Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Entity Registrant Name | PEOPLES FINANCIAL SERVICES CORP. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,343,240 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001056943 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Cash and due from banks: | ||
Cash and due from banks | $ 22,181 | $ 26,943 |
Interest-bearing deposits in other banks | 13,146 | 4,210 |
Total cash and due from banks | 35,327 | 31,153 |
Investment securities: | ||
Available-for-sale | 302,884 | 330,478 |
Equity investments carried at fair value | 299 | 423 |
Held-to-maturity: Fair value March 31, 2020, $7,687; December 31, 2019, $7,889 | 7,520 | 7,656 |
Total investment securities | 310,703 | 338,557 |
Loans | 2,023,155 | 1,938,240 |
Less: allowance for loan losses | 25,686 | 22,677 |
Net loans | 1,997,469 | 1,915,563 |
Loans held for sale | 270 | 986 |
Premises and equipment, net | 48,619 | 47,932 |
Accrued interest receivable | 7,283 | 6,981 |
Goodwill | 63,370 | 63,370 |
Intangible assets, net | 1,411 | 1,565 |
Other assets | 79,320 | 69,220 |
Total assets | 2,543,772 | 2,475,327 |
Deposits: | ||
Noninterest-bearing | 467,315 | 463,238 |
Interest-bearing | 1,542,680 | 1,508,251 |
Total deposits | 2,009,995 | 1,971,489 |
Short-term borrowings | 164,150 | 152,150 |
Long-term debt | 32,250 | 32,733 |
Accrued interest payable | 1,336 | 1,277 |
Other liabilities | 29,978 | 18,668 |
Total liabilities | 2,237,709 | 2,176,317 |
Stockholders’ equity: | ||
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,343,240 shares at March 31, 2020 and 7,388,480 shares at December 31, 2018 | 14,670 | 14,777 |
Capital surplus | 133,159 | 135,251 |
Retained earnings | 154,806 | 152,187 |
Accumulated other comprehensive income (loss) | 3,428 | (3,205) |
Total stockholders’ equity | 306,063 | 299,010 |
Total liabilities and stockholders’ equity | $ 2,543,772 | $ 2,475,327 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position | ||
Held-to-maturity, Fair value | $ 7,687 | $ 7,889 |
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 7,343,240 | 7,388,480 |
Common stock, shares outstanding | 7,343,240 | 7,388,480 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and fees on loans: | ||
Taxable | $ 20,917 | $ 20,103 |
Tax-exempt | 1,031 | 1,099 |
Interest and dividends on investment securities: | ||
Taxable | 1,548 | 1,010 |
Tax-exempt | 299 | 562 |
Dividends | 23 | 19 |
Interest on interest-bearing deposits in other banks | 24 | 8 |
Total interest income | 23,842 | 22,801 |
Interest expense: | ||
Interest on deposits | 3,503 | 3,411 |
Interest on short-term borrowings | 573 | 813 |
Interest on long-term debt | 205 | 280 |
Total interest expense | 4,281 | 4,504 |
Net interest income | 19,561 | 18,297 |
Provision for loan losses | 3,500 | 1,050 |
Net interest income after provision for loan losses | 16,061 | 17,247 |
Noninterest income: | ||
Mortgage banking income | 137 | 148 |
Bank owned life insurance income | 187 | 186 |
Interest rate swap revenue | 470 | 280 |
Net (losses) gains on equity investment securities | (123) | 1 |
Net gains on sale of investment securities available-for-sale | 267 | |
Total noninterest income | 3,550 | 3,416 |
Noninterest expense: | ||
Salaries and employee benefits expense | 7,856 | 7,595 |
Net occupancy and equipment expense | 3,079 | 2,961 |
Amortization of intangible assets | 154 | 192 |
Professional fees and outside services | 365 | 331 |
FDIC insurance and assessments | 74 | 259 |
Donations | 338 | 332 |
Other expenses | 1,785 | 1,820 |
Total noninterest expense | 13,651 | 13,490 |
Income before income taxes | 5,960 | 7,173 |
Income tax expense | 679 | 761 |
Net income | 5,281 | 6,412 |
Other comprehensive income: | ||
Unrealized gain on investment securities available-for-sale | 7,629 | 2,439 |
Reclassification adjustment for net gain on sales included in net income | (267) | |
Change in derivative fair value | 1,036 | 63 |
Other comprehensive income | 8,398 | 2,502 |
Income tax expense | 1,765 | 526 |
Other comprehensive income, net of income taxes | 6,633 | 1,976 |
Comprehensive income | $ 11,914 | $ 8,388 |
Net income: | ||
Basic | $ 0.72 | $ 0.87 |
Diluted | $ 0.71 | $ 0.87 |
Average common shares outstanding: | ||
Basic | 7,379,438 | 7,399,054 |
Diluted | 7,406,291 | 7,408,536 |
Dividends declared | $ 0.36 | $ 0.34 |
Service charges, fees and commissions | ||
Noninterest income: | ||
Revenue from contracts with customers | $ 1,605 | $ 1,719 |
Merchant services income | ||
Noninterest income: | ||
Revenue from contracts with customers | 114 | 198 |
