Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | Apr. 30, 2017 | |
Document And Entity Information | ||
Entity Registrant Name | PEOPLES FINANCIAL SERVICES CORP. | |
Trading Symbol | pfis | |
Entity Central Index Key | 1,056,943 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,396,163 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Cash and due from banks: | ||
Cash and due from banks | $ 31,511 | $ 39,496 |
Interest-bearing deposits in other banks | 304 | 445 |
Total cash and due from banks | 31,815 | 39,941 |
Investment securities: | ||
Available-for-sale | 264,644 | 259,410 |
Held-to-maturity: Fair value March 31, 2017, $10,359; December 31, 2016, $10,714 | 10,180 | 10,517 |
Total investment securities | 274,824 | 269,927 |
Loans, net | 1,559,867 | 1,532,965 |
Less: allowance for loan losses | 16,969 | 15,961 |
Net loans | 1,542,898 | 1,517,004 |
Loans held for sale | 444 | |
Premises and equipment, net | 34,967 | 33,260 |
Accrued interest receivable | 5,604 | 6,228 |
Goodwill | 63,370 | 63,370 |
Intangible assets, net | 3,944 | 4,211 |
Other assets | 65,640 | 65,501 |
Total assets | 2,023,506 | 1,999,442 |
Deposits: | ||
Noninterest-bearing | 358,538 | 353,686 |
Interest-bearing | 1,257,006 | 1,235,071 |
Total deposits | 1,615,544 | 1,588,757 |
Short-term borrowings | 77,475 | 82,700 |
Long-term debt | 57,615 | 58,134 |
Accrued interest payable | 457 | 462 |
Other liabilities | 13,096 | 12,771 |
Total liabilities | 1,764,187 | 1,742,824 |
Stockholders' equity: | ||
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,394,143 shares at March 31, 2017 and at December 31, 2016 | 14,792 | 14,788 |
Capital surplus | 134,884 | 134,871 |
Retained earnings | 113,621 | 111,114 |
Accumulated other comprehensive loss | (3,978) | (4,155) |
Total stockholders' equity | 259,319 | 256,618 |
Total liabilities and stockholders' equity | $ 2,023,506 | $ 1,999,442 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position | ||
Held-to-maturity, Fair value | $ 10,359 | $ 10,714 |
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 7,396,163 | 7,394,143 |
Common stock, shares outstanding | 7,396,163 | 7,394,143 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest and fees on loans: | ||
Taxable | $ 15,541 | $ 14,346 |
Tax-exempt | 726 | 751 |
Interest and dividends on investment securities: | ||
Taxable | 697 | 687 |
Tax-exempt | 794 | 875 |
Dividends | 12 | 10 |
Interest on interest-bearing deposits in other banks | 29 | 17 |
Total interest income | 17,799 | 16,686 |
Interest expense: | ||
Interest on deposits | 1,434 | 1,283 |
Interest on short-term borrowings | 174 | 77 |
Interest on long-term debt | 348 | 360 |
Total interest expense | 1,956 | 1,720 |
Net interest income | 15,843 | 14,966 |
Provision for loan losses | 1,200 | 1,200 |
Net interest income after provision for loan losses | 14,643 | 13,766 |
Noninterest income: | ||
Service charges, fees and commissions | 1,572 | 1,444 |
Merchant services income | 1,015 | 914 |
Commission and fees on fiduciary activities | 508 | 482 |
Wealth management income | 319 | 412 |
Mortgage banking income | 179 | 204 |
Life insurance investment income | 189 | 193 |
Net gain on sale of investment securities available-for-sale | 242 | |
Total noninterest income | 3,782 | 3,891 |
Noninterest expense: | ||
Salaries and employee benefits expense | 6,275 | 5,332 |
Net occupancy and equipment expense | 2,394 | 2,437 |
Merchant services expense | 730 | 632 |
Amortization of intangible assets | 268 | 305 |
Other expenses | 2,689 | 2,912 |
Total noninterest expense | 12,356 | 11,618 |
Income before income taxes | 6,069 | 6,039 |
Income tax expense | 1,269 | 1,157 |
Net income | 4,800 | 4,882 |
Other comprehensive income: | ||
Unrealized gain on investment securities available-for-sale | 273 | 995 |
Reclassification adjustment for net gain on sales included in net income | (242) | |
Other comprehensive loss | 273 | 753 |
Income tax related to other comprehensive loss | 96 | 264 |
Other comprehensive income, net of income taxes | 177 | 489 |
Comprehensive income | $ 4,977 | $ 5,371 |
Net income: | ||
Basic | $ 0.65 | $ 0.66 |
Diluted | $ 0.65 | $ 0.66 |
Average common shares outstanding: | ||
Basic | 7,394,143 | 7,403,510 |
Diluted | 7,394,143 | 7,403,510 |
Dividends declared | $ 0.31 | $ 0.31 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2015 | $ 14,821 | $ 135,371 | $ 100,701 | $ (2,125) | $ 248,768 |
Net income | 4,882 | 4,882 | |||
Other comprehensive income, net of income taxes | 489 | 489 | |||
Dividends declared | (2,295) | (2,295) | |||
Stock based compensation | 18 | 18 | |||
Shares retired | (22) | (395) | (417) | ||
Balance at Mar. 31, 2016 | 14,799 | 134,994 | 103,288 | (1,636) | 251,445 |
Balance at Dec. 31, 2016 | 14,788 | 134,871 | 111,114 | (4,155) | 256,618 |
Net income | 4,800 | 4,800 | |||
Other comprehensive income, net of income taxes | 177 | 177 | |||
Dividends declared | (2,293) | (2,293) | |||
Common stock grants awarded, net of unearned compensation of $81 | 4 | (4) | |||
Stock based compensation | 17 | 17 | |||
Balance at Mar. 31, 2017 | $ 14,792 | $ 134,884 | $ 113,621 | $ (3,978) | $ 259,319 |
Consolidated Statements of Cha6
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Statement of Stockholders' Equity | |
Dividends declared (in dollars per share) | $ / shares | $ 0.31 |
Share retired, shares | shares | 11,308 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 4,800 | $ 4,882 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment | 451 | 392 |
Amortization of deferred loan costs | 211 | 169 |
Amortization of intangibles | 268 | 305 |
Net accretion of purchase accounting adjustments on tangible assets | (275) | |
Amortization of loss on investment tax credits | 117 | 125 |
Provision for loan losses | 1,200 | 1,200 |
Net gain on sale of other real estate owned | (1) | (11) |
Loans originated for sale | (5,141) | (5,268) |
Proceeds from sale of loans originated for sale | 4,734 | 5,394 |
Net gain on sale of loans originated for sale | (37) | (204) |
Net amortization of investment securities | 759 | 1,041 |
Net gain on sale of investment securities available-for-sale | (242) | |
Life insurance investment income | (189) | (193) |
Stock based compensation | 17 | 18 |
Net change in: | ||
Accrued interest receivable | 624 | 341 |
Other assets | (580) | (583) |
Accrued interest payable | (5) | (54) |
Other liabilities | 308 | (404) |
Net cash provided by operating activities | 7,536 | 6,633 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities available-for-sale | 10,271 | |
Proceeds from repayments of investment securities: | ||
Available-for-sale | 9,285 | 10,453 |
Held-to-maturity | 331 | 418 |
Purchases of investment securities: | ||
Available-for-sale | (14,999) | |
Net redemption (purchase) of restricted equity securities | 270 | (798) |
Net increase in lending activities | (27,349) | (69,321) |
Investment in low income housing investment tax credits | (2,050) | |
Purchases of premises and equipment | (2,158) | (1,646) |
Purchase of investment in life insurance | (1,500) | |
Proceeds from sale of other real estate owned | 208 | 83 |
Net cash used in investing activities | (34,412) | (54,090) |
Cash flows from financing activities: | ||
Net increase in deposits | 26,787 | 19,798 |
Repayment of long-term debt | (519) | (573) |
Net (decrease) increase in short-term borrowings | (5,225) | 22,025 |
Retirement of common stock | (417) | |
Cash dividends paid | (2,293) | (2,295) |
Net cash provided by financing activities | 18,750 | 38,538 |
Net decrease in cash and cash equivalents | (8,126) | (8,919) |
Cash and cash equivalents at beginning of period | 39,941 | 32,917 |
Cash and cash equivalents at end of period | 31,815 | 23,998 |
Cash paid during the period for: | ||
Interest | 1,961 | 1,931 |
Noncash items: | ||
Transfers of loans to other real estate | $ 50 | $ 524 |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significan 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 subsidiary, Peoples Advisors, LLC (collectively, the “Company” or “Peoples”). The Company services its retail and commercial customers through twenty-six full-service community banking offices located within the Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP’) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the operating results or financial position of the Company. The operating results and financial position of the Company for the three months ended and as of March 31, 2017, are not necessarily indicative of the results of operations and financial position that may be expected in the future. 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. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the period ended December 31, 2016. Recent accounting standards: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016, the FASB issued ASU Nos. 2016-10, 2016-12 and 2016-20 that provide additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. ASU 2014-09 will become effective for the Company for the annual period beginning after December 15, 2017 and for interim periods within the annual period. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. The Company has not selected a transition method. The Company has completed an evaluation of its revenue-producing contracts and determined they are primarily agreements that are not within the scope of this standard. As a result, the Company does not expect the adoption of this standard to have a material impact to the Company’s reported revenues and interest income. The Company is continuing to evaluate the impact on other revenue and income sources. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, “Financial Instruments – Overall . ” The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of the adoption of this guidance on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”. From the lessee's perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessess. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company’s initial findings conclude that the new pronouncement will not have a significant impact on its consolidated financial statements as the current projected minimum lease payments under existing lease contracts subject to the new pronouncement are less than one percent of its current assets. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU will have a significant impact on the Company’s calculation and accounting for its Allowance for Loan Losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current U.S. GAAP in that current U.S. GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in the Update retain many of the disclosure requirements related to credit quality in current U.S. GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the Update requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignificant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. This ASU will be effective for the Company for interim and annual periods beginning in the first quarter of 2020. Earlier adoption is permitted beginning in the first quarter of 2019. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our financial condition or results of operations; however, it is anticipated that the allowance will increase upon adoption and that the increased allowance level will decrease regulatory capital and ratios.. In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) –Classification of Certain Cash Receipts and Cash Payments. This Update provides clarification regarding eight specific cash flow issues with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For the Company, the amendments in this Update are effective beginning in the first quarter 2018. The amendments in this Update should be applied using a retroactive transition method to each period presented. The Company anticipates there will be no adjustments to the Consolidated Statements of Cash Flows, as previously reported, as a result of the clarifications provided in the Update. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) to simplify the accounting for goodwill impairment. This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under current guidance. This Update will become effective for the Company’s annual and interim goodwill impairment tests beginning in the first quarter of 2020. |
