310, $306 and $284, during the years ended December 31, 2013, 2012 and 2011, respectively, and a discretionary match of $234, $221 and $209 during the years ended December 31, 2013, 2012 and 2011, respectively, equal to one-half of employee deferrals, up to a maximum match of 3%. | |||||||||||||||||
Peoples Neighborhood Bank has an Employee Stock Ownership and Profit-Sharing Plan (“Plan”) with 401(k) provisions. The Plan is for the benefit of all employees who meet the eligibility requirements set forth in the Plan. The amount of contributions to the Plan, including 401(k) matching contributions, is at the discretion of the Board of Directors. Company contributions to the employee stock ownership plan are allocated to participant accounts based on their percentage of total compensation for the Plan year. At December 31, 2013, 263,559 shares of the Company’s common stock were held in the Plan. In the event a terminated Plan participant desires to sell his or her shares of the Company’s stock, or for certain employees who elect to diversify their account balances, the Company may be required to purchase the shares from the participant at their fair market value. There was no expense associated with the plan during 2013. | |||||||||||||||||
Penn Security Bank and Trust Company had established a Supplemental Executive Defined Contribution Plan to replace 401(k) plan benefits lost due to compensation limits imposed on qualified plans by Federal tax law. The annual benefit is a maximum of 6% of the executive compensation in excess of Federal limits. At December 31, 2013 and 2013 the total liability associated with this plan was $36 and $29 at December 31, 2013 and 2012, respectively. The expense associated with the plan was $7, $4 and $4 for 2013, 2012 and 2011, respectively. | |||||||||||||||||
The Company has SERPs for the benefit of certain officers of the Company. At December 31, 2013 and 2012, other liabilities include $1,432 and $1,418 accrued under the Plans. | |||||||||||||||||
Under the Penn Security Bank and Trust Company Employees’ Pension Plan (currently under curtailment), amounts computed on an actuarial basis were being paid by the Company into a trust fund. The plan provided for fixed benefits payable for life upon retirement at the age of 65, based on length of service and compensation levels as defined in the plan. As of June 22, 2008 no further benefits are being accrued in this plan. Plan assets of the trust fund are invested and administered by the Trust Department of Peoples Security Bank and Trust Company. | |||||||||||||||||
The Postretirement Life Insurance Plan was an unfunded, non-vesting defined benefit plan for employees of Penn Security Bank and Trust Company hired after July 1, 1995; which provided postretirement life insurance benefit of $50,000 at retirement, then decreasing to $5,000 at age 75. Employees hired prior to July 1, 1995 were entitled to three times their salary at retirement. During 2013 the company entered into an agreement with an insurance company to transfer all risk and obligation for benefits payable as to the current retiree group in exchange for a one time fixed payment, additionally the company eliminated retiree life insurance for current employees. | |||||||||||||||||
Compensation expense includes approximately $164, $77 and $34 relating to these supplemental executive retirement plans for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||||||
Pension Benefits | Postretirement Life | ||||||||||||||||
Insurance Benefits | |||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation, beginning | $ | 15,506 | $ | 14,450 | $ | 3,193 | $ | 3,004 | |||||||||
Service cost | 35 | 48 | |||||||||||||||
Interest cost | 646 | 673 | 111 | 139 | |||||||||||||
Plan curtailment | (2,764 | ) | |||||||||||||||
Change in experience | 99 | 88 | 4 | ||||||||||||||
Change in assumptions | (1,324 | ) | 978 | 145 | |||||||||||||
Benefits paid | (716 | ) | (683 | ) | (575 | ) | (147 | ) | |||||||||
Benefit obligation, ending | 14,211 | 15,506 | 3,193 | ||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets, beginning | 11,343 | 11,026 | |||||||||||||||
Actual return on plan assets | 1,623 | 637 | |||||||||||||||
Employer contributions | 167 | 363 | |||||||||||||||
Benefits paid | (716 | ) | (683 | ) | |||||||||||||
Fair value of plan assets, ending | 12,417 | 11,343 | |||||||||||||||
Funded status at end of year | $ | (1,794 | ) | $ | (4,163 | ) | $ | $ | (3,193 | ) | |||||||
Amounts recognized in the balance sheet are as follows: | |||||||||||||||||
Pension Benefits | Postretirement Life | ||||||||||||||||
Insurance Benefits | |||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Liabilities | $ | 1,794 | $ | 4,163 | $ | $ | 3,193 | ||||||||||
Amounts recognized in the accumulated other comprehensive loss consist of: | |||||||||||||||||
Net actuarial loss (gain) | (3,883 | ) | (6,252 | ) | (1,273 | ) | |||||||||||
Deferred taxes | 1,359 | 2,091 | 620 | ||||||||||||||
Net amount recognized | $ | (2,524 | ) | $ | (4,161 | ) | $ | $ | (653 | ) | |||||||
The accumulated benefit obligation for the defined benefit pension plan was $14,211 and $15,506 at December 31, 2013 and 2012, respectively. | |||||||||||||||||
Components of net periodic pension cost and other amounts recognized in other comprehensive income are as follows: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Net periodic pension cost: | |||||||||||||||||
Service cost | |||||||||||||||||
Interest cost | $ | 646 | $ | 673 | $ | 700 | |||||||||||
Expected return on plan assets | (825 | ) | (809 | ) | (903 | ) | |||||||||||
Amortization of prior service cost | |||||||||||||||||
Amortization of unrecognized net loss | 180 | 136 | 82 | ||||||||||||||
Curtailment loss | |||||||||||||||||
Net periodic pension cost | $ | 1 | $ | $ | (121 | ) | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||||
Net loss (gain) | (2,369 | ) | 739 | 1,351 | |||||||||||||
Prior service cost | |||||||||||||||||
Deferred tax | 805 | (251 | ) | (459 | ) | ||||||||||||
Total recognized in other comprehensive income | (1,564 | ) | 488 | 892 | |||||||||||||
Total recognized in net period pension cost and other comprehensive income | $ | (1,563 | ) | $ | 488 | $ | 771 | ||||||||||
Postretirement Life | |||||||||||||||||
Insurance Benefits | |||||||||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Components of net periodic pension cost: | |||||||||||||||||
Service cost | $ | 35 | $ | 48 | $ | 43 | |||||||||||
Interest cost | 111 | 139 | 147 | ||||||||||||||
Amortization of prior service cost | 7 | ||||||||||||||||
Amortization of unrecognized net gain | 96 | 111 | 105 | ||||||||||||||
Net periodic other benefit cost | $ | 242 | $ | 298 | $ | 302 | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||
Net loss (gain) | (1,273 | ) | 185 | 148 | |||||||||||||
Prior service cost | 8 | ||||||||||||||||
Amortization of prior service cost | (7 | ) | |||||||||||||||
Deferred tax | 620 | (63 | ) | (53 | ) | ||||||||||||
Total recognized in other comprehensive income | (653 | ) | 122 | 96 | |||||||||||||
Total recognized in net period pension cost and other comprehensive income | $ | (411 | ) | $ | 420 | $ | 398 | ||||||||||
The estimated net loss for the defined benefit pension plans that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next fiscal year is $101. | |||||||||||||||||
Weighted-average assumptions used to determine benefit obligations were as follows: | |||||||||||||||||
Pension Benefits | Postretirement Life | ||||||||||||||||
Insurance Benefits | |||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Discount rate | 5 | % | 4.25 | % | 4.25 | % | |||||||||||
Expected long-term return on plan assets | 7.5 | % | 7.5 | % | |||||||||||||
Rate of compensation increase | 3 | % | |||||||||||||||
The expected long-term return on plan assets was determined using average historical returns of the Company’s plan assets. | |||||||||||||||||
The Company’s pension plan weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows: | |||||||||||||||||
December 31, | 2013 | 2012 | |||||||||||||||
Asset Category: | |||||||||||||||||
Equity securities | 59.9 | % | 56.2 | % | |||||||||||||
Corporate bonds | 16.8 | 18.9 | |||||||||||||||
U.S. Government securities | 20.8 | 21.2 | |||||||||||||||
Cash and cash equivalents | 2.5 | 3.7 | |||||||||||||||
100 | % | 100 | % | ||||||||||||||
Fair Value Measurement of pension plan assets at December 31, 2013 and 2012 is as follows: | |||||||||||||||||
December 31, 2013 | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Observable | Observable | |||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Cash | $ | 316 | $ | 316 | |||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap | 6,993 | 6,993 | |||||||||||||||
International | 442 | 442 | |||||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasuries | 995 | $ | 995 | ||||||||||||||
U.S. Government agencies | 1,579 | 1,579 | |||||||||||||||
Corporate bonds | 2,092 | 2,092 | |||||||||||||||
Total | $ | 12,417 | $ | 7,751 | $ | 4,666 | |||||||||||
December 31, 2012 | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Observable | Observable | |||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Cash | $ | 419 | $ | 419 | |||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap | 6,068 | 6,068 | |||||||||||||||
International | 307 | 307 | |||||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasuries | 1,024 | $ | 1,024 | ||||||||||||||
U.S. Government agencies | 1,380 | 1,380 | |||||||||||||||
Corporate bonds | 2,145 | 2,145 | |||||||||||||||
Total | $ | 11,343 | $ | 6,794 | $ | 4,549 | |||||||||||
The Company investment policies and strategies with respect to the pension plan include: (i) the Trust and Investment Division’s equity philosophy is Large-Cap Core with a value bias. We invest in individual high-grade common stocks that are selected from our approved list; (ii) diversification is maintained by having no more than 20% in any industry sector and no individual equity representing more than 10% of the portfolio; and (iii) the fixed income style is conservative but also responsive to the various needs of our individual clients. Fixed income securities consist of U.S. Government Agencies or corporate bonds rated “A” or better. The Company targets the following allocation percentages: (i) cash equivalents 10%; (ii) fixed income 40% ; and (iii) equities 50%. | |||||||||||||||||
There is no Company stock included in equity securities at December 31, 2013 or 2012. The Company expects to contribute $315 to the Employees’ Pension Plan in 2014. | |||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the next five years and in the aggregate for the five years thereafter: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
2014 | $ | 729 | |||||||||||||||
2015 | 781 | ||||||||||||||||
2016 | 793 | ||||||||||||||||
2017 | 811 | ||||||||||||||||
2018 | 863 | ||||||||||||||||
Thereafter | $ | 4,484 |
Income_taxes
Income taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income taxes | ' | ||||||||||||
16. Income taxes: | |||||||||||||
The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2013, 2012 and 2011 are summarized as follows: | |||||||||||||
Year Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Current | $ | 1,628 | $ | 2,705 | $ | 2,817 | |||||||
Deferred | (1,143 | ) | 353 | 217 | |||||||||
$ | 485 | $ | 3,058 | $ | 3,034 | ||||||||
The components of the net deferred tax asset at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||
December 31 | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,940 | $ | 2,363 | |||||||||
Defined benefit plan | 1,359 | 1,438 | |||||||||||
Deferred compensation | 10 | 1,046 | |||||||||||
Other-than-temporary impairment on securities | 131 | 131 | |||||||||||
Merger related accounting | 1,505 | 61 | |||||||||||
Capital loss carry forward | 244 | ||||||||||||
Other | 170 | ||||||||||||
Total | 6,359 | 5,039 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Premises and equipment, net | 976 | 479 | |||||||||||
Investment securities available-for-sale | 2,220 | 2,331 | |||||||||||
Other | 83 | 59 | |||||||||||
Total | 3,279 | 2,869 | |||||||||||
Net deferred tax asset | $ | 3,080 | $ | 2,170 | |||||||||
Management believes that future taxable income will be sufficient to utilize deferred tax assets. Core earnings of the Company have remained strong and will continue to support the recognition of the deferred tax asset based on future growth projections. | |||||||||||||
A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 34.0 percent for each of the years ended December 31, 2013, 2012 and 2011 is summarized as follows: | |||||||||||||
Year Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Federal income tax at statutory rate | $ | 2,110 | $ | 4,640 | $ | 4,612 | |||||||
Tax exempt interest, net | (1,428 | ) | (1,432 | ) | (1,458 | ) | |||||||
Bank owned life insurance income | (329 | ) | (171 | ) | (167 | ) | |||||||
Disallowed merger costs | 266 | ||||||||||||
Other, net | (134 | ) | 21 | 47 | |||||||||
Total | $ | 485 | $ | 3,058 | $ | 3,034 | |||||||
Parent_Company_financial_state
Parent Company financial statements | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Parent Company financial statements | ' | ||||||||||||
17. Parent Company financial statements: | |||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
December 31 | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 3,157 | $ | 2,785 | |||||||||
Investment in bank subsidiary | 232,825 | 128,679 | |||||||||||
Investment in non-bank subsidiary | |||||||||||||
Due from subsidiaries | 2,472 | ||||||||||||
Investment securities available-for-sale | 1,097 | 1,039 | |||||||||||
Other assets | 61 | ||||||||||||
Total assets | $ | 239,551 | $ | 132,564 | |||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||
Other liabilities | $ | 759 | $ | 118 | |||||||||
Stockholders’ equity | 238,792 | 132,446 | |||||||||||
Total liabilities and stockholders’ equity | $ | 239,551 | $ | 132,564 | |||||||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Income: | |||||||||||||
Dividends from subsidiaries | $ | 8,350 | $ | 5,504 | $ | 5,504 | |||||||
Other income | 169 | 193 | 424 | ||||||||||
Total income | 8,519 | 5,697 | 5,928 | ||||||||||
Expense: | |||||||||||||
Other expenses | 76 | 47 | 46 | ||||||||||
Total expenses | 76 | 47 | 46 | ||||||||||
Income before taxes and undistributed income | 8,443 | 5,650 | 5,882 | ||||||||||
Income tax expense | 33 | 59 | 154 | ||||||||||
Income before undistributed income of subsidiaries | 8,410 | 5,591 | 5,728 | ||||||||||
Equity in undistributed net income (loss) of subsidiaries | (2,689 | ) | 4,998 | 4,803 | |||||||||
Net income | $ | 5,721 | $ | 10,589 | $ | 10,531 | |||||||
Comprehensive Income | $ | 5,313 | $ | 10,577 | $ | 12,371 | |||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 5,721 | $ | 10,589 | $ | 10,531 | |||||||
Adjustments: | |||||||||||||
Net realized losses (gains) on sales of securities | (103 | ) | (136 | ) | (459 | ) | |||||||
Other than temporary security impairment | 78 | ||||||||||||
Undistributed net income of subsidiaries | 2,689 | (5,038 | ) | (4,803 | ) | ||||||||
Decrease (increase) in other assets | (1,733 | ) | 1 | ||||||||||
Increase (decrease) in other liabilities | 641 | (28 | ) | 141 | |||||||||
Stock based compensation | 25 | 40 | |||||||||||
Deferred income tax expense | 1 | 36 | 10 | ||||||||||
Increase in due from subsidiaries | (1,611 | ) | |||||||||||
Net cash provided by operating activities | 5,630 | 5,463 | 5,499 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Proceeds from sale of available-for-sale securities | 253 | 145 | 467 | ||||||||||
Purchase of available-for-sale securities | (103 | ) | (300 | ) | |||||||||
Net cash provided by (used in) investing activities | 253 | 42 | 167 | ||||||||||
Cash flows from financing activities: | |||||||||||||
Cash dividends paid | (5,511 | ) | (5,504 | ) | (5,504 | ) | |||||||
Net cash used in financing activities | (5,511 | ) | (5,504 | ) | (5,504 | ) | |||||||
Increase in cash | 372 | 1 | 162 | ||||||||||
Cash at beginning of year | 2,785 | 2,784 | 2,622 | ||||||||||
Cash at end of year | $ | 3,157 | $ | 2,785 | $ | 2,784 | |||||||
Regulatory_matters
Regulatory matters | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Banking And Thrift [Abstract] | ' | ||||||||||||||||||||||||
Regulatory matters | ' | ||||||||||||||||||||||||
18. Regulatory matters: | |||||||||||||||||||||||||
Dividends are paid by the Company from its assets, which are mainly provided by dividends from Peoples Bank. Under the Pennsylvania Business Corporation Law of 1988, as amended, the Company may not pay a dividend if, after payment, either the Company could not pay its debts as they become due in the usual course of business, or the Company’s total assets would be less than its total liabilities. The determination of total assets and liabilities may be based upon: (i) financial statements prepared on the basis of GAAP; (ii) financial statements that are prepared on the basis of other accounting practices and principles that are reasonable under the circumstances; or (iii) a fair valuation or other method that is reasonable under the circumstances. In addition, the Federal Reserve Board has the power to prohibit dividends by bank holding companies if their actions constitute unsafe or unsound practices. The Federal Reserve Board has issued a policy statement on the payment of cash dividends by bank holding companies, which expresses the Federal Reserve Board’s view that a bank holding company should pay cash dividends only to the extent that the company’s net income for the past year is sufficient to cover both the cash dividends and a rate of earnings retention that is consistent with the company’s capital needs, asset quality and overall financial condition. The Federal Reserve Board also indicated that it would be inappropriate for a bank holding company experiencing serious financial problems to borrow funds to pay dividends. Under the prompt corrective action regulations, the Federal Reserve Board may prohibit a bank holding company from paying any dividends if the holding company’s bank subsidiary is classified as “undercapitalized.” | |||||||||||||||||||||||||
In addition, under the Pennsylvania Banking Code of 1965, as amended, Peoples Bank may only declare and pay dividends out of accumulated net earnings, including accumulated net earnings acquired as a result of a merger within seven years. Further, Peoples Bank may not declare or pay any dividend unless Peoples Bank’s surplus would not be reduced by the payment of the dividend. Pennsylvania law requires that each year Peoples Bank set aside as surplus, a sum equal to not less than 10 percent of its net earnings to maintain the surplus funds equal 100 percent of our capital stock. Under federal law and FDIC regulations, an insured bank may not pay dividends if doing so would make it undercapitalized within the meaning of the prompt corrective action law or if in default of its deposit insurance fund assessment. | |||||||||||||||||||||||||
Although subject to the aforementioned regulatory restrictions, the Company’s consolidated retained earnings at December 31, 2013 and 2012 were not restricted under any borrowing agreement as to payment of dividends or reacquisition of common stock. | |||||||||||||||||||||||||
The Company has paid cash dividends since its formation as a bank holding company in 1986. It is the present intention of the Board of Directors to continue this dividend payment policy, however, further dividends must necessarily depend upon earnings, financial condition, appropriate legal restrictions and other factors relevant at the time the Board of Directors considers payment of dividends. The Penseco merger agreement contemplates that, unless 80 percent of our Board of Directors determines otherwise, the Company will pay a quarterly cash dividend in an amount no less than $0.31 per share through 2018, provided that sufficient funds are legally available, and that the Company and Peoples Bank remain “well-capitalized” in accordance with applicable regulatory guidelines. | |||||||||||||||||||||||||
The amount of funds available for transfer from Peoples Bank to the Company in the form of loans and other extensions of credit is also limited. Under Federal Regulation, transfers to any one affiliate are limited to 10.0 percent of capital and surplus. At December 31, 2013, the maximum amount available for transfer from Peoples Bank to the Company in the form of loans amounted to $25,373. At December 31, 2013 and 2012, there were no loans outstanding, nor were any advances made during 2013 and 2012. | |||||||||||||||||||||||||
The Company and Peoples Bank are subject to certain regulatory capital requirements administered by the federal banking agencies, which are defined in Section 38 of the Federal Deposit Insurance Corporation Improvement Act of 1991 (“FDICIA”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s and Peoples Bank’s consolidated financial statements. In the event an institution is deemed to be undercapitalized by such standards, FDICIA prescribes an increasing amount of regulatory intervention, including the required institution of a capital restoration plan and restrictions on the growth of assets, branches or lines of business. Further restrictions are applied to the significantly or critically undercapitalized institutions including restrictions on interest payable on accounts, dismissal of management and appointment of a receiver. For well capitalized institutions, FDICIA provides authority for regulatory intervention when the institution is deemed to be engaging in unsafe and unsound practices or receives a less than satisfactory examination report rating. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Peoples Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Prompt corrective action provisions are not applicable to bank holding companies. | |||||||||||||||||||||||||
Peoples Bank was categorized as “well capitalized” under the regulatory framework for prompt corrective action at December 31, 2013 and 2012, based on the most recent notification from the Federal Deposit Insurance Corporation. To be categorized as well capitalized, Peoples Bank must maintain certain minimum Tier I risk-based, total risk-based and Tier I Leverage ratios as set forth in the following tables. The Tier I Leverage ratio is defined as Tier I capital to total average assets less intangible assets. There are no conditions or events since the most recent notification that management believes have changed Peoples Bank’s category. | |||||||||||||||||||||||||
The Company and Peoples Bank’s actual capital ratios at December 31, 2013 and 2012, and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows: | |||||||||||||||||||||||||
Actual | Minimum For Capital | Minimum to be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
December 31, 2013 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | $ | 163,092 | 13.59 | % | $ | 48,009 | 4 | % | |||||||||||||||||
Peoples Bank | 156,731 | 13.02 | 48,161 | 4 | $ | 72,241 | 6 | % | |||||||||||||||||
Total capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | 171,160 | 14.26 | 96,019 | 8 | |||||||||||||||||||||
Peoples Bank | 164,799 | 13.69 | 96,322 | 8 | 120,402 | 10 | |||||||||||||||||||
Tier 1 capital to average assets: | |||||||||||||||||||||||||
Consolidated | 163,092 | 10.09 | 64,664 | 4 | |||||||||||||||||||||
Peoples Bank | $ | 156,731 | 9.72 | % | $ | 64,469 | 4 | % | $ | 80,586 | 5 | % | |||||||||||||
Actual | Minimum For | Minimum to be Well | |||||||||||||||||||||||
Capital Adequacy | Capitalized under | ||||||||||||||||||||||||
Purposes | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
December 31, 2012 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | $ | 102,906 | 16.8 | % | $ | 24,497 | 4 | % | |||||||||||||||||
Peoples Bank | 99,185 | 16.22 | 24,467 | 4 | $ | 36,700 | 6 | % | |||||||||||||||||
Total capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | 109,978 | 17.96 | 48,994 | 8 | |||||||||||||||||||||
Peoples Bank | 106,135 | 17.35 | 48,934 | 8 | 61,167 | 10 | |||||||||||||||||||
Tier 1 capital to average assets: | |||||||||||||||||||||||||
Consolidated | 102,906 | 11.5 | 35,799 | 4 | |||||||||||||||||||||
Peoples Bank | $ | 99,185 | 11.14 | % | $ | 35,621 | 4 | % | $ | 44,526 | 5 | % |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
19. Contingencies: | |
Neither the Company nor any of its property is subject to any material legal proceedings. Management, after consultation with legal counsel, does not anticipate that the ultimate liability, if any, arising out of pending and threatened lawsuits will have a material effect on the operating results or financial position of the Company. |
Summary_of_quarterly_financial
Summary of quarterly financial information | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summary of quarterly financial information | ' | ||||||||||||||||
20. Summary of quarterly financial information (unaudited): | |||||||||||||||||
2013 | |||||||||||||||||
Quarter Ended | March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
Interest income: | $ | 8,890 | $ | 8,737 | $ | 8,693 | $ | 11,050 | |||||||||
Interest expense | 1,033 | 961 | 952 | 1,223 | |||||||||||||
Net interest income | 7,857 | 7,776 | 7,741 | 9,827 | |||||||||||||
Provision for loan losses | 300 | 500 | 525 | 1,036 | |||||||||||||
Net interest income after provision for loan losses | 7,557 | 7,276 | 7,216 | 8,791 | |||||||||||||
Noninterest income | 2,826 | 3,057 | 3,027 | 2,852 | |||||||||||||
Noninterest expense | 7,125 | 6,856 | 7,365 | 15,050 | |||||||||||||
Income (loss) before income taxes | 3,258 | 3,477 | 2,878 | (3,407 | ) | ||||||||||||
Provision for income tax expense (benefit) | 737 | 633 | 392 | (1,277 | ) | ||||||||||||
Net income | $ | 2,521 | $ | 2,844 | $ | 2,486 | $ | (2,130 | ) | ||||||||
Per share data: | |||||||||||||||||
Net income (loss) | $ | 0.56 | $ | 0.64 | $ | 0.56 | $ | (0.39 | ) | ||||||||
Cash dividends declared | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.31 | |||||||||
Average common shares outstanding | 4,467,261 | 4,467,261 | 4,473,846 | 5,515,199 | |||||||||||||
2012 | |||||||||||||||||
Quarter Ended | 31-Mar | 30-Jun | Sept. 30 | Dec. 31 | |||||||||||||
Interest income: | $ | 9,668 | $ | 9,480 | $ | 9,272 | $ | 9,171 | |||||||||
Interest expense | 1,481 | 1,407 | 1,262 | 1,212 | |||||||||||||
Net interest income | 8,187 | 8,073 | 8,010 | 7,959 | |||||||||||||
Provision for loan losses | 192 | 114 | 471 | 147 | |||||||||||||
Net interest income after provision for loan losses | 7,995 | 7,959 | 7,539 | 7,812 | |||||||||||||
Noninterest income | 2,894 | 2,622 | 3,114 | 2,811 | |||||||||||||
Noninterest expense | 7,340 | 7,261 | 7,340 | 7,158 | |||||||||||||
Income (loss) before income taxes | 3,549 | 3,320 | 3,313 | 3,465 | |||||||||||||
Provision for income tax expense (benefit) | 819 | 721 | 761 | 757 | |||||||||||||
Net income | $ | 2,730 | $ | 2,599 | $ | 2,552 | $ | 2,708 | |||||||||
Per share data: | |||||||||||||||||
Net income | $ | 0.61 | $ | 0.58 | $ | 0.57 | $ | 0.61 | |||||||||
Cash dividends declared | $ | 0.3 | $ | 0.31 | $ | 0.31 | $ | 0.31 | |||||||||