Commission and fees on fiduciary activities | ||
Noninterest income: | ||
Revenue from contracts with customers | 506 | 507 |
Wealth management income | ||
Noninterest income: | ||
Revenue from contracts with customers | $ 387 | $ 377 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2018 | $ 14,798 | $ 135,310 | $ 136,582 | $ (8,076) | $ 278,614 |
Net income | 6,412 | 6,412 | |||
Other comprehensive income, net of income taxes | 1,976 | 1,976 | |||
Dividends declared | (2,516) | (2,516) | |||
Stock based compensation | 83 | 83 | |||
Balance at Mar. 31, 2019 | 14,798 | 135,393 | 140,478 | (6,100) | 284,569 |
Balance at Dec. 31, 2019 | 14,777 | 135,251 | 152,187 | (3,205) | 299,010 |
Net income | 5,281 | 5,281 | |||
Other comprehensive income, net of income taxes | 6,633 | 6,633 | |||
Dividends declared | (2,662) | (2,662) | |||
Stock based compensation | 5 | 5 | |||
Share retirement | (107) | (2,097) | (2,204) | ||
Balance at Mar. 31, 2020 | $ 14,670 | $ 133,159 | $ 154,806 | $ 3,428 | $ 306,063 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Statement of Stockholders' Equity | |
Dividends declared (in dollars per share) | $ / shares | $ 0.36 |
Repurchase and retirement, shares | shares | 53,746 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 5,281 | $ 6,412 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment | 735 | 596 |
Amortization of right-of-use lease asset | 104 | 92 |
Amortization of deferred loan costs | 39 | (107) |
Amortization of intangibles | 154 | 192 |
Amortization of low income housing partnerships | 120 | 119 |
Provision for loan losses | 3,500 | 1,050 |
Net unrealized gain (loss) on equity investment securities | 123 | (1) |
Net gain (loss) on sale of other real estate owned | (4) | 8 |
Loans originated for sale | (2,297) | (1,501) |
Proceeds from sale of loans originated for sale | 3,023 | 2,278 |
Net gain on sale of loans originated for sale | (10) | (28) |
Net amortization of investment securities | 281 | 474 |
Net gain on sale of investment securities available-for-sale | (267) | |
Bank owned life insurance income | (187) | (186) |
Deferred income tax expense | 619 | 13 |
Stock based compensation | 5 | 83 |
Net change in: | ||
Accrued interest receivable | (302) | (96) |
Other assets | (10,038) | (3,836) |
Accrued interest payable | 59 | (317) |
Other liabilities | 10,014 | 2,545 |
Net cash provided by operating activities | 10,952 | 7,790 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities available-for-sale | 26,502 | |
Proceeds from repayments of investment securities: | ||
Available-for-sale | 17,522 | 14,287 |
Held-to-maturity | 135 | 196 |
Purchases of investment securities: | ||
Available-for-sale | (9,080) | (13,021) |
Net purchase of restricted equity securities | (482) | (964) |
Net increase in lending activities | (86,062) | (26,629) |
Purchases of premises and equipment | (627) | (1,062) |
Proceeds from the sale of premises and equipment | 23 | |
Proceeds from sale of other real estate owned | 157 | 84 |
Net cash used in investing activities | (51,935) | (27,086) |
Cash flows from financing activities: | ||
Net increase (decrease) in deposits | 38,506 | (6,792) |
Repayment of long-term debt | (483) | (460) |
Net increase in short-term borrowings | 12,000 | 22,500 |
Retirement of common stock | (2,204) | |
Cash dividends paid | (2,662) | (2,516) |
Net cash provided by financing activities | 45,157 | 12,732 |
Net increase (decrease) in cash and cash equivalents | 4,174 | (6,564) |
Cash and cash equivalents at beginning of period | 31,153 | 32,616 |
Cash and cash equivalents at end of period | 35,327 | 26,052 |
Cash paid during the period for: | ||
Interest | 4,222 | 4,821 |
Income taxes | 1,100 | |
Noncash items: | ||
Transfers of loans to other real estate | 626 | 85 |
Right-of-use assets | 899 | 5,513 |
Lease liabilities for operating leases | $ 899 | $ 5,513 |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2020 | |