Other comprehensive income (los
Other comprehensive income (loss) | 3 Months Ended |
Mar. 31, 2017 | |
Other comprehensive income (loss) | |
Other comprehensive income (loss) | 2. Other comprehensive income (loss): The components of other comprehensive 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 benefit plan adjustments. The components of accumulated other comprehensive loss included in stockholders’ equity at March 31, 2017 and December 31, 2016 is as follows: March 31, 2017 December 31, 2016 Net unrealized gain on investment securities available-for-sale $ 826 $ 553 Income tax 289 193 Net of income taxes 537 360 Benefit plan adjustments (6,946) (6,946) Income tax (2,431) (2,431) Net of income taxes (4,515) (4,515) Accumulated other comprehensive loss $ (3,978) $ (4,155) Other comprehensive income (loss) and related tax effects for the three months ended March 31, 2017 and 2016 is as follows: Three Months Ended March 31, 2017 2016 Unrealized gain on investment securities available-for-sale $ 273 $ 995 Net gain on the sale of investment securities available-for-sale(1) (242) Other comprehensive income gain before taxes 273 753 Income tax expense 96 264 Other comprehensive income $ 177 $ 489 (1) |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings per share | |
Earnings per share | 3. 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. There were no shares considered anti-dilutive for the three month periods ended March 31, 2017 and 2016. 2017 2016 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net Income $ 4,800 $ 4,800 $ 4,882 $ 4,882 Average common shares outstanding 7,394,143 7,394,143 7,403,510 7,403,510 Earnings per share $ 0.65 $ 0.65 $ 0.66 $ 0.66 |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2017 | |
Investment securities | |
Investment securities | 4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at March 31, 2017 and December 31, 2016 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,050 $ 1 $ 156 $ 19,895 U.S. Government-sponsored enterprises 83,677 72 1,277 82,472 State and municipals: Taxable 14,663 604 15,267 Tax-exempt 105,894 2,104 461 107,537 Mortgage-backed securities: U.S. Government agencies 19,321 47 36 19,332 U.S. Government-sponsored enterprises 20,213 46 118 20,141 Total $ 263,818 $ 2,874 $ 2,048 $ 264,644 Held-to-maturity: Tax-exempt state and municipals $ 6,861 $ 86 $ 83 $ 6,864 Mortgage-backed securities: U.S. Government agencies 64 64 U.S. Government-sponsored enterprises 3,255 176 3,431 Total $ 10,180 $ 262 $ 83 $ 10,359 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 7,570 $ 132 $ 7,438 U.S. Government-sponsored enterprises 82,314 $ 79 1,480 80,913 State and municipals: Taxable 14,698 566 39 15,225 Tax-exempt 110,931 2,309 640 112,600 Mortgage-backed securities: U.S. Government agencies 21,041 48 47 21,042 U.S. Government-sponsored enterprises 22,303 48 159 22,192 Total $ 258,857 $ 3,050 $ 2,497 $ 259,410 Held-to-maturity: Tax-exempt state and municipals $ 6,862 $ 72 $ 67 $ 6,867 Mortgage-backed securities: U.S. Government agencies 68 1 69 U.S. Government-sponsored enterprises 3,587 191 3,778 Total $ 10,517 $ 264 $ 67 $ 10,714 The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at March 31, 2017, is summarized as follows: Fair March 31, 2017 Value Within one year $ 39,613 After one but within five years 118,950 After five but within ten years 49,157 After ten years 17,451 225,171 Mortgage-backed securities 39,473 Total $ 264,644 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at March 31, 2017, is summarized as follows: Amortized Fair March 31, 2017 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,861 $ 6,864 6,861 6,864 Mortgage-backed securities 3,319 3,495 Total $ 10,180 $ 10,359 Securities with a carrying value of $142,335 and $144,750 at March 31, 2017 and December 31, 2016, respectively, were pledged to secure public deposits and certain other deposits 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 March 31, 2017 and December 31, 2016, 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 other-than-temporary impairment (“OTTI”) has not been recognized at March 31, 2017 and December 31, 2016, 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 Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 17,411 $ 156 $ 17,411 $ 156 U.S. Government-sponsored enterprises 62,591 1,277 62,591 1,277 State and municipals: Taxable Tax-exempt 51,467 544 51,467 544 Mortgage-backed securities: U.S. Government agencies 5,769 23 $ 1,337 $ 13 7,106 36 U.S. Government-sponsored enterprises 13,832 66 2,380 52 16,212 118 Total $ 151,070 $ 2,066 $ 3,717 $ 65 $ 154,787 $ 2,131 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Losses Value Losses Value Losses U.S. Treasury securities $ 7,438 $ 132 $ 7,438 $ 132 U.S. Government-sponsored enterprises 59,460 1,480 59,460 1,480 State and municipals: Taxable 1,035 39 1,035 39 Tax-exempt 55,166 707 $ 226 55,392 707 Mortgage-backed securities: U.S. Government agencies 5,917 27 1,496 $ 7,413 47 U.S. Government-sponsored enterprises 16,412 85 2,712 19,124 159 Total $ 145,428 $ 2,470 $ 4,434 $ 94 $ 149,862 $ 2,564 The Company had 150 investment securities, consisting of 93 tax-exempt state and municipal obligations, six U.S. Treasury securities, 23 U.S. Government-sponsored enterprise securities, and 28 mortgage-backed securities that were in unrealized loss positions at March 31, 2017. Of these securities, eight mortgage-backed securities were in a continuous unrealized loss position for twelve months or more. 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 March 31, 2017. There was no OTTI recognized for the three months ended March 31, 2017 and 2016. The Company had 163 investment securities, consisting of 107 tax-exempt state and municipal obligations, two taxable state and municipal obligation, two U.S. Treasury securities, 22 U.S. Government-sponsored enterprise securities and 30 mortgage-backed securities that were in unrealized loss positions at December 31, 2016. Of these securities, nine mortgage-backed securities and two tax-exempt state and municipal securities were in a continuous unrealized loss position for twelve months or more. |
Loans, net and allowance for lo
Loans, net and allowance for loan losses | 3 Months Ended |
Mar. 31, 2017 | |
Loans, net and allowance for loan losses | |
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 March 31, 2017 and December 31, 2016 are summarized as follows. Net deferred loan costs were $494 and $579 at March 31, 2017 and December 31, 2016. March 31, 2017 December 31, 2016 Commercial $ 431,164 $ 408,814 Real estate: Commercial 703,194 700,144 Residential 286,389 289,781 Consumer 139,120 134,226 Total $ 1,559,867 $ 1,532,965 The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2017 and 2016 are summarized as follows: Real estate March 31, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2017 $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ $ 15,961 Charge-offs (125) (15) (171) (311) Recoveries 7 33 22 57 119 Provisions 323 536 264 77 1,200 Ending balance $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 Real estate March 31, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2016 $ 3,042 $ 4,245 $ 4,082 $ 1,583 $ 23 $ 12,975 Charge-offs (3) (55) (65) (123) Recoveries 2 16 25 63 106 Provisions 281 410 252 65 192 1,200 Ending balance $ 3,322 $ 4,616 $ 4,359 $ 1,646 $ 215 $ 14,158 The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2017 and December 31, 2016 is summarized as follows: Real estate March 31, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 Ending balance: individually evaluated for impairment 404 513 484 23 1,424 Ending balance: collectively evaluated for impairment 3,725 5,778 4,494 1,548 15,545 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 431,164 $ 703,194 $ 286,389 $ 139,120 $ $ 1,559,867 Ending balance: individually evaluated for impairment 2,311 3,849 3,359 207 9,726 Ending balance: collectively evaluated for impairment 428,476 698,008 282,996 138,913 1,548,393 Ending balance: loans acquired with deteriorated credit quality $ 377 $ 1,337 $ 34 $ $ $ 1,748 Real estate December 31, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ $ 15,961 Ending balance: individually evaluated for impairment 225 1,197 520 1,942 Ending balance: collectively evaluated for impairment 3,574 4,650 4,187 1,608 14,019 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 408,814 $ 700,144 $ 289,781 $ 134,226 $ $ 1,532,965 Ending balance: individually evaluated for impairment 1,724 5,820 3,543 155 11,242 Ending balance: collectively evaluated for impairment 406,127 692,987 286,201 134,071 1,519,386 Ending balance: loans acquired with deteriorated credit quality $ 963 $ 1,337 $ 37 $ $ $ 2,337 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 loan 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 affected in the future. 