Average common shares outstanding | 4,467,261 | 4,467,261 | 4,467,261 | 4,467,261 |
Comprehensive_Income
Comprehensive Income | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Comprehensive Income | ' | ||||||||||||
21. Comprehensive Income: | |||||||||||||
The components of accumulated other comprehensive income included in stockholders’ equity at December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31 | 2013 | 2012 | |||||||||||
Net unrealized gain on investment securities available-for-sale | $ | 2,810 | $ | 6,855 | |||||||||
Related income taxes | (984 | ) | (2,331 | ) | |||||||||
Net of income taxes | 1,826 | 4,524 | |||||||||||
Benefit plan adjustments | (3,883 | ) | (7,525 | ) | |||||||||
Related income taxes | 1,359 | 2,711 | |||||||||||
Net of income taxes | (2,524 | ) | (4,814 | ) | |||||||||
Accumulated other comprehensive loss | $ | (698 | ) | $ | (290 | ) | |||||||
Other comprehensive income (loss) and related tax effects for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Net gain on the sale of investment securities available-for-sale(1) | $ | (163 | ) | $ | (317 | ) | $ | (666 | ) | ||||
Unrealized gain (loss) on investment securities available-for-sale | (3,882 | ) | 1,223 | 4,873 | |||||||||
Other-than-temporary impairment on investment securities(2) | 78 | ||||||||||||
Benefit plans: | |||||||||||||
Amortization of actuarial loss (gain)(3) | 276 | 136 | 82 | ||||||||||
Actuarial (loss) gain | 3,366 | (1,060 | ) | (1,579 | ) | ||||||||
Net change in benefit plans accrued expense | 3,642 | (924 | ) | (1,497 | ) | ||||||||
Other comprehensive income (loss) gain before taxes | (403 | ) | (18 | ) | 2,788 | ||||||||
Income taxes | (5 | ) | (6 | ) | 948 | ||||||||
Other comprehensive income (loss) | $ | (408 | ) | $ | (12 | ) | $ | 1,840 | |||||
-1 | Represents amounts reclassified out of accumulated comprehensive income and included in gains on sale of investment securities on the consolidated statements of income. | ||||||||||||
-2 | Represents amounts reclassified out of accumulated comprehensive income and included in other-than-temporary impairment of investment securities on the consolidated statements of income. | ||||||||||||
-3 | Represents amounts reclassified out of accumulated comprehensive income and included in the computation of net periodic pension expense. Refer to Note 15 included in these consolidated financial statements. |
Summary_of_significant_account1
Summary of significant accounting policies (Policies) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Nature of operations | ' | ||||||||||||||||||||||||
Nature of operations: | |||||||||||||||||||||||||
Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), including its subsidiaries, Peoples Advisors, LLC and Penseco Realty, Inc. (collectively, the “Company” or “Peoples”). On November 30, 2013, Penseco Financial Services Corporation, a financial holding company incorporated under the laws of Pennsylvania (“Penseco”), merged with and into Peoples Financial Services Corp., with Peoples Financial Services Corp. being the surviving corporation (the “Merger”), pursuant to an Agreement and Plan of Merger dated June 28, 2013 (the “Merger Agreement”). In connection with the Merger, on December 1, 2013, Penseco’s former banking subsidiary, Penn Security Bank and Trust Company, merged with and into Peoples Neighborhood Bank (the “Bank Merger”), and the resulting institution adopted the name Peoples Security Bank and Trust Company. The Company services its retail and commercial customers through twenty-six full-service community banking offices located within the Lackawanna, Luzerne, Monroe, Susquehanna, Wayne and Wyoming Counties of Northeastern Pennsylvania and Broome County of New York. | |||||||||||||||||||||||||
Peoples Bank is a state-chartered bank and trust company under the jurisdiction of the Pennsylvania Department of Banking and Securities and the Federal Deposit Insurance Corporation. Peoples Bank’s primary product is loans to small- and medium-sized businesses. Other lending products include one-to-four family residential mortgages and consumer loans. Peoples Bank primarily funds its loans by offering open time deposits to commercial enterprises and individuals. Other deposit product offerings include certificates of deposits and various demand deposit accounts. | |||||||||||||||||||||||||
Peoples Advisors, LLC, a member-managed limited liability company, provides investment advisory services through a third party to individuals and small businesses. Penseco Realty, Inc. holds and manages real estate assets on behalf of Peoples Bank. | |||||||||||||||||||||||||
Peoples Advisors, LLC and Penseco Realty, Inc. did not meet the quantitative thresholds for required segment disclosure in conformity with accounting principles generally accepted in the United States of America (“GAAP”). Peoples Bank’s twenty-six community banking offices, all similar with respect to economic characteristics, share a majority of the following aggregation criteria: (i) products and services; (ii) operating processes; (iii) customer bases; (iv) delivery systems; and (v) regulatory oversight. Accordingly, they were aggregated into a single operating segment. | |||||||||||||||||||||||||
The Company faces competition primarily from commercial banks, thrift institutions and credit unions within the Northeastern Pennsylvania market, many of which are substantially larger in terms of assets and capital. In addition, mutual funds and security brokers compete for various types of deposits, and consumer, mortgage, leasing and insurance companies compete for various types of loans and leases. Principal methods of competing for banking and permitted nonbanking services include price, nature of product, quality of service and convenience of location. | |||||||||||||||||||||||||
The Company and Peoples Bank are subject to regulations of certain federal and state regulatory agencies and undergo periodic examinations. | |||||||||||||||||||||||||
Basis of presentation | ' | ||||||||||||||||||||||||
Basis of presentation: | |||||||||||||||||||||||||
Under the acquisition method of accounting, in a business combination effected through an exchange of equity interests, consideration of the facts and circumstances surrounding a business combination that generally involve the relative ownership and control of the entity by each of the parties subsequent to the merger must be made in determining the acquirer for financial reporting purposes. Based on a review of these factors, the aforementioned merger between the Company and Penseco was accounted for as a reverse acquisition whereby Penseco was treated as the acquirer for accounting and reporting purposes. As a result, the historical financial information included in the Company’s consolidated financial statements and related notes as reported in this Form 10-K is that of Penseco. | |||||||||||||||||||||||||
The consolidated financial statements of the Company have been prepared in conformity with GAAP, Regulation S-X and reporting practices applied in the banking industry. All significant intercompany balances and transactions have been eliminated in consolidation. The Company also presents herein condensed parent company only financial information regarding Peoples Financial Services Corp. (“Parent Company”). Prior period amounts are reclassified when necessary to conform with the current year’s presentation. Such reclassifications had no effect on financial position or results of operations. | |||||||||||||||||||||||||
The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2013, for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through the date these consolidated financial statements were issued. | |||||||||||||||||||||||||
Estimates | ' | ||||||||||||||||||||||||
Estimates: | |||||||||||||||||||||||||
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, determination of other-than-temporary impairment losses on securities, impairment of goodwill and fair value of assets acquired and liabilities assumed in business combinations. Actual results could differ from those estimates. | |||||||||||||||||||||||||
Investment securities | ' | ||||||||||||||||||||||||
Investment securities: | |||||||||||||||||||||||||
Investments securities are classified and accounted for as either held-to-maturity, available-for-sale, or trading account securities based on management’s intent at the time of acquisition. Management is required to reassess the appropriateness of such classifications at each reporting date. The Company classifies debt securities as held-to maturity when management has the positive intent and ability to hold such securities to maturity. Held-to-maturity securities are stated at cost, adjusted for amortization of premium and accretion of discount. Investment securities are designated as available-for-sale when they are to be held for indefinite periods of time as management intends to use such securities to implement asset/liability strategies or to sell them in response to changes in interest rates, prepayment risk, liquidity requirements, or other circumstances identified by management. Available-for-sale securities are reported at fair value, with unrealized gains and losses, net of income taxes, excluded from earnings and reported in a separate component of stockholders’ equity. All marketable equity securities are accounted for at fair value. Estimated fair values for investment securities are based on quoted market prices from a national electronic pricing service. Realized gains and losses are computed using the specific identification method and are included in noninterest income. Premiums are amortized and discounts are accreted using the interest method over the contractual lives of investment securities. Investment securities that are bought and held principally for the purpose of selling them in the near term, in order to generate profits from market appreciation, are classified as trading account securities. Trading account securities are carried at market value. Interest on trading account securities is included in interest income. Profits or losses on trading account securities are included in noninterest income. Transfers of securities between categories are recorded at fair value at the date of the transfer, with the accounting treatment of unrealized gains or losses determined by the category into which the security is transferred. | |||||||||||||||||||||||||
Management evaluates each investment security to determine if a decline in fair value below its amortized cost is an other-than-temporary impairment at least quarterly, and more frequently when economic or market concerns warrant an evaluation. Factors considered in determining whether an other-than-temporary impairment was incurred include: (i) the length of time and the extent to which the fair value has been less than amortized cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether a decline in fair value is attributable to adverse conditions specifically related to the security or specific conditions in an industry or geographic area; (iv) the credit-worthiness of the issuer of the security; (v) whether dividend or interest payments have been reduced or have not been made; (vi) an adverse change in the remaining expected cash flows from the security such that the Company will not recover the amortized cost of the security; (vii) whether management intends to sell the security; and (viii) if it is more likely than not that management will be required to sell the security before recovery. If a decline is judged to be other-than-temporary, the individual security is written-down to fair value with the credit related component of the write-down included in earnings and the non-credit related component included in other comprehensive income or loss. The assessment of whether an other-than-temporary impairment exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time. | |||||||||||||||||||||||||
Loans held for sale | ' | ||||||||||||||||||||||||
Loans held for sale: | |||||||||||||||||||||||||
Loans held for sale consist of one-to-four family residential mortgages originated and intended for sale in the secondary market. The loans are carried in aggregate at the lower of cost or estimated market value, based upon current delivery prices in the secondary mortgage market. Net unrealized losses are recognized through a valuation allowance by corresponding charges to income. Gains or losses on the sale of these loans are recognized in noninterest income at the time of sale using the specific identification method. Loan origination fees, net of certain direct loan origination costs, are included in net gains or losses upon the sale of the related mortgage loan. All loans are sold without recourse. The aggregate cost of these loans was lower than their estimated market value at December 31, 2013 accordingly, no valuation allowance was deemed necessary. | |||||||||||||||||||||||||
Loans, net | ' | ||||||||||||||||||||||||
Loans, net: | |||||||||||||||||||||||||
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of deferred fees or costs. Interest income is accrued on the principal amount outstanding. Loan origination fees, net of certain direct origination costs, are deferred and recognized over the contractual life of the related loan as an adjustment to yield using the effective interest method. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective interest method. Delinquency fees are recognized in income when chargeable, assuming collectability is reasonably assured. | |||||||||||||||||||||||||
Transfers of financial assets, which include loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when: (i) the assets have been isolated from the Company; (ii) the transferee obtains the right, free of conditions that constrain it from taking advantage of that right, to pledge or exchange the transferred assets and (iii) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||||||||||||||
The loan portfolio is segmented into commercial and retail loans. Commercial loans consist of commercial and commercial real estate loans. Retail loans consist of residential real estate and other consumer loans. | |||||||||||||||||||||||||
The Company makes commercial loans for real estate development and other business purposes required by the customer base. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. The assets financed through commercial loans are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversion of assets. Commercial real estate loans include long-term loans financing commercial properties. Repayment of these loans are dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans typically require a loan to value of not greater than 75% and vary in terms. Commercial and commercial real estate loans generally have higher credit risk compared to residential mortgage loans and consumer loans, as they typically involve larger loan balances concentrated with single borrowers or groups of borrowers. In addition, the payment expectations on loans secured by income-producing properties typically depend on the successful operations of the related business and thus may be subject to a greater extent to adverse conditions in the real estate market and in the general economy. | |||||||||||||||||||||||||
Residential mortgages, including home equity loans, are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages have varying loan rates depending on the financial condition of the borrower and the loan to value ratio. Residential mortgages may have amortizations up to 30 years. Consumer loans include installment loans, car loans, and overdraft lines of credit. The majority of these loans are secured. | |||||||||||||||||||||||||
Off-balance sheet financial instruments | ' | ||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||
In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit, unused portions of lines of credit and standby letters of credit. These financial instruments are recorded in the consolidated financial statements when they are funded. Fees on commercial letters of credit and on unused available lines of credit are recorded as service charges, fees and commissions and are included in noninterest income when earned. The Company records an allowance for off-balance sheet credit losses, if deemed necessary, separately as a liability. No allowance was deemed necessary at December 31, 2013 and 2012. | |||||||||||||||||||||||||
Nonperforming assets | ' | ||||||||||||||||||||||||
Nonperforming assets: | |||||||||||||||||||||||||
Nonperforming assets consist of nonperforming loans and other real estate owned. Nonperforming loans include nonaccrual loans, troubled debt restructured loans and accruing loans past due 90 days or more. Past due status is based on contractual terms of the loan. Generally, a loan is classified as nonaccrual when it is determined that the collection of all or a portion of interest or principal is doubtful or when a default of interest or principal has existed for 90 days or more, unless the loan is well secured and in the process of collection. When a loan is placed on nonaccrual, interest accruals discontinue and uncollected accrued interest is reversed against income in the current period. Interest collections after a loan has been placed on nonaccrual status are credited to a suspense account until either the loan is returned to performing status or charged-off. The interest accumulated in the suspense account is credited to income over the remaining life of the loan using the effective yield method if the nonaccrual loan is returned to performing status. However, if the nonaccrual loan is charged-off, the accumulated interest is applied as a reduction to principal at the time the loan is charged-off. A nonaccrual loan is returned to performing status when the loan is current as to principal and interest and has performed according to the contractual terms for a minimum of six months. | |||||||||||||||||||||||||
Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered can generally fall within the following categories: | |||||||||||||||||||||||||
• | Rate Modification — A modification in which the interest rate is changed to a below market rate. | ||||||||||||||||||||||||
• | Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed. | ||||||||||||||||||||||||
• | Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time. | ||||||||||||||||||||||||
• | Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. | ||||||||||||||||||||||||
• | Combination Modification — Any other type of modification, including the use of multiple categories above. | ||||||||||||||||||||||||
The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: | |||||||||||||||||||||||||
• | Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. | ||||||||||||||||||||||||
• | Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. | ||||||||||||||||||||||||
• | Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. | ||||||||||||||||||||||||
• | Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. | ||||||||||||||||||||||||
• | Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loans is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future. | ||||||||||||||||||||||||
Other real estate owned is comprised of properties acquired through foreclosure proceedings or in-substance foreclosures. A loan is classified as in-substance foreclosure when the Company has taken possession of the collateral regardless of whether formal foreclosure proceedings take place. Other real estate owned is included in other assets and recorded at fair value less cost to sell at the time of acquisition, establishing a new cost basis. Any excess of the loan balance over the recorded value is charged to the allowance for loan losses. Subsequent declines in the recorded values of the properties prior to their disposal and costs to maintain the assets are included in other expenses. Any gain or loss realized upon disposal of other real estate owned is included in noninterest expense. | |||||||||||||||||||||||||
Allowance for loan losses | ' | ||||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||
The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date. The allowance for loan losses account is maintained through a provision for loan losses charged to earnings. Loans, or portions of loans, determined to be confirmed losses are charged against the allowance account and subsequent recoveries, if any, are credited to the account. A loss is considered confirmed when information available at the financial statement date indicates the loan, or a portion thereof, is uncollectible. Nonaccrual, troubled debt restructured and large delinquent commercial and real estate loans are reviewed monthly to determine if carrying value reductions are warranted or if these classifications should be changed. Consumer loans are considered losses when they are 120 days past due, except those expected to be recovered through insurance or collateral disposition proceeds. | |||||||||||||||||||||||||
Management evaluates the adequacy of the allowance for loan losses account quarterly. This assessment is based on past charge-off experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. Regulators, in reviewing the loan portfolio as part of the scope of a regulatory examination, may require the Company to increase its allowance for loan losses or take other actions that would require the Company to increase its allowance for loan losses. | |||||||||||||||||||||||||
The allowance for loan losses is maintained at a level believed to be adequate to absorb probable credit losses related to specifically identified loans, as well as probable incurred losses inherent in the remainder of the loan portfolio as of the balance sheet date. The allowance for loan losses consists of an allocated element and an unallocated element. The allocated element consists of a specific allowance for impaired loans individually evaluated under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310, “Receivables,” and a formula portion for loss contingencies on those loans collectively evaluated under FASB ASC 450, “Contingencies.” | |||||||||||||||||||||||||
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. All amounts due according to the contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Factors considered by management in determining impairment include payment status, ability to pay and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company recognizes interest income on impaired loans, including the recording of cash receipts, for nonaccrual, restructured loans or accruing loans depending on the status of the impaired loan. Loans considered impaired under FASB ASC 310 are measured for impairment based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. If the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral, if the loan is collateral dependent, is less than the recorded investment in the loan, a specific allowance for the loan will be established. | |||||||||||||||||||||||||
The formula portion of the allowance for loan losses relates to large pools of smaller-balance homogeneous loans and those identified loans considered not individually impaired having similar characteristics as these loan pools. Loss contingencies for each of the major loan pools are determined by applying a total loss factor to the current balance outstanding for each individual pool. The total loss factor is comprised of a historical loss factor using a loss migration method plus a qualitative factor, which adjusts the historical loss factor for changes in trends, conditions and other relevant factors that may affect repayment of the loans in these pools as of the evaluation date. Loss migration involves determining the percentage of each pool that is expected to ultimately result in loss based on historical loss experience. Historical loss factors are based on the ratio of net loans charged-off to loans, net, for each of the major groups of loans evaluated and measured for impairment under FASB ASC 450. The historical loss factor for each pool is a weighted average of the Company’s historical net charge-off ratio for the most recent rolling twelve quarters. Management adjusts these historical loss factors by a qualitative factor that represents a number of environmental risks that may cause estimated credit losses associated with the current portfolio to differ from historical loss experience. These environmental risks include: (i) changes in lending policies and procedures including underwriting standards and collection, charge-off and recovery practices; (ii) changes in the composition and volume of the portfolio; (iii) changes in national, local and industry conditions, including the effects of such changes on the value of underlying collateral for collateral-dependent loans; (iv) changes in the volume and severity of classified loans, including past due, nonaccrual, troubled debt restructures and other loan modifications; (v) changes in the levels of, and trends in, charge-offs and recoveries; (vi) the existence and effect of any concentrations of credit and changes in the level of such concentrations; (vii) changes in the experience, ability and depth of lending management and other relevant staff; (viii) changes in the quality of the loan review system and the degree of oversight by the board of directors; and (ix) the effect of external factors such as competition and legal and regulatory requirements on the level of estimated credit losses in the current loan portfolio. Each environmental risk factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. | |||||||||||||||||||||||||
The unallocated element is used to cover inherent losses that exist as of the evaluation date, but which have not been identified as part of the allocated allowance using the above impairment evaluation methodology due to limitations in the process. One such limitation is the imprecision of accurately estimating the impact current economic conditions will have on historical loss rates. Variations in the magnitude of impact may cause estimated credit losses associated with the current portfolio to differ from historical loss experience, resulting in an allowance that is higher or lower than the anticipated level. Management establishes the unallocated element of the allowance by considering a number of environmental risks similar to the ones used for determining the qualitative factors. Management continually monitors trends in historical and qualitative factors, including trends in the volume, composition and credit quality of the portfolio. The reasonableness of the unallocated element is evaluated through monitoring trends in its level to determine if changes from period to period are directionally consistent with changes in the loan portfolio. | |||||||||||||||||||||||||
Management believes the level of the allowance for loan losses was adequate to absorb probable credit losses as of December 31, 2013. | |||||||||||||||||||||||||
Premises and equipment, net | ' | ||||||||||||||||||||||||
Premises and equipment, net: | |||||||||||||||||||||||||