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. Unless the context indicates otherwise, all references in this quarterly report to “Peoples”, “Company”, “Bank”, “we”, “us” and “our” refer to Peoples Financial Services Corp., its subsidiaries and its and their respective predecessors. The Company services its retail and commercial customers through twenty-nine full-service community banking offices located within the Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Additionally, we operate a limited purpose banking office (“LPO”) located in and serving Schuylkill County, Pennsylvania. 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 consolidated 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 consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the three months ended and as of March 31, 2020, are not necessarily indicative of the results of consolidated 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, and impairment of goodwill. 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, 2019. Significant events: COVID-19 In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China, and has since spread to the United States and throughout the world. On March 11, 2020, the World Health Organization declared COVID-19, a global pandemic. In the United States, the rapid spread of the COVID-19 virus invoked various federal and state authorities to make emergency declarations and issue executive orders to limit the spread of the disease. Measures included restrictions on travel, limitations on public gatherings, implementation of social distancing protocols, school closings, orders to shelter in place and mandates to close all non-essential businesses to the public. Concerns about the spread of the disease and its anticipated negative impact on economic activity, severely disrupted domestic financial markets prompting the Federal Reserve System’s Federal Open Market Committee (“FOMC”) to aggressively cut the target federal funds rate to a range of 0% to 0.25%, including a 50 basis point reduction in the target federal funds rate on March 3, 2020 and an additional 100 basis point reduction on March 15, 2020. In addition, the Federal Reserve rolled out various market support programs to ease the stress on financial markets. As the COVID-19 events unfolded throughout the first quarter of 2020, the Company implemented its pandemic plan and executed various strategies and protocols intended to protect its employees, maintain services for customers, assure the functional continuity of the Company’s operating systems, controls and processes, and mitigate financial risks posed by changing market conditions. The Company imposed business travel restrictions, implemented quarantine and work from home protocols and physically separated, to the extent possible, the critical operations site workforce that are unable to work remotely. To limit the risk of virus spread, the Company implemented drive-thru only and by appointment operating protocols for its bank branch network. The Company also maintained active communications with its primary regulatory agencies and critical vendors in an effort to assure that all mission-critical activities and functions would be performed in line with regulatory expectations and the Company’s service standards. The impact of the COVID-19 pandemic is fluid and continues to evolve, adversely affecting many of the Bank’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets, and has had an adverse effect on our business, financial condition and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and our customers, employees and vendors. Our business, financial condition and results of operations generally rely upon the ability of our borrowers to repay their loans, the value of collateral underlying our secured loans, and demand for loans and other products and services we offer, which are highly dependent on the business environment in our primary markets where we operate and in the United States as a whole. The full impact of COVID-19 is unknown and rapidly evolving. It has caused substantial disruption in U.S. economies, markets, and employment. The outbreak may have a significant adverse impact on certain industries the Company serves. During March, the Company reviewed its commercial loan and commercial real estate portfolios and determined approximately $1.2 billion or 73% is categorized as non-life sustaining and subject to shutdown. Based on management’s application of its allowance for loan losses methodology and changes to the economic qualitative factors relating to the adverse impact of the COVID-19 crisis on economic conditions and the increased inherent risk in the loan portfolio, first quarter 2020 results included $3.5 million in provision for loan and lease losses. Because of the significant uncertainties related to the ultimate duration of the COVID-19 pandemic and its potential effects on clients and prospects, and on the national and local economy as a whole, there can be no assurances as to how the crisis may ultimately affect the Company’s loan portfolio. With respect to the Company’s lending activities, the Company implemented a customer payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19 related challenges. On March 22, 2020, the federal bank