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 March 31, 2017 and December 31, 2016: Special March 31, 2017 Pass Mention Substandard Doubtful Total Commercial $ 422,506 $ 4,698 $ 3,960 $ $ 431,164 Real estate: Commercial 680,231 10,409 12,554 703,194 Residential 279,384 205 6,800 286,389 Consumer 138,853 — 267 139,120 Total $ 1,520,974 $ 15,312 $ 23,581 $ $ 1,559,867 Special December 31, 2016 Pass Mention Substandard Doubtful Total Commercial $ 398,867 $ 6,222 $ 3,725 $ $ 408,814 Real estate: Commercial 674,914 10,392 14,838 700,144 Residential 282,737 233 6,811 289,781 Consumer 133,983 243 134,226 Total $ 1,490,501 $ 16,847 $ 25,617 $ $ 1,532,965 Information concerning nonaccrual loans by major loan classification at March 31, 2017 and December 31, 2016 is summarized as follows: March 31, 2017 December 31, 2016 Commercial $ 1,532 $ 934 Real estate: Commercial 4,701 7,016 Residential 2,821 3,003 Consumer 207 155 Total $ 9,261 $ 11,108 The major classifications of loans by past due status are summarized as follows: Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and March 31, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 440 $ 33 $ 1,532 $ 2,005 $ 429,159 $ 431,164 Real estate: Commercial 1,257 779 4,809 6,845 696,349 703,194 $ 108 Residential 2,766 904 2,945 6,615 279,774 286,389 124 Consumer 864 168 437 1,469 137,651 139,120 230 Total $ 5,327 $ 1,884 $ 9,723 $ 16,934 $ 1,542,933 $ 1,559,867 $ 462 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2016 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 249 $ 75 $ 934 $ 1,258 $ 407,556 $ 408,814 Real estate: Commercial 4,782 527 7,016 12,325 687,819 700,144 Residential 2,100 354 3,561 6,015 283,766 289,781 $ 558 Consumer 962 259 441 1,662 132,564 134,226 286 Total $ 8,093 $ 1,215 $ 11,952 $ 21,260 $ 1,511,705 $ 1,532,965 $ 844 The following tables summarize information concerning impaired loans as of and for the three months ended March 31, 2017 and March 31, 2016, and as of and for the year ended, December 31, 2016 by major loan classification: For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2017 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 765 $ 1,386 $ 1,585 $ 4 Real estate: Commercial 3,715 4,368 3,039 4 Residential 2,349 2,533 2,277 4 Consumer 184 184 170 Total 7,013 8,471 7,071 12 With an allowance recorded: Commercial 1,923 1,923 $ 404 1,103 13 Real estate: Commercial 1,471 1,471 513 3,132 6 Residential 1,044 1,044 484 1,210 4 Consumer 23 23 23 12 Total 4,461 4,461 1,424 5,457 23 Commercial 2,688 3,309 404 2,688 17 Real estate: Commercial 5,186 5,839 513 6,171 10 Residential 3,393 3,577 484 3,487 8 Consumer 207 207 23 182 Total $ 11,474 $ 12,932 $ 1,424 $ 12,528 $ 35 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2016 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,404 $ 3,213 $ 1,461 $ 48 Real estate: Commercial 2,364 3,018 4,300 71 Residential 2,205 2,388 2,133 35 Consumer 155 155 147 Total 7,128 8,774 8,041 154 With an allowance recorded: Commercial 283 283 $ 225 859 Real estate: Commercial 4,793 4,793 1,197 2,366 2 Residential 1,375 1,376 520 1,185 7 Consumer 50 Total 6,451 6,452 1,942 4,460 9 Commercial 2,687 3,496 225 2,320 48 Real estate: Commercial 7,157 7,811 1,197 6,666 73 Residential 3,580 3,764 520 3,318 42 Consumer 155 155 197 Total $ 13,579 $ 15,226 $ 1,942 $ 12,501 $ 163 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2016 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,173 $ 2,383 $ 1,263 $ Real estate: Commercial 3,162 3,832 2,947 Residential 2,216 2,399 2,632 Consumer 89 89 60 Total 6,640 8,703 6,902 50 With an allowance recorded: Commercial 1,141 1,141 $ 1,040 968 Real estate: Commercial 3,028 3,028 541 2,836 Residential 992 992 533 1,455 2 Consumer 89 89 89 103 Total 5,250 5,250 2,203 5,362 2 Commercial 2,314 3,524 1,040 2,231 17 Real estate: Commercial 6,190 6,860 541 5,783 32 Residential 3,208 3,391 533 4,087 3 Consumer 178 178 89 163 Total $ 11,890 $ 13,953 $ 2,203 $ 12,264 $ 52 Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $2,226 at March 31, 2017, $1,909 at December 31, 2016 and $2,834 at March 31, 2016. 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 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. There was one loan modified as a troubled debt restructuring for the three months ended March 31, 2017, in the amount of $345. There was one loan modified as a troubled debt restructuring for the three months ended March 31, 2016, in the amount of $75. During the three months ended March 31, 2017, there were no payment defaults on restructured loans; there were two payment defaults on restructured residential real estate loans during the three months ended March 31, 2016 totaling $208. |
Other assets
Other assets | 3 Months Ended |
Mar. 31, 2017 | |
Other assets. | |
Other assets | 6. Other assets: The components of other assets at March 31, 2017, and December 31, 2016 are summarized as follows: March 31, 2017 December 31, 2016 Other real estate owned $ 236 $ 393 Investment in residential housing program 8,194 8,312 Mortgage servicing rights 698 698 Bank owned life insurance 33,261 33,073 Restricted equity securities 6,781 7,051 Other assets 16,470 15,974 Total $ 65,640 $ 65,501 |
Fair value estimates
Fair value estimates | 3 Months Ended |
Mar. 31, 2017 | |
Fair value estimates | |
Fair value estimates | 7. Fair value estimates: 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. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value estimate. The following methods and assumptions were used by the Company to calculate 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 U.S. Treasury securities and 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 re-price frequently and with no significant credit risk, fair values are based on carrying values. The fair values of other non-impaired 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. Loans acquired in connection with business combinations are 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 2013 Penseco 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 March 31, 2017 and December 31, 2016. Assets and liabilities measured at fair value on a recurring basis at March 31, 2017 and December 31, 2016 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 19,895 $ 19,895 $ U.S. Government-sponsored enterprises 82,472 $ 82,472 State and Municipals: Taxable 15,267 15,267 Tax-exempt 107,537 107,537 Mortgage-backed securities: U.S. Government agencies 19,332 19,332 U.S. Government-sponsored enterprises 20,141 20,141 Total $ 264,644 $ 19,895 $ 244,749 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 7,438 $ 7,438 $ U.S. Government-sponsored enterprises 80,913 $ 80,913 State and Municipals: Taxable 15,225 15,225 Tax-exempt 112,600 112,600 Mortgage-backed securities: U.S. Government agencies 21,042 21,042 U.S. Government-sponsored enterprises 22,192 22,192 Total $ 259,410 $ 7,438 $ 251,972 $ Assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2017 and December 31, 2016 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,474 $ 2,474 Other real estate owned $ 236 $ 236 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,193 $ 3,193 Other real estate owned $ 371 $ 371 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 Fair Value Range March 31, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,474 Appraisal of collateral Appraisal adjustments 3.7% to 97.0% (63.0)% Liquidation expenses 3.0% to 6.0% (4.9)% Other real estate owned $ 236 Appraisal of collateral Appraisal adjustments 20.0% to 40.0% (34.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2016 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,193 Appraisal of collateral Appraisal adjustments 18.0% to 97.0% (74.5)% Liquidation expenses 3.0% to 6.0% (5.3)% Other real estate owned $ 371 Appraisal of collateral Appraisal adjustments 25.0% to 54.6% (43.1)% 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 March 31, 2017 and December 31, 2016 and their placement within the fair value hierarchy are as follows: Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs March 31, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 31,815 $ 31,815 $ 31,815 Investment securities: Available-for-sale 264,644 264,644 19,895 $ 244,749 Held-to-maturity 10,180 10,359 10,359 Loans held for sale 444 453 453 Net loans 1,542,898 1,529,464 $ 1,529,464 Accrued interest receivable 5,604 5,604 5,604 Mortgage servicing rights 698 1,587 1,587 Restricted equity securities 6,781 6,781 6,781 Total $ 1,863,064 $ 1,850,707 Financial liabilities: Deposits $ 1,615,544 $ 1,614,470 $ 1,614,470 Short-term borrowings 77,475 77,475 77,475 Long-term debt 57,615 58,484 58,484 Accrued interest payable 457 457 457 Total $ 1,751,091 $ 1,750,886 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2016 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 39,941 $ 39,941 $ 39,941 Investment securities: Available-for-sale 259,410 259,410 $ 7,438 $ 251,972 Held-to-maturity 10,517 10,714 10,714 Loans held for sale Net loans 1,517,004 1,507,936 $ 1,507,936 Accrued interest receivable 6,228 6,228 6,228 Mortgage servicing rights 698 1,587 1,587 Restricted equity securities 7,051 7,051 7,051 Total $ 1,840,849 $ 1,832,867 Financial liabilities: Deposits $ 1,588,757 $ 1,587,701 $ 1,587,701 Short-term borrowings 82,700 82,700 82,700 Long-term debt 58,134 58,987 58,987 Accrued interest payable 462 462 462 Total $ 1,730,053 $ 1,729,850 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2017 | |
Employee benefit plans | |
Employee benefit plans | 8. Employee benefit plans: The Company provides an Employee Stock Ownership Plan (“ESOP”) and a Retirement Profit Sharing Plan. The Company also maintains a Supplemental Executive Retirement Plan (“SERP”), an Employees’ Pension Plan, which is currently frozen, and a Postretirement Plan Life Insurance plan which was curtailed in 2013. For the three months ended March 31, salaries and employee benefits expense includes approximately $296 in 2017 and $274 in 2016 relating to the employee benefit plans. Components of net periodic benefit cost are as follows: Pension Benefits Three Months Ended March 31, 2017 2016 Components of net periodic pension cost: Interest cost $ $ 166 Expected return on plan assets (223) Amortization of unrecognized net gain 52 Net periodic other benefit cost $ $ (5) The 2008 long-term incentive plan (“2008 Plan”) allows for eligible participants to be granted equity awards. The plan was a legacy plan of Penseco Financial Services Corporation. Under the 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. As of March 31, 2017, there were 120,116 shares of the Company’s common stock available for grant as awards pursuant to the 2008 Plan. If any outstanding awards are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2008 Plan authorizes grants of stock options, stock appreciation rights, dividend equivalents, performance awards, restricted stock and restricted stock units. During the three months ended March 31, 2017, the Company awarded 2,020 shares of non-performance-based restricted stock, bringing the total of nonvested restricted stock awards to 14,382 shares, and 7,071 performance-based restricted stock units under the 2008 Plan. During the three months ended March 31, 2016, the Company did not make any awards under the 2008 Plan. The non-performance restricted stock grants made during the three months ended March 31, 2017 vest equally over three years from the grant date. Grants of restricted stock made in prior periods cliff vest after five years. The performance-based restricted stock units vest three years after the grant date and include conditions based on the Company’s three-year cumulative diluted earnings per share and three-year average return on equity that determines the number of restricted stock units that may vest. The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. The Company periodically assesses the probability of achievement of the performance criteria and adjusts the amount of compensation expense accordingly. Compensation is recognized over the vesting period and adjusted for the probability of achievement of the performance criteria. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the Consolidated Statements of Income and Comprehensive Income. The Company did not recognize any compensation expense for the three months ended March 31, 2017 and 2016, respectively for awards granted under the 2008 Plan. As of March 31, 2017, the Company had $365 of unrecognized compensation expense associated with awards. That cost is expected to be recognized over a weighted average vesting period of 3 years. |