Land is stated at cost. Premises, equipment and leasehold improvements are stated at cost less accumulated depreciation and amortization. The cost of routine maintenance and repairs is expensed as incurred. The cost of major replacements, renewals and betterments is capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation and amortization are eliminated and any resulting gain or loss is reflected in noninterest income. Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: | |||||||||||||||||||||||||
Premises and leasehold improvements | 7 – 40 years | ||||||||||||||||||||||||
Furniture, fixtures and equipment | 3 – 10 years | ||||||||||||||||||||||||
Business combinations, goodwill and other intangible assets, net | ' | ||||||||||||||||||||||||
Business combinations, goodwill and other intangible assets, net: | |||||||||||||||||||||||||
The Company accounts for its acquisitions using the purchase accounting method. Purchase accounting requires the total purchase price to be allocated to the estimated fair values of assets acquired and liabilities assumed, including certain intangible assets that must be recognized. Typically, this allocation results in the purchase price exceeding the fair value of net assets acquired, which is recorded as goodwill. Core deposit intangibles are a measure of the value of checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles and other identified intangibles with finite useful lives are amortized using the sum of the year’s digits over their estimated useful lives of up to ten years | |||||||||||||||||||||||||
Loans that the Company acquires in connection with acquisitions are recorded at fair value with no carryover of the related allowance for credit losses. Fair value of the loans involves estimating the amount and timing of principal and interest cash flows expected to be collected on the loans and discounting those cash flows at a market rate of interest. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loan. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable discount. The nonaccretable discount includes estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows will require the Company to evaluate the need for an additional allowance for credit losses. Subsequent improvement in expected cash flows will result in the reversal of a corresponding amount of the nonaccretable discount which the Company will then reclassify as accretable discount that will be recognized into interest income over the remaining life of the loan. Acquired loans that met the criteria for nonaccrual of interest prior to the acquisition may be considered performing upon acquisition, regardless of whether the customer is contractually delinquent. As such, the Company may no longer consider the loan to be nonaccrual or nonperforming and may accrue interest on these loans, including the impact of any accretable discount. In addition, charge-offs on such loans would be first applied to the nonaccretable difference portion of the fair value adjustment. | |||||||||||||||||||||||||
Goodwill and other intangible assets are tested for impairment annually or when circumstances arise indicating impairment may have occurred. In making this assessment that impairment has occurred, management considers a number of factors including, but not limited to, operating results, business plans, economic projections, anticipated future cash flows, and current market data. There are inherent uncertainties related to these factors and management’s judgment in applying them to the analysis of impairment. Changes in economic and operating conditions, as well as other factors, could result in impairment in future periods. Any impairment losses arising from such testing would be reported in the Consolidated Statements of Income and Comprehensive Income as a separate line item within operations. There were no impairment losses recognized as a result of periodic impairment testing in 2013, 2012 and 2011. | |||||||||||||||||||||||||
Mortgage servicing rights | ' | ||||||||||||||||||||||||
Mortgage servicing rights: | |||||||||||||||||||||||||
Mortgage servicing rights are recognized as a separate asset when acquired through sales of loan originations. The Company determines a mortgage servicing right by allocating the total costs incurred between the loan sold and the servicing right, based on their relative fair values at the date of the sale. Mortgage servicing rights are included in other assets and are amortized into noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying mortgage loans. In addition, mortgage servicing rights are evaluated for impairment at each reporting date based on the fair value of those rights. For purposes of measuring impairment, the rights are stratified by loan type, term and interest rate. The amount of impairment recognized, through a valuation allowance, is the amount by which the mortgage servicing rights for a stratum exceed their fair value. | |||||||||||||||||||||||||
Restricted equity securities | ' | ||||||||||||||||||||||||
Restricted equity securities: | |||||||||||||||||||||||||
As a member of the Federal Home Loan Bank of Pittsburgh (“FHLB”), the Company is required to purchase and hold stock in the FHLB to satisfy membership and borrowing requirements. This stock is restricted in that it can only be redeemed by the FHLB or to another member institution, and all redemptions of FHLB stock must be at par. As a result of these restrictions, FHLB stock is unlike other investment securities as there is no trading market for FHLB stock and the transfer price is determined by FHLB membership rules and not by market participants. The carrying value of restricted stock is included in other assets. | |||||||||||||||||||||||||
Bank owned life insurance | ' | ||||||||||||||||||||||||
Bank owned life insurance: | |||||||||||||||||||||||||
The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by Peoples Bank on certain of its employees. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies and is included in other assets. Income from increases in cash surrender value of the policies is included in noninterest income. | |||||||||||||||||||||||||
Pension and post-retirement benefit plans | ' | ||||||||||||||||||||||||
Pension and post-retirement benefit plans: | |||||||||||||||||||||||||
The Company sponsors various pension plans covering substantially all employees. The Company also provides post-retirement benefit plans other than pensions, consisting principally of life insurance benefits, to eligible retirees. The liabilities and annual income or expense of the Company’s pension and other post-retirement benefit plans are determined using methodologies that involve several actuarial assumptions, the most significant of which are the discount rate and the long-term rate of asset return, based on the market-related value of assets. The fair values of plan assets are determined based on prevailing market prices or estimated fair value for investments with no available quoted prices. | |||||||||||||||||||||||||
Statements of Cash Flows | ' | ||||||||||||||||||||||||
Statements of Cash Flows: | |||||||||||||||||||||||||
The Consolidated Statements of Cash Flows are presented using the indirect method. For purposes of cash flow, cash and cash equivalents include cash on hand, cash items in the process of collection, noninterest-bearing and interest-bearing deposits in other banks and federal funds sold. | |||||||||||||||||||||||||
Fair value of financial instruments | ' | ||||||||||||||||||||||||
Fair value of financial instruments: | |||||||||||||||||||||||||
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. | |||||||||||||||||||||||||
In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” fair value is the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. | |||||||||||||||||||||||||
Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. | |||||||||||||||||||||||||
In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: | |||||||||||||||||||||||||
• | Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. | ||||||||||||||||||||||||
• | Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||||||
• | Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. | ||||||||||||||||||||||||
The following methods and assumptions were used by the Company to construct the summary table in Note 13 containing the fair values and related carrying amounts of financial instruments: | |||||||||||||||||||||||||
Cash and cash equivalents: The carrying values of cash and cash equivalents as reported on the balance sheet approximate fair value. | |||||||||||||||||||||||||
Investment securities: The fair values of marketable equity securities are based on quoted market prices from active exchange markets. The fair values of debt securities are based on pricing from a matrix pricing model. | |||||||||||||||||||||||||
Loans held for sale: The fair values of loans held for sale are based upon current delivery prices in the secondary mortgage market. | |||||||||||||||||||||||||
Net loans: For adjustable-rate loans that reprice frequently and with no significant credit risk, fair values are based on carrying values. The fair values of other nonimpaired loans are estimated using discounted cash flow analysis, using interest rates currently offered in the market for loans with similar terms to borrowers of similar credit risk. Fair values for impaired loans are estimated using discounted cash flow analysis determined by the loan review function or underlying collateral values, where applicable. | |||||||||||||||||||||||||
In conjunction with the Merger, the loans purchased were recorded at their acquisition date fair value. In order to record the loans at fair value, management made three different types of fair value adjustments. A market rate adjustment was made to adjust for the movement in market interest rates, irrespective of credit adjustments, compared to the stated rates of the acquired loans. A credit adjustment was made on pools of homogeneous loans representing the changes in credit quality of the underlying borrowers from the loan inception to the acquisition date. The credit adjustment on distressed loans represents the portion of the loan balance that has been deemed uncollectible based on the management’s expectations of future cash flows for each respective loan. | |||||||||||||||||||||||||
Mortgage servicing rights: To determine the fair value, the Company estimates the present value of future cash flows incorporating assumptions such as cost of servicing, discount rates, prepayment speeds and default rates. | |||||||||||||||||||||||||
Accrued interest receivable: The carrying value of accrued interest receivable as reported on the balance sheet approximates fair value. | |||||||||||||||||||||||||
Restricted equity securities: The carrying values of restricted equity securities approximate fair value, due to the lack of marketability for these securities. | |||||||||||||||||||||||||
Deposits: The fair values of noninterest-bearing deposits and savings, NOW and money market accounts are the amounts payable on demand at the reporting date. The fair value estimates do not include the benefit that results from such low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. The carrying values of adjustable-rate, fixed-term time deposits approximate their fair values at the reporting date. For fixed-rate time deposits, the present value of future cash flows is used to estimate fair values. The discount rates used are the current rates offered for time deposits with similar maturities. | |||||||||||||||||||||||||
The fair value assigned to the core deposit intangible asset represents the future economic benefit of the potential cost savings from acquiring core deposits in the Merger compared to the cost of obtaining alternative funding such as brokered deposits from market sources. Management utilized an income valuation approach to present value the estimated future cash savings in order to determine the fair value of the intangible asset. | |||||||||||||||||||||||||
Short-term borrowings: The carrying values of short-term borrowings approximate fair value. | |||||||||||||||||||||||||
Long-term debt: The fair value of fixed-rate long-term debt is based on the present value of future cash flows. The discount rate used is the current rate offered for long-term debt with the same maturity. | |||||||||||||||||||||||||
Accrued interest payable: The carrying value of accrued interest payable as reported on the balance sheet approximates fair value. | |||||||||||||||||||||||||
Off-balance sheet financial instruments: | |||||||||||||||||||||||||
The majority of commitments to extend credit, unused portions of lines of credit and standby letters of credit carry current market interest rates if converted to loans. Because such commitments are generally unassignable of either the Company or the borrower, they only have value to the Company and the borrower. None of the commitments are subject to undue credit risk. The estimated fair values of off-balance sheet financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of off-balance sheet financial instruments was not material at December 31, 2013 and December 31, 2012. | |||||||||||||||||||||||||
Advertising | ' | ||||||||||||||||||||||||
Advertising: | |||||||||||||||||||||||||
The Company follows the policy of charging marketing and advertising costs to expense as incurred. Advertising expense for the years ended December 31, 2013, 2012 and 2011 was $350, $287 and $494, respectively. | |||||||||||||||||||||||||
Income taxes | ' | ||||||||||||||||||||||||
Income taxes: | |||||||||||||||||||||||||
The Company accounts for income taxes in accordance with the income tax accounting guidance set forth in FASB ASC Topic 740, “Income Taxes”. ASC Topic 740 sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. | |||||||||||||||||||||||||
Deferred income taxes are provided on the balance sheet method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the effective date. A tax position is recognized as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that has a likelihood of being realized on examination of more than 50 percent. For tax positions not meeting the more likely than not threshold, no tax benefit is recorded. Under the more likely than not threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would give rise to the non-recognition of an existing tax benefit. The Company had no material unrecognized tax benefits or accrued interest and penalties for any year in the three-year period ended December 31, 2013. | |||||||||||||||||||||||||
As applicable, the Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various states’ jurisdictions. With limited exception, the Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2010. | |||||||||||||||||||||||||
Other comprehensive income | ' | ||||||||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||||
The components of other comprehensive income (loss) and their related tax effects are reported in the Consolidated Statements of Income and Comprehensive Income. The accumulated other comprehensive loss included in the Consolidated Balance Sheets relates to net unrealized gains and losses on investment securities available-for-sale and the unfunded benefit plan amounts which include prior service costs and unrealized net losses. | |||||||||||||||||||||||||
Earnings per share | ' | ||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||
Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate solely to outstanding stock options, and are determined using the treasury stock method. | |||||||||||||||||||||||||
Stock options for 13,636 shares of common stock were not considered in computing diluted earnings per share for each of the years ended December 31, 2012 and 2011, because they were anti-dilutive. | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Year ended December 31 | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Net Income (Numerator) | $ | 5,721 | $ | 5,721 | $ | 10,589 | $ | 10,589 | $ | 10,531 | $ | 10,531 | |||||||||||||
Average common shares outstanding (Denominator) | 4,733,059 | 4,733,059 | 4,467,261 | 4,467,714 | 4,467,261 | 4,467,261 | |||||||||||||||||||
Earnings per share | $ | 1.21 | $ | 1.21 | $ | 2.37 | $ | 2.37 | $ | 2.36 | $ | 2.36 | |||||||||||||
Stock-based compensation | ' | ||||||||||||||||||||||||
Stock-based compensation: | |||||||||||||||||||||||||
The Company recognizes all share-based payments to employees in the consolidated statement of operations based on their fair values. The fair value of such equity instruments is recognized as an expense in the historical consolidated financial statements as services are performed. The Company uses the Black-Scholes Model to estimate the fair value of each option on the date of grant. The Black-Scholes Model estimates the fair value of employee stock options using a pricing model which takes into consideration the exercise price of the option, the expected life of the option, the current market price and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company typically grants stock options to employees with an exercise price equal to the fair value of the shares at the date of grant. The fair value of restricted stock is equivalent to the fair value on the date of grant and is amortized over the vesting period. | |||||||||||||||||||||||||
As of December 31, 2013 and 2012, all stock options were fully vested and there are no unrecognized compensation costs related to stock options. The Company has not granted stock options after 2005. | |||||||||||||||||||||||||
Recent accounting standards | ' | ||||||||||||||||||||||||
Recent accounting standards: | |||||||||||||||||||||||||
In 2013, the FASB Emerging Issues Task Force (“EITF”) issued EITF Issue No. 13-E, “Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure.” A creditor will be considered to have physical possession of residential real estate property that is collateral for a residential mortgage loan and therefore should reclassify the loan to other real estate owned when it obtains legal title to the collateral or it completes a deed in lieu of foreclosure or similar legal agreement. The amendments are effective for all entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The adoption of EITF Issue No. 13-E is not expected to have a material effect on the operating results or financial position of the Company. |
Summary_of_significant_account2
Summary of significant accounting policies (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Estimated Useful Lives of Related Assets | ' | ||||||||||||||||||||||||
Depreciation and amortization are computed principally using the straight-line method based on the following estimated useful lives of the related assets, or in the case of leasehold improvements, to the expected terms of the leases, if shorter: | |||||||||||||||||||||||||
Premises and leasehold improvements | 7 – 40 years | ||||||||||||||||||||||||
Furniture, fixtures and equipment | 3 – 10 years | ||||||||||||||||||||||||
Schedule of Earnings Per Share | ' | ||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Year ended December 31 | Basic | Diluted | Basic | Diluted | Basic | Diluted | |||||||||||||||||||
Net Income (Numerator) | $ | 5,721 | $ | 5,721 | $ | 10,589 | $ | 10,589 | $ | 10,531 | $ | 10,531 | |||||||||||||
Average common shares outstanding (Denominator) | 4,733,059 | 4,733,059 | 4,467,261 | 4,467,714 | 4,467,261 | 4,467,261 | |||||||||||||||||||
Earnings per share | $ | 1.21 | $ | 1.21 | $ | 2.37 | $ | 2.37 | $ | 2.36 | $ | 2.36 |
Merger_accounting_Tables
Merger accounting (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
Calculation of Consideration Effectively Transferred | ' | ||||||||||||
The table below illustrates the calculation of the consideration effectively transferred. | |||||||||||||
Penseco shares outstanding at November 30, 2013(A) | 3,275,217 | ||||||||||||
Exchange ratio | 1.3636 | ||||||||||||
Peoples shares issued to Penseco shareholders(B) | 4,465,538 | ||||||||||||
Peoples shares outstanding at November 30, 2013 | 3,087,406 | ||||||||||||
Total Peoples shares outstanding at November 30, 2013 | 7,552,944 | ||||||||||||
Penseco % ownership | 59.12 | % | |||||||||||
Peoples % ownership | 40.88 | % | |||||||||||
Theoretical Penseco share to be issued as consideration | |||||||||||||
Penseco shares outstanding at November 30, 2013(A) | 3,275,217 | ||||||||||||
Ownership % held by Penseco shareholders | 59.12 | % | |||||||||||
Theoretical Penseco shares after consideration paid | 5,539,653 | ||||||||||||
Ownership % by legacy Peoples shareholders | 40.88 | % | |||||||||||
Theoretical Penseco shares issued as consideration | 2,264,436 | ||||||||||||
Fair value of Penseco shares at November 30, 2013 ($34.50 multiplied by 1.3636) | $ | 47.04 | |||||||||||
Fair value of theoretical Penseco shares offered | $ | 106,519 | |||||||||||
Cash paid for fractional shares | 17 | ||||||||||||
$ | 106,536 | ||||||||||||
(A) | Excludes 9,928 shares of Penseco common shares owned by Peoples which were retired. | ||||||||||||
(B) | Excludes payment for fractional shares. | ||||||||||||
Schedule of Acquired Assets and Assumed Liabilities Measured at Estimated Fair Values | ' | ||||||||||||
Total Purchase Price | $ | 106,536 | |||||||||||
Net Assets Acquired: | |||||||||||||
Cash and due from banks | $ | 6,982 | |||||||||||
Federal funds sold | 15,410 | ||||||||||||
Investment securities available-for-sale | 156,435 | ||||||||||||
Restricted equity securities | 997 | ||||||||||||
Loans, net | 504,002 | ||||||||||||
Accrued interest receivable | 3,625 | ||||||||||||
Premises and equipment | 11,737 | ||||||||||||
Core deposit and other intangible assets | 6,323 | ||||||||||||
Other assets | 18,647 | ||||||||||||
Deposits | (628,304 | ) | |||||||||||
Short-term borrowings | (17,737 | ) | |||||||||||
Long-term debt | (2,516 | ) | |||||||||||
Accrued interest payable | (473 | ) | |||||||||||
Other liabilities | (5,976 | ) | |||||||||||
Net assets acquired | 69,152 | ||||||||||||
Treasury stock acquired | 412 | ||||||||||||
Goodwill resulting from merger | $ | 36,972 | |||||||||||
Summary of Acquired Nonimpaired and Impaired Loans | ' | ||||||||||||
The following is a summary of the acquired nonimpaired and impaired loans from the merger with Peoples: | |||||||||||||
Acquired | Acquired | ||||||||||||
Nonimpaired | Impaired | ||||||||||||
Loans | Loans | ||||||||||||
Contractually required principal and interest at acquisition | $ | 501,423 | $ | 19,353 | |||||||||
Contractual cash flows not expected to be collected (nonaccretable discount) | (10,873 | ) | |||||||||||
Expected cash flows at acquisition | 501,423 | 8,480 | |||||||||||
Interest component of expected cash flows (accretable discount) | (4,773 | ) | (1,128 | ) | |||||||||
Fair value of acquired loans | $ | 496,650 | $ | 7,352 | |||||||||
Summary of Merger Related Costs | ' | ||||||||||||
A summary of merger related costs included in the consolidated statements of income for the year ended December 31, 2013 is summarized as follows: | |||||||||||||
December 31, | 2013 | ||||||||||||
Accounting | $ | 65 | |||||||||||
Legal and consulting | 1,011 | ||||||||||||
Salaries and benefits | 1,851 | ||||||||||||
Equipment disposition and contract termination | 709 | ||||||||||||
System conversion/deconversion costs | 956 | ||||||||||||
Other | 17 | ||||||||||||
Total | $ | 4,609 | |||||||||||
Schedule of Pro Forma Condensed Combined Financial Information | ' | ||||||||||||
The following table presents unaudited pro forma information as if the merger between Peoples and Penseco had been completed on January 1, 2011. | |||||||||||||
Years ended December 31, | 2013 | 2012 | 2011 | ||||||||||
Net interest income after loan loss provision | $ | 52,734 | $ | 52,917 | $ | 51,312 | |||||||
Noninterest income | 16,080 | 16,287 | 18,186 | ||||||||||
Noninterest expense | 52,295 | 49,827 | 56,319 | ||||||||||
Net income | $ | 16,519 | $ | 19,377 | $ | 13,179 | |||||||
Net income per share | $ | 2.19 | $ | 2.55 | $ | 1.73 |
Investment_securities_Tables
Investment securities (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category | ' | ||||||||||||||||||||||||
The amortized cost and fair value of investment securities aggregated by investment category at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||||||
December 31, 2013 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agencies | $ | 207 | $ | 3 | $ | 204 | |||||||||||||||||||
U.S. Government-sponsored enterprises | 113,221 | $ | 296 | 472 | 113,045 | ||||||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | 16,664 | 160 | 126 | 16,698 | |||||||||||||||||||||
Tax-exempt | 96,194 | 2,267 | 380 | 98,081 | |||||||||||||||||||||
Corporate debt securities | 4,433 | 32 | 78 | 4,387 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 20,179 | 113 | 63 | 20,229 | |||||||||||||||||||||
U.S. Government-sponsored enterprises | 45,251 | 763 | 40 | 45,974 | |||||||||||||||||||||
Common equity securities | 756 | 351 | 10 | 1,097 | |||||||||||||||||||||
Total | $ | 296,905 | $ | 3,982 | $ | 1,172 | $ | 299,715 | |||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | |||||||||||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | $ | 7,372 | $ | 11 | $ | 777 | $ | 6,606 | |||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 117 | 2 | 119 | ||||||||||||||||||||||
U.S. Government-sponsored enterprises | 9,806 | 644 | 10,450 | ||||||||||||||||||||||
Common equity securities | |||||||||||||||||||||||||
Total | $ | 17,295 | $ | 657 | $ | 777 | $ | 17,175 | |||||||||||||||||
December 31, 2012 | Amortized | Gross | Gross | Fair | |||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Available-for-sale: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | $ | 83,927 | $ | 757 | $ | 2 | $ | 84,682 | |||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | 53,846 | 4,991 | 58,837 | ||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | 15,962 | 839 | 16,801 | ||||||||||||||||||||||
Common equity securities | 801 | 281 | 11 | 1,071 | |||||||||||||||||||||
Total | $ | 154,536 | $ | 6,868 | $ | 13 | $ | 161,391 | |||||||||||||||||
Held-to-maturity: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | |||||||||||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | $ | 1,083 | $ | 16 | $ | 1,099 | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 136 | 4 | 140 | ||||||||||||||||||||||
U.S. Government-sponsored enterprises | 14,683 | 852 | 15,535 | ||||||||||||||||||||||
Common equity securities | |||||||||||||||||||||||||
Total | $ | 15,902 | $ | 872 | $ | 16,774 | |||||||||||||||||||
Maturity Distribution of Debt Securities Classified as Available-for-Sale | ' | ||||||||||||||||||||||||
The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at December 31, 2013, is summarized as follows: | |||||||||||||||||||||||||
December 31, 2013 | Amortized | Fair | |||||||||||||||||||||||
Cost | Value | ||||||||||||||||||||||||
Within one year | |||||||||||||||||||||||||
After one but within five years | $ | 157 | $ | 160 | |||||||||||||||||||||
After five but within ten years | 342 | 350 | |||||||||||||||||||||||
After ten years | 6,873 | 6,096 | |||||||||||||||||||||||
7,372 | 6,606 | ||||||||||||||||||||||||
Mortgage-backed securities | 9,923 | 10,569 | |||||||||||||||||||||||
Total | $ | 17,295 | $ | 17,175 | |||||||||||||||||||||
Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position | ' | ||||||||||||||||||||||||
The fair value and gross unrealized losses of investment securities with unrealized losses for which an OTTI has not been recognized at December 31, 2013 and 2012, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
December 31, 2013 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Government agencies | $ | 204 | $ | 3 | $ | 204 | $ | 3 | |||||||||||||||||
U.S. Government-sponsored enterprises | 66,391 | 468 | $ | 3,114 | $ | 4 | 69,505 | 472 | |||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | 10,621 | 126 | 10,621 | 126 | |||||||||||||||||||||
Tax-exempt | 36,471 | 1,157 | 36,471 | 1,157 | |||||||||||||||||||||
Corporate debt securities | 1,095 | 78 | 1,095 | 78 | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | 12,774 | 63 | 12,774 | 63 | |||||||||||||||||||||
U.S. Government-sponsored enterprises | 5,624 | 40 | 5,624 | 40 | |||||||||||||||||||||
Common equity securities | 137 | 10 | 137 | 10 | |||||||||||||||||||||
Total | $ | 133,317 | $ | 1,945 | $ | 3,114 | $ | 4 | $ | 136,431 | $ | 1,949 | |||||||||||||
Less Than 12 Months | 12 Months or More | Total | |||||||||||||||||||||||
December 31, 2012 | Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | $ | 3,169 | $ | 2 | $ | 3,169 | $ | 2 | |||||||||||||||||
State and municipals: | |||||||||||||||||||||||||
Taxable | |||||||||||||||||||||||||
Tax-exempt | |||||||||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||||||
U.S. Government-sponsored enterprises | |||||||||||||||||||||||||
Common equity securities | 141 | 9 | $ | 48 | $ | 2 | 189 | 11 | |||||||||||||||||
Total | $ | 3,310 | $ | 11 | $ | 48 | $ | 2 | $ | 3,358 | $ | 13 | |||||||||||||
Available-for-sale Securities [Member] | ' | ||||||||||||||||||||||||
Maturity Distribution of Debt Securities Classified as Available-for-Sale | ' | ||||||||||||||||||||||||
The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at December 31, 2013, is summarized as follows: | |||||||||||||||||||||||||
December 31, 2013 | Fair | ||||||||||||||||||||||||
Value | |||||||||||||||||||||||||
Within one year | $ | 22,544 | |||||||||||||||||||||||
After one but within five years | 104,683 | ||||||||||||||||||||||||
After five but within ten years | 29,066 | ||||||||||||||||||||||||
After ten years | 76,122 | ||||||||||||||||||||||||
232,415 | |||||||||||||||||||||||||
Mortgage-backed securities | 66,203 | ||||||||||||||||||||||||
Total | $ | 298,618 | |||||||||||||||||||||||
Loans_net_and_allowance_for_lo1
Loans, net and allowance for loan losses (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||||||
Receivables [Abstract] | ' | ||||||||||||||||||||||||||||
Major Classifications of Loans Outstanding | ' | ||||||||||||||||||||||||||||
The major classifications of loans outstanding, net of deferred loan origination fees and costs at December 31, 2013 and 2012 are summarized as follows. Net deferred loan costs were $24 December 31, 2013. | |||||||||||||||||||||||||||||
December 31 | 2013 | 2012 | |||||||||||||||||||||||||||
Commercial | $ | 350,680 | $ | 91,724 | |||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 413,058 | 217,496 | |||||||||||||||||||||||||||
Residential | 322,062 | 261,912 | |||||||||||||||||||||||||||
Consumer | 90,817 | 52,398 | |||||||||||||||||||||||||||
Total | $ | 1,176,617 | $ | 623,530 | |||||||||||||||||||||||||
Changes in Allowance for Loan Losses Account by Major Classification of Loan | ' | ||||||||||||||||||||||||||||
The changes in the allowance for loan losses account by major classification of loan for the year ended December 31, 2013, 2012 and 2011 were as follows: | |||||||||||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
December 31, 2013 | Commercial | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 799 | $ | 2,304 | $ | 2,981 | $ | 866 | $ | 6,950 | |||||||||||||||||||
Charge-offs | (5 | ) | (15 | ) | (508 | ) | (313 | ) | (841 | ) | |||||||||||||||||||
Recoveries | 1 | 20 | 111 | 49 | 181 | ||||||||||||||||||||||||
Provisions | 1,213 | 85 | 551 | 512 | 2,361 | ||||||||||||||||||||||||
Ending balance | $ | 2,008 | $ | 2,394 | $ | 3,135 | $ | 1,114 | $ | 8,651 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 1,500 | 300 | 224 | 2,024 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 508 | 2,094 | 2,911 | 1,114 | 6,627 | ||||||||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | $ | $ | $ | $ | ||||||||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | $ | 350,680 | $ | 413,058 | $ | 322,062 | $ | 90,817 | $ | 1,176,617 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 5,209 | 5,317 | 3,658 | 90 | 14,274 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | 342,719 | 403,560 | 317,946 | $ | 90,727 | 1,154,952 | |||||||||||||||||||||||
Ending balance: loans acquired with deteriorated credit quality | $ | 2,752 | $ | 4,181 | $ | 458 | $ | 7,391 | |||||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
December 31, 2012 | Commercial | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 793 | $ | 2,294 | $ | 2,855 | $ | 769 | $ | 6,711 | |||||||||||||||||||
Charge-offs | (78 | ) | (33 | ) | (431 | ) | (275 | ) | (817 | ) | |||||||||||||||||||
Recoveries | 1 | 6 | 67 | 58 | 132 | ||||||||||||||||||||||||
Provisions | 83 | 37 | 490 | 314 | 924 | ||||||||||||||||||||||||
Ending balance | $ | 799 | $ | 2,304 | $ | 2,981 | $ | 866 | $ | 6,950 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 351 | 550 | 325 | 1,226 | |||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 448 | $ | 1,754 | $ | 2,656 | $ | 866 | $ | 5,724 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | $ | 91,724 | $ | 217,496 | $ | 261,912 | $ | 52,398 | $ | 623,530 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 655 | 2,160 | 2,425 | 31 | 5,271 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 91,069 | $ | 215,336 | $ | 259,487 | $ | 52,367 | $ | 618,259 | |||||||||||||||||||
Real estate | |||||||||||||||||||||||||||||
December 31, 2011 | Commercial | Commercial | Residential | Consumer | Unallocated | Total | |||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||||||||
Beginning balance | $ | 1,957 | $ | 2,067 | $ | 753 | $ | 1,723 | $ | 6,500 | |||||||||||||||||||
Charge-offs | (100 | ) | (663 | ) | (1,275 | ) | (262 | ) | (2,300 | ) | |||||||||||||||||||
Recoveries | 3 | 18 | 58 | 51 | 130 | ||||||||||||||||||||||||
Provisions | (1,067 | ) | 872 | 3,319 | (743 | ) | 2,381 | ||||||||||||||||||||||
Ending balance | $ | 793 | $ | 2,294 | $ | 2,855 | $ | 769 | $ | 6,711 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 443 | 215 | 658 | ||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 350 | $ | 2,294 | $ | 2,640 | $ | 769 | $ | 6,053 | |||||||||||||||||||
Loans receivable: | |||||||||||||||||||||||||||||
Ending balance | $ | 88,188 | $ | 208,875 | $ | 281,643 | $ | 52,816 | $ | 631,522 | |||||||||||||||||||
Ending balance: individually evaluated for impairment | 845 | 591 | 2,006 | 92 | 3,534 | ||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 87,343 | $ | 208,284 | $ | 279,637 | $ | 52,724 | $ | 627,988 | |||||||||||||||||||
Major Classification of Loans Portfolio Summarized by Credit Quality | ' | ||||||||||||||||||||||||||||
The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at December 31, 2013 and 2012: | |||||||||||||||||||||||||||||
December 31, 2013: | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
Commercial | $ | 332,257 | $ | 7,025 | $ | 11,398 | $ | 350,680 | |||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 386,825 | 10,701 | 15,532 | 413,058 | |||||||||||||||||||||||||
Residential | 314,544 | 861 | 6,657 | 322,062 | |||||||||||||||||||||||||
Consumer | 90,718 | 9 | 90 | 90,817 | |||||||||||||||||||||||||
Total | $ | 1,124,344 | $ | 18,596 | $ | 33,677 | $ | 1,176,617 | |||||||||||||||||||||
December 31, 2012: | Pass | Special | Substandard | Doubtful | Total | ||||||||||||||||||||||||
Mention | |||||||||||||||||||||||||||||
Commercial | $ | 90,128 | $ | 876 | $ | 720 | $ | 91,724 | |||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 204,513 | 6,440 | 6,543 | 217,496 | |||||||||||||||||||||||||
Residential | 259,869 | 2,043 | 261,912 | ||||||||||||||||||||||||||
Consumer | 52,153 | 245 | 52,398 | ||||||||||||||||||||||||||
Total | $ | 606,663 | $ | 7,316 | $ | 9,551 | $ | 623,530 | |||||||||||||||||||||
Information Concerning Nonaccrual Loans by Major Loan Classification | ' | ||||||||||||||||||||||||||||
Information concerning nonaccrual loans by major loan classification at December 31, 2013 and 2012 is summarized as follows: | |||||||||||||||||||||||||||||
December 31, | 2013 | 2012 | |||||||||||||||||||||||||||
Commercial | $ | 4,038 | $ | 304 | |||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 4,503 | 145 | |||||||||||||||||||||||||||
Residential | 3,535 | 1,800 | |||||||||||||||||||||||||||
Consumer | 90 | 31 | |||||||||||||||||||||||||||
Total | $ | 12,166 | $ | 2,280 | |||||||||||||||||||||||||
Major Classification of Loans by Past Due Status | ' | ||||||||||||||||||||||||||||
The major classification of loans by past due status are summarized as follows: | |||||||||||||||||||||||||||||
December 31, 2013 | 30-59 Days | 60-89 Days | Greater | Total Past | Current | Total | Loans > 90 | ||||||||||||||||||||||
Past Due | Past Due | than 90 | Due | Loans | Days and | ||||||||||||||||||||||||
Days | Accruing | ||||||||||||||||||||||||||||
Commercial | $ | 1,052 | $ | 105 | $ | 4,044 | $ | 5,201 | $ | 345,479 | $ | 350,680 | $ | 6 | |||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 1,641 | 75 | 4,703 | 6,419 | 406,639 | 413,058 | 200 | ||||||||||||||||||||||
Residential | 3,676 | 985 | 4,213 | 8,874 | 313,188 | 322,062 | 678 | ||||||||||||||||||||||
Consumer | 798 | 313 | 661 | 1,772 | 89,045 | 90,817 | 571 | ||||||||||||||||||||||
Total | $ | 7,167 | $ | 1,478 | $ | 13,621 | $ | 22,266 | $ | 1,154,351 | $ | 1,176,617 | $ | 1,455 | |||||||||||||||
December 31, 2012 | 30-59 Days | 60-89 Days | Greater | Total Past | Current | Total | Loans > 90 | ||||||||||||||||||||||
Past Due | Past Due | than 90 | Due | Loans | Days and | ||||||||||||||||||||||||
Days | Accruing | ||||||||||||||||||||||||||||
Commercial | $ | 23 | $ | 49 | $ | 304 | $ | 376 | $ | 91,348 | $ | 91,724 | |||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 1,448 | 200 | 145 | 1,793 | 215,703 | 217,496 | |||||||||||||||||||||||
Residential | 2,680 | 1,198 | 2,043 | 5,921 | 255,991 | 261,912 | $ | 243 | |||||||||||||||||||||
Consumer | 498 | 270 | 245 | 1,013 | 51,385 | 52,398 | 214 | ||||||||||||||||||||||
Total | $ | 4,649 | $ | 1,717 | $ | 2,737 | $ | 9,103 | $ | 614,427 | $ | 623,530 | $ | 457 | |||||||||||||||
Summarize Information in Concerning to Impaired Loans | ' | ||||||||||||||||||||||||||||
The following tables summarize information concerning impaired loans at December 31, 2013, 2012 and 2011 by major loan classification: | |||||||||||||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||
December 31, 2013 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 3,009 | $ | 7,506 | $ | 3,855 | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 3,923 | 6,777 | 3,522 | ||||||||||||||||||||||||||
Residential | 2,874 | 3,308 | 2,484 | ||||||||||||||||||||||||||
Consumer | 90 | 90 | 95 | ||||||||||||||||||||||||||
Total | 9,896 | 17,681 | 9,956 | ||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial | 2,200 | 2,200 | $ | 1,500 | 2,182 | $ | 95 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 1,394 | 1,394 | 300 | 1,409 | 76 | ||||||||||||||||||||||||
Residential | 784 | 784 | 224 | 672 | 13 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Total | 4,378 | 4,378 | 2,024 | 4,263 | 184 | ||||||||||||||||||||||||
Commercial | 5,209 | 9,706 | 1,500 | 6,037 | 95 | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 5,317 | 8,171 | 300 | 4,931 | 76 | ||||||||||||||||||||||||
Residential | 3,658 | 4,092 | 224 | 3,156 | 13 | ||||||||||||||||||||||||
Consumer | 90 | 90 | 95 | ||||||||||||||||||||||||||
Total | $ | 14,274 | $ | 22,059 | $ | 2,024 | $ | 14,219 | $ | 184 | |||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||
December 31, 2012 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Commercial | $ | 304 | $ | 304 | $ | 152 | |||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 145 | 145 | 201 | ||||||||||||||||||||||||||
Residential | 928 | 928 | 1,152 | ||||||||||||||||||||||||||
Consumer | 31 | 31 | 68 | ||||||||||||||||||||||||||
Total | 1,408 | 1,408 | 1,573 | ||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial | 351 | 351 | $ | 351 | 351 | $ | 17 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 2,015 | 2,015 | 550 | 2,104 | 114 | ||||||||||||||||||||||||
Residential | 1,497 | 1,497 | 325 | 1,040 | 44 | ||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Total | 3,863 | 3,863 | 1,226 | 3,495 | 175 | ||||||||||||||||||||||||
Commercial | 655 | 655 | 351 | 503 | 17 | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 2,160 | 2,160 | 550 | 2,305 | 114 | ||||||||||||||||||||||||
Residential | 2,425 | 2,425 | 325 | 2,192 | 44 | ||||||||||||||||||||||||
Consumer | 31 | 31 | 68 | ||||||||||||||||||||||||||
Total | $ | 5,271 | $ | 5,271 | $ | 1,226 | $ | 5,068 | $ | 175 | |||||||||||||||||||
For the Year Ended | |||||||||||||||||||||||||||||
December 31, 2011 | Recorded | Unpaid | Related | Average | Interest | ||||||||||||||||||||||||
Investment | Principal | Allowance | Recorded | Income | |||||||||||||||||||||||||
Balance | Investment | Recognized | |||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | $ | 591 | $ | 591 | $ | 390 | |||||||||||||||||||||||
Residential | 806 | 806 | 1,081 | ||||||||||||||||||||||||||
Consumer | 92 | 92 | 107 | ||||||||||||||||||||||||||
Total | 1,489 | 1,489 | 1,578 | ||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||
Commercial | 845 | 845 | $ | 443 | 1,000 | $ | 28 | ||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | |||||||||||||||||||||||||||||
Residential | 1,200 | 1,200 | 215 | 1,057 | |||||||||||||||||||||||||
Consumer | |||||||||||||||||||||||||||||
Total | 2,045 | 2,045 | 658 | 2,057 | 28 | ||||||||||||||||||||||||
Commercial | 845 | 845 | 443 | 1,000 | 28 | ||||||||||||||||||||||||
Real estate: | |||||||||||||||||||||||||||||
Commercial | 591 | 591 | 390 | ||||||||||||||||||||||||||
Residential | 2,006 | 2,006 | 215 | 2,138 | |||||||||||||||||||||||||
Consumer | 92 | 92 | 107 | ||||||||||||||||||||||||||
Total | $ | 3,534 | $ | 3,534 | $ | 658 | $ | 3,635 | $ | 28 | |||||||||||||||||||
Summary of Changes in Accretible Yield and Nonaccretible Difference of Acquired Loans | ' | ||||||||||||||||||||||||||||
The changes in the accretible yield and nonaccretible difference of acquired loans accounted for under ASC310 for the years ended December 31, 2013, 2012 and 2011, were as follows: | |||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||
Year ended December 31 | Accretible | Nonaccretible | Accretible | Nonaccretible | Accretible | Nonaccretible | |||||||||||||||||||||||
Beginning Balance, January 1 | $ | $ | $ | $ | 211 | $ | $ | 229 | |||||||||||||||||||||
Additions | 934 | 6,892 | |||||||||||||||||||||||||||
Amortization | (39 | ) | |||||||||||||||||||||||||||
Charge-offs | |||||||||||||||||||||||||||||
Payments | (211 | ) | (18 | ) | |||||||||||||||||||||||||
Ending Balance | $ | 895 | $ | 6,892 | $ | $ | $ | $ | 211 | ||||||||||||||||||||
Offbalance_sheet_financial_ins1
Off-balance sheet financial instruments (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Guarantees [Abstract] | ' | ||||||||
Summary of Contractual Amounts of Off-balance Sheet Commitments | ' | ||||||||
The contractual amounts of off-balance sheet commitments at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Commitments to extend credit | $ | 221,138 | $ | 128,540 | |||||
Unused portions of lines of credit | 52,257 | 46,377 | |||||||
Standby letters of credit | 29,914 | 14,440 | |||||||
$ | 303,309 | $ | 189,357 | ||||||
Premises_and_equipment_net_Tab
Premises and equipment, net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property Plant And Equipment [Abstract] | ' | ||||||||
Summary of Premises and Equipment | ' | ||||||||
Premises and equipment at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Land | $ | 5,309 | $ | 4,503 | |||||
Premises and leasehold improvements | 34,177 | 20,863 | |||||||
Furniture, fixtures and equipment | 22,975 | 17,806 | |||||||
62,461 | 43,172 | ||||||||
Less: accumulated depreciation | 36,342 | 28,035 | |||||||
$ | 26,119 | $ | 15,137 | ||||||
Summary of Future Minimum Rental Commitments Under Operating Leases | ' | ||||||||
Pursuant to the terms of non-cancelable lease agreements in effect at December 31, 2013, pertaining to banking premises and equipment, future minimum annual rent commitments under various operating leases are summarized as follows: | |||||||||
2014 | $ | 275 | |||||||
2015 | 262 | ||||||||
2016 | 214 | ||||||||
2017 | 158 | ||||||||
2018 | 68 | ||||||||
Thereafter | 455 | ||||||||
$ | 1,432 | ||||||||
Intangible_assets_net_Tables
Intangible assets, net (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Goodwill And Intangible Assets Disclosure [Abstract] | ' | ||||
Summary of Estimated Amortization Expense on Intangible Assets | ' | ||||
The estimated amortization expense on intangible assets in years subsequent to December 31, 2013, is as follows: | |||||
2014 | $ | 1,333 | |||
2015 | 1,182 | ||||
2016 | 1,030 | ||||
2017 | 879 | ||||
2018 | 726 | ||||
Thereafter | $ | 1,685 |
Other_assets_Tables
Other assets (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | ' | ||||||||
Components of Other Assets | ' | ||||||||
The major components of other assets at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Other real estate owned | $ | 648 | $ | 656 | |||||
Investment in residential housing program | 3,211 | ||||||||
Mortgage servicing rights | 880 | 491 | |||||||
Bank owned life insurance | 29,198 | 17,616 | |||||||
Restricted equity securities | 4,102 | 4,212 | |||||||
Other assets | 9,949 | 8,115 | |||||||
Total | $ | 47,988 | $ | 31,090 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Banking And Thrift [Abstract] | ' | ||||||||
Components of Interest-bearing and Noninterest-bearing Deposits | ' | ||||||||
The major components of interest-bearing and noninterest-bearing deposits at December 31, 2013 and 2012 are summarized as follows: | |||||||||
December 31 | 2013 | 2012 | |||||||
Interest-bearing deposits: | |||||||||
Money market accounts | $ | 229,626 | $ | 166,273 | |||||
Now accounts | 194,931 | 102,722 | |||||||
Savings accounts | 372,101 | 126,618 | |||||||
Time deposits less than $100 | 168,085 | 93,359 | |||||||
Time deposits $100 or more | 134,822 | 81,855 | |||||||
Total interest-bearing deposits | 1,099,565 | 570,827 | |||||||
Noninterest-bearing deposits | 279,942 | 151,121 | |||||||
Total deposits | $ | 1,379,507 | $ | 721,948 | |||||
Schedule of Maturities of Time Deposits | ' | ||||||||
The aggregate amounts of maturities for all time deposits at December 31, 2013, are summarized as follows: | |||||||||
2014 | $ | 174,362 | |||||||
2015 | 41,110 | ||||||||
2016 | 29,691 | ||||||||
2017 | 16,075 | ||||||||
2018 | 23,104 | ||||||||
Thereafter | 18,565 | ||||||||
$ | 302,907 | ||||||||
Shortterm_borrowings_Tables
Short-term borrowings (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Summary of Short-term Borrowings | ' | ||||||||||||||||||||
Short-term borrowings consisted of the following at December 31, 2013 and 2012: | |||||||||||||||||||||
At and for the year ended December 31, 2013 | |||||||||||||||||||||
Ending | Average | Maximum | Weighted | Weighted | |||||||||||||||||
Balance | Balance | Month-End | Average | Average | |||||||||||||||||
Balance | Rate for | Rate at End | |||||||||||||||||||
the Year | of the Year | ||||||||||||||||||||
Repurchase agreements | $ | 22,052 | $ | 10,105 | $ | 25,898 | 0.33 | % | 0.67 | % | |||||||||||
FHLB advances | 51 | 0.33 | |||||||||||||||||||
$ | 22,052 | $ | 10,156 | $ | 25,898 | 0.33 | % | 0.67 | % | ||||||||||||
At and for the year ended December 31, 2012 | |||||||||||||||||||||
Ending | Average | Maximum | Weighted | Weighted | |||||||||||||||||
Balance | Balance | Month-End | Average | Average | |||||||||||||||||
Balance | Rate for | Rate at | |||||||||||||||||||
the Year | End of the | ||||||||||||||||||||
Year | |||||||||||||||||||||
Repurchase agreements | $ | 8,019 | $ | 10,633 | $ | 13,280 | 0.33 | % | 0.34 | % | |||||||||||
FHLB advances | 826 | 8,625 | 0.36 | ||||||||||||||||||
$ | 8,019 | $ | 11,459 | $ | 21,905 | 0.34 | % | 0.34 | % | ||||||||||||
Longterm_debt_Tables
Long-term debt (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Long-term Debt Consisting of Advances | ' | ||||||||||||||||
Long-term debt consisting of advances from the FHLB at December 31, 2013 and 2012 are as follows: | |||||||||||||||||
Interest Rate | |||||||||||||||||
Due | Fixed | Adjustable | 2013 | 2012 | |||||||||||||
Feb-13 | 3.1 | % | $ | 179 | |||||||||||||
Feb-13 | 3.49 | % | 7,000 | ||||||||||||||
Mar-13 | 3.74 | % | 1,282 | ||||||||||||||
Aug-14 | 2.66 | % | $ | 141 | 348 | ||||||||||||
Mar-15 | 3.44 | % | 919 | 1,678 | |||||||||||||
Mar-15 | 3.48 | % | 197 | 348 | |||||||||||||
Nov-15 | 4.67 | % | 527 | ||||||||||||||
Feb-16 | 4.86 | % | 301 | ||||||||||||||
Feb-16 | 4.86 | % | 301 | ||||||||||||||
Feb-17 | 4.99 | % | 1,311 | ||||||||||||||
Sep-17 | 2.36 | % | 6,500 | 6,500 | |||||||||||||
Apr-18 | 3.83 | % | 480 | 581 | |||||||||||||
Dec-19 | 1.81 | % | 3,000 | 3,000 | |||||||||||||
Dec-19 | 1.45 | % | 6,300 | 6,300 | |||||||||||||
Mar-23 | 4.69 | % | 16,766 | 18,181 | |||||||||||||
$ | 36,743 | $ | 45,397 | ||||||||||||||
Schedule of Maturities of Long-term Debt | ' | ||||||||||||||||
Maturities of long-term debt, by contractual maturity, in years subsequent to December 31, 2013 are as follows: | |||||||||||||||||
2014 | $ | 2,725 | |||||||||||||||
2015 | 2,392 | ||||||||||||||||
2016 | 2,057 | ||||||||||||||||
2017 | 8,616 | ||||||||||||||||
2018 | 3,047 | ||||||||||||||||
Thereafter | 17,906 | ||||||||||||||||
$ | 36,743 | ||||||||||||||||
Fair_value_of_financial_instru1
Fair value of financial instruments (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||
Assets and liabilities measured at fair value on a recurring basis at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2013 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
U.S. Government-agencies | $ | 204 | $ | 204 | |||||||||||||||||
U.S. Government-sponsored enterprises | 113,045 | 113,045 | |||||||||||||||||||
State and Municipals: | |||||||||||||||||||||
Taxable | 16,698 | 16,698 | |||||||||||||||||||
Tax-exempt | 98,081 | 98,081 | |||||||||||||||||||
Corporate debt securities | 4,387 | 4,387 | |||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | 20,229 | 20,229 | |||||||||||||||||||
U.S. Government-sponsored enterprises | 45,974 | 45,974 | |||||||||||||||||||
Common equity securities | 1,097 | $ | 1,097 | ||||||||||||||||||
Total | $ | 299,715 | $ | 1,097 | $ | 298,618 | |||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2012 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
U.S. Government-agencies | |||||||||||||||||||||
U.S. Government-sponsored enterprises | $ | 84,682 | $ | 84,682 | |||||||||||||||||
State and Municipals: | |||||||||||||||||||||
Taxable | |||||||||||||||||||||
Tax-exempt | 58,837 | 58,837 | |||||||||||||||||||
Corporate debt securities | |||||||||||||||||||||
Mortgage-backed securities: | |||||||||||||||||||||
U.S. Government agencies | |||||||||||||||||||||
U.S. Government-sponsored enterprises | 16,801 | 16,801 | |||||||||||||||||||
Common equity securities | 1,071 | $ | 1,071 | ||||||||||||||||||
Total | $ | 161,391 | $ | 1,071 | $ | 160,320 | |||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||||||
Assets and liabilities measured at fair value on a nonrecurring basis at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2013 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired loans | $ | 2,354 | $ | 2,354 | |||||||||||||||||
Other real estate owned | $ | 437 | $ | 437 | |||||||||||||||||
Fair Value Measurement Using | |||||||||||||||||||||
December 31, 2012 | Amount | Quoted Prices in | Significant | Significant | |||||||||||||||||
Active Markets for | Other Observable | Unobservable | |||||||||||||||||||
Identical Assets | Inputs | Inputs | |||||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||
Impaired loans | $ | 2,637 | $ | 2,637 | |||||||||||||||||
Other real estate owned | $ | 237 | $ | 237 | |||||||||||||||||
Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis | ' | ||||||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: | |||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
December 31, 2013 | Fair Value | Valuation Techniques | Unobservable Input | Range | |||||||||||||||||
Estimate | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 2,354 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Other real estate owned | $ | 437 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Quantitative Information about Level 3 Fair Value Measurements | |||||||||||||||||||||
December 31, 2012 | Fair Value | Valuation Techniques | Unobservable Input | Range | |||||||||||||||||
Estimate | (Weighted Average) | ||||||||||||||||||||
Impaired loans | $ | 2,637 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Other real estate owned | $ | 237 | Appraisal of collateral | Appraisal adjustments | 11.0% to 33.7% (17.3%) | ||||||||||||||||
Liquidation expenses | 3.0% to 6.0% (5.0%) | ||||||||||||||||||||
Carrying and Fair Values of Financial Instruments | ' | ||||||||||||||||||||
The carrying and fair values of the Company’s financial instruments at December 31, 2013 and 2012 and their placement within the fair value hierarchy are as follows: | |||||||||||||||||||||
Fair Value Hierarchy | |||||||||||||||||||||
December 31, 2013 | Carrying | Fair | Quoted | Significant | Significant | ||||||||||||||||
Value | Value | Prices in | Other | Unobservable | |||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(level 1) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 51,310 | $ | 51,310 | $ | 51,310 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Available-for-sale | 299,715 | 299,715 | $ | 1,097 | $ | 298,618 | |||||||||||||||
Held-to-maturity | 17,295 | 17,175 | 17,175 | ||||||||||||||||||
Loans held for sale | 1,757 | 1,757 | 1,757 | ||||||||||||||||||
Net loans | 1,167,966 | 1,180,387 | $ | 1,180,387 | |||||||||||||||||
Accrued interest receivable | 5,866 | 5,866 | 5,866 | ||||||||||||||||||
Mortgage servicing rights | 880 | 1,440 | 1,440 | ||||||||||||||||||
Restricted equity securities | 4,102 | 4,102 | 4,102 | ||||||||||||||||||
Total | $ | 1,548,891 | $ | 1,561,752 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 1,379,507 | $ | 1,381,946 | 1,381,946 | ||||||||||||||||
Short-term borrowings | 22,052 | 22,052 | 22,052 | ||||||||||||||||||
Long-term debt | 36,743 | 37,468 | 37,468 | ||||||||||||||||||
Accrued interest payable | 723 | 723 | $ | 723 | |||||||||||||||||
Total | $ | 1,439,025 | $ | 1,442,189 | |||||||||||||||||
December 31, 2012 | Carrying | Fair Value | Fair Value Hierarchy | ||||||||||||||||||
Value | Quoted | Significant | Significant | ||||||||||||||||||
Prices in | Other | Unobservable | |||||||||||||||||||