regulatory agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.” This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that, in consultation with the FASB staff, the federal bank regulatory agencies concluded that short-term modifications (e.g. six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). Section 4013 of the CARES Act also addresses COVID-19 related modifications and specifies that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. Through May 6, 2020, the Company granted payment deferral requests for up to four months to 390 business loans and for up to six months on 451 consumer loans, representing $313.6 million of the Company’s loan balances. Loans in deferment status will continue to accrue interest during the deferment period unless otherwise classified as nonperforming. The Company has also participated as a lender in the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), Paycheck Protection Program, a $349 billion specialized low-interest loan program funded by the U.S. Treasury Department and administered by the U.S. Small Business Administration (“SBA”). The Paycheck Protection Program (“PPP”) provides borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related business operating costs. Between April 3 and April 17, 2020, the Company processed 836 applications providing over $177.9 million in loans through Phase I of the SBA PPP with an average loan amount of $213 thousand. Through May 6, 2020, the Company processed another 455 applications providing over $24.0 million in loans through Phase II of the PPP with an average loan amount of $53 thousand furthering Peoples’ commitment to support small businesses. Funding these loans will generate approximately $6.6 million of SBA processing fees. The Company intends to utilize the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) to replace liquidity used to fund PPP loans. The Company also has goodwill with a net carrying value of $63.4 million at March 31, 2020 and December 31, 2019. The Company completes a goodwill impairment analysis at least annually, or more often if events and circumstances indicate that there may be impairment. In connection with the emergence of COVID-19 as a global pandemic and the decline in our stock price during the 2020 first quarter, management performed a qualitative assessment to determine whether goodwill was impaired. Management assessed factors that could potentially indicate impairment, including: regional and national economic conditions, banking industry conditions and trends, historical financial performance, and other banking specific factors. After assessing the factors in totality, management determined that it was more likely than not that the fair value of the Company is higher than its book value as of March 31, 2020, and, therefore, goodwill is not considered impaired. In the event of a sustained decline in share price or further deterioration in the macroeconomic outlook, continued assessments of the Company's goodwill balance will likely be required in future periods with no assurance that the future impairment assessments or tests will not result in a charge to earnings. Recent accounting standards: 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 GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU 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. In November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. The Company qualifies as a smaller reporting company and therefore guidance is effective for the Company in 2023. 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. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The Company adopted this guidance effective January 1, 2020. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement, “Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements”. In accordance with the Concepts Statement, this ASU removes, modifies and adds select disclosure requirements under Topic 820 after consideration of costs and benefits. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance on January 1, 2020 did not have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)”, which provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU 2018-14 is effective for the Company on January 1, 2021 and early adoption is permitted. The amendments should be applied retrospectively however, the Company does not expect the guidance to have a material impact on its disclosures to the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” , which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company is currently evaluating the impact that adopting this new accounting standard will have on the consolidated financial statements. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss) | |