Summary of significant accoun16
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of significant accounting policies | |
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 subsidiary, Peoples Advisors, LLC (collectively, the “Company” or “Peoples”). The Company services its retail and commercial customers through twenty-six full-service community banking offices located within the Lackawanna, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. |
Basis of presentation | Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP’) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the operating results or financial position of the Company. The operating results and financial position of the Company for the three months ended and as of March 31, 2017, are not necessarily indicative of the results of operations and financial position that may be expected in the future. 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. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the period ended December 31, 2016. |
Recent accounting standards | Recent accounting standards: In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The updated standard is a new comprehensive revenue recognition model that requires revenue to be recognized in a manner that depicts the transfer of goods or services to a customer at an amount that reflects the consideration expected to be received in exchange for those goods or services. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 by one year. During 2016, the FASB issued ASU Nos. 2016-10, 2016-12 and 2016-20 that provide additional guidance related to the identification of performance obligations within a contract, assessing collectability, contract costs, and other technical corrections and improvements. ASU 2014-09 will become effective for the Company for the annual period beginning after December 15, 2017 and for interim periods within the annual period. ASU 2014-09 allows for either full retrospective or modified retrospective adoption. The Company has not selected a transition method. The Company has completed an evaluation of its revenue-producing contracts and determined they are primarily agreements that are not within the scope of this standard. As a result, the Company does not expect the adoption of this standard to have a material impact to the Company’s reported revenues and interest income. The Company is continuing to evaluate the impact on other revenue and income sources. In January 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-01, “Financial Instruments – Overall . ” The guidance in this ASU among other things, (1) requires equity investments with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, (2) simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment, (3) eliminates the requirement for public businesses entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet, (4) requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes, (5) requires an entity to present separately in other comprehensive income the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments, (6) requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements and (7) clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is in the process of evaluating the impact of the adoption of this guidance on the Company’s financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases”. From the lessee's perspective, the new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessess. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company’s initial findings conclude that the new pronouncement will not have a significant impact on its consolidated financial statements as the current projected minimum lease payments under existing lease contracts subject to the new pronouncement are less than one percent of its current assets. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU will have a significant impact on the Company’s calculation and accounting for its Allowance for Loan Losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current U.S. GAAP in that current U.S. GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in the Update retain many of the disclosure requirements related to credit quality in current U.S. GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the Update requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignificant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. This ASU will be effective for the Company for interim and annual periods beginning in the first quarter of 2020. Earlier adoption is permitted beginning in the first quarter of 2019. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. The Company cannot yet determine the magnitude of any such one-time cumulative adjustment or of the overall impact of the new standard on our financial condition or results of operations; however, it is anticipated that the allowance will increase upon adoption and that the increased allowance level will decrease regulatory capital and ratios.. In June 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) –Classification of Certain Cash Receipts and Cash Payments. This Update provides clarification regarding eight specific cash flow issues with the objective of reducing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. For the Company, the amendments in this Update are effective beginning in the first quarter 2018. The amendments in this Update should be applied using a retroactive transition method to each period presented. The Company anticipates there will be no adjustments to the Consolidated Statements of Cash Flows, as previously reported, as a result of the clarifications provided in the Update. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) to simplify the accounting for goodwill impairment. This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under current guidance. This Update will become effective for the Company’s annual and interim goodwill impairment tests beginning in the first quarter of 2020. |
Other comprehensive income (l17
Other comprehensive income (loss) (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other comprehensive income (loss) | |
Components of accumulated other comprehensive loss | March 31, 2017 December 31, 2016 Net unrealized gain on investment securities available-for-sale $ 826 $ 553 Income tax 289 193 Net of income taxes 537 360 Benefit plan adjustments (6,946) (6,946) Income tax (2,431) (2,431) Net of income taxes (4,515) (4,515) Accumulated other comprehensive loss $ (3,978) $ (4,155) |
Other comprehensive income (loss) and related tax effects | Three Months Ended March 31, 2017 2016 Unrealized gain on investment securities available-for-sale $ 273 $ 995 Net gain on the sale of investment securities available-for-sale(1) (242) Other comprehensive income gain before taxes 273 753 Income tax expense 96 264 Other comprehensive income $ 177 $ 489 (1) |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings per share | |
Schedule of earnings per share | 2017 2016 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net Income $ 4,800 $ 4,800 $ 4,882 $ 4,882 Average common shares outstanding 7,394,143 7,394,143 7,403,510 7,403,510 Earnings per share $ 0.65 $ 0.65 $ 0.66 $ 0.66 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Amortized cost and fair value of investment securities aggregated by investment category | Gross Gross Amortized Unrealized Unrealized Fair March 31, 2017 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 20,050 $ 1 $ 156 $ 19,895 U.S. Government-sponsored enterprises 83,677 72 1,277 82,472 State and municipals: Taxable 14,663 604 15,267 Tax-exempt 105,894 2,104 461 107,537 Mortgage-backed securities: U.S. Government agencies 19,321 47 36 19,332 U.S. Government-sponsored enterprises 20,213 46 118 20,141 Total $ 263,818 $ 2,874 $ 2,048 $ 264,644 Held-to-maturity: Tax-exempt state and municipals $ 6,861 $ 86 $ 83 $ 6,864 Mortgage-backed securities: U.S. Government agencies 64 64 U.S. Government-sponsored enterprises 3,255 176 3,431 Total $ 10,180 $ 262 $ 83 $ 10,359 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2016 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 7,570 $ 132 $ 7,438 U.S. Government-sponsored enterprises 82,314 $ 79 1,480 80,913 State and municipals: Taxable 14,698 566 39 15,225 Tax-exempt 110,931 2,309 640 112,600 Mortgage-backed securities: U.S. Government agencies 21,041 48 47 21,042 U.S. Government-sponsored enterprises 22,303 48 159 22,192 Total $ 258,857 $ 3,050 $ 2,497 $ 259,410 Held-to-maturity: Tax-exempt state and municipals $ 6,862 $ 72 $ 67 $ 6,867 Mortgage-backed securities: U.S. Government agencies 68 1 69 U.S. Government-sponsored enterprises 3,587 191 3,778 Total $ 10,517 $ 264 $ 67 $ 10,714 |
Fair value and unrealized losses of investment securities in continuous unrealized loss position | Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2017 Value Losses Value Losses Value Losses U.S. Treasury securities $ 17,411 $ 156 $ 17,411 $ 156 U.S. Government-sponsored enterprises 62,591 1,277 62,591 1,277 State and municipals: Taxable Tax-exempt 51,467 544 51,467 544 Mortgage-backed securities: U.S. Government agencies 5,769 23 $ 1,337 $ 13 7,106 36 U.S. Government-sponsored enterprises 13,832 66 2,380 52 16,212 118 Total $ 151,070 $ 2,066 $ 3,717 $ 65 $ 154,787 $ 2,131 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2016 Value Losses Value Losses Value Losses U.S. Treasury securities $ 7,438 $ 132 $ 7,438 $ 132 U.S. Government-sponsored enterprises 59,460 1,480 59,460 1,480 State and municipals: Taxable 1,035 39 1,035 39 Tax-exempt 55,166 707 $ 226 55,392 707 Mortgage-backed securities: U.S. Government agencies 5,917 27 1,496 $ 7,413 47 U.S. Government-sponsored enterprises 16,412 85 2,712 19,124 159 Total $ 145,428 $ 2,470 $ 4,434 $ 94 $ 149,862 $ 2,564 |
Available-for-Sale Securities | |
Maturity distribution of fair value | Fair March 31, 2017 Value Within one year $ 39,613 After one but within five years 118,950 After five but within ten years 49,157 After ten years 17,451 225,171 Mortgage-backed securities 39,473 Total $ 264,644 |
Held-to-maturity Securities | |
Maturity distribution of fair value | Amortized Fair March 31, 2017 Cost Value Within one year After one but within five years After five but within ten years After ten years $ 6,861 $ 6,864 6,861 6,864 Mortgage-backed securities 3,319 3,495 Total $ 10,180 $ 10,359 |
Loans, net and allowance for 20
Loans, net and allowance for loan losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Loans, net and allowance for loan losses | |
Major classifications of loans outstanding | March 31, 2017 December 31, 2016 Commercial $ 431,164 $ 408,814 Real estate: Commercial 703,194 700,144 Residential 286,389 289,781 Consumer 139,120 134,226 Total $ 1,559,867 $ 1,532,965 |