Active | Observable | Inputs | |||||||||||||||||||
Markets for | Inputs | (Level 3) | |||||||||||||||||||
Identical | (level 2) | ||||||||||||||||||||
Assets | |||||||||||||||||||||
(level 1) | |||||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and cash equivalents | $ | 47,844 | $ | 47,844 | $ | 47,844 | |||||||||||||||
Investment securities: | |||||||||||||||||||||
Available-for-sale | 161,391 | 161,391 | $ | 1,071 | $ | 160,320 | |||||||||||||||
Held-to-maturity | 15,902 | 16,774 | 16,774 | ||||||||||||||||||
Loans held for sale | |||||||||||||||||||||
Net loans | 616,580 | 627,712 | $ | 627,712 | |||||||||||||||||
Accrued interest receivable | 2,862 | 2,862 | 2,862 | ||||||||||||||||||
Mortgage servicing rights | 491 | 879 | 879 | ||||||||||||||||||
Restricted equity securities | 4,212 | 4,212 | 4,212 | ||||||||||||||||||
Total | $ | 849,282 | $ | 861,674 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | $ | 721,948 | $ | 724,771 | 724,771 | ||||||||||||||||
Short-term borrowings | 8,019 | 8,019 | 8,019 | ||||||||||||||||||
Long-term debt | 45,397 | 48,625 | 48,625 | ||||||||||||||||||
Accrued interest payable | 716 | 716 | $ | 716 | |||||||||||||||||
Total | $ | 776,080 | $ | 782,131 | |||||||||||||||||
Stock_plans_Tables
Stock plans (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ||||||||||||||||||||||||
Summary of Stock Option Plan | ' | ||||||||||||||||||||||||
The Company has a stock option plan covering non-employee directors and a stock incentive plan for certain officers and key employees. The plans are administered by a committee of the Board of Directors. The activity under the plans for each of the years in the three-year period ended December 31, 2013, is summarized as follows: | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
December 31 | Options | Weighted | Options | Weighted | Options | Weighted | |||||||||||||||||||
Average | Average | Average | |||||||||||||||||||||||
Price | Price | Price | |||||||||||||||||||||||
Outstanding, beginning of year | 25,227 | $ | 29.66 | 25,227 | $ | 29.66 | 25,227 | $ | 29.66 | ||||||||||||||||
Options associated with merger | 8,900 | 30.93 | |||||||||||||||||||||||
Granted | |||||||||||||||||||||||||
Exercised | (3,150 | ) | 26.38 | ||||||||||||||||||||||
Forfeited | (150 | ) | 27.5 | ||||||||||||||||||||||
Outstanding, end of year | 30,827 | 30.37 | 25,227 | 29.66 | 25,227 | 29.66 | |||||||||||||||||||
Exercisable, end of year | 30,827 | $ | 30.37 | 25,227 | $ | 29.66 | 25,227 | $ | 29.66 | ||||||||||||||||
Schedule of Activity Related to Restricted Stock | ' | ||||||||||||||||||||||||
The activity related to restricted stock for each of the years ended December 31, 2013, 2012 and 2011 was as follows: | |||||||||||||||||||||||||
Year Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||||||||||
Nonvested, January 1 | 15,425 | 4,883 | 2,936 | ||||||||||||||||||||||
Granted shares | 1,820 | 10,542 | 1,947 | ||||||||||||||||||||||
Vested shares | |||||||||||||||||||||||||
Forfeited shares | |||||||||||||||||||||||||
Nonvested, December 31 | 17,245 | 15,425 | 4,883 | ||||||||||||||||||||||
Employee_benefit_plans_Tables
Employee benefit plans (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Compensation And Retirement Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Change in Projected Benefit Obligation and Change in Plan Assets | ' | ||||||||||||||||
Pension Benefits | Postretirement Life | ||||||||||||||||
Insurance Benefits | |||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Change in benefit obligation: | |||||||||||||||||
Benefit obligation, beginning | $ | 15,506 | $ | 14,450 | $ | 3,193 | $ | 3,004 | |||||||||
Service cost | 35 | 48 | |||||||||||||||
Interest cost | 646 | 673 | 111 | 139 | |||||||||||||
Plan curtailment | (2,764 | ) | |||||||||||||||
Change in experience | 99 | 88 | 4 | ||||||||||||||
Change in assumptions | (1,324 | ) | 978 | 145 | |||||||||||||
Benefits paid | (716 | ) | (683 | ) | (575 | ) | (147 | ) | |||||||||
Benefit obligation, ending | 14,211 | 15,506 | 3,193 | ||||||||||||||
Change in plan assets: | |||||||||||||||||
Fair value of plan assets, beginning | 11,343 | 11,026 | |||||||||||||||
Actual return on plan assets | 1,623 | 637 | |||||||||||||||
Employer contributions | 167 | 363 | |||||||||||||||
Benefits paid | (716 | ) | (683 | ) | |||||||||||||
Fair value of plan assets, ending | 12,417 | 11,343 | |||||||||||||||
Funded status at end of year | $ | (1,794 | ) | $ | (4,163 | ) | $ | $ | (3,193 | ) | |||||||
Schedule of Amounts Recognized in Balance Sheet | ' | ||||||||||||||||
Amounts recognized in the balance sheet are as follows: | |||||||||||||||||
Pension Benefits | Postretirement Life | ||||||||||||||||
Insurance Benefits | |||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Liabilities | $ | 1,794 | $ | 4,163 | $ | $ | 3,193 | ||||||||||
Amounts recognized in the accumulated other comprehensive loss consist of: | |||||||||||||||||
Net actuarial loss (gain) | (3,883 | ) | (6,252 | ) | (1,273 | ) | |||||||||||
Deferred taxes | 1,359 | 2,091 | 620 | ||||||||||||||
Net amount recognized | $ | (2,524 | ) | $ | (4,161 | ) | $ | $ | (653 | ) | |||||||
Components of Net Periodic Pension Cost and Other Amounts Recognized in Other Comprehensive Income | ' | ||||||||||||||||
Components of net periodic pension cost and other amounts recognized in other comprehensive income are as follows: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Net periodic pension cost: | |||||||||||||||||
Service cost | |||||||||||||||||
Interest cost | $ | 646 | $ | 673 | $ | 700 | |||||||||||
Expected return on plan assets | (825 | ) | (809 | ) | (903 | ) | |||||||||||
Amortization of prior service cost | |||||||||||||||||
Amortization of unrecognized net loss | 180 | 136 | 82 | ||||||||||||||
Curtailment loss | |||||||||||||||||
Net periodic pension cost | $ | 1 | $ | $ | (121 | ) | |||||||||||
Other changes in plan assets and benefit obligations recognized in other comprehensive income (loss): | |||||||||||||||||
Net loss (gain) | (2,369 | ) | 739 | 1,351 | |||||||||||||
Prior service cost | |||||||||||||||||
Deferred tax | 805 | (251 | ) | (459 | ) | ||||||||||||
Total recognized in other comprehensive income | (1,564 | ) | 488 | 892 | |||||||||||||
Total recognized in net period pension cost and other comprehensive income | $ | (1,563 | ) | $ | 488 | $ | 771 | ||||||||||
Postretirement Life | |||||||||||||||||
Insurance Benefits | |||||||||||||||||
Years Ended December 31, | 2013 | 2012 | 2011 | ||||||||||||||
Components of net periodic pension cost: | |||||||||||||||||
Service cost | $ | 35 | $ | 48 | $ | 43 | |||||||||||
Interest cost | 111 | 139 | 147 | ||||||||||||||
Amortization of prior service cost | 7 | ||||||||||||||||
Amortization of unrecognized net gain | 96 | 111 | 105 | ||||||||||||||
Net periodic other benefit cost | $ | 242 | $ | 298 | $ | 302 | |||||||||||
Changes in plan assets and benefit obligations recognized in other comprehensive income: | |||||||||||||||||
Net loss (gain) | (1,273 | ) | 185 | 148 | |||||||||||||
Prior service cost | 8 | ||||||||||||||||
Amortization of prior service cost | (7 | ) | |||||||||||||||
Deferred tax | 620 | (63 | ) | (53 | ) | ||||||||||||
Total recognized in other comprehensive income | (653 | ) | 122 | 96 | |||||||||||||
Total recognized in net period pension cost and other comprehensive income | $ | (411 | ) | $ | 420 | $ | 398 | ||||||||||
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | ||||||||||||||||
Weighted-average assumptions used to determine benefit obligations were as follows: | |||||||||||||||||
Pension Benefits | Postretirement Life | ||||||||||||||||
Insurance Benefits | |||||||||||||||||
December 31, | 2013 | 2012 | 2013 | 2012 | |||||||||||||
Discount rate | 5 | % | 4.25 | % | 4.25 | % | |||||||||||
Expected long-term return on plan assets | 7.5 | % | 7.5 | % | |||||||||||||
Rate of compensation increase | 3 | % | |||||||||||||||
Schedule of Pension Plan Weighted-Average Asset Allocations | ' | ||||||||||||||||
The Company’s pension plan weighted-average asset allocations at December 31, 2013 and 2012, by asset category are as follows: | |||||||||||||||||
December 31, | 2013 | 2012 | |||||||||||||||
Asset Category: | |||||||||||||||||
Equity securities | 59.9 | % | 56.2 | % | |||||||||||||
Corporate bonds | 16.8 | 18.9 | |||||||||||||||
U.S. Government securities | 20.8 | 21.2 | |||||||||||||||
Cash and cash equivalents | 2.5 | 3.7 | |||||||||||||||
100 | % | 100 | % | ||||||||||||||
Fair Value Measurement of Pension Plan Assets | ' | ||||||||||||||||
Fair Value Measurement of pension plan assets at December 31, 2013 and 2012 is as follows: | |||||||||||||||||
December 31, 2013 | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Observable | Observable | |||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Cash | $ | 316 | $ | 316 | |||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap | 6,993 | 6,993 | |||||||||||||||
International | 442 | 442 | |||||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasuries | 995 | $ | 995 | ||||||||||||||
U.S. Government agencies | 1,579 | 1,579 | |||||||||||||||
Corporate bonds | 2,092 | 2,092 | |||||||||||||||
Total | $ | 12,417 | $ | 7,751 | $ | 4,666 | |||||||||||
December 31, 2012 | Total | Quoted Prices in | Significant | Significant | |||||||||||||
Active Markets | Observable | Observable | |||||||||||||||
for Identical | Inputs | Inputs | |||||||||||||||
Assets | (Level 2) | (Level 3) | |||||||||||||||
(Level 1) | |||||||||||||||||
Cash | $ | 419 | $ | 419 | |||||||||||||
Equity securities: | |||||||||||||||||
U.S. large cap | 6,068 | 6,068 | |||||||||||||||
International | 307 | 307 | |||||||||||||||
Fixed income securities: | |||||||||||||||||
U.S. Treasuries | 1,024 | $ | 1,024 | ||||||||||||||
U.S. Government agencies | 1,380 | 1,380 | |||||||||||||||
Corporate bonds | 2,145 | 2,145 | |||||||||||||||
Total | $ | 11,343 | $ | 6,794 | $ | 4,549 | |||||||||||
Schedule of Estimated Future Benefit Payments Expected to be Paid | ' | ||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid in the next five years and in the aggregate for the five years thereafter: | |||||||||||||||||
Pension Benefits | |||||||||||||||||
2014 | $ | 729 | |||||||||||||||
2015 | 781 | ||||||||||||||||
2016 | 793 | ||||||||||||||||
2017 | 811 | ||||||||||||||||
2018 | 863 | ||||||||||||||||
Thereafter | $ | 4,484 |
Income_taxes_Tables
Income taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Current and Deferred Amounts of Provision for Income Taxes Expense (Benefit) | ' | ||||||||||||
The current and deferred amounts of the provision for income taxes expense (benefit) for each of the years ended December 31, 2013, 2012 and 2011 are summarized as follows: | |||||||||||||
Year Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Current | $ | 1,628 | $ | 2,705 | $ | 2,817 | |||||||
Deferred | (1,143 | ) | 353 | 217 | |||||||||
$ | 485 | $ | 3,058 | $ | 3,034 | ||||||||
Components of Net Deferred Tax Asset | ' | ||||||||||||
The components of the net deferred tax asset at December 31, 2013 and 2012 are summarized as follows: | |||||||||||||
December 31 | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Allowance for loan losses | $ | 2,940 | $ | 2,363 | |||||||||
Defined benefit plan | 1,359 | 1,438 | |||||||||||
Deferred compensation | 10 | 1,046 | |||||||||||
Other-than-temporary impairment on securities | 131 | 131 | |||||||||||
Merger related accounting | 1,505 | 61 | |||||||||||
Capital loss carry forward | 244 | ||||||||||||
Other | 170 | ||||||||||||
Total | 6,359 | 5,039 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Premises and equipment, net | 976 | 479 | |||||||||||
Investment securities available-for-sale | 2,220 | 2,331 | |||||||||||
Other | 83 | 59 | |||||||||||
Total | 3,279 | 2,869 | |||||||||||
Net deferred tax asset | $ | 3,080 | $ | 2,170 | |||||||||
Reconciliation of Effective Income Tax Expense | ' | ||||||||||||
A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 34.0 percent for each of the years ended December 31, 2013, 2012 and 2011 is summarized as follows: | |||||||||||||
Year Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Federal income tax at statutory rate | $ | 2,110 | $ | 4,640 | $ | 4,612 | |||||||
Tax exempt interest, net | (1,428 | ) | (1,432 | ) | (1,458 | ) | |||||||
Bank owned life insurance income | (329 | ) | (171 | ) | (167 | ) | |||||||
Disallowed merger costs | 266 | ||||||||||||
Other, net | (134 | ) | 21 | 47 | |||||||||
Total | $ | 485 | $ | 3,058 | $ | 3,034 | |||||||
Parent_Company_financial_state1
Parent Company financial statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | ' | ||||||||||||
Condensed Balance Sheets | ' | ||||||||||||
CONDENSED BALANCE SHEETS | |||||||||||||
December 31 | 2013 | 2012 | |||||||||||
Assets: | |||||||||||||
Cash and cash equivalents | $ | 3,157 | $ | 2,785 | |||||||||
Investment in bank subsidiary | 232,825 | 128,679 | |||||||||||
Investment in non-bank subsidiary | |||||||||||||
Due from subsidiaries | 2,472 | ||||||||||||
Investment securities available-for-sale | 1,097 | 1,039 | |||||||||||
Other assets | 61 | ||||||||||||
Total assets | $ | 239,551 | $ | 132,564 | |||||||||
Liabilities and Stockholders’ Equity: | |||||||||||||
Other liabilities | $ | 759 | $ | 118 | |||||||||
Stockholders’ equity | 238,792 | 132,446 | |||||||||||
Total liabilities and stockholders’ equity | $ | 239,551 | $ | 132,564 | |||||||||
Condensed Statements of Income and Comprehensive Income | ' | ||||||||||||
CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Income: | |||||||||||||
Dividends from subsidiaries | $ | 8,350 | $ | 5,504 | $ | 5,504 | |||||||
Other income | 169 | 193 | 424 | ||||||||||
Total income | 8,519 | 5,697 | 5,928 | ||||||||||
Expense: | |||||||||||||
Other expenses | 76 | 47 | 46 | ||||||||||
Total expenses | 76 | 47 | 46 | ||||||||||
Income before taxes and undistributed income | 8,443 | 5,650 | 5,882 | ||||||||||
Income tax expense | 33 | 59 | 154 | ||||||||||
Income before undistributed income of subsidiaries | 8,410 | 5,591 | 5,728 | ||||||||||
Equity in undistributed net income (loss) of subsidiaries | (2,689 | ) | 4,998 | 4,803 | |||||||||
Net income | $ | 5,721 | $ | 10,589 | $ | 10,531 | |||||||
Comprehensive Income | $ | 5,313 | $ | 10,577 | $ | 12,371 | |||||||
Condensed Statements of Cash Flows | ' | ||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS | |||||||||||||
Years Ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 5,721 | $ | 10,589 | $ | 10,531 | |||||||
Adjustments: | |||||||||||||
Net realized losses (gains) on sales of securities | (103 | ) | (136 | ) | (459 | ) | |||||||
Other than temporary security impairment | 78 | ||||||||||||
Undistributed net income of subsidiaries | 2,689 | (5,038 | ) | (4,803 | ) | ||||||||
Decrease (increase) in other assets | (1,733 | ) | 1 | ||||||||||
Increase (decrease) in other liabilities | 641 | (28 | ) | 141 | |||||||||
Stock based compensation | 25 | 40 | |||||||||||
Deferred income tax expense | 1 | 36 | 10 | ||||||||||
Increase in due from subsidiaries | (1,611 | ) | |||||||||||
Net cash provided by operating activities | 5,630 | 5,463 | 5,499 | ||||||||||
Cash flows from investing activities: | |||||||||||||
Proceeds from sale of available-for-sale securities | 253 | 145 | 467 | ||||||||||
Purchase of available-for-sale securities | (103 | ) | (300 | ) | |||||||||
Net cash provided by (used in) investing activities | 253 | 42 | 167 | ||||||||||
Cash flows from financing activities: | |||||||||||||
Cash dividends paid | (5,511 | ) | (5,504 | ) | (5,504 | ) | |||||||
Net cash used in financing activities | (5,511 | ) | (5,504 | ) | (5,504 | ) | |||||||
Increase in cash | 372 | 1 | 162 | ||||||||||
Cash at beginning of year | 2,785 | 2,784 | 2,622 | ||||||||||
Cash at end of year | $ | 3,157 | $ | 2,785 | $ | 2,784 | |||||||
Regulatory_matters_Tables
Regulatory matters (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Banking And Thrift [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Bank's Capital Amounts and Ratios | ' | ||||||||||||||||||||||||
The Company and Peoples Bank’s actual capital ratios at December 31, 2013 and 2012, and the minimum ratios required for capital adequacy purposes and to be well capitalized under the prompt corrective action provisions are as follows: | |||||||||||||||||||||||||
Actual | Minimum For Capital | Minimum to be Well | |||||||||||||||||||||||
Adequacy Purposes | Capitalized under | ||||||||||||||||||||||||
Prompt Corrective | |||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
December 31, 2013 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | $ | 163,092 | 13.59 | % | $ | 48,009 | 4 | % | |||||||||||||||||
Peoples Bank | 156,731 | 13.02 | 48,161 | 4 | $ | 72,241 | 6 | % | |||||||||||||||||
Total capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | 171,160 | 14.26 | 96,019 | 8 | |||||||||||||||||||||
Peoples Bank | 164,799 | 13.69 | 96,322 | 8 | 120,402 | 10 | |||||||||||||||||||
Tier 1 capital to average assets: | |||||||||||||||||||||||||
Consolidated | 163,092 | 10.09 | 64,664 | 4 | |||||||||||||||||||||
Peoples Bank | $ | 156,731 | 9.72 | % | $ | 64,469 | 4 | % | $ | 80,586 | 5 | % | |||||||||||||
Actual | Minimum For | Minimum to be Well | |||||||||||||||||||||||
Capital Adequacy | Capitalized under | ||||||||||||||||||||||||
Purposes | Prompt Corrective | ||||||||||||||||||||||||
Action Provisions | |||||||||||||||||||||||||
December 31, 2012 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||||||||||
Tier 1 capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | $ | 102,906 | 16.8 | % | $ | 24,497 | 4 | % | |||||||||||||||||
Peoples Bank | 99,185 | 16.22 | 24,467 | 4 | $ | 36,700 | 6 | % | |||||||||||||||||
Total capital to risk-weighted assets: | |||||||||||||||||||||||||
Consolidated | 109,978 | 17.96 | 48,994 | 8 | |||||||||||||||||||||
Peoples Bank | 106,135 | 17.35 | 48,934 | 8 | 61,167 | 10 | |||||||||||||||||||
Tier 1 capital to average assets: | |||||||||||||||||||||||||
Consolidated | 102,906 | 11.5 | 35,799 | 4 | |||||||||||||||||||||
Peoples Bank | $ | 99,185 | 11.14 | % | $ | 35,621 | 4 | % | $ | 44,526 | 5 | % |
Summary_of_quarterly_financial1
Summary of quarterly financial information (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Summary of Quarterly Financial Information | ' | ||||||||||||||||
2013 | |||||||||||||||||
Quarter Ended | March 31 | June 30 | Sept. 30 | Dec. 31 | |||||||||||||
Interest income: | $ | 8,890 | $ | 8,737 | $ | 8,693 | $ | 11,050 | |||||||||
Interest expense | 1,033 | 961 | 952 | 1,223 | |||||||||||||
Net interest income | 7,857 | 7,776 | 7,741 | 9,827 | |||||||||||||
Provision for loan losses | 300 | 500 | 525 | 1,036 | |||||||||||||
Net interest income after provision for loan losses | 7,557 | 7,276 | 7,216 | 8,791 | |||||||||||||
Noninterest income | 2,826 | 3,057 | 3,027 | 2,852 | |||||||||||||
Noninterest expense | 7,125 | 6,856 | 7,365 | 15,050 | |||||||||||||
Income (loss) before income taxes | 3,258 | 3,477 | 2,878 | (3,407 | ) | ||||||||||||
Provision for income tax expense (benefit) | 737 | 633 | 392 | (1,277 | ) | ||||||||||||
Net income | $ | 2,521 | $ | 2,844 | $ | 2,486 | $ | (2,130 | ) | ||||||||
Per share data: | |||||||||||||||||
Net income (loss) | $ | 0.56 | $ | 0.64 | $ | 0.56 | $ | (0.39 | ) | ||||||||
Cash dividends declared | $ | 0.31 | $ | 0.31 | $ | 0.31 | $ | 0.31 | |||||||||
Average common shares outstanding | 4,467,261 | 4,467,261 | 4,473,846 | 5,515,199 | |||||||||||||
2012 | |||||||||||||||||
Quarter Ended | 31-Mar | 30-Jun | Sept. 30 | Dec. 31 | |||||||||||||
Interest income: | $ | 9,668 | $ | 9,480 | $ | 9,272 | $ | 9,171 | |||||||||
Interest expense | 1,481 | 1,407 | 1,262 | 1,212 | |||||||||||||
Net interest income | 8,187 | 8,073 | 8,010 | 7,959 | |||||||||||||
Provision for loan losses | 192 | 114 | 471 | 147 | |||||||||||||
Net interest income after provision for loan losses | 7,995 | 7,959 | 7,539 | 7,812 | |||||||||||||
Noninterest income | 2,894 | 2,622 | 3,114 | 2,811 | |||||||||||||
Noninterest expense | 7,340 | 7,261 | 7,340 | 7,158 | |||||||||||||
Income (loss) before income taxes | 3,549 | 3,320 | 3,313 | 3,465 | |||||||||||||
Provision for income tax expense (benefit) | 819 | 721 | 761 | 757 | |||||||||||||
Net income | $ | 2,730 | $ | 2,599 | $ | 2,552 | $ | 2,708 | |||||||||
Per share data: | |||||||||||||||||
Net income | $ | 0.61 | $ | 0.58 | $ | 0.57 | $ | 0.61 | |||||||||
Cash dividends declared | $ | 0.3 | $ | 0.31 | $ | 0.31 | $ | 0.31 | |||||||||
Average common shares outstanding | 4,467,261 | 4,467,261 | 4,467,261 | 4,467,261 |
Comprehensive_Income_Tables
Comprehensive Income (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Components of Accumulated Other Comprehensive Income | ' | ||||||||||||
The components of accumulated other comprehensive income included in stockholders’ equity at December 31, 2013 and 2012 are as follows: | |||||||||||||
December 31 | 2013 | 2012 | |||||||||||
Net unrealized gain on investment securities available-for-sale | $ | 2,810 | $ | 6,855 | |||||||||
Related income taxes | (984 | ) | (2,331 | ) | |||||||||
Net of income taxes | 1,826 | 4,524 | |||||||||||
Benefit plan adjustments | (3,883 | ) | (7,525 | ) | |||||||||
Related income taxes | 1,359 | 2,711 | |||||||||||
Net of income taxes | (2,524 | ) | (4,814 | ) | |||||||||
Accumulated other comprehensive loss | $ | (698 | ) | $ | (290 | ) | |||||||
Other Comprehensive Income (Loss) and Related Tax Effects | ' | ||||||||||||
Other comprehensive income (loss) and related tax effects for the years ended December 31, 2013, 2012 and 2011: | |||||||||||||
Year ended December 31 | 2013 | 2012 | 2011 | ||||||||||
Net gain on the sale of investment securities available-for-sale(1) | $ | (163 | ) | $ | (317 | ) | $ | (666 | ) | ||||
Unrealized gain (loss) on investment securities available-for-sale | (3,882 | ) | 1,223 | 4,873 | |||||||||
Other-than-temporary impairment on investment securities(2) | 78 | ||||||||||||
Benefit plans: | |||||||||||||
Amortization of actuarial loss (gain)(3) | 276 | 136 | 82 | ||||||||||
Actuarial (loss) gain | 3,366 | (1,060 | ) | (1,579 | ) | ||||||||
Net change in benefit plans accrued expense | 3,642 | (924 | ) | (1,497 | ) | ||||||||
Other comprehensive income (loss) gain before taxes | (403 | ) | (18 | ) | 2,788 | ||||||||
Income taxes | (5 | ) | (6 | ) | 948 | ||||||||
Other comprehensive income (loss) | $ | (408 | ) | $ | (12 | ) | $ | 1,840 | |||||
-1 | Represents amounts reclassified out of accumulated comprehensive income and included in gains on sale of investment securities on the consolidated statements of income. | ||||||||||||
-2 | Represents amounts reclassified out of accumulated comprehensive income and included in other-than-temporary impairment of investment securities on the consolidated statements of income. | ||||||||||||
-3 | Represents amounts reclassified out of accumulated comprehensive income and included in the computation of net periodic pension expense. Refer to Note 15 included in these consolidated financial statements. |
Summary_of_significant_account3
Summary of significant accounting policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Segment | |||
Office | |||
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Date of incorporation | 30-Nov-13 | ' | ' |
Date of Merger | 28-Jun-13 | ' | ' |
Effective date of Merger Agreement | 1-Dec-13 | ' | ' |
Number of full-service community banking offices | 26 | ' | ' |
Number of operating segments | 1 | ' | ' |
Reclassification of prior period items amounts effect on net income | $0 | ' | ' |
Valuation allowance on loans held for sale | 0 | ' | ' |
Non performing loans past due period for Non-accrual status | '90 days | ' | ' |
Maximum days of consumer loans past due | '120 days | ' | ' |
Finite useful life of intangible assets | '10 years | ' | ' |
Impairment losses on intangible assets | 0 | 0 | 0 |
Commitments subject to undue credit risk | 0 | ' | ' |
Advertising expense | 350 | 287 | 494 |
Income tax benefit recognition threshold | 50.00% | ' | ' |
Unrecognized tax benefit or accrued interest and penalties | 0 | 0 | 0 |
Income tax examination description | 'The Company recognizes accrued interest and penalties assessed as a result of a taxing authority examination through income tax expense. The Company files consolidated income tax returns in the United States of America and various states' jurisdictions. The Company is no longer subject to federal and state income tax examinations by taxing authorities for years before 2010. | ' | ' |
Unrecognized compensation cost related to stock options | $0 | $0 | ' |
Stock Options [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Securities excluded from computing diluted earnings per share | ' | 13,636 | 13,636 |
Minimum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Contractual terms | '6 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Finite useful life of intangible assets | '10 years | ' | ' |
Commercial Real Estate [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Maximum loan to value percentage | 75.00% | ' | ' |
Consumer Loan [Member] | ' | ' | ' |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Maximum amortization period | '30 years | ' | ' |
Summary_of_significant_account4
Summary of significant accounting policies - Estimated Useful Lives of Related Assets (Detail) | 12 Months Ended |
Dec. 31, 2013 | |
Minimum [Member] | Premises and Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '7 years |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '3 years |
Maximum [Member] | Premises and Leasehold Improvements [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '40 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Property, plant and equipment, estimated useful life | '10 years |
Summary_of_significant_account5
Summary of significant accounting policies - Schedule of Earnings Per Share (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Net Income (Numerator), Basic | $5,721 | $10,589 | $10,531 |
Average common shares outstanding (Denominator), Basic | 4,733,059 | 4,467,261 | 4,467,261 |
Earnings per share, Basic | $1.21 | $2.37 | $2.36 |
Net Income (Numerator), Diluted | $5,721 | $10,589 | $10,531 |
Average common shares outstanding (Denominator), Diluted | 4,733,059 | 4,467,714 | 4,467,261 |
Earnings per share, Diluted | $1.21 | $2.37 | $2.36 |
Merger_accounting_Additional_I
Merger accounting - Additional Information (Detail) (USD $) | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Nov. 30, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
Directors | Historical Peoples Financial Services Corp [Member] | Penseco Financial Services Corp [Member] | Penseco Financial Services Corp [Member] | Penseco Financial Services Corp [Member] | Peoples Financial Services Corp [Member] | ||||
Directors | Directors | Minimum [Member] | |||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Date of Merger | 28-Jun-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Effective date of Merger Agreement | 1-Dec-13 | ' | ' | ' | ' | ' | ' | ' | ' |
Number of members in Board of Directors | 14 | ' | ' | ' | 6 | ' | 8 | ' | ' |
Percentage of ownership | 59.10% | ' | ' | ' | ' | ' | ' | ' | ' |
Exchange ratio | 1.3636 | ' | ' | ' | ' | 1.3636 | ' | ' | ' |