Other Comprehensive Income (Loss) | 2. Other comprehensive income (loss): The components of other comprehensive income (loss) and their related tax effects are reported in the consolidated statements of income and comprehensive income. The accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets relates to net unrealized gains and losses on investment securities available-for-sale, benefit plan adjustments and adjustments to derivative fair values. The components of accumulated other comprehensive income (loss) included in stockholders’ equity at March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 9,197 $ 1,835 Income tax 1,932 385 Net of income taxes 7,265 1,450 Benefit plan adjustments (6,579) (6,579) Income tax (1,382) (1,382) Net of income taxes (5,197) (5,197) Derivative adjustments 1,723 687 Income tax 363 144 Net of income taxes 1,360 543 Accumulated other comprehensive income (loss) $ 3,428 $ (3,205) |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2020 | |
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. The following table presents the calculation of both basic and diluted earnings per share of common stock for the three months ended March 31,2020 and 2019: 2020 2019 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net income $ 5,281 $ 5,281 $ 6,412 $ 6,412 Average common shares outstanding 7,379,438 7,406,291 7,399,054 7,408,536 Earnings per share $ 0.72 $ 0.71 $ 0.87 $ 0.87 |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2020 | |
Investment securities | |
Investment securities | 4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at March 31, 2020 and December 31, 2019 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 21,471 $ 650 $ 22,121 U.S. government-sponsored enterprises 83,028 1,562 84,590 State and municipals: Taxable 32,116 772 $ 328 32,560 Tax-exempt 38,392 1,596 8 39,980 Residential mortgage-backed securities: U.S. government agencies 7,125 178 3 7,300 U.S. government-sponsored enterprises 98,880 4,143 3 103,020 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,675 638 13,313 Total $ 293,687 $ 9,539 $ 342 $ 302,884 Held-to-maturity: Tax-exempt state and municipals $ 6,851 $ 153 $ 15 $ 6,989 Residential mortgage-backed securities: U.S. government agencies 28 28 U.S. government-sponsored enterprises 641 30 1 670 Total $ 7,520 $ 183 $ 16 $ 7,687 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,966 162 $ $ 24,128 U.S. government-sponsored enterprises 87,156 $ 181 227 87,110 State and municipals: Taxable 35,418 295 815 34,898 Tax-exempt 59,127 1,056 20 60,163 Residential mortgage-backed securities: U.S. government agencies 8,368 112 10 8,470 U.S. government-sponsored enterprises 101,914 1,011 77 102,848 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,694 171 4 12,861 Total $ 328,643 $ 2,988 $ 1,153 $ 330,478 Held-to-maturity: Tax-exempt state and municipals $ 6,852 $ 208 $ $ 7,060 Residential mortgage-backed securities: U.S. government agencies 31 31 U.S. government-sponsored enterprises 773 25 798 Total $ 7,656 $ 233 $ $ 7,889 Equity Securities Our equity securities portfolio consists of stock of two other financial institutions. At March 31, 2020 and December 31, 2019, we had $299 and $423 respectively, in equity securities recorded at fair value. At March 31, 2020, the fair value of our equity portfolio exceeded the cost basis by $22. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31 2020 (in thousands): For the Three Months Ended March 31, 2020 2019 Net (loss) gains recognized during the period on equity securities $ (123) $ 1 Less: Net gains (loss) recognized during the period on equity securities sold during the period Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (123) $ 1 Restricted Investment In Stock Restricted investment in stock includes FHLB with a carrying cost of $10,642 and $10,159 at March 31, 2020 and December 31, 2019, respectively, Atlantic Community Bankers Bank (“ACBB”) stock with a carrying cost of $42, and VISA Class B stock with a carrying cost of $0 at March 31, 2020 and December 31, 2019, are included in other assets in the consolidated balance sheets. FHLB and ACBB stock was issued as a requirement to facilitate participation in borrowing and other banking services. The investment in FHLB stock may fluctuate, as it is based on the member bank’s use of FHLB’s services. The increase in FHLB stock from December 31, 2019 is due to an increase in short term borrowings at FHLB. The Company owns 