Changes in allowance for loan losses account by major classification of loans | The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2017 and 2016 are summarized as follows: Real estate March 31, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2017 $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ $ 15,961 Charge-offs (125) (15) (171) (311) Recoveries 7 33 22 57 119 Provisions 323 536 264 77 1,200 Ending balance $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 Real estate March 31, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Beginning Balance January 1, 2016 $ 3,042 $ 4,245 $ 4,082 $ 1,583 $ 23 $ 12,975 Charge-offs (3) (55) (65) (123) Recoveries 2 16 25 63 106 Provisions 281 410 252 65 192 1,200 Ending balance $ 3,322 $ 4,616 $ 4,359 $ 1,646 $ 215 $ 14,158 The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2017 and December 31, 2016 is summarized as follows: Real estate March 31, 2017 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 4,129 $ 6,291 $ 4,978 $ 1,571 $ $ 16,969 Ending balance: individually evaluated for impairment 404 513 484 23 1,424 Ending balance: collectively evaluated for impairment 3,725 5,778 4,494 1,548 15,545 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 431,164 $ 703,194 $ 286,389 $ 139,120 $ $ 1,559,867 Ending balance: individually evaluated for impairment 2,311 3,849 3,359 207 9,726 Ending balance: collectively evaluated for impairment 428,476 698,008 282,996 138,913 1,548,393 Ending balance: loans acquired with deteriorated credit quality $ 377 $ 1,337 $ 34 $ $ $ 1,748 Real estate December 31, 2016 Commercial Commercial Residential Consumer Unallocated Total Allowance for loan losses: Ending balance $ 3,799 $ 5,847 $ 4,707 $ 1,608 $ $ 15,961 Ending balance: individually evaluated for impairment 225 1,197 520 1,942 Ending balance: collectively evaluated for impairment 3,574 4,650 4,187 1,608 14,019 Ending balance: loans acquired with deteriorated credit quality $ $ $ $ $ $ Loans receivable: Ending balance $ 408,814 $ 700,144 $ 289,781 $ 134,226 $ $ 1,532,965 Ending balance: individually evaluated for impairment 1,724 5,820 3,543 155 11,242 Ending balance: collectively evaluated for impairment 406,127 692,987 286,201 134,071 1,519,386 Ending balance: loans acquired with deteriorated credit quality $ 963 $ 1,337 $ 37 $ $ $ 2,337 |
Major classification of loans portfolio summarized by credit quality | Special March 31, 2017 Pass Mention Substandard Doubtful Total Commercial $ 422,506 $ 4,698 $ 3,960 $ $ 431,164 Real estate: Commercial 680,231 10,409 12,554 703,194 Residential 279,384 205 6,800 286,389 Consumer 138,853 — 267 139,120 Total $ 1,520,974 $ 15,312 $ 23,581 $ $ 1,559,867 Special December 31, 2016 Pass Mention Substandard Doubtful Total Commercial $ 398,867 $ 6,222 $ 3,725 $ $ 408,814 Real estate: Commercial 674,914 10,392 14,838 700,144 Residential 282,737 233 6,811 289,781 Consumer 133,983 243 134,226 Total $ 1,490,501 $ 16,847 $ 25,617 $ $ 1,532,965 |
Information concerning nonaccrual loans by major loan classification | March 31, 2017 December 31, 2016 Commercial $ 1,532 $ 934 Real estate: Commercial 4,701 7,016 Residential 2,821 3,003 Consumer 207 155 Total $ 9,261 $ 11,108 |
Major classifications of loans by past due status | Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and March 31, 2017 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 440 $ 33 $ 1,532 $ 2,005 $ 429,159 $ 431,164 Real estate: Commercial 1,257 779 4,809 6,845 696,349 703,194 $ 108 Residential 2,766 904 2,945 6,615 279,774 286,389 124 Consumer 864 168 437 1,469 137,651 139,120 230 Total $ 5,327 $ 1,884 $ 9,723 $ 16,934 $ 1,542,933 $ 1,559,867 $ 462 Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2016 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 249 $ 75 $ 934 $ 1,258 $ 407,556 $ 408,814 Real estate: Commercial 4,782 527 7,016 12,325 687,819 700,144 Residential 2,100 354 3,561 6,015 283,766 289,781 $ 558 Consumer 962 259 441 1,662 132,564 134,226 286 Total $ 8,093 $ 1,215 $ 11,952 $ 21,260 $ 1,511,705 $ 1,532,965 $ 844 |
Summarized information concerning impaired loans | For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2017 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 765 $ 1,386 $ 1,585 $ 4 Real estate: Commercial 3,715 4,368 3,039 4 Residential 2,349 2,533 2,277 4 Consumer 184 184 170 Total 7,013 8,471 7,071 12 With an allowance recorded: Commercial 1,923 1,923 $ 404 1,103 13 Real estate: Commercial 1,471 1,471 513 3,132 6 Residential 1,044 1,044 484 1,210 4 Consumer 23 23 23 12 Total 4,461 4,461 1,424 5,457 23 Commercial 2,688 3,309 404 2,688 17 Real estate: Commercial 5,186 5,839 513 6,171 10 Residential 3,393 3,577 484 3,487 8 Consumer 207 207 23 182 Total $ 11,474 $ 12,932 $ 1,424 $ 12,528 $ 35 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2016 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,404 $ 3,213 $ 1,461 $ 48 Real estate: Commercial 2,364 3,018 4,300 71 Residential 2,205 2,388 2,133 35 Consumer 155 155 147 Total 7,128 8,774 8,041 154 With an allowance recorded: Commercial 283 283 $ 225 859 Real estate: Commercial 4,793 4,793 1,197 2,366 2 Residential 1,375 1,376 520 1,185 7 Consumer 50 Total 6,451 6,452 1,942 4,460 9 Commercial 2,687 3,496 225 2,320 48 Real estate: Commercial 7,157 7,811 1,197 6,666 73 Residential 3,580 3,764 520 3,318 42 Consumer 155 155 197 Total $ 13,579 $ 15,226 $ 1,942 $ 12,501 $ 163 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2016 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 1,173 $ 2,383 $ 1,263 $ Real estate: Commercial 3,162 3,832 2,947 Residential 2,216 2,399 2,632 Consumer 89 89 60 Total 6,640 8,703 6,902 50 With an allowance recorded: Commercial 1,141 1,141 $ 1,040 968 Real estate: Commercial 3,028 3,028 541 2,836 Residential 992 992 533 1,455 2 Consumer 89 89 89 103 Total 5,250 5,250 2,203 5,362 2 Commercial 2,314 3,524 1,040 2,231 17 Real estate: Commercial 6,190 6,860 541 5,783 32 Residential 3,208 3,391 533 4,087 3 Consumer 178 178 89 163 Total $ 11,890 $ 13,953 $ 2,203 $ 12,264 $ 52 |
Other assets (Tables)
Other assets (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Other assets. | |
Components of other assets | March 31, 2017 December 31, 2016 Other real estate owned $ 236 $ 393 Investment in residential housing program 8,194 8,312 Mortgage servicing rights 698 698 Bank owned life insurance 33,261 33,073 Restricted equity securities 6,781 7,051 Other assets 16,470 15,974 Total $ 65,640 $ 65,501 |
Fair value estimates (Tables)
Fair value estimates (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair value estimates | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2017 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 19,895 $ 19,895 $ U.S. Government-sponsored enterprises 82,472 $ 82,472 State and Municipals: Taxable 15,267 15,267 Tax-exempt 107,537 107,537 Mortgage-backed securities: U.S. Government agencies 19,332 19,332 U.S. Government-sponsored enterprises 20,141 20,141 Total $ 264,644 $ 19,895 $ 244,749 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 7,438 $ 7,438 $ U.S. Government-sponsored enterprises 80,913 $ 80,913 State and Municipals: Taxable 15,225 15,225 Tax-exempt 112,600 112,600 Mortgage-backed securities: U.S. Government agencies 21,042 21,042 U.S. Government-sponsored enterprises 22,192 22,192 Total $ 259,410 $ 7,438 $ 251,972 $ |
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2017 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,474 $ 2,474 Other real estate owned $ 236 $ 236 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2016 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 3,193 $ 3,193 Other real estate owned $ 371 $ 371 |
Additional quantitative information about assets measured at fair value on a nonrecurring basis | Quantitative Information about Level 3 Fair Value Measurements Fair Value Range March 31, 2017 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,474 Appraisal of collateral Appraisal adjustments 3.7% to 97.0% (63.0)% Liquidation expenses 3.0% to 6.0% (4.9)% Other real estate owned $ 236 Appraisal of collateral Appraisal adjustments 20.0% to 40.0% (34.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2016 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 3,193 Appraisal of collateral Appraisal adjustments 18.0% to 97.0% (74.5)% Liquidation expenses 3.0% to 6.0% (5.3)% Other real estate owned $ 371 Appraisal of collateral Appraisal adjustments 25.0% to 54.6% (43.1)% Liquidation expenses 3.0% to 6.0% (5.0)% |
Carrying and fair values of financial instruments | Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs March 31, 2017 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 31,815 $ 31,815 $ 31,815 Investment securities: Available-for-sale 264,644 264,644 19,895 $ 244,749 Held-to-maturity 10,180 10,359 10,359 Loans held for sale 444 453 453 Net loans 1,542,898 1,529,464 $ 1,529,464 Accrued interest receivable 5,604 5,604 5,604 Mortgage servicing rights 698 1,587 1,587 Restricted equity securities 6,781 6,781 6,781 Total $ 1,863,064 $ 1,850,707 Financial liabilities: Deposits $ 1,615,544 $ 1,614,470 $ 1,614,470 Short-term borrowings 77,475 77,475 77,475 Long-term debt 57,615 58,484 58,484 Accrued interest payable 457 457 457 Total $ 1,751,091 $ 1,750,886 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2016 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 39,941 $ 39,941 $ 39,941 Investment securities: Available-for-sale 259,410 259,410 $ 7,438 $ 251,972 Held-to-maturity 10,517 10,714 10,714 Loans held for sale Net loans 1,517,004 1,507,936 $ 1,507,936 Accrued interest receivable 6,228 6,228 6,228 Mortgage servicing rights 698 1,587 1,587 Restricted equity securities 7,051 7,051 7,051 Total $ 1,840,849 $ 1,832,867 Financial liabilities: Deposits $ 1,588,757 $ 1,587,701 $ 1,587,701 Short-term borrowings 82,700 82,700 82,700 Long-term debt 58,134 58,987 58,987 Accrued interest payable 462 462 462 Total $ 1,730,053 $ 1,729,850 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Employee benefit plans | |
Components of net periodic benefit cost | Pension Benefits Three Months Ended March 31, 2017 2016 Components of net periodic pension cost: Interest cost $ $ 166 Expected return on plan assets (223) Amortization of unrecognized net gain 52 Net periodic other benefit cost $ $ (5) |
Summary of significant accoun24
Summary of significant accounting policies - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2017Office | |
Summary of significant accounting policies | |
Number of full-service community banking offices | 26 |
Other comprehensive income (l25
Other comprehensive income (loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Other comprehensive income (loss) | ||
Net unrealized gain on investment securities available-for-sale | $ 826 | $ 553 |
Income tax | 289 | 193 |
Net of income taxes | 537 | 360 |
Benefit plan adjustments | (6,946) | (6,946) |
Income tax expense (benefit) | (2,431) | (2,431) |
Net of income taxes | (4,515) | (4,515) |
Accumulated other comprehensive loss | $ (3,978) | $ (4,155) |
Other comprehensive income (l26
Other comprehensive income (loss) - Other Comprehensive Income (Loss) and Related Tax Effects (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Other comprehensive income (loss) | ||
Unrealized gain (loss) on investment securities available-for-sale | $ 273 | $ 995 |
Net gain on the sale of investment securities available-for-sale(1) | (242) | |
Other comprehensive income gain (loss) before taxes | 273 | 753 |
Income tax | 96 | 264 |
Other comprehensive income, net of income taxes | $ 177 | $ 489 |
Earnings per share - Shares Con