Penseco contribution | ' | ' | ' | ' | ' | ' | 'Penseco contributed greater than fifty percent of the total assets and tangible equity to the combined entity. | ' | ' |
Percentage of contribution of total assets and tangible equity | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Purchase price per share | ' | ' | ' | ' | ' | $34.50 | ' | ' | ' |
Common stock were retired | ' | ' | ' | ' | ' | 9,928 | ' | ' | ' |
Goodwill resulting from merger | $63,370 | $26,398 | ' | $36,972 | ' | ' | ' | ' | ' |
Tax deductible goodwill in the transaction | ' | ' | ' | 0 | ' | ' | ' | ' | ' |
Fair value of acquisition of loan portfolio | 496,650 | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life of intangible assets | '10 years | ' | ' | ' | ' | ' | ' | ' | ' |
Merger related costs | 4,609 | ' | ' | ' | ' | ' | ' | ' | ' |
Net interest income after loan loss provision | 52,734 | 52,917 | 51,312 | ' | ' | ' | ' | ' | 2,248 |
Noninterest income | 16,080 | 16,287 | 18,186 | ' | ' | ' | ' | ' | 363 |
Noninterest expense | 52,295 | 49,827 | 56,319 | ' | ' | ' | ' | ' | 3,115 |
Net income attributable to parent | $16,519 | $19,377 | $13,179 | ' | ' | ' | ' | ' | ($261) |
Merger_accounting_Calculation_
Merger accounting - Calculation of Consideration Effectively Transferred (Detail) (USD $) | 12 Months Ended | 0 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 | Nov. 30, 2013 |
Penseco Financial Services Corp [Member] | Reverse Merger [Member] | Reverse Merger [Member] | Reverse Merger [Member] | ||
Peoples Financial Services Corp [Member] | Penseco Financial Services Corp [Member] | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Shares outstanding | ' | ' | 3,275,217 | 3,087,406 | 3,275,217 |
Exchange ratio | 1.3636 | 1.3636 | 1.3636 | ' | ' |
Share to be issued to acquiree share holders | ' | ' | 4,465,538 | ' | ' |
Common shares to be outstanding | ' | ' | 7,552,944 | ' | ' |
Ownership percentage | ' | ' | ' | 40.88% | 59.12% |
Theoretical Penseco share to be issued as consideration | ' | ' | ' | ' | ' |
Shares outstanding | ' | ' | 3,275,217 | 3,087,406 | 3,275,217 |
Ownership % to be owned by current acquiree's shareholders | ' | ' | 59.12% | ' | ' |
Theoretical shares after consideration paid | ' | ' | 5,539,653 | ' | ' |
Ownership by legacy acquirer's shareholders | ' | ' | 40.88% | ' | ' |
Theoretical Penseco shares issued as consideration | ' | ' | 2,264,436 | ' | ' |
Fair value of acquiree's shares | ' | ' | $47.04 | ' | ' |
Fair value of theoretical shares offered | ' | ' | $106,519 | ' | ' |
Cash paid for fractional shares | ' | ' | 17 | ' | ' |
Total purchase price for accounting purposes | ' | ' | $106,536 | ' | ' |
Merger_accounting_Calculation_1
Merger accounting - Calculation of Consideration Effectively Transferred (Parenthetical) (Detail) (USD $) | 12 Months Ended | 0 Months Ended |
Dec. 31, 2013 | Nov. 30, 2013 | |
Penseco Financial Services Corp [Member] | ||
Business Acquisition [Line Items] | ' | ' |
Price per share | ' | $34.50 |
Common stock exchange ratio | 1.3636 | 1.3636 |
Common shares to be retired | ' | 9,928 |
Merger_accounting_Schedule_of_
Merger accounting - Schedule of Acquired Assets and Assumed Liabilities Measured at Estimated Fair Values (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 |
Business Combinations [Abstract] | ' | ' | ' |
Total Purchase Price | $106,536 | ' | ' |
Net Assets Acquired: | ' | ' | ' |
Cash and due from banks | 6,982 | 30,004 | 15,581 |
Federal funds sold | 15,410 | 9,460 | ' |
Investment securities available-for-sale | 156,435 | 156,435 | ' |
Restricted equity securities | 997 | 997 | ' |
Loans, net | 504,002 | 504,002 | ' |
Accrued interest receivable | 3,625 | 3,625 | ' |
Premises and equipment | 11,737 | 11,737 | ' |
Core deposit and other intangible assets | 6,323 | 6,323 | ' |
Other assets | 18,647 | 18,647 | ' |
Deposits | -628,304 | -628,304 | ' |
Short-term borrowings | -17,737 | -17,737 | ' |
Long-term debt | -2,516 | 2,516 | ' |
Accrued interest payable | -473 | -473 | ' |
Other liabilities | -5,976 | -5,976 | ' |
Net assets acquired | 69,152 | ' | ' |
Treasury stock acquired | 412 | ' | ' |
Goodwill resulting from merger | $36,972 | $63,370 | $26,398 |
Merger_accounting_Summary_of_A
Merger accounting - Summary of Acquired Nonimpaired and Impaired Loans (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Acquired Non Impaired Loans [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Contractually required principal and interest at acquisition | $501,423 |
Expected cash flows at acquisition | 501,423 |
Interest component of expected cash flows (accretable discount) | -4,773 |
Fair value of acquired loans | 496,650 |
Acquired Impaired Loans [Member] | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' |
Contractually required principal and interest at acquisition | 19,353 |
Contractual cash flows not expected to be collected (nonaccretable discount) | -10,873 |
Expected cash flows at acquisition | 8,480 |
Interest component of expected cash flows (accretable discount) | -1,128 |
Fair value of acquired loans | $7,352 |
Merger_accounting_Summary_of_M
Merger accounting - Summary of Merger Related Costs (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | $4,609 | ' | ' |
Accounting [Member] | ' | ' | ' |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | 65 | ' | ' |
Legal and Consulting [Member] | ' | ' | ' |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | 1,011 | ' | ' |
Salaries and Benefits [Member] | ' | ' | ' |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | 1,851 | ' | ' |
Equipment Disposition and Contract Termination [Member] | ' | ' | ' |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | 709 | ' | ' |
System Conversion/Deconversion Costs [Member] | ' | ' | ' |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | 956 | ' | ' |
Other [Member] | ' | ' | ' |
Merger Related Items [Line Items] | ' | ' | ' |
Merger related costs | $17 | ' | ' |
Merger_accounting_Schedule_of_1
Merger accounting - Schedule of Pro Forma Condensed Combined Financial Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Business Combinations [Abstract] | ' | ' | ' |
Net interest income after loan loss provision | $52,734 | $52,917 | $51,312 |
Noninterest income | 16,080 | 16,287 | 18,186 |
Noninterest expense | 52,295 | 49,827 | 56,319 |
Net income | $16,519 | $19,377 | $13,179 |
Net income per share | $2.19 | $2.55 | $1.73 |
Cash_and_due_from_banks_Additi
Cash and due from banks - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Cash And Cash Equivalents [Abstract] | ' | ' |
Required reserve balances | $6,921 | $777 |
Investment_securities_Amortize
Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | $296,905 | $154,536 |
Available for Sale, Gross Unrealized Gains | 3,982 | 6,868 |
Available for Sale, Gross Unrealized Losses | 1,172 | 13 |
Available for Sale, Fair Value | 299,715 | 161,391 |
Held to Maturity, Amortized Cost | 17,295 | 15,902 |
Held to Maturity, Gross Unrealized Gains | 657 | 872 |
Held to Maturity, Gross Unrealized Losses | 777 | ' |
Held to Maturity, Fair Value | 17,175 | 16,774 |
State and Municipals, Tax-exempt [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 96,194 | 53,846 |
Available for Sale, Gross Unrealized Gains | 2,267 | 4,991 |
Available for Sale, Gross Unrealized Losses | 380 | ' |
Available for Sale, Fair Value | 98,081 | 58,837 |
Held to Maturity, Amortized Cost | 7,372 | 1,083 |
Held to Maturity, Gross Unrealized Gains | 11 | 16 |
Held to Maturity, Gross Unrealized Losses | 777 | ' |
Held to Maturity, Fair Value | 6,606 | 1,099 |
Corporate Debt Securities [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 4,433 | ' |
Available for Sale, Gross Unrealized Gains | 32 | ' |
Available for Sale, Gross Unrealized Losses | 78 | ' |
Available for Sale, Fair Value | 4,387 | ' |
Held to Maturity, Fair Value | ' | ' |
U.S. Government Agencies [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 207 | ' |
Available for Sale, Gross Unrealized Gains | ' | ' |
Available for Sale, Gross Unrealized Losses | 3 | ' |
Available for Sale, Fair Value | 204 | ' |
Held to Maturity, Amortized Cost | 117 | 136 |
Held to Maturity, Gross Unrealized Gains | 2 | 4 |
Held to Maturity, Fair Value | 119 | 140 |
Mortgage-backed Securities, U.S. Government-Sponsored Enterprises [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 45,251 | 15,962 |
Available for Sale, Gross Unrealized Gains | 763 | 839 |
Available for Sale, Gross Unrealized Losses | 40 | ' |
Available for Sale, Fair Value | 45,974 | 16,801 |
Held to Maturity, Amortized Cost | 9,806 | 14,683 |
Held to Maturity, Gross Unrealized Gains | 644 | 852 |
Held to Maturity, Fair Value | 10,450 | 15,535 |
Common Stock [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 756 | 801 |
Available for Sale, Gross Unrealized Gains | 351 | 281 |
Available for Sale, Gross Unrealized Losses | 10 | 11 |
Available for Sale, Fair Value | 1,097 | 1,071 |
Held to Maturity, Fair Value | ' | ' |
U.S. Government-Sponsored Enterprises [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 113,221 | 83,927 |
Available for Sale, Gross Unrealized Gains | 296 | 757 |
Available for Sale, Gross Unrealized Losses | 472 | 2 |
Available for Sale, Fair Value | 113,045 | 84,682 |
State and Municipals, Taxable [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 16,664 | ' |
Available for Sale, Gross Unrealized Gains | 160 | ' |
Available for Sale, Gross Unrealized Losses | 126 | ' |
Available for Sale, Fair Value | 16,698 | ' |
Mortgage-backed Securities, U.S. Government Agencies [Member] | ' | ' |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ' | ' |
Available for Sale, Amortized Cost | 20,179 | ' |
Available for Sale, Gross Unrealized Gains | 113 | ' |
Available for Sale, Gross Unrealized Losses | 63 | ' |
Available for Sale, Fair Value | $20,229 | ' |
Investment_securities_Addition
Investment securities - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Security | Security | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Unrealized gains, net | $1,826 | $4,524 | ' |
Net of deferred income taxes | 984 | 2,331 | ' |
Proceeds from the sale of investment securities available-for-sale | 4,573 | 5,821 | 15,318 |
Gross realized gains | 163 | 317 | 666 |
Gross realized losses | 0 | 0 | 0 |
Income tax provision applicable to net realized gains | 55 | 108 | 226 |
Carrying value of securities pledged | 202,407 | 150,620 | ' |
Number of investment securities held | 153 | 5 | ' |
Other-than-temporary impairments recognized | 0 | ' | ' |
U.S. Government-Sponsored Enterprises [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer | 10.00% | 10.00% | ' |
Number of investment securities held | 39 | 1 | ' |
Number of securities in continuous unrealized loss positions 12 months or longer | 1 | ' | ' |
State and Municipals, Tax-exempt [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investment securities held | 79 | ' | ' |
State and Municipals, Taxable [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investment securities held | 16 | ' | ' |
Mortgage-backed Securities, Issued by U.S. Government Agencies [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investment securities held | 15 | ' | ' |
Corporate Debt Securities [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investment securities held | 1 | ' | ' |
U.S. Government Agencies [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investment securities held | 1 | ' | ' |
Common Stock [Member] | ' | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' | ' |
Number of investment securities held | 2 | 4 | ' |
Number of securities in continuous unrealized loss positions 12 months or longer | ' | 1 | ' |
Other-than-temporary impairments recognized | ' | $0 | $78 |
Investment_securities_Maturity
Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Investments Debt And Equity Securities [Abstract] | ' |
Within one year | $22,544 |
After one but within five years | 104,683 |
After five but within ten years | 29,066 |
After ten years | 76,122 |
Available for sale securities | 232,415 |
Mortgage-backed securities | 66,203 |
Total | $298,618 |
Investment_securities_Summary_
Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investments Debt And Equity Securities [Abstract] | ' | ' |
Amortized Cost, Within one year, Held to Maturity | ' | ' |
Amortized Cost, After one but within five years, Held to Maturity | 157 | ' |
Amortized Cost, After five but within ten years, Held to Maturity | 342 | ' |
Amortized Cost, After ten years, Held to Maturity | 6,873 | ' |
Amortized Cost, Held to Maturity | 7,372 | ' |
Amortized Cost, Mortgage-backed securities, Held to Maturity | 9,923 | ' |
Total Amortized Cost, Held to Maturity | 17,295 | 15,902 |
Fair Value, Within one year, Held to Maturity | ' | ' |
Fair Value, After one but within five years, Held to Maturity | 160 | ' |
Fair Value, After five but within ten years, Held to Maturity | 350 | ' |
Fair Value, After ten years, Held to Maturity | 6,096 | ' |
Fair Value, Held to maturity | 6,606 | ' |
Fair Value, Mortgage-backed securities, Held to Maturity | 10,569 | ' |
Total Fair Value, Held to Maturity | $17,175 | $16,774 |
Investment_securities_Fair_Val
Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | $1,949 | $13 |
Total, Fair Value | 136,431 | 3,358 |
12 Months or More, Unrealized Losses | 4 | 2 |
12 Months or More, Fair Value | 3,114 | 48 |
Less than 12 Months, Unrealized Losses | 1,945 | 11 |
Less than 12 Months, Fair Value | 133,317 | 3,310 |
U.S. Government Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 3 | ' |
Total, Fair Value | 204 | ' |
12 Months or More, Unrealized Losses | ' | ' |
12 Months or More, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | 3 | ' |
Less than 12 Months, Fair Value | 204 | ' |
U.S. Government-Sponsored Enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 472 | 2 |
Total, Fair Value | 69,505 | 3,169 |
12 Months or More, Unrealized Losses | 4 | ' |
12 Months or More, Fair Value | 3,114 | ' |
Less than 12 Months, Unrealized Losses | 468 | 2 |
Less than 12 Months, Fair Value | 66,391 | 3,169 |
State and Municipals, Taxable [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 126 | ' |
Total, Fair Value | 10,621 | ' |
12 Months or More, Unrealized Losses | ' | ' |
12 Months or More, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | 126 | ' |
Less than 12 Months, Fair Value | 10,621 | ' |
State and Municipals, Tax-exempt [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 1,157 | ' |
Total, Fair Value | 36,471 | ' |
12 Months or More, Unrealized Losses | ' | ' |
12 Months or More, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | 1,157 | ' |
Less than 12 Months, Fair Value | 36,471 | ' |
Corporate Debt Securities [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 78 | ' |
Total, Fair Value | 1,095 | ' |
12 Months or More, Unrealized Losses | ' | ' |
12 Months or More, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | 78 | ' |
Less than 12 Months, Fair Value | 1,095 | ' |
Mortgage-backed Securities, Issued by U.S. Government Agencies [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 63 | ' |
Total, Fair Value | 12,774 | ' |
12 Months or More, Unrealized Losses | ' | ' |
12 Months or More, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | 63 | ' |
Less than 12 Months, Fair Value | 12,774 | ' |
Mortgage-backed Securities, U.S. Government-Sponsored Enterprises [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 40 | ' |
Total, Fair Value | 5,624 | ' |
12 Months or More, Unrealized Losses | ' | ' |
12 Months or More, Fair Value | ' | ' |
Less than 12 Months, Unrealized Losses | 40 | ' |
Less than 12 Months, Fair Value | 5,624 | ' |
Common Stock [Member] | ' | ' |
Schedule of Available-for-sale Securities [Line Items] | ' | ' |
Total, Unrealized Losses | 10 | 11 |
Total, Fair Value | 137 | 189 |
12 Months or More, Unrealized Losses | ' | 2 |
12 Months or More, Fair Value | ' | 48 |
Less than 12 Months, Unrealized Losses | 10 | 9 |
Less than 12 Months, Fair Value | $137 | $141 |
Loans_net_and_allowance_for_lo2
Loans, net and allowance for loan losses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Loans | SecurityLoan | ||
SecurityLoan | Loans | ||
Receivables [Abstract] | ' | ' | ' |
Net deferred loan costs | $24 | ' | ' |
Loans outstanding to directors, executive officers, principal stockholders or to their affiliates | 15,513 | 14,205 | ' |
Advances and repayments of loans receivable | 12,429 | 13,737 | ' |
Interest income recognized using the cash-basis method on impaired loans | 0 | 0 | 0 |
Number of distressed loans | 29 | 29 | ' |
Credit adjustment on distressed loans | 7,787 | 7,826 | ' |
Total impaired loans | 14,274 | 5,271 | 3,534 |
Impaired loans acquired | 7,391 | ' | ' |
Loans receivable, related parties, considered as nonaccrual, past due or restructured or potential credit risk | 2,487 | 351 | 368 |
Number of loans modified as troubled debt restructurings | 0 | 0 | ' |
Amount of defaults on loans considered troubled debt restructurings | 0 | 0 | ' |
Amount charge-offs as a result of the troubled debt restructurings | $0 | ' | ' |
Loans_net_and_allowance_for_lo3
Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | $1,176,617 | $623,530 | $631,522 |
Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 350,680 | 91,724 | 88,188 |
Real Estate Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 413,058 | 217,496 | 208,875 |
Real Estate Residential [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 322,062 | 261,912 | 281,643 |
Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | $90,817 | $52,398 | $52,816 |
Loans_net_and_allowance_for_lo4
Loans, net and allowance for loan losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Allowance for loan losses: | ' | ' | ' |
Beginning balance | $6,950 | $6,711 | $6,500 |
Charge-offs | -841 | -817 | -2,300 |
Recoveries | 181 | 132 | 130 |
Provisions | 2,361 | 924 | 2,381 |
Ending balance | 8,651 | 6,950 | 6,711 |
Beginning balance | 6,950 | 6,711 | 6,500 |
Ending balance: individually evaluated for impairment | 2,024 | 1,226 | 658 |
Charge-offs | -841 | -817 | -2,300 |
Ending balance: collectively evaluated for impairment | 6,627 | 5,724 | 6,053 |
Recoveries | 181 | 132 | 130 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance | 1,176,617 | 623,530 | 631,522 |
Provisions | 2,361 | 924 | 2,381 |
Loans receivable: | ' | ' | ' |
Ending balance | 1,176,617 | 623,530 | 631,522 |
Ending balance: individually evaluated for impairment | 14,274 | 5,271 | 3,534 |
Ending balance: collectively evaluated for impairment | 1,154,952 | 618,259 | 627,988 |
Ending balance: loans acquired with deteriorated credit quality | 7,391 | ' | ' |
Ending balance: individually evaluated for impairment | 14,274 | 5,271 | 3,534 |
Ending balance | 8,651 | 6,950 | 6,711 |
Ending balance: collectively evaluated for impairment | 1,154,952 | 618,259 | 627,988 |
Commercial [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning balance | 799 | 793 | 1,957 |
Charge-offs | -5 | -78 | -100 |
Recoveries | 1 | 1 | 3 |
Provisions | 1,213 | 83 | -1,067 |
Ending balance | 2,008 | 799 | 793 |
Beginning balance | 799 | 793 | 1,957 |
Ending balance: individually evaluated for impairment | 1,500 | 351 | 443 |
Charge-offs | -5 | -78 | -100 |
Ending balance: collectively evaluated for impairment | 508 | 448 | 350 |
Recoveries | 1 | 1 | 3 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance | 350,680 | 91,724 | 88,188 |
Provisions | 1,213 | 83 | -1,067 |
Loans receivable: | ' | ' | ' |
Ending balance | 350,680 | 91,724 | 88,188 |
Ending balance: individually evaluated for impairment | 5,209 | 655 | 845 |
Ending balance: collectively evaluated for impairment | 342,719 | 91,069 | 87,343 |
Ending balance: loans acquired with deteriorated credit quality | 2,752 | ' | ' |
Ending balance: individually evaluated for impairment | 5,209 | 655 | 845 |
Ending balance | 2,008 | 799 | 793 |
Ending balance: collectively evaluated for impairment | 342,719 | 91,069 | 87,343 |
Real Estate Commercial [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning balance | 2,304 | 2,294 | 2,067 |
Charge-offs | -15 | -33 | -663 |
Recoveries | 20 | 6 | 18 |
Provisions | 85 | 37 | 872 |
Ending balance | 2,394 | 2,304 | 2,294 |
Beginning balance | 2,304 | 2,294 | 2,067 |
Ending balance: individually evaluated for impairment | 300 | 550 | ' |
Charge-offs | -15 | -33 | -663 |
Ending balance: collectively evaluated for impairment | 2,094 | 1,754 | 2,294 |
Recoveries | 20 | 6 | 18 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance | 413,058 | 217,496 | 208,875 |
Provisions | 85 | 37 | 872 |
Loans receivable: | ' | ' | ' |
Ending balance | 413,058 | 217,496 | 208,875 |
Ending balance: individually evaluated for impairment | 5,317 | 2,160 | 591 |
Ending balance: collectively evaluated for impairment | 403,560 | 215,336 | 208,284 |
Ending balance: loans acquired with deteriorated credit quality | 4,181 | ' | ' |
Ending balance: individually evaluated for impairment | 5,317 | 2,160 | 591 |
Ending balance | 2,394 | 2,304 | 2,294 |
Ending balance: collectively evaluated for impairment | 403,560 | 215,336 | 208,284 |
Real Estate Residential [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning balance | 2,981 | 2,855 | 753 |
Charge-offs | -508 | -431 | -1,275 |
Recoveries | 111 | 67 | 58 |
Provisions | 551 | 490 | 3,319 |
Ending balance | 3,135 | 2,981 | 2,855 |
Beginning balance | 2,981 | 2,855 | 753 |
Ending balance: individually evaluated for impairment | 224 | 325 | 215 |
Charge-offs | -508 | -431 | -1,275 |
Ending balance: collectively evaluated for impairment | 2,911 | 2,656 | 2,640 |
Recoveries | 111 | 67 | 58 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance | 322,062 | 261,912 | 281,643 |
Provisions | 551 | 490 | 3,319 |
Loans receivable: | ' | ' | ' |
Ending balance | 322,062 | 261,912 | 281,643 |
Ending balance: individually evaluated for impairment | 3,658 | 2,425 | 2,006 |
Ending balance: collectively evaluated for impairment | 317,946 | 259,487 | 279,637 |
Ending balance: loans acquired with deteriorated credit quality | 458 | ' | ' |
Ending balance: individually evaluated for impairment | 3,658 | 2,425 | 2,006 |
Ending balance | 3,135 | 2,981 | 2,855 |
Ending balance: collectively evaluated for impairment | 317,946 | 259,487 | 279,637 |
Consumer [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning balance | 866 | 769 | 1,723 |
Charge-offs | -313 | -275 | -262 |
Recoveries | 49 | 58 | 51 |
Provisions | 512 | 314 | -743 |
Ending balance | 1,114 | 866 | 769 |
Beginning balance | 866 | 769 | 1,723 |
Ending balance: individually evaluated for impairment | ' | ' | ' |
Charge-offs | -313 | -275 | -262 |
Ending balance: collectively evaluated for impairment | 1,114 | 866 | 769 |
Recoveries | 49 | 58 | 51 |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance | 90,817 | 52,398 | 52,816 |
Provisions | 512 | 314 | -743 |
Loans receivable: | ' | ' | ' |
Ending balance | 90,817 | 52,398 | 52,816 |
Ending balance: individually evaluated for impairment | 90 | 31 | 92 |
Ending balance: collectively evaluated for impairment | 90,727 | 52,367 | 52,724 |
Ending balance: individually evaluated for impairment | 90 | 31 | 92 |
Ending balance | 1,114 | 866 | 769 |
Ending balance: collectively evaluated for impairment | 90,727 | 52,367 | 52,724 |
Unallocated [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning balance | ' | ' | ' |
Charge-offs | ' | ' | ' |
Recoveries | ' | ' | ' |
Provisions | ' | ' | ' |
Ending balance | ' | ' | ' |
Beginning balance | ' | ' | ' |
Ending balance: individually evaluated for impairment | ' | ' | ' |
Charge-offs | ' | ' | ' |
Ending balance: collectively evaluated for impairment | ' | ' | ' |
Recoveries | ' | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance | ' | ' | ' |
Provisions | ' | ' | ' |
Loans receivable: | ' | ' | ' |
Ending balance | ' | ' | ' |
Ending balance: individually evaluated for impairment | ' | ' | ' |
Ending balance: collectively evaluated for impairment | ' | ' | ' |
Ending balance: loans acquired with deteriorated credit quality | ' | ' | ' |
Ending balance: individually evaluated for impairment | ' | ' | ' |
Ending balance | ' | ' | ' |
Ending balance: collectively evaluated for impairment | ' | ' | ' |
Loans_net_and_allowance_for_lo5
Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | $1,176,617 | $623,530 | $631,522 |
Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 350,680 | 91,724 | 88,188 |
Real Estate Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 413,058 | 217,496 | 208,875 |
Real Estate Residential [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 322,062 | 261,912 | 281,643 |
Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 90,817 | 52,398 | 52,816 |
Pass [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 1,124,344 | 606,663 | ' |
Pass [Member] | Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 332,257 | 90,128 | ' |
Pass [Member] | Real Estate Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 386,825 | 204,513 | ' |
Pass [Member] | Real Estate Residential [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 314,544 | 259,869 | ' |
Pass [Member] | Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 90,718 | 52,153 | ' |
Special Mention [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 18,596 | 7,316 | ' |
Special Mention [Member] | Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 7,025 | 876 | ' |
Special Mention [Member] | Real Estate Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 10,701 | 6,440 | ' |
Special Mention [Member] | Real Estate Residential [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 861 | ' | ' |
Special Mention [Member] | Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 9 | ' | ' |
Substandard [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 33,677 | 9,551 | ' |
Substandard [Member] | Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 11,398 | 720 | ' |
Substandard [Member] | Real Estate Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 15,532 | 6,543 | ' |
Substandard [Member] | Real Estate Residential [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 6,657 | 2,043 | ' |
Substandard [Member] | Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | 90 | 245 | ' |
Doubtful [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | ' | ' | ' |
Doubtful [Member] | Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | ' | ' | ' |
Doubtful [Member] | Real Estate Commercial [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | ' | ' | ' |
Doubtful [Member] | Real Estate Residential [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | ' | ' | ' |
Doubtful [Member] | Consumer [Member] | ' | ' | ' |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Loans, net | ' | ' | ' |
Loans_net_and_allowance_for_lo6
Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans, Total | $12,166 | $2,280 |
Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans, Total | 4,038 | 304 |
Real Estate Commercial [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans, Total | 4,503 | 145 |
Real Estate Residential [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans, Total | 3,535 | 1,800 |
Consumer [Member] | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' |
Nonaccrual loans, Total | $90 | $31 |