44,982 shares of Visa Class B stock, which was necessary to participate in Visa services in support of the Company’s credit card, debit card, and related payment programs (permissible activities under banking regulations) as a member institution. Following the resolution of Visa’s litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares using a conversion factor (1.6228 as of March 31, 2020), which is periodically adjusted to reflect VISA’s ongoing litigation costs. There is a very limited market for this stock, as only current owners of Class B shares are permitted to transact in Class B stock. Due to the lack of orderly trades and public information of such trades, Visa Class B stock has no readily determinable fair value. These restricted investments are carried at cost and evaluated for other-than-temporary impairment (“OTTI”) periodically. As of March 31, 2020, there was no OTTI associated with these investments. 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, 2020, is summarized as follows: Fair March 31, 2020 Value Within one year $ 37,800 After one but within five years 79,696 After five but within ten years 18,995 After ten years 39,313 175,804 Mortgage-backed and other amortizing securities 127,080 Total $ 302,884 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at March 31, 2020, is summarized as follows: Amortized Fair March 31, 2020 Cost Value After ten years $ 6,851 $ 6,989 6,851 6,989 Mortgage-backed securities 669 698 Total $ 7,520 $ 7,687 Securities with a carrying value of $133,308 and $157,047 at March 31, 2020 and December 31, 2019, 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, 2020 and December 31, 2019, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. government agencies and sponsored enterprises, that exceeded 10.0 percent of stockholders’ equity. The fair value and gross unrealized losses of investment securities with unrealized losses for which an OTTI has not been recognized at March 31, 2020 and December 31, 2019, 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, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 8,632 $ 328 $ 8,632 $ 328 Tax-exempt 3,149 23 3,149 23 Residential mortgage-backed securities: U.S. government agencies $ 1,133 $ 3 1,133 3 U.S. government-sponsored enterprises 22 1 747 3 769 4 Total $ 11,803 $ 352 $ 1,880 $ 6 $ 13,683 $ 358 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses U.S. government-sponsored enterprises $ 13,695 $ 149 $ 36,070 $ 78 $ 49,765 $ 227 State and municipals: Taxable 23,929 815 23,929 815 Tax-exempt 2,684 19 1,098 1 3,782 20 Residential mortgage-backed securities: U.S. government agencies 992 1 2,362 9 3,354 10 U.S. government-sponsored enterprises 36,939 51 3,751 30 40,690 81 Total $ 78,239 $ 1,035 $ 43,281 $ 118 $ 121,520 $ 1,153 Management, from a credit risk perspective, has taken action to identify and assess its COVID-19 related credit exposures based on asset class. No specific COVID-19 related credit impairment was identified within our investment securities portfolio, including our municipal securities, during the first quarter of 2020. The Company had 24 investment securities, consisting of 5 tax-exempt and 8 taxable state and municipal obligations and 11 mortgage-backed securities that were in unrealized loss positions at March 31, 2020. Of these securities, 10 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, 2020. There was no OTTI recognized for the three months ended March 31, 2020 and 2019. |
Loans, net and allowance for lo
Loans, net and allowance for loan losses | 3 Months Ended |
Mar. 31, 2020 | |
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, 2020 and December 31, 2019 are summarized as follows. Net deferred loan costs were $869 and $908 at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Commercial $ 537,949 $ 522,957 Real estate: Commercial 1,082,124 1,011,423 Residential 307,215 301,378 Consumer 95,867 102,482 Total $ 2,023,155 $ 1,938,240 The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2020 and 2019 are summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2020 $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (650) (54) (94) (798) Recoveries 267 10 30 307 Provisions 1,464 1,511 442 83 3,500 Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Real estate March 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2019 $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Charge-offs (77) (6) (159) (132) (374) Recoveries 8 4 38 50 Provisions 508 344 143 55 1,050 Ending balance $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 The Company's allowance for loan losses