Earnings per share - Shares Considered Anti-dilutive (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings per share | ||
Anti-dilutive shares | 0 | 0 |
Earnings per share - Schedule o
Earnings per share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings per share | ||
Net Income (Numerator), Basic | $ 4,800 | $ 4,882 |
Average common shares outstanding (Denominator), Basic | 7,394,143 | 7,403,510 |
Earnings per share, Basic | $ 0.65 | $ 0.66 |
Net Income (Numerator), Diluted | $ 4,800 | $ 4,882 |
Average common shares outstanding (Denominator), Diluted | 7,394,143 | 7,403,510 |
Earnings per share, Diluted | $ 0.65 | $ 0.66 |
Investment securities - Amortiz
Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | $ 263,818 | $ 258,857 |
Available-for-sale, Gross Unrealized Gains | 2,874 | 3,050 |
Available-for-sale, Gross Unrealized Losses | 2,048 | 2,497 |
Available-for-sale, Fair Value | 264,644 | 259,410 |
Held-to-maturity, Amortized Cost | 10,180 | 10,517 |
Held-to-maturity, Gross Unrealized Gains | 262 | 264 |
Held-to-maturity, Gross Unrealized Losses | 83 | 67 |
Held-to-maturity, Fair value | 10,359 | 10,714 |
Mortgage-backed Securities, U.S. Government agencies | ||
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | 19,321 | 21,041 |
Available-for-sale, Gross Unrealized Gains | 47 | 48 |
Available-for-sale, Gross Unrealized Losses | 36 | 47 |
Available-for-sale, Fair Value | 19,332 | 21,042 |
Held-to-maturity, Amortized Cost | 64 | 68 |
Held-to-maturity, Gross Unrealized Gains | 1 | |
Held-to-maturity, Fair value | 64 | 69 |
Mortgage-backed Securities, U.S. Government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | 20,213 | 22,303 |
Available-for-sale, Gross Unrealized Gains | 46 | 48 |
Available-for-sale, Gross Unrealized Losses | 118 | 159 |
Available-for-sale, Fair Value | 20,141 | 22,192 |
Held-to-maturity, Amortized Cost | 3,255 | 3,587 |
Held-to-maturity, Gross Unrealized Gains | 176 | 191 |
Held-to-maturity, Fair value | 3,431 | 3,778 |
U.S. Government-sponsored enterprises state and municipals | ||
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | 83,677 | 82,314 |
Available-for-sale, Gross Unrealized Gains | 72 | 79 |
Available-for-sale, Gross Unrealized Losses | 1,277 | 1,480 |
Available-for-sale, Fair Value | 82,472 | 80,913 |
U.S. Treasury securities | ||
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | 20,050 | 7,570 |
Available-for-sale, Gross Unrealized Gains | 1 | |
Available-for-sale, Gross Unrealized Losses | 156 | 132 |
Available-for-sale, Fair Value | 19,895 | 7,438 |
State and Municipals, Taxable | ||
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | 14,663 | 14,698 |
Available-for-sale, Gross Unrealized Gains | 604 | 566 |
Available-for-sale, Gross Unrealized Losses | 39 | |
Available-for-sale, Fair Value | 15,267 | 15,225 |
State and Municipals, Tax-exempt | ||
Available-for-sale and Held-to-maturity securities | ||
Available-for-sale, Amortized Cost | 105,894 | 110,931 |
Available-for-sale, Gross Unrealized Gains | 2,104 | 2,309 |
Available-for-sale, Gross Unrealized Losses | 461 | 640 |
Available-for-sale, Fair Value | 107,537 | 112,600 |
Held-to-maturity, Amortized Cost | 6,861 | 6,862 |
Held-to-maturity, Gross Unrealized Gains | 86 | 72 |
Held-to-maturity, Gross Unrealized Losses | 83 | 67 |
Held-to-maturity, Fair value | $ 6,864 | $ 6,867 |
Investment securities - Maturit
Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities | ||
Within one year | $ 39,613 | |
After one but within five years | 118,950 | |
After five but within ten years | 49,157 | |
After ten years | 17,451 | |
Available for sale securities | 225,171 | |
Mortgage-backed securities | 39,473 | |
Total | $ 264,644 | $ 259,410 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities | ||
Amortized Cost, After ten years, Held to maturity | $ 6,861 | |
Amortized Cost, Held to maturity | 6,861 | |
Amortized Cost, Mortgage-backed securities, Held to maturity | 3,319 | |
Held-to-maturity, Amortized Cost | 10,180 | $ 10,517 |
Fair Value, After ten years, Held to maturity | 6,864 | |
Fair Value, Held to maturity | 6,864 | |
Fair Value, Mortgage-backed securities, Held to maturity | 3,495 | |
Held to maturity, Fair Value | $ 10,359 | $ 10,714 |
Investment securities - Additio
Investment securities - Additional Information (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2017security | Mar. 31, 2017USD ($)security | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)security | |
Available-for-sale and Held-to-maturity securities | ||||
Carrying value of securities pledged | $ | $ 142,335 | $ 144,750 | ||
Number of investment securities held | 150 | 163 | ||
State and Municipals, Tax-exempt | ||||
Available-for-sale and Held-to-maturity securities | ||||
Number of investment securities held | 93 | 107 | ||
Number of securities in continuous unrealized loss positions 12 months or longer | 2 | |||
State and Municipals, Taxable | ||||
Available-for-sale and Held-to-maturity securities | ||||
Number of investment securities held | 2 | |||
Credit Concentration Risk | Total Stockholders' Equity | US Government Agency and Sponsored Enterprises | Minimum | ||||
Available-for-sale and Held-to-maturity securities | ||||
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer | 10.00% | 10.00% | ||
U.S. Government-sponsored enterprises state and municipals | ||||
Available-for-sale and Held-to-maturity securities | ||||
Number of investment securities held | 23 | 22 | ||
Number of securities in continuous unrealized loss positions 12 months or longer | 9 | |||
Other-than-temporary impairments recognized | $ | $ 0 | $ 0 | ||
Mortgage-backed Securities, U.S. Government-sponsored enterprises | ||||
Available-for-sale and Held-to-maturity securities | ||||
Number of investment securities held | 28 | 30 | ||
Number of securities in continuous unrealized loss positions 12 months or longer | 8 | |||
U.S. Treasury securities | ||||
Available-for-sale and Held-to-maturity securities | ||||
Number of investment securities held | 6 | 2 |
Investment securities - Fair Va
Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | $ 151,070 | $ 145,428 |
Less Than 12 Months, Unrealized Losses | 2,066 | 2,470 |
12 Months or More, Fair Value | 3,717 | 4,434 |
12 Months or More, Unrealized Losses | 65 | 94 |
Total, Fair Value | 154,787 | 149,862 |
Total, Unrealized Losses | 2,131 | 2,564 |
State and Municipals, Taxable | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 1,035 | |
Less Than 12 Months, Unrealized Losses | 39 | |
Total, Fair Value | 1,035 | |
Total, Unrealized Losses | 39 | |
State and Municipals, Tax-exempt | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 51,467 | 55,166 |
Less Than 12 Months, Unrealized Losses | 544 | 707 |
12 Months or More, Fair Value | 226 | |
Total, Fair Value | 51,467 | 55,392 |
Total, Unrealized Losses | 544 | 707 |
U.S. Treasury securities | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 17,411 | 7,438 |
Less Than 12 Months, Unrealized Losses | 156 | 132 |
Total, Fair Value | 17,411 | 7,438 |
Total, Unrealized Losses | 156 | 132 |
U.S. Government-sponsored enterprises state and municipals | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 62,591 | 59,460 |
Less Than 12 Months, Unrealized Losses | 1,277 | 1,480 |
Total, Fair Value | 62,591 | 59,460 |
Total, Unrealized Losses | 1,277 | 1,480 |
Mortgage-backed Securities, U.S. Government agencies | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 5,769 | 5,917 |
Less Than 12 Months, Unrealized Losses | 23 | 27 |
12 Months or More, Fair Value | 1,337 | 1,496 |
12 Months or More, Unrealized Losses | 13 | 20 |
Total, Fair Value | 7,106 | 7,413 |
Total, Unrealized Losses | 36 | 47 |
Mortgage-backed Securities, U.S. Government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 13,832 | 16,412 |
Less Than 12 Months, Unrealized Losses | 66 | 85 |
12 Months or More, Fair Value | 2,380 | 2,712 |
12 Months or More, Unrealized Losses | 52 | 74 |
Total, Fair Value | 16,212 | 19,124 |
Total, Unrealized Losses | $ 118 | $ 159 |
Loans, net and allowance for 34
Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Loans, net and allowance for loan losses | ||
Net deferred loan costs | $ 494 | $ 579 |
Loans, net and allowance for 35
Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | $ 1,559,867 | $ 1,532,965 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 431,164 | 408,814 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 703,194 | 700,144 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 286,389 | 289,781 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | $ 139,120 | $ 134,226 |
Loans, net and allowance for 36
Loans, net and allowance for loan losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 15,961 | $ 12,975 | ||
Charge-offs | (311) | (123) | ||
Recoveries | 119 | 106 | ||
Provisions | 1,200 | 1,200 | ||
Ending balance | 16,969 | 14,158 | ||
Beginning Balance | 15,961 | 12,975 | ||
Ending balance: individually evaluated for impairment | $ 1,424 | $ 1,942 | ||
Charge-offs | (311) | (123) | ||
Ending balance: collectively evaluated for impairment | 15,545 | 14,019 | ||
Recoveries | 119 | 106 | ||
Ending balance: loans acquired with deteriorated credit quality | 15,961 | 12,975 | 16,969 | 15,961 |
Provisions | 1,200 | 1,200 | ||
Loans receivable: | ||||
Total Loans | 1,559,867 | 1,532,965 | ||
Ending balance: individually evaluated for impairment | 9,726 | 11,242 | ||
Ending balance: collectively evaluated for impairment | 1,548,393 | 1,519,386 | ||
Total Loans | 1,559,867 | 1,532,965 | ||
Ending balance | 16,969 | 14,158 | ||
Ending balance: individually evaluated for impairment | 9,726 | 11,242 | ||
Ending balance: collectively evaluated for impairment | 1,548,393 | 1,519,386 | ||
Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 1,748 | 2,337 | ||
Ending balance | 1,748 | 2,337 | ||
Commercial | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,799 | 3,042 | ||
Charge-offs | (3) | |||
Recoveries | 7 | 2 | ||
Provisions | 323 | 281 | ||
Ending balance | 4,129 | 3,322 | ||
Beginning Balance | 3,799 | 3,042 | ||
Ending balance: individually evaluated for impairment | 404 | 225 | ||
Charge-offs | (3) | |||
Ending balance: collectively evaluated for impairment | 3,725 | 3,574 | ||
Recoveries | 7 | 2 | ||
Ending balance: loans acquired with deteriorated credit quality | 3,799 | 3,042 | 4,129 | 3,799 |
Provisions | 323 | 281 | ||
Loans receivable: | ||||
Total Loans | 431,164 | 408,814 | ||
Ending balance: individually evaluated for impairment | 2,311 | 1,724 | ||
Ending balance: collectively evaluated for impairment | 428,476 | 406,127 | ||
Total Loans | 431,164 | 408,814 | ||
Ending balance | 4,129 | 3,322 | ||
Ending balance: individually evaluated for impairment | 2,311 | 1,724 | ||
Ending balance: collectively evaluated for impairment | 428,476 | 406,127 | ||
Commercial | Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 377 | 963 | ||
Ending balance | 377 | 963 | ||
Real estate Commercial | ||||
Allowance for loan losses: | ||||
Beginning Balance | 5,847 | 4,245 | ||
Charge-offs | (125) | (55) | ||
Recoveries | 33 | 16 | ||
Provisions | 536 | 410 | ||
Ending balance | 6,291 | 4,616 | ||
Beginning Balance | 5,847 | 4,245 | ||