Loans_net_and_allowance_for_lo7
Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | $7,167 | $4,649 | ' |
60-89 Days Past Due | 1,478 | 1,717 | ' |
Greater than 90 Days | 13,621 | 2,737 | ' |
Total Past Due | 22,266 | 9,103 | ' |
Current | 1,154,351 | 614,427 | ' |
Ending balance | 1,176,617 | 623,530 | 631,522 |
Loans > 90 Days and Accruing | 1,455 | 457 | ' |
Commercial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 1,052 | 23 | ' |
60-89 Days Past Due | 105 | 49 | ' |
Greater than 90 Days | 4,044 | 304 | ' |
Total Past Due | 5,201 | 376 | ' |
Current | 345,479 | 91,348 | ' |
Ending balance | 350,680 | 91,724 | 88,188 |
Loans > 90 Days and Accruing | 6 | ' | ' |
Real Estate Commercial [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 1,641 | 1,448 | ' |
60-89 Days Past Due | 75 | 200 | ' |
Greater than 90 Days | 4,703 | 145 | ' |
Total Past Due | 6,419 | 1,793 | ' |
Current | 406,639 | 215,703 | ' |
Ending balance | 413,058 | 217,496 | 208,875 |
Loans > 90 Days and Accruing | 200 | ' | ' |
Real Estate Residential [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 3,676 | 2,680 | ' |
60-89 Days Past Due | 985 | 1,198 | ' |
Greater than 90 Days | 4,213 | 2,043 | ' |
Total Past Due | 8,874 | 5,921 | ' |
Current | 313,188 | 255,991 | ' |
Ending balance | 322,062 | 261,912 | 281,643 |
Loans > 90 Days and Accruing | 678 | 243 | ' |
Consumer [Member] | ' | ' | ' |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ' | ' | ' |
30-59 Days Past Due | 798 | 498 | ' |
60-89 Days Past Due | 313 | 270 | ' |
Greater than 90 Days | 661 | 245 | ' |
Total Past Due | 1,772 | 1,013 | ' |
Current | 89,045 | 51,385 | ' |
Ending balance | 90,817 | 52,398 | 52,816 |
Loans > 90 Days and Accruing | $571 | $214 | ' |
Loans_net_and_allowance_for_lo8
Loans, net and allowance for loan losses - Summarize Information in Concerning to Impaired Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance, Total | $9,896 | $1,408 | $1,489 |
Unpaid Principal Balance, With no related allowance, Total | 17,681 | 1,408 | 1,489 |
Average Recorded Investment, With no related allowance, Total | 9,956 | 1,573 | 1,578 |
Recorded Investment, With an allowance recorded, Total | 4,378 | 3,863 | 2,045 |
Unpaid Principal Balance, With an allowance recorded, Total | 4,378 | 3,863 | 2,045 |
Related Allowance, With an allowance recorded, Total | 2,024 | 1,226 | 658 |
Average Recorded Investment, With an allowance recorded, Total | 4,263 | 3,495 | 2,057 |
Interest Income Recognized, With an allowance recorded, Total | 184 | 175 | 28 |
Recorded Investment, Total | 14,274 | 5,271 | 3,534 |
Unpaid Principal Balance, Total | 22,059 | 5,271 | 3,534 |
Average Recorded Investment, Total | 14,219 | 5,068 | 3,635 |
Interest Income Recognized, Total | 184 | 175 | 28 |
Commercial [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance, Total | 3,009 | 304 | ' |
Unpaid Principal Balance, With no related allowance, Total | 7,506 | 304 | ' |
Average Recorded Investment, With no related allowance, Total | 3,855 | 152 | ' |
Recorded Investment, With an allowance recorded, Total | 2,200 | 351 | 845 |
Unpaid Principal Balance, With an allowance recorded, Total | 2,200 | 351 | 845 |
Related Allowance, With an allowance recorded, Total | 1,500 | 351 | 443 |
Average Recorded Investment, With an allowance recorded, Total | 2,182 | 351 | 1,000 |
Interest Income Recognized, With an allowance recorded, Total | 95 | 17 | 28 |
Recorded Investment, Total | 5,209 | 655 | 845 |
Unpaid Principal Balance, Total | 9,706 | 655 | 845 |
Average Recorded Investment, Total | 6,037 | 503 | 1,000 |
Interest Income Recognized, Total | 95 | 17 | 28 |
Real Estate Commercial [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance, Total | 3,923 | 145 | 591 |
Unpaid Principal Balance, With no related allowance, Total | 6,777 | 145 | 591 |
Average Recorded Investment, With no related allowance, Total | 3,522 | 201 | 390 |
Recorded Investment, With an allowance recorded, Total | 1,394 | 2,015 | ' |
Unpaid Principal Balance, With an allowance recorded, Total | 1,394 | 2,015 | ' |
Related Allowance, With an allowance recorded, Total | 300 | 550 | ' |
Average Recorded Investment, With an allowance recorded, Total | 1,409 | 2,104 | ' |
Interest Income Recognized, With an allowance recorded, Total | 76 | 114 | ' |
Recorded Investment, Total | 5,317 | 2,160 | 591 |
Unpaid Principal Balance, Total | 8,171 | 2,160 | 591 |
Average Recorded Investment, Total | 4,931 | 2,305 | 390 |
Interest Income Recognized, Total | 76 | 114 | ' |
Real Estate Residential [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance, Total | 2,874 | 928 | 806 |
Unpaid Principal Balance, With no related allowance, Total | 3,308 | 928 | 806 |
Average Recorded Investment, With no related allowance, Total | 2,484 | 1,152 | 1,081 |
Recorded Investment, With an allowance recorded, Total | 784 | 1,497 | 1,200 |
Unpaid Principal Balance, With an allowance recorded, Total | 784 | 1,497 | 1,200 |
Related Allowance, With an allowance recorded, Total | 224 | 325 | 215 |
Average Recorded Investment, With an allowance recorded, Total | 672 | 1,040 | 1,057 |
Interest Income Recognized, With an allowance recorded, Total | 13 | 44 | ' |
Recorded Investment, Total | 3,658 | 2,425 | 2,006 |
Unpaid Principal Balance, Total | 4,092 | 2,425 | 2,006 |
Average Recorded Investment, Total | 3,156 | 2,192 | 2,138 |
Interest Income Recognized, Total | 13 | 44 | ' |
Consumer [Member] | ' | ' | ' |
Financing Receivable, Impaired [Line Items] | ' | ' | ' |
Recorded Investment, With no related allowance, Total | 90 | 31 | 92 |
Unpaid Principal Balance, With no related allowance, Total | 90 | 31 | 92 |
Average Recorded Investment, With no related allowance, Total | 95 | 68 | 107 |
Recorded Investment, With an allowance recorded, Total | ' | ' | ' |
Unpaid Principal Balance, With an allowance recorded, Total | ' | ' | ' |
Related Allowance, With an allowance recorded, Total | ' | ' | ' |
Average Recorded Investment, With an allowance recorded, Total | ' | ' | ' |
Interest Income Recognized, With an allowance recorded, Total | ' | ' | ' |
Recorded Investment, Total | 90 | 31 | 92 |
Unpaid Principal Balance, Total | 90 | 31 | 92 |
Average Recorded Investment, Total | 95 | 68 | 107 |
Interest Income Recognized, Total | ' | ' | ' |
Loans_net_and_allowance_for_lo9
Loans, net and allowance for loan losses - Summary of Changes in Accretible Yield and Nonaccretible Difference of Acquired Loans (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Beginning Balance, Accretible | ' | ' | ' |
Additions, Accretible | 934 | ' | ' |
Amortization, Accretible | -39 | ' | ' |
Charge-offs, Accretible | ' | ' | ' |
Payments, Accretible | ' | ' | ' |
Ending Balance, Accretible | 895 | ' | ' |
Beginning Balance, Nonaccretible | ' | 211 | 229 |
Additions, Nonaccretible | 6,892 | ' | ' |
Amortization, Nonaccretible | ' | ' | ' |
Charge-offs, Nonaccretible | ' | ' | ' |
Payments, Nonaccretible | ' | -211 | -18 |
Ending Balance, Nonaccretible | $6,892 | ' | $211 |
Offbalance_sheet_financial_ins2
Off-balance sheet financial instruments - Summary of Contractual Amounts of Off-balance Sheet Commitments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Guarantees [Abstract] | ' | ' |
Commitments to extend credit | $221,138 | $128,540 |
Unused portions of lines of credit | 52,257 | 46,377 |
Standby letters of credit | 29,914 | 14,440 |
Amounts of off-balance Sheet commitments | $303,309 | $189,357 |
Offbalance_sheet_financial_ins3
Off-balance sheet financial instruments - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Guarantees [Abstract] | ' | ' |
Expiration period of standby letters | '12 months | ' |
Amount of standby letters of credit | $25,756 | $11,522 |
Premises_and_equipment_net_Sum
Premises and equipment, net - Summary of Premises and Equipment (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | $62,461 | $43,172 |
Less: accumulated depreciation | 36,342 | 28,035 |
Premises and equipment, net | 26,119 | 15,137 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | 5,309 | 4,503 |
Premises and Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | 34,177 | 20,863 |
Furniture, Fixtures and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Premises and equipment, gross | $22,975 | $17,806 |
Premises_and_equipment_net_Add
Premises and equipment, net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Depreciation and amortization | $924 | $855 | $1,050 |
Rent expense | $216 | $103 | $98 |
Minimum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Leases extension period | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Leases extension period | '10 years | ' | ' |
Premises_and_equipment_net_Sum1
Premises and equipment, net - Summary of Future Minimum Rental Commitments Under Operating Leases (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Operating Leases Future Minimum Payments Due [Abstract] | ' |
2014 | $275 |
2015 | 262 |
2016 | 214 |
2017 | 158 |
2018 | 68 |
Thereafter | 455 |
Future minimum annual rent commitments under various operating leases | $1,432 |
Intangible_assets_net_Addition
Intangible assets, net - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization expense of intangible assets | $326 | $267 | $304 |
Core Deposit [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount of intangible assets | 8,150 | 2,027 | ' |
Accumulated amortization on intangible assets | 1,512 | 1,189 | ' |
Trade Name [Member] | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Gross carrying amount of intangible assets | 200 | ' | ' |
Accumulated amortization on intangible assets | $3 | ' | ' |
Intangible_assets_net_Summary_
Intangible assets, net - Summary of Estimated Amortization Expense on Intangible Asset (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Finite Lived Intangible Assets Future Amortization Expense [Abstract] | ' |
2014 | $1,333 |
2015 | 1,182 |
2016 | 1,030 |
2017 | 879 |
2018 | 726 |
Thereafter | $1,685 |
Other_assets_Components_of_Oth
Other assets - Components of Other Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Other real estate owned | $648 | $656 |
Investment in residential housing program | 3,211 | ' |
Mortgage servicing rights | 880 | 491 |
Bank owned life insurance | 29,198 | 17,616 |
Restricted equity securities | 4,102 | 4,212 |
Other assets | 9,949 | 8,115 |
Total | $47,988 | $31,090 |
Other_assets_Additional_Inform
Other assets - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Other Assets [Abstract] | ' | ' |
Unpaid principal balances of mortgage loans serviced for others | $169,450 | $113,340 |
Deposits_Components_of_Interes
Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Banking And Thrift [Abstract] | ' | ' |
Money market accounts | $229,626 | $166,273 |
Now accounts | 194,931 | 102,722 |
Savings accounts | 372,101 | 126,618 |
Time deposits less than $100 | 168,085 | 93,359 |
Time deposits $100 or more | 134,822 | 81,855 |
Total interest-bearing deposits | 1,099,565 | 570,827 |
Noninterest-bearing deposits | 279,942 | 151,121 |
Total deposits | $1,379,507 | $721,948 |
Deposits_Schedule_of_Maturitie
Deposits - Schedule of Maturities of Time Deposits (Detail) (USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Banking And Thrift [Abstract] | ' |
2014 | $174,362 |
2015 | 41,110 |
2016 | 29,691 |
2017 | 16,075 |
2018 | 23,104 |
Thereafter | 18,565 |
Total | $302,907 |
Deposits_Additional_Informatio
Deposits - Additional Information (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Banking And Thrift [Abstract] | ' | ' |
Aggregate amount of deposits reclassified as loans | $405 | $193 |
Deposit liabilities with abnormal terms | $0 | $0 |
Shortterm_borrowings_Additiona
Short-term borrowings - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Peoples Bank [Member] | ' |
Short-term Debt [Line Items] | ' |
Maximum borrowing capacity | 214,756 |
Outstanding amount in long-term borrowings | 36,743 |
Repurchase Agreements [Member] | FHLB Advances [Member] | ' |
Short-term Debt [Line Items] | ' |
Short term debt, Description | 'Securities sold under agreements to repurchase and FHLB advances generally represent overnight or less than 30-day borrowings. |
Shortterm_borrowings_Summary_o
Short-term borrowings - Summary of Short-term Borrowings (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | ' | ' |
Short-term borrowings | $22,052 | $8,019 |
Short-term borrowings, Average Balance | 10,156 | 11,459 |
Short-term borrowings, Maximum Month-End Balance | 25,898 | 21,905 |
Short-term borrowings, Weighted Average Rate for the Year | 0.33% | 0.34% |
Short-term borrowings, Weighted Average Rate at end of the Year | 0.67% | 0.34% |
FHLB Advances [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term borrowings | ' | ' |
Short-term borrowings, Average Balance | 51 | 826 |
Short-term borrowings, Maximum Month-End Balance | ' | 8,625 |
Short-term borrowings, Weighted Average Rate for the Year | 0.33% | 0.36% |
Repurchase Agreements [Member] | ' | ' |
Short-term Debt [Line Items] | ' | ' |
Short-term borrowings | 22,052 | 8,019 |
Short-term borrowings, Average Balance | 10,105 | 10,633 |
Short-term borrowings, Maximum Month-End Balance | $25,898 | $13,280 |
Short-term borrowings, Weighted Average Rate for the Year | 0.33% | 0.33% |
Short-term borrowings, Weighted Average Rate at end of the Year | 0.67% | 0.34% |
Longterm_debt_Schedule_of_Long
Long-term debt - Schedule of Long-term Debt Consisting of Advances (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Long-term debt | $36,743 | $45,397 |
February 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2013-02 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.10% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | ' | 179 |
February 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2013-02 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.49% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | ' | 7,000 |
March 2013 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2013-03 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.74% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | ' | 1,282 |
August 2014 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2014-08 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.66% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 141 | 348 |
March 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2015-03 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.44% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 919 | 1,678 |
March 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2015-03 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.48% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 197 | 348 |
November 2015 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2015-11 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.67% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 527 | ' |
February 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2016-02 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.86% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 301 | ' |
February 2016 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2016-02 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.86% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 301 | ' |
February 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2017-02 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.99% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 1,311 | ' |
September 2017 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2017-09 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 2.36% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 6,500 | 6,500 |
April 2018 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2018-04 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 3.83% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | 480 | 581 |
December 2019 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2019-12 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.81% | ' |
Long-term debt | 3,000 | 3,000 |
December 2019 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2019-12 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | ' | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 1.45% | ' |
Long-term debt | 6,300 | 6,300 |
March 2023 [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Long-term debt due | '2023-03 | ' |
Long-term Debt, Percentage Bearing Fixed Interest, Percentage Rate | 4.69% | ' |
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | ' | ' |
Long-term debt | $16,766 | $18,181 |
Longterm_debt_Schedule_of_Matu
Long-term debt - Schedule of Maturities of Long-term Debt (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Debt Disclosure [Abstract] | ' | ' |
2014 | $2,725 | ' |
2015 | 2,392 | ' |
2016 | 2,057 | ' |
2017 | 8,616 | ' |
2018 | 3,047 | ' |
Thereafter | 17,906 | ' |
Total | $36,743 | $45,397 |
Longterm_debt_Additional_Infor
Long-term debt - Additional Information (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' |
Long-term debt, fixed rates amount | $27,443 |
Long-term debt, adjustable rates amount | $9,300 |
Long-term debt, Libor interest rate description | 'Three-month Libor plus 1.21% to plus 1.57%. |
Minimum [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, Libor interest rate percentage | 1.21% |
Maximum [Member] | ' |
Debt Instrument [Line Items] | ' |
Long-term debt, Libor interest rate percentage | 1.57% |
Fair_value_of_financial_instru2
Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (Recurring Fair Value Measurements [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
U.S. Government-agencies | $204 | ' |
U.S. Government-sponsored enterprises | 113,045 | 84,682 |
State and Municipals: | ' | ' |
Taxable | 16,698 | ' |
Tax-exempt | 98,081 | 58,837 |
Corporate debt securities | 4,387 | ' |
Mortgage-backed securities: | ' | ' |
U.S. Government agencies | 20,229 | ' |
U.S. Government-sponsored enterprises | 45,974 | 16,801 |
Common equity securities | 1,097 | 1,071 |
Total | 299,715 | 161,391 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
U.S. Government-agencies | ' | ' |
U.S. Government-sponsored enterprises | ' | ' |
State and Municipals: | ' | ' |
Taxable | ' | ' |
Tax-exempt | ' | ' |
Corporate debt securities | ' | ' |
Mortgage-backed securities: | ' | ' |
U.S. Government agencies | ' | ' |
U.S. Government-sponsored enterprises | ' | ' |
Common equity securities | 1,097 | 1,071 |
Total | 1,097 | 1,071 |
Significant Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
U.S. Government-agencies | 204 | ' |
U.S. Government-sponsored enterprises | 113,045 | 84,682 |
State and Municipals: | ' | ' |
Taxable | 16,698 | ' |
Tax-exempt | 98,081 | 58,837 |
Corporate debt securities | 4,387 | ' |
Mortgage-backed securities: | ' | ' |
U.S. Government agencies | 20,229 | ' |
U.S. Government-sponsored enterprises | 45,974 | 16,801 |
Total | 298,618 | 160,320 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
U.S. Government-agencies | ' | ' |
U.S. Government-sponsored enterprises | ' | ' |
State and Municipals: | ' | ' |
Taxable | ' | ' |
Tax-exempt | ' | ' |
Corporate debt securities | ' | ' |
Mortgage-backed securities: | ' | ' |
U.S. Government agencies | ' | ' |
U.S. Government-sponsored enterprises | ' | ' |
Common equity securities | ' | ' |
Total | ' | ' |
Fair_value_of_financial_instru3
Fair value of financial instruments - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Detail) (Nonrecurring Fair Value Measurements [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | $2,354 | $2,637 |
Other real estate owned | 437 | 237 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | ' | ' |
Other real estate owned | ' | ' |
Significant Observable Inputs (Level 2) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | ' | ' |
Other real estate owned | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Impaired loans | 2,354 | 2,637 |
Other real estate owned | $437 | $237 |
Fair_value_of_financial_instru4
Fair value of financial instruments - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Impaired Loans [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Range and weighted average of appraisal adjustments (in hundredths) | 11.00% | 11.00% |
Range and weighted average of liquidation expenses (in hundredths) | 3.00% | 3.00% |
Impaired Loans [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Range and weighted average of appraisal adjustments (in hundredths) | 33.70% | 33.70% |
Range and weighted average of liquidation expenses (in hundredths) | 6.00% | 6.00% |
Impaired Loans [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Range and weighted average of appraisal adjustments (in hundredths) | 17.30% | 17.30% |
Range and weighted average of liquidation expenses (in hundredths) | 5.00% | 5.00% |
Other Real Estate Owned [Member] | Minimum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Range and weighted average of appraisal adjustments (in hundredths) | 11.00% | 11.00% |
Range and weighted average of liquidation expenses (in hundredths) | 3.00% | 3.00% |
Other Real Estate Owned [Member] | Maximum [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Range and weighted average of appraisal adjustments (in hundredths) | 33.70% | 33.70% |
Range and weighted average of liquidation expenses (in hundredths) | 6.00% | 6.00% |
Other Real Estate Owned [Member] | Weighted Average [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Range and weighted average of appraisal adjustments (in hundredths) | 17.30% | 17.30% |
Range and weighted average of liquidation expenses (in hundredths) | 5.00% | 5.00% |
Significant Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Assets, Fair Value Estimate | 2,354 | 2,637 |
Valuation Technique | 'Appraisal of collateral | 'Appraisal of collateral |
Unobservable Input | 'Appraisal adjustments | 'Appraisal adjustments |
Significant Unobservable Inputs (Level 3) [Member] | Other Real Estate Owned [Member] | ' | ' |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ' | ' |
Assets, Fair Value Estimate | 437 | 237 |
Valuation Technique | 'Appraisal of collateral | 'Appraisal of collateral |
Unobservable Input | 'Appraisal adjustments | 'Appraisal adjustments |
Fair_value_of_financial_instru5
Fair value of financial instruments - Carrying and Fair Values of Financial Instruments (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Investment securities: | ' | ' |
Available-for-sale | $299,715 | $161,391 |
Held-to-maturity | 17,175 | 16,774 |
Mortgage servicing rights | 880 | 491 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 51,310 | 47,844 |
Investment securities: | ' | ' |
Available-for-sale | 1,097 | 1,071 |
Significant Observable Inputs (Level 2) [Member] | ' | ' |
Investment securities: | ' | ' |
Available-for-sale | 298,618 | 160,320 |
Held-to-maturity | 17,175 | 16,774 |
Loans held for sale | 1,757 | ' |
Accrued interest receivable | 5,866 | 2,862 |
Mortgage servicing rights | 1,440 | 879 |
Restricted equity securities | 4,102 | 4,212 |
Financial liabilities: | ' | ' |
Deposits | 1,381,946 | 724,771 |
Short-term borrowings | 22,052 | 8,019 |
Long-term debt | 37,468 | 48,625 |
Accrued interest payable | 723 | 716 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Investment securities: | ' | ' |
Net loans | 1,180,387 | 627,712 |
Carrying Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 51,310 | 47,844 |
Investment securities: | ' | ' |
Available-for-sale | 299,715 | 161,391 |
Held-to-maturity | 17,295 | 15,902 |
Loans held for sale | 1,757 | ' |
Net loans | 1,167,966 | 616,580 |
Accrued interest receivable | 5,866 | 2,862 |
Mortgage servicing rights | 880 | 491 |
Restricted equity securities | 4,102 | 4,212 |
Assets, Fair Value Disclosure | 1,548,891 | 849,282 |
Financial liabilities: | ' | ' |
Deposits | 1,379,507 | 721,948 |
Short-term borrowings | 22,052 | 8,019 |
Long-term debt | 36,743 | 45,397 |
Accrued interest payable | 723 | 716 |
Liabilities, total | 1,439,025 | 776,080 |
Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and cash equivalents | 51,310 | 47,844 |
Investment securities: | ' | ' |
Available-for-sale | 299,715 | 161,391 |
Held-to-maturity | 17,175 | 16,774 |
Loans held for sale | 1,757 | ' |
Net loans | 1,180,387 | 627,712 |
Accrued interest receivable | 5,866 | 2,862 |
Mortgage servicing rights | 1,440 | 879 |
Restricted equity securities | 4,102 | 4,212 |
Assets, Fair Value Disclosure | 1,561,752 | 861,674 |
Financial liabilities: | ' | ' |
Deposits | 1,381,946 | 724,771 |
Short-term borrowings | 22,052 | 8,019 |
Long-term debt | 37,468 | 48,625 |
Accrued interest payable | 723 | 716 |
Liabilities, total | $1,442,189 | $782,131 |
Stock_plans_Summary_of_Stock_O
Stock plans - Summary of Stock Option Plan (Detail) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ' | ' | ' |
Options, Outstanding, beginning of year | 25,227 | 25,227 | 25,227 |
Options associated with merger | 8,900 | ' | ' |
Options, Granted | ' | ' | ' |
Options, Exercised | -3,150 | ' | ' |
Options, Forfeited | -150 | ' | ' |
Options, Outstanding, end of year | 30,827 | 25,227 | 25,227 |
Options, Exercisable, end of year | 30,827 | 25,227 | 25,227 |
Weighted Average Price, Outstanding, beginning of year | $29.66 | $29.66 | $29.66 |
Options associated with merger | $30.93 | ' | ' |
Weighted Average Price, Granted | ' | ' | ' |
Weighted Average Price, Exercised | $26.38 | ' | ' |
Weighted Average Price, Forfeited | $27.50 | ' | ' |
Weighted Average Price, Outstanding, end of year | $30.37 | $29.66 | $29.66 |
Weighted Average Price, Exercisable, end of year | $30.37 | $29.66 | $29.66 |
Stock_plans_Additional_Informa
Stock plans - Additional Information (Detail) (USD $) | 0 Months Ended | 12 Months Ended | |||||
In Thousands, except Share data, unless otherwise specified | Feb. 29, 2008 | Jan. 03, 2006 | Oct. 03, 2005 | Nov. 12, 2004 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Share based compensation expense | ' | ' | ' | ' | $25 | $40 | $55 |
Weighted-average remaining contractual life of the options outstanding | ' | ' | ' | ' | '1 year 6 months | ' | ' |
Restricted stock cost | ' | ' | ' | ' | 50 | 300 | 55 |
Weighted average expenses recognized period | ' | ' | ' | ' | '4 years | ' | ' |
Restricted stock vested period | ' | ' | ' | ' | '5 years | ' | ' |
Unrecognized compensation expense | ' | ' | ' | ' | 0 | 0 | ' |
2008 Plan [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Common stock available for grant as awards | ' | ' | ' | ' | 146,451 | ' | ' |
SAR [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock appreciation rights granted | 11,591 | 13,636 | ' | ' | ' | ' | ' |
Strike price of per share | $27.50 | $31.50 | $30.75 | $34.10 | ' | ' | ' |
Expected volatility | 22.21% | 14.55% | ' | ' | ' | ' | ' |
Expected annual dividend yield | 4.00% | 4.54% | ' | ' | ' | ' | ' |
Risk-free interest rate | 3.53% | 0.72% | ' | ' | ' | ' | ' |
Expected term | ' | '6 months | ' | ' | '7 years 6 months | ' | ' |
Share based compensation expense | ' | ' | ' | ' | 34 | 2 | -2 |
Rights vesting period description | ' | ' | ' | ' | 'Rights vest on a straight-line basis over a five year period | ' | ' |
Stock appreciation rights vesting date | ' | ' | ' | ' | 2-Jan-11 | ' | ' |
Stock appreciation rights vesting period | ' | ' | ' | ' | '5 years | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Stock appreciation rights granted | ' | ' | ' | ' | 1,820 | 10,542 | 1,947 |