increased $3.0 million or 13.3% in the first quarter of 2020, due largely to the adjustment of qualitative factors in our allowance for loan losses methodology, which reflect current economic decline and expectation of increased credit losses due to COVID-19's adverse impact on economic and business operating conditions. The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2020 and December 31, 2019 is summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Ending balance: individually evaluated for impairment 764 270 192 1,226 Ending balance: collectively evaluated for impairment $ 7,205 $ 12,737 $ 3,432 $ 1,086 $ 24,460 Loans receivable: Ending balance $ 537,949 $ 1,082,124 $ 307,215 $ 95,867 $ 2,023,155 Ending balance: individually evaluated for impairment 5,662 3,526 1,835 201 11,224 Ending balance: collectively evaluated for impairment $ 532,287 $ 1,078,598 $ 305,380 $ 95,666 $ 2,011,931 Real estate December 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Ending balance: individually evaluated for impairment 363 279 135 777 Ending balance: collectively evaluated for impairment $ 6,525 $ 11,217 $ 3,091 $ 1,067 $ 21,900 Loans receivable: Ending balance $ 522,957 $ 1,011,423 $ 301,378 $ 102,482 $ 1,938,240 Ending balance: individually evaluated for impairment 4,658 3,048 2,153 261 10,120 Ending balance: collectively evaluated for impairment $ 518,299 $ 1,008,375 $ 299,225 $ 102,221 $ 1,928,120 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, 2020 and December 31, 2019: Special March 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 528,747 $ 3,776 $ 5,426 $ $ 537,949 Real estate: Commercial 1,067,426 5,156 9,542 1,082,124 Residential 304,238 2,977 307,215 Consumer 95,607 260 95,867 Total $ 1,996,018 $ 8,932 $ 18,205 $ $ 2,023,155 Special December 31, 2019 Pass Mention Substandard Doubtful Total Commercial $ 513,994 $ 3,837 $ 5,126 $ $ 522,957 Real estate: Commercial 993,645 2,508 15,270 1,011,423 Residential 298,449 597 2,332 301,378 Consumer 102,145 337 102,482 Total $ 1,908,233 $ 6,942 $ 23,065 $ $ 1,938,240 The increase in special mention loans from December 31, 2019 to March 31, 2020 is primarily associated with the reclassification of two larger commercial real estate credits. The largest relationship totaled $3.8 million and was downgraded to special mention due to the loss of major tenants while the other relationship totaling $1.1 million was upgraded from special mention due to stabilized rental income and improved cash flows. The decrease to substandard loans resulted from the payoff of a $5.1 million commercial real estate construction loan that had experienced significant construction delays. Information concerning nonaccrual loans by major loan classification at March 31, 2020 and December 31, 2019 is summarized as follows: March 31, 2020 December 31, 2019 Commercial $ 4,373 $ 3,336 Real estate: Commercial 3,258 2,765 Residential 843 1,148 Consumer 201 261 Total $ 8,675 $ 7,510 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, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 196 11 $ 4,373 $ 4,580 $ 533,369 $ 537,949 Real estate: Commercial 2,861 $ 187 3,258 6,306 1,075,818 1,082,124 Residential 3,924 256 1,266 5,446 301,769 307,215 $ 423 Consumer 520 147 201 868 94,999 95,867 Total $ 7,501 $ 601 $ 9,098 $ 17,200 $ 2,005,955 $ 2,023,155 $ 423 The increase in the total past due loans was due to an increase in nonaccrual loans which are included in the greater than 90 day category, coupled with an increase in 30-59 days past due as borrowers began experiencing the initial impact of COVID-19. Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 75 $ $ 3,036 $ 3,111 $ 519,846 $ 522,957 Real estate: Commercial 926 175 2,765 3,866 1,007,557 1,011,423 $ Residential 2,164 1,227 1,526 4,917 296,461 301,378 378 Consumer 523 123 261 907 101,575 102,482 Total $ 3,688 $ 1,525 $ 7,588 $ 12,801 $ 1,925,439 $ 1,938,240 $ 378 The following tables summarize information concerning impaired loans as of and for the three months ended March 31, 2020 and March 31, 2019, and as of and for the year ended December 31, 2019 by major loan classification: For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,706 $ 4,249 $ 3,672 $ 16 Real estate: Commercial 2,263 2,574 2,091 5 Residential 1,129 1,369 1,424 5 Consumer 201 219 231 Total 7,299 8,411 7,418 26 With an allowance recorded: Commercial 1,956 1,974 764 1,488 6 Real estate: Commercial 1,263 1,924 270 1,197 Residential 706 735 192 571 4 Consumer Total 3,925 4,633 1,226 3,256 10 Total impaired loans Commercial 5,662 6,223 764 5,160 22 Real estate: Commercial 3,526 