Ending balance: individually evaluated for impairment | 513 | 1,197 | ||
Charge-offs | (125) | (55) | ||
Ending balance: collectively evaluated for impairment | 5,778 | 4,650 | ||
Recoveries | 33 | 16 | ||
Ending balance: loans acquired with deteriorated credit quality | 5,847 | 4,245 | 6,291 | 5,847 |
Provisions | 536 | 410 | ||
Loans receivable: | ||||
Total Loans | 703,194 | 700,144 | ||
Ending balance: individually evaluated for impairment | 3,849 | 5,820 | ||
Ending balance: collectively evaluated for impairment | 698,008 | 692,987 | ||
Total Loans | 703,194 | 700,144 | ||
Ending balance | 6,291 | 4,616 | ||
Ending balance: individually evaluated for impairment | 3,849 | 5,820 | ||
Ending balance: collectively evaluated for impairment | 698,008 | 692,987 | ||
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 1,337 | 1,337 | ||
Ending balance | 1,337 | 1,337 | ||
Real estate Residential | ||||
Allowance for loan losses: | ||||
Beginning Balance | 4,707 | 4,082 | ||
Charge-offs | (15) | |||
Recoveries | 22 | 25 | ||
Provisions | 264 | 252 | ||
Ending balance | 4,978 | 4,359 | ||
Beginning Balance | 4,707 | 4,082 | ||
Ending balance: individually evaluated for impairment | 484 | 520 | ||
Charge-offs | (15) | |||
Ending balance: collectively evaluated for impairment | 4,494 | 4,187 | ||
Recoveries | 22 | 25 | ||
Ending balance: loans acquired with deteriorated credit quality | 4,707 | 4,082 | 4,978 | 4,707 |
Provisions | 264 | 252 | ||
Loans receivable: | ||||
Total Loans | 286,389 | 289,781 | ||
Ending balance: individually evaluated for impairment | 3,359 | 3,543 | ||
Ending balance: collectively evaluated for impairment | 282,996 | 286,201 | ||
Total Loans | 286,389 | 289,781 | ||
Ending balance | 4,978 | 4,359 | ||
Ending balance: individually evaluated for impairment | 3,359 | 3,543 | ||
Ending balance: collectively evaluated for impairment | 282,996 | 286,201 | ||
Real estate Residential | Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 34 | 37 | ||
Ending balance | 34 | 37 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,608 | 1,583 | ||
Charge-offs | (171) | (65) | ||
Recoveries | 57 | 63 | ||
Provisions | 77 | 65 | ||
Ending balance | 1,571 | 1,646 | ||
Beginning Balance | 1,608 | 1,583 | ||
Ending balance: individually evaluated for impairment | 23 | |||
Charge-offs | (171) | (65) | ||
Ending balance: collectively evaluated for impairment | 1,548 | 1,608 | ||
Recoveries | 57 | 63 | ||
Ending balance: loans acquired with deteriorated credit quality | 1,608 | 1,583 | 1,571 | 1,608 |
Provisions | 77 | 65 | ||
Loans receivable: | ||||
Total Loans | 139,120 | 134,226 | ||
Ending balance: individually evaluated for impairment | 207 | 155 | ||
Ending balance: collectively evaluated for impairment | 138,913 | 134,071 | ||
Total Loans | 139,120 | 134,226 | ||
Ending balance | $ 1,571 | 1,646 | ||
Ending balance: individually evaluated for impairment | 207 | 155 | ||
Ending balance: collectively evaluated for impairment | $ 138,913 | $ 134,071 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Beginning Balance | 23 | |||
Provisions | 192 | |||
Ending balance | 215 | |||
Beginning Balance | 23 | |||
Ending balance: loans acquired with deteriorated credit quality | 23 | |||
Provisions | 192 | |||
Loans receivable: | ||||
Ending balance | $ 215 |
Loans, net and allowance for 37
Loans, net and allowance for loan losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for loan losses: | ||||
Ending balance | $ 16,969 | $ 15,961 | $ 14,158 | $ 12,975 |
Ending balance: individually evaluated for impairment | 1,424 | 1,942 | ||
Ending balance: collectively evaluated for impairment | 15,545 | 14,019 | ||
Loans receivable: | ||||
Ending balance | 1,559,867 | 1,532,965 | ||
Ending balance: individually evaluated for impairment | 9,726 | 11,242 | ||
Ending balance: collectively evaluated for impairment | 1,548,393 | 1,519,386 | ||
Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 1,748 | 2,337 | ||
Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 4,129 | 3,799 | 3,322 | 3,042 |
Ending balance: individually evaluated for impairment | 404 | 225 | ||
Ending balance: collectively evaluated for impairment | 3,725 | 3,574 | ||
Loans receivable: | ||||
Ending balance | 431,164 | 408,814 | ||
Ending balance: individually evaluated for impairment | 2,311 | 1,724 | ||
Ending balance: collectively evaluated for impairment | 428,476 | 406,127 | ||
Commercial | Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 377 | 963 | ||
Real estate Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 6,291 | 5,847 | 4,616 | 4,245 |
Ending balance: individually evaluated for impairment | 513 | 1,197 | ||
Ending balance: collectively evaluated for impairment | 5,778 | 4,650 | ||
Loans receivable: | ||||
Ending balance | 703,194 | 700,144 | ||
Ending balance: individually evaluated for impairment | 3,849 | 5,820 | ||
Ending balance: collectively evaluated for impairment | 698,008 | 692,987 | ||
Real estate Commercial | Loans Acquired with Deteriorated Credit Quality | ||||
Loans receivable: | ||||
Ending balance | 1,337 | 1,337 | ||
Real estate Residential | ||||
Loans receivable: | ||||
Ending balance | 286,389 | 289,781 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Ending balance | 1,571 | 1,608 | 1,646 | 1,583 |
Ending balance: individually evaluated for impairment | 23 | |||
Ending balance: collectively evaluated for impairment | 1,548 | 1,608 | ||
Loans receivable: | ||||
Ending balance | 139,120 | 134,226 | ||
Ending balance: individually evaluated for impairment | 207 | 155 | ||
Ending balance: collectively evaluated for impairment | $ 138,913 | $ 134,071 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Ending balance | $ 215 | $ 23 |
Loans, net and allowance for 38
Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | $ 1,559,867 | $ 1,532,965 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 431,164 | 408,814 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 703,194 | 700,144 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 286,389 | 289,781 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 139,120 | 134,226 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 1,520,974 | 1,490,501 |
Pass | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 422,506 | 398,867 |
Pass | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 680,231 | 674,914 |
Pass | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 279,384 | 282,737 |
Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 138,853 | 133,983 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 15,312 | 16,847 |
Special Mention | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 4,698 | 6,222 |
Special Mention | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 10,409 | 10,392 |
Special Mention | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 205 | 233 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 23,581 | 25,617 |
Substandard | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 3,960 | 3,725 |
Substandard | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 12,554 | 14,838 |
Substandard | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | 6,800 | 6,811 |
Substandard | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans, net | $ 267 | $ 243 |
Loans, net and allowance for 39
Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 9,261 | $ 11,108 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 1,532 | 934 |
Real estate Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 4,701 | 7,016 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 2,821 | 3,003 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 207 | $ 155 |
Loans, net and allowance for 40
Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 16,934 | $ 21,260 |
Current | 1,542,933 | 1,511,705 |
Total Loans | 1,559,867 | 1,532,965 |
Loans > 90 Days and Accruing | 462 | 844 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 5,327 | 8,093 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,884 | 1,215 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 9,723 | 11,952 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 2,005 | 1,258 |
Current | 429,159 | 407,556 |
Total Loans | 431,164 | 408,814 |
Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 440 | 249 |
Commercial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 33 | 75 |
Commercial | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,532 | 934 |
Real estate Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 6,845 | 12,325 |
Current | 696,349 | 687,819 |
Total Loans | 703,194 | 700,144 |
Loans > 90 Days and Accruing | 108 | |
Real estate Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,257 | 4,782 |
Real estate Commercial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 779 | 527 |
Real estate Commercial | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 4,809 | 7,016 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 6,615 | 6,015 |
Current | 279,774 | 283,766 |
Total Loans | 286,389 | 289,781 |
Loans > 90 Days and Accruing | 124 | 558 |
Real estate Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 2,766 | 2,100 |
Real estate Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 904 | 354 |
Real estate Residential | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 2,945 | 3,561 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,469 | 1,662 |
Current | 137,651 | 132,564 |
Total Loans | 139,120 | 134,226 |
Loans > 90 Days and Accruing | 230 | 286 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 864 | 962 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 168 | 259 |
Consumer | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 437 | $ 441 |
Loans, net and allowance for 41
Loans, net and allowance for loan losses - Summarize Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | $ 7,013 | $ 6,640 | $ 7,128 |
Unpaid Principal Balance, With no related allowance, Total | 8,471 | 8,703 | 8,774 |
Average Recorded Investment, With no related allowance, Total | 7,071 | 6,902 | 8,041 |
Interest Income Recognized, With no related allowance, Total | 12 | 50 | 154 |
Recorded Investment, With an allowance recorded, Total | 4,461 | 5,250 | 6,451 |
Unpaid Principal Balance, With an allowance recorded, Total | 4,461 | 5,250 | 6,452 |
Related Allowance, With an allowance recorded, Total | 1,424 | 2,203 | 1,942 |
Average Recorded Investment, With an allowance recorded, Total | 5,457 | 5,362 | 4,460 |
Interest Income Recognized, With an allowance recorded, Total | 23 | 2 | 9 |
Recorded Investment, Total | 11,474 | 11,890 | 13,579 |
Unpaid Principal Balance, Total | 12,932 | 13,953 | 15,226 |
Related Allowance, With an allowance recorded, Total | 1,424 | 2,203 | 1,942 |
Average Recorded Investment, Total | 12,528 | 12,264 | 12,501 |
Interest Income Recognized, Total | 35 | 52 | 163 |
Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 765 | 1,173 | 2,404 |
Unpaid Principal Balance, With no related allowance, Total | 1,386 | 2,383 | 3,213 |
Average Recorded Investment, With no related allowance, Total | 1,585 | 1,263 | 1,461 |
Interest Income Recognized, With no related allowance, Total | 4 | 17 | 48 |
Recorded Investment, With an allowance recorded, Total | 1,923 | 1,141 | 283 |