Unrecognized compensation expense | ' | ' | ' | ' | $243 | ' | ' |
Stock_plans_Schedule_of_Activi
Stock plans - Schedule of Activity Related to Restricted Stock (Detail) (Restricted Stock [Member]) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Nonvested, January 1 | 15,425 | 4,883 | 2,936 |
Granted shares | 1,820 | 10,542 | 1,947 |
Vested shares | ' | ' | ' |
Forfeited shares | ' | ' | ' |
Nonvested, December 31 | 17,245 | 15,425 | 4,883 |
Employee_benefit_plans_Additio
Employee benefit plans - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jun. 22, 2008 | |
Age | ||||
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Penn Security Bank and Trust Company ESOP shares held and allocated | 104,964 | 102,623 | ' | ' |
Contribution to ESOP | $218,000 | $105,000 | $0 | ' |
Discretionary contributions | 234,000 | 221,000 | 209,000 | ' |
Percentage of matched contributions by employees | 3.00% | ' | ' | ' |
Common stock held in Plan | 263,559 | ' | ' | ' |
Employee benefit plan expense | 0 | ' | ' | ' |
Maximum annual benefit percent in excess of federal limits | 6.00% | ' | ' | ' |
Retirement age period for fixed benefits payable | '65 years | ' | ' | ' |
Benefits accrued under employees' pension plan | ' | ' | ' | 0 |
Postretirement Life Insurance Plan, description | 'The Postretirement Life Insurance Plan was an unfunded, non-vesting defined benefit plan for employees of Penn Security Bank and Trust Company hired after JulyB 1, 1995; which provided postretirement life insurance benefit of $50,000 at retirement, then decreasing to $5,000 at age 75. Employees hired prior to JulyB 1, 1995 were entitled to three times their salary at retirement. During 2013 the company entered into an agreement with an insurance company to transfer all risk and obligation for benefits payable as to the current retiree group in exchange for a one time fixed payment, additionally the company eliminated retiree life insurance for current employees. | ' | ' | ' |
Postretirement life insurance benefit | 50,000 | ' | ' | ' |
Age limit for postretirement life insurance benefit | 75 | ' | ' | ' |
Defined benefit plan accumulated benefit obligation | 14,211,000 | 15,506,000 | ' | ' |
Defined benefit plan, diversification | 'We invest in individual high-grade common stocks that are selected from our approved list; (ii) diversification is maintained by having no more than 20% in any industry sector and no individual equity representing more than 10% of the portfolio | ' | ' | ' |
Amount of company's common stock included in equity securities | 0 | 0 | ' | ' |
Expected payment period of benefits payment | '5 years | ' | ' | ' |
Pension Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Contribution by Penn Security Bank and Trust Company Retirement Profit Sharing Plan's | 167,000 | 363,000 | ' | ' |
Employee benefit plan expense | 7,000 | 4,000 | 4,000 | ' |
Employee benefit plan liability | 36,000 | 29,000 | ' | ' |
Defined benefit plan, net periodic benefit cost over next fiscal year | 1,000 | ' | -121,000 | ' |
Cash Equivalents [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined benefit plan, target allocation percentage | 10.00% | ' | ' | ' |
Fixed Income [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined benefit plan, target allocation percentage | 40.00% | ' | ' | ' |
Equity [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined benefit plan, target allocation percentage | 50.00% | ' | ' | ' |
Industry Sector [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Maximum diversification percentage | 20.00% | ' | ' | ' |
Individual Equity [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Maximum diversification percentage | 10.00% | ' | ' | ' |
After Retirement [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Postretirement life insurance benefit | 5,000 | ' | ' | ' |
2014 [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Discretionary contributions | 315,000 | ' | ' | ' |
Defined benefit plan, net periodic benefit cost over next fiscal year | 101,000 | ' | ' | ' |
SERPs [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Defined benefit plan accrued liabilities | 1,432,000 | 1,418,000 | ' | ' |
Defined benefit plan compensation expenses | 164,000 | 77,000 | 34,000 | ' |
Safe Harbor [Member] | ' | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' | ' |
Contribution by Penn Security Bank and Trust Company Retirement Profit Sharing Plan's | $310,000 | $306,000 | $284,000 | ' |
Employee_benefit_plans_Schedul
Employee benefit plans - Schedule of Change in Projected Benefit Obligation and Change in Plan Assets (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, ending | $12,417 | $11,343 | ' |
Pension Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation, beginning | 15,506 | 14,450 | ' |
Service cost | ' | ' | ' |
Interest cost | 646 | 673 | 700 |
Plan curtailment | ' | ' | ' |
Change in experience | 99 | 88 | ' |
Change in assumptions | -1,324 | 978 | ' |
Benefits paid | -716 | -683 | ' |
Benefit obligation, ending | 14,211 | 15,506 | 14,450 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, beginning | 11,343 | 11,026 | ' |
Actual return on plan assets | 1,623 | 637 | ' |
Employer contributions | 167 | 363 | ' |
Benefits paid | -716 | -683 | ' |
Fair value of plan assets, ending | 12,417 | 11,343 | 11,026 |
Funded status at end of year | -1,794 | -4,163 | ' |
Postretirement Life Insurance Benefits [Member] | ' | ' | ' |
Change in benefit obligation: | ' | ' | ' |
Benefit obligation, beginning | 3,193 | 3,004 | ' |
Service cost | 35 | 48 | 43 |
Interest cost | 111 | 139 | 147 |
Plan curtailment | -2,764 | ' | ' |
Change in experience | ' | 4 | ' |
Change in assumptions | ' | 145 | ' |
Benefits paid | -575 | -147 | ' |
Benefit obligation, ending | ' | 3,193 | 3,004 |
Change in plan assets: | ' | ' | ' |
Fair value of plan assets, beginning | ' | ' | ' |
Actual return on plan assets | ' | ' | ' |
Employer contributions | ' | ' | ' |
Benefits paid | -575 | -147 | ' |
Fair value of plan assets, ending | ' | ' | ' |
Funded status at end of year | ' | ($3,193) | ' |
Employee_benefit_plans_Schedul1
Employee benefit plans - Schedule of Amounts Recognized in Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Benefit plan adjustments | ($3,883) | ($7,525) | ' |
Net amount recognized | 2,524 | 4,814 | ' |
Pension Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Liabilities | 1,794 | 4,163 | ' |
Benefit plan adjustments | -3,883 | -6,252 | 1,351 |
Deferred taxes | 1,359 | 2,091 | -459 |
Net amount recognized | -2,524 | -4,161 | ' |
Postretirement Life Insurance Benefits [Member] | ' | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Liabilities | ' | 3,193 | ' |
Benefit plan adjustments | -1,273 | -1,273 | 148 |
Deferred taxes | 620 | 620 | -53 |
Net amount recognized | ' | ($653) | ' |
Employee_benefit_plans_Compone
Employee benefit plans - Components of Net Periodic Pension Cost and Other Amounts Recognized in Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Components of net periodic pension cost: | ' | ' | ' |
Net loss (gain) | ($3,883) | ($7,525) | ' |
Pension Benefits [Member] | ' | ' | ' |
Components of net periodic pension cost: | ' | ' | ' |
Service cost | ' | ' | ' |
Interest cost | 646 | 673 | 700 |
Expected return on plan assets | -825 | -809 | -903 |
Amortization of prior service cost | ' | ' | ' |
Amortization of unrecognized net gain loss | 180 | 136 | 82 |
Curtailment loss | ' | ' | ' |
Net periodic benefit cost | 1 | ' | -121 |
Net loss (gain) | -3,883 | -6,252 | 1,351 |
Prior service cost | ' | ' | ' |
Amortization of prior service cost | ' | ' | ' |
Deferred tax | 1,359 | 2,091 | -459 |
Total recognized in other comprehensive income | -1,564 | 488 | 892 |
Total recognized in net period pension cost and other comprehensive income | -1,563 | 488 | 771 |
Postretirement Life Insurance Benefits [Member] | ' | ' | ' |
Components of net periodic pension cost: | ' | ' | ' |
Service cost | 35 | 48 | 43 |
Interest cost | 111 | 139 | 147 |
Amortization of prior service cost | ' | ' | 7 |
Amortization of unrecognized net gain loss | 96 | 111 | 105 |
Net periodic benefit cost | 242 | 298 | 302 |
Net loss (gain) | -1,273 | -1,273 | 148 |
Prior service cost | ' | ' | 8 |
Amortization of prior service cost | ' | ' | -7 |
Deferred tax | 620 | 620 | -53 |
Total recognized in other comprehensive income | -653 | 122 | 96 |
Total recognized in net period pension cost and other comprehensive income | ($411) | $420 | $398 |
Employee_benefit_plans_Schedul2
Employee benefit plans - Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations (Detail) | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | 5.00% | 4.25% |
Expected long-term return on plan assets | 7.50% | 7.50% |
Rate of compensation increase | ' | ' |
Postretirement Life Insurance Benefits [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Discount rate | ' | 4.25% |
Expected long-term return on plan assets | ' | ' |
Rate of compensation increase | ' | 3.00% |
Employee_benefit_plans_Schedul3
Employee benefit plans - Schedule of Pension Plan Weighted-Average Asset Allocations (Detail) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted-average asset allocations | 100.00% | 100.00% |
Equity Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted-average asset allocations | 59.90% | 56.20% |
Corporate Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted-average asset allocations | 16.80% | 18.90% |
U.S. Government Agencies [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted-average asset allocations | 20.80% | 21.20% |
Cash and Cash Equivalents [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Weighted-average asset allocations | 2.50% | 3.70% |
Employee_benefit_plans_Fair_Va
Employee benefit plans - Fair Value Measurement of Pension Plan Assets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | $12,417 | $11,343 |
Cash [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 316 | 419 |
Equity Securities [Member] | U.S. Large Cap [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 6,993 | 6,068 |
Equity Securities [Member] | International [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 442 | 307 |
Fixed Income Securities [Member] | U.S. Treasuries [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 995 | 1,024 |
Fixed Income Securities [Member] | U.S. Government Agencies [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 1,579 | 1,380 |
Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 2,092 | 2,145 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 7,751 | 6,794 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 316 | 419 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | U.S. Large Cap [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 6,993 | 6,068 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Securities [Member] | International [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 442 | 307 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Securities [Member] | U.S. Treasuries [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Securities [Member] | U.S. Government Agencies [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Observable Inputs (Level 2) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 4,666 | 4,549 |
Significant Observable Inputs (Level 2) [Member] | Cash [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Observable Inputs (Level 2) [Member] | Equity Securities [Member] | U.S. Large Cap [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Observable Inputs (Level 2) [Member] | Equity Securities [Member] | International [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Observable Inputs (Level 2) [Member] | Fixed Income Securities [Member] | U.S. Treasuries [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 995 | 1,024 |
Significant Observable Inputs (Level 2) [Member] | Fixed Income Securities [Member] | U.S. Government Agencies [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 1,579 | 1,380 |
Significant Observable Inputs (Level 2) [Member] | Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | 2,092 | 2,145 |
Significant Unobservable Inputs (Level 3) [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Cash [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | U.S. Large Cap [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Equity Securities [Member] | International [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Securities [Member] | U.S. Treasuries [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Securities [Member] | U.S. Government Agencies [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Significant Unobservable Inputs (Level 3) [Member] | Fixed Income Securities [Member] | Corporate Debt Securities [Member] | ' | ' |
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Cash | ' | ' |
Employee_benefit_plans_Schedul4
Employee benefit plans - Schedule of Estimated Future Benefit Payments Expected to be Paid (Detail) (Pension Benefits [Member], USD $) | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |
Pension Benefits [Member] | ' |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $729 |
2015 | 781 |
2016 | 793 |
2017 | 811 |
2018 | 863 |
Thereafter | $4,484 |
Income_taxes_Current_and_Defer
Income taxes - Current and Deferred Amounts of Provision for Income Taxes Expense (Benefit) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current | ' | ' | ' | ' | ' | ' | ' | ' | $1,628 | $2,705 | $2,817 |
Deferred | ' | ' | ' | ' | ' | ' | ' | ' | -1,143 | 353 | 217 |
Total | ($1,277) | $392 | $633 | $737 | $757 | $761 | $721 | $819 | $485 | $3,058 | $3,034 |
Income_taxes_Components_of_Net
Income taxes - Components of Net Deferred Tax Asset (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Allowance for loan losses | $2,940 | $2,363 |
Defined benefit plan | 1,359 | 1,438 |
Deferred compensation | 10 | 1,046 |
Other-than-temporary impairment on securities | 131 | 131 |
Merger related accounting | 1,505 | 61 |
Capital loss carry forward | 244 | ' |
Other | 170 | ' |
Total | 6,359 | 5,039 |
Deferred tax liabilities: | ' | ' |
Premises and equipment, net | 976 | 479 |
Investment securities available-for-sale | 2,220 | 2,331 |
Other | 83 | 59 |
Total | 3,279 | 2,869 |
Net deferred tax asset | $3,080 | $2,170 |
Income_taxes_Additional_Inform
Income taxes - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
Federal statutory rate | 34.00% | 34.00% | 34.00% |
Income_taxes_Reconciliation_of
Income taxes - Reconciliation of Effective Income Tax Expense (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Federal income tax at statutory rate | ' | ' | ' | ' | ' | ' | ' | ' | $2,110 | $4,640 | $4,612 |
Tax exempt interest, net | ' | ' | ' | ' | ' | ' | ' | ' | -1,428 | -1,432 | -1,458 |
Bank owned life insurance income | ' | ' | ' | ' | ' | ' | ' | ' | -329 | -171 | -167 |
Disallowed merger costs | ' | ' | ' | ' | ' | ' | ' | ' | 266 | ' | ' |
Other, net | ' | ' | ' | ' | ' | ' | ' | ' | -134 | 21 | 47 |
Total | ($1,277) | $392 | $633 | $737 | $757 | $761 | $721 | $819 | $485 | $3,058 | $3,034 |
Parent_Company_financial_state2
Parent Company financial statements - Condensed Balance Sheets (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | $51,310 | $47,844 | $34,480 | $14,219 |
Investment securities available-for-sale | 299,715 | 161,391 | ' | ' |
Other assets | 47,988 | 31,090 | ' | ' |
Total assets | 1,688,221 | 918,042 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Other liabilities | 10,404 | 9,516 | ' | ' |
Stockholders' equity | 238,792 | 132,446 | 127,333 | 120,466 |
Total liabilities and stockholders' equity | 1,688,221 | 918,042 | ' | ' |
Peoples Bank [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents | 3,157 | 2,785 | 2,784 | 2,622 |
Investment in bank subsidiary | 232,825 | 128,679 | ' | ' |
Investment in non-bank subsidiary | ' | ' | ' | ' |
Due from subsidiaries | 2,472 | ' | ' | ' |
Investment securities available-for-sale | 1,097 | 1,039 | ' | ' |
Other assets | ' | 61 | ' | ' |
Total assets | 239,551 | 132,564 | ' | ' |
Liabilities and Stockholders' Equity: | ' | ' | ' | ' |
Other liabilities | 759 | 118 | ' | ' |
Stockholders' equity | 238,792 | 132,446 | ' | ' |
Total liabilities and stockholders' equity | $239,551 | $132,564 | ' | ' |
Parent_Company_financial_state3
Parent Company financial statements - Condensed Statements of Income and Comprehensive Income (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | $88 | $63 | $64 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income before income taxes | -3,407 | 2,878 | 3,477 | 3,258 | 3,465 | 3,313 | 3,320 | 3,549 | 6,206 | 13,647 | 13,565 |
Income tax expense | -1,277 | 392 | 633 | 737 | 757 | 761 | 721 | 819 | 485 | 3,058 | 3,034 |
Net income | -2,130 | 2,486 | 2,844 | 2,521 | 2,708 | 2,552 | 2,599 | 2,730 | 5,721 | 10,589 | 10,531 |
Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | 5,313 | 10,577 | 12,371 |
Peoples Bank [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends from subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 8,350 | 5,504 | 5,504 |
Other income | ' | ' | ' | ' | ' | ' | ' | ' | 169 | 193 | 424 |
Total income | ' | ' | ' | ' | ' | ' | ' | ' | 8,519 | 5,697 | 5,928 |
Expense: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other expenses | ' | ' | ' | ' | ' | ' | ' | ' | 76 | 47 | 46 |
Total expenses | ' | ' | ' | ' | ' | ' | ' | ' | 76 | 47 | 46 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 8,443 | 5,650 | 5,882 |
Income tax expense | ' | ' | ' | ' | ' | ' | ' | ' | 33 | 59 | 154 |
Income before undistributed income of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | 8,410 | 5,591 | 5,728 |
Equity in undistributed net income (loss) of subsidiaries | ' | ' | ' | ' | ' | ' | ' | ' | -2,689 | 4,998 | 4,803 |
Net income | ' | ' | ' | ' | ' | ' | ' | ' | 5,721 | 10,589 | 10,531 |
Comprehensive Income | ' | ' | ' | ' | ' | ' | ' | ' | $5,313 | $10,577 | $12,371 |
Parent_Company_financial_state4
Parent Company financial statements - Condensed Statements of Cash Flows (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $5,721 | $10,589 | $10,531 |
Adjustments: | ' | ' | ' |
Decrease (increase) in other assets | 1,406 | 607 | 1,221 |
Increase (decrease) in other liabilities | 1,048 | 123 | -931 |
Stock based compensation | 25 | 40 | ' |
Deferred income tax expense | -1,143 | 353 | 217 |
Net cash provided by operating activities | 9,815 | 12,602 | 13,937 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sale of available-for-sale securities | 4,573 | 5,821 | 15,318 |
Purchase of available-for-sale securities | -15,262 | -46,297 | -28,312 |
Net cash provided by (used in) investing activities | -14,917 | 19,661 | 11,196 |
Cash flows from financing activities: | ' | ' | ' |
Cash dividends paid | -5,511 | -5,504 | -5,504 |
Net cash provided by (used in) financing activities | 8,568 | -18,899 | -4,872 |
Increase in cash | 3,466 | 13,364 | 20,261 |
Cash and cash equivalents at beginning of year | 47,844 | 34,480 | 14,219 |
Cash and cash equivalents at end of year | 51,310 | 47,844 | 34,480 |
Peoples Bank [Member] | ' | ' | ' |
Cash flows from operating activities: | ' | ' | ' |
Net income | 5,721 | 10,589 | 10,531 |
Adjustments: | ' | ' | ' |
Net realized losses (gains) on sales of securities | -103 | -136 | -459 |
Other than temporary security impairment | ' | ' | 78 |
Undistributed net income of subsidiaries | 2,689 | -5,038 | -4,803 |
Decrease (increase) in other assets | -1,733 | ' | 1 |
Increase (decrease) in other liabilities | 641 | -28 | 141 |
Stock based compensation | 25 | 40 | ' |
Deferred income tax expense | 1 | 36 | 10 |
Increase in due from subsidiaries | -1,611 | ' | ' |
Net cash provided by operating activities | 5,630 | 5,463 | 5,499 |
Cash flows from investing activities: | ' | ' | ' |
Proceeds from sale of available-for-sale securities | 253 | 145 | 467 |
Purchase of available-for-sale securities | ' | -103 | -300 |
Net cash provided by (used in) investing activities | 253 | 42 | 167 |
Cash flows from financing activities: | ' | ' | ' |
Cash dividends paid | -5,511 | -5,504 | -5,504 |
Net cash provided by (used in) financing activities | -5,511 | -5,504 | -5,504 |
Increase in cash | 372 | 1 | 162 |
Cash and cash equivalents at beginning of year | 2,785 | 2,784 | 2,622 |
Cash and cash equivalents at end of year | $3,157 | $2,785 | $2,784 |
Regulatory_matters_Additional_
Regulatory matters - Additional Information (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Capitalization [Line Items] | ' | ' |
Percentage of capital stock | 100.00% | ' |
Payment of dividends description | 'The Penseco merger agreement contemplates that, unless 80 percent of our Board of Directors determines otherwise, the Company will pay a quarterly cash dividend in an amount no less than $0.31 per share through 2018, provided that sufficient funds are legally available, and that the Company and Peoples Bank remain "well-capitalized" in accordance with applicable regulatory guidelines | ' |
Period of accumulated net earnings acquired as a result of merger related to dividend | '7 years | ' |
Loans outstanding | $0 | $0 |
Advances made | 0 | 0 |
Maximum [Member] | ' | ' |
Schedule of Capitalization [Line Items] | ' | ' |
Percentage of funds transfer to affiliate | 10.00% | ' |
Funds available for transfers | $25,373 | ' |
Minimum [Member] | ' | ' |
Schedule of Capitalization [Line Items] | ' | ' |
Percentage of net earnings to surplus funds | 10.00% | ' |
Quarterly cash dividend per share | $0.31 | ' |
Regulatory_matters_Schedule_of
Regulatory matters - Schedule of Bank's Capital Amounts and Ratios (Detail) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||
Consolidated [Member] | ' | ' |
Schedule of Capitalization [Line Items] | ' | ' |
Tier 1 capital to risk-weighted assets, Actual Amount | $163,092 | $102,906 |
Total capital to risk-weighted assets, Actual Amount | 171,160 | 109,978 |
Tier 1 capital to average assets, Actual Amount | 163,092 | 102,906 |
Tier 1 capital to risk-weighted assets, Actual Ratio | 13.59% | 16.80% |
Total capital to risk-weighted assets, Actual Ratio | 14.26% | 17.96% |
Tier 1 capital to average assets, Actual Ratio | 10.09% | 11.50% |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | 48,009 | 24,497 |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | 96,019 | 48,994 |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount | 64,664 | 35,799 |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Peoples Bank [Member] | ' | ' |
Schedule of Capitalization [Line Items] | ' | ' |
Tier 1 capital to risk-weighted assets, Actual Amount | 156,731 | 99,185 |
Total capital to risk-weighted assets, Actual Amount | 164,799 | 106,135 |
Tier 1 capital to average assets, Actual Amount | 156,731 | 99,185 |
Tier 1 capital to risk-weighted assets, Actual Ratio | 13.02% | 16.22% |
Total capital to risk-weighted assets, Actual Ratio | 13.69% | 17.35% |
Tier 1 capital to average assets, Actual Ratio | 9.72% | 11.14% |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | 48,161 | 24,467 |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Amount | 96,322 | 48,934 |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Amount | 64,469 | 35,621 |
Tier 1 capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Total capital to risk-weighted assets, Minimum For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Tier 1 capital to average assets, Minimum For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | 72,241 | 36,700 |
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | 120,402 | 61,167 |
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Amount | $80,586 | $44,526 |
Tier 1 capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.00% | 6.00% |
Total capital to risk-weighted assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 capital to average assets, Minimum to be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Summary_of_quarterly_financial2
Summary of quarterly financial information - Summary of Quarterly Financial Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Selected Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest income: | $11,050 | $8,693 | $8,737 | $8,890 | $9,171 | $9,272 | $9,480 | $9,668 | $37,370 | $37,591 | $39,707 |
Interest expense | 1,223 | 952 | 961 | 1,033 | 1,212 | 1,262 | 1,407 | 1,481 | 4,169 | 5,362 | 7,339 |
Net interest income | 9,827 | 7,741 | 7,776 | 7,857 | 7,959 | 8,010 | 8,073 | 8,187 | 33,201 | 32,229 | 32,368 |
Provision for loan losses | 1,036 | 525 | 500 | 300 | 147 | 471 | 114 | 192 | 2,361 | 924 | 2,381 |
Net interest income after provision for loan losses | 8,791 | 7,216 | 7,276 | 7,557 | 7,812 | 7,539 | 7,959 | 7,995 | 30,840 | 31,305 | 29,987 |
Noninterest income | 2,852 | 3,027 | 3,057 | 2,826 | 2,811 | 3,114 | 2,622 | 2,894 | 11,762 | 11,441 | 12,619 |
Noninterest expense | 15,050 | 7,365 | 6,856 | 7,125 | 7,158 | 7,340 | 7,261 | 7,340 | 36,396 | 29,099 | 29,041 |
Income (loss) before income taxes | -3,407 | 2,878 | 3,477 | 3,258 | 3,465 | 3,313 | 3,320 | 3,549 | 6,206 | 13,647 | 13,565 |
Provision for income tax expense (benefit) | -1,277 | 392 | 633 | 737 | 757 | 761 | 721 | 819 | 485 | 3,058 | 3,034 |
Net income | ($2,130) | $2,486 | $2,844 | $2,521 | $2,708 | $2,552 | $2,599 | $2,730 | $5,721 | $10,589 | $10,531 |
Per share data: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | ($0.39) | $0.56 | $0.64 | $0.56 | $0.61 | $0.57 | $0.58 | $0.61 | ' | ' | ' |
Cash dividends declared | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.31 | $0.30 | $0.31 | $0.31 | ' |
Average common shares outstanding | 5,515,199 | 4,473,846 | 4,467,261 | 4,467,261 | 4,467,261 | 4,467,261 | 4,467,261 | 4,467,261 | ' | ' | ' |
Comprehensive_Income_Component
Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Statement Of Income And Comprehensive Income [Abstract] | ' | ' |
Net unrealized gain on investment securities available-for-sale | $2,810 | $6,855 |
Related income taxes | -984 | -2,331 |
Net of income taxes | 1,826 | 4,524 |
Benefit plan adjustments | -3,883 | -7,525 |
Related income taxes | 1,359 | 2,711 |
Net of income taxes | -2,524 | -4,814 |
Accumulated other comprehensive loss | ($698) | ($290) |
Comprehensive_Income_Other_Com
Comprehensive Income - Other Comprehensive Income (Loss) and Related Tax Effects (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Unrealized gain (loss) on investment securities available-for-sale | ($3,882) | $1,223 | $4,873 |
Other-than-temporary impairment on investment securities | ' | ' | 78 |
Net change in benefit plans accrued expense | 3,642 | -924 | -1,497 |
Reclassification Out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' |
Net gain on the sale of investment securities available-for-sale | -163 | -317 | -666 |
Unrealized gain (loss) on investment securities available-for-sale | -3,882 | 1,223 | 4,873 |
Other-than-temporary impairment on investment securities | ' | ' | 78 |
Amortization of actuarial loss (gain) | 276 | 136 | 82 |
Actuarial (loss) gain | 3,366 | -1,060 | -1,579 |
Net change in benefit plans accrued expense | 3,642 | -924 | -1,497 |
Other comprehensive income (loss) gain before taxes | -403 | -18 | 2,788 |
Income taxes | -5 | -6 | 948 |
Other comprehensive income (loss) | ($408) | ($12) | $1,840 |