Unpaid Principal Balance, With an allowance recorded, Total | 1,923 | 1,141 | 283 |
Related Allowance, With an allowance recorded, Total | 404 | 1,040 | 225 |
Average Recorded Investment, With an allowance recorded, Total | 1,103 | 968 | 859 |
Interest Income Recognized, With an allowance recorded, Total | 13 | ||
Recorded Investment, Total | 2,688 | 2,314 | 2,687 |
Unpaid Principal Balance, Total | 3,309 | 3,524 | 3,496 |
Related Allowance, With an allowance recorded, Total | 404 | 1,040 | 225 |
Average Recorded Investment, Total | 2,688 | 2,231 | 2,320 |
Interest Income Recognized, Total | 17 | 17 | 48 |
Real estate Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 3,715 | 3,162 | 2,364 |
Unpaid Principal Balance, With no related allowance, Total | 4,368 | 3,832 | 3,018 |
Average Recorded Investment, With no related allowance, Total | 3,039 | 2,947 | 4,300 |
Interest Income Recognized, With no related allowance, Total | 4 | 32 | 71 |
Recorded Investment, With an allowance recorded, Total | 1,471 | 3,028 | 4,793 |
Unpaid Principal Balance, With an allowance recorded, Total | 1,471 | 3,028 | 4,793 |
Related Allowance, With an allowance recorded, Total | 513 | 541 | 1,197 |
Average Recorded Investment, With an allowance recorded, Total | 3,132 | 2,836 | 2,366 |
Interest Income Recognized, With an allowance recorded, Total | 6 | 2 | |
Recorded Investment, Total | 5,186 | 6,190 | 7,157 |
Unpaid Principal Balance, Total | 5,839 | 6,860 | 7,811 |
Related Allowance, With an allowance recorded, Total | 513 | 541 | 1,197 |
Average Recorded Investment, Total | 6,171 | 5,783 | 6,666 |
Interest Income Recognized, Total | 10 | 32 | 73 |
Real estate Residential | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 2,349 | 2,216 | 2,205 |
Unpaid Principal Balance, With no related allowance, Total | 2,533 | 2,399 | 2,388 |
Average Recorded Investment, With no related allowance, Total | 2,277 | 2,632 | 2,133 |
Interest Income Recognized, With no related allowance, Total | 4 | 1 | 35 |
Recorded Investment, With an allowance recorded, Total | 1,044 | 992 | 1,375 |
Unpaid Principal Balance, With an allowance recorded, Total | 1,044 | 992 | 1,376 |
Related Allowance, With an allowance recorded, Total | 484 | 533 | 520 |
Average Recorded Investment, With an allowance recorded, Total | 1,210 | 1,455 | 1,185 |
Interest Income Recognized, With an allowance recorded, Total | 4 | 2 | 7 |
Recorded Investment, Total | 3,393 | 3,208 | 3,580 |
Unpaid Principal Balance, Total | 3,577 | 3,391 | 3,764 |
Related Allowance, With an allowance recorded, Total | 484 | 533 | 520 |
Average Recorded Investment, Total | 3,487 | 4,087 | 3,318 |
Interest Income Recognized, Total | 8 | 3 | 42 |
Consumer | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 184 | 89 | 155 |
Unpaid Principal Balance, With no related allowance, Total | 184 | 89 | 155 |
Average Recorded Investment, With no related allowance, Total | 170 | 60 | 147 |
Recorded Investment, With an allowance recorded, Total | 23 | 89 | |
Unpaid Principal Balance, With an allowance recorded, Total | 23 | 89 | |
Related Allowance, With an allowance recorded, Total | 23 | 89 | |
Average Recorded Investment, With an allowance recorded, Total | 12 | 103 | 50 |
Recorded Investment, Total | 207 | 178 | 155 |
Unpaid Principal Balance, Total | 207 | 178 | 155 |
Related Allowance, With an allowance recorded, Total | 23 | 89 | |
Average Recorded Investment, Total | $ 182 | $ 163 | $ 197 |
Loans, net and allowance for 42
Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017USD ($)loan | Mar. 31, 2016USD ($)loan | Dec. 31, 2016USD ($) | |
Pre-Modification Outstanding Recorded Investment | $ 2,226 | $ 2,834 | $ 1,909 |
Loans modified as troubled debt restructuring | $ 345 | $ 75 | |
Number of loans modified as troubled debt restructuring | loan | 1 | 1 | |
Real estate Residential | |||
Loans modified as troubled debt restructuring | $ 208 | ||
Number of loans modified as troubled debt restructuring | loan | 0 | 2 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other assets. | ||
Other real estate owned | $ 236 | $ 393 |
Investment in residential housing program | 8,194 | 8,312 |
Mortgage servicing rights | 698 | 698 |
Bank owned life insurance | 33,261 | 33,073 |
Restricted equity securities | 6,781 | 7,051 |
Other assets | 16,470 | 15,974 |
Total | $ 65,640 | $ 65,501 |
Fair value of financial instrum
Fair value of financial instruments - Commitments Subject to Undue Credit Risk (Details) $ in Thousands | Mar. 31, 2017USD ($) |
Fair value estimates | |
Commitments subject to undue credit risk | $ 0 |
Fair value estimates - Schedule
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | $ 264,644 | $ 259,410 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 19,895 | 7,438 |
U.S. Government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 82,472 | 80,913 |
State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 15,267 | 15,225 |
State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 107,537 | 112,600 |
Mortgage-backed Securities, U.S. Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 19,332 | 21,042 |
Mortgage-backed Securities, U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 20,141 | 22,192 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 19,895 | 7,438 |
Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 19,895 | 7,438 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 244,749 | 251,972 |
Level 2 | U.S. Government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 82,472 | 80,913 |
Level 2 | State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 15,267 | 15,225 |
Level 2 | State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 107,537 | 112,600 |
Level 2 | Mortgage-backed Securities, U.S. Government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | 19,332 | 21,042 |
Level 2 | Mortgage-backed Securities, U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets measured at fair value | $ 20,141 | $ 22,192 |
Fair value estimates - Schedu46
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 2,474 | $ 3,193 |
Other real estate owned | 236 | 371 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 2,474 | 3,193 |
Other real estate owned | $ 236 | $ 371 |
Fair value estimates - Addition
Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Level 3 - Nonrecurring Basis - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Other Real Estate Owned | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 236 | $ 371 |
Range and weighted average of appraisal adjustments | 34.90% | 43.10% |
Range and weighted average of liquidation expenses | 5.00% | 5.00% |
Other Real Estate Owned | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 20.00% | 25.00% |
Range and weighted average of liquidation expenses | 3.00% | 3.00% |
Other Real Estate Owned | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 40.00% | 54.60% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Impaired Loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 2,474 | $ 3,193 |
Range and weighted average of appraisal adjustments | 63.00% | 74.50% |
Range and weighted average of liquidation expenses | 4.90% | 5.30% |
Impaired Loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 3.70% | 18.00% |
Range and weighted average of liquidation expenses | 3.00% | 3.00% |
Impaired Loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 97.00% | 97.00% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Fair value estimates - Carrying
Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Available-for-sale, Fair Value | $ 264,644 | $ 259,410 |
Held-to-maturity, Fair value | 10,359 | 10,714 |
Mortgage servicing rights | 698 | 698 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 31,815 | 39,941 |
Investment securities: | ||
Available-for-sale, Fair Value | 264,644 | 259,410 |
Held-to-maturity, Fair value | 10,180 | 10,517 |
Loans held for sale | 444 | |
Net loans | 1,542,898 | 1,517,004 |
Accrued interest receivable | 5,604 | 6,228 |
Mortgage servicing rights | 698 | 698 |
Restricted equity securities | 6,781 | 7,051 |
Assets, Fair Value Disclosure | 1,863,064 | 1,840,849 |
Financial liabilities: | ||
Deposits | 1,615,544 | 1,588,757 |
Short-term borrowings | 77,475 | 82,700 |
Long-term debt | 57,615 | 58,134 |
Accrued interest payable | 457 | 462 |
Liabilities, total | 1,751,091 | 1,730,053 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 31,815 | 39,941 |
Investment securities: | ||
Available-for-sale, Fair Value | 264,644 | 259,410 |
Held-to-maturity, Fair value | 10,359 | 10,714 |
Loans held for sale | 453 | |
Net loans | 1,529,464 | 1,507,936 |
Accrued interest receivable | 5,604 | 6,228 |
Mortgage servicing rights | 1,587 | 1,587 |
Restricted equity securities | 6,781 | 7,051 |
Assets, Fair Value Disclosure | 1,850,707 | 1,832,867 |
Financial liabilities: | ||
Deposits | 1,614,470 | 1,587,701 |
Short-term borrowings | 77,475 | 82,700 |
Long-term debt | 58,484 | 58,987 |
Accrued interest payable | 457 | 462 |
Liabilities, total | 1,750,886 | 1,729,850 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 31,815 | 39,941 |
Investment securities: | ||
Available-for-sale, Fair Value | 19,895 | 7,438 |
Level 2 | ||
Investment securities: | ||
Available-for-sale, Fair Value | 244,749 | 251,972 |
Held-to-maturity, Fair value | 10,359 | 10,714 |
Loans held for sale | 453 | |
Accrued interest receivable | 5,604 | 6,228 |
Mortgage servicing rights | 1,587 | 1,587 |
Restricted equity securities | 6,781 | 7,051 |
Financial liabilities: | ||
Deposits | 1,614,470 | 1,587,701 |
Short-term borrowings | 77,475 | 82,700 |
Long-term debt | 58,484 | 58,987 |
Accrued interest payable | 457 | 462 |
Level 3 | ||
Investment securities: | ||
Net loans | $ 1,529,464 | $ 1,507,936 |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - Pension Benefits $ in Thousands | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Net periodic pension cost: | |
Interest cost | $ 166 |
Expected return on plan assets | (223) |
Amortization of unrecognized net gain | 52 |
Net periodic pension cost | $ (5) |
Stock plans - Additional Inform
Stock plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares or units awarded | 2,020 | |
Unrecognized compensation expense | $ 81 | |
Employee Benefit Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Salaries and employee benefits expense | $ 296 | $ 274 |
2008 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Common stock available for grant as awards | 120,116 | |
Unrecognized compensation expense | $ 365 | |
Weighted average vesting period | 3 years | |
Non-Performance-based restricted stock | 2008 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares or units awarded | 2,020 | |
Shares or units vesting period | 3 years | |
Performance-based restricted stock units | 2008 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares or units awarded | 7,071 | |
Shares or units vesting period | 3 years | |
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units | 3 years | |
Average return on equity period used for conditions for vesting of performance-based restricted stock units | 3 years | |
Restricted Stock | 2008 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of nonvested restricted stock awards | 14,382 | |
Shares or units vesting period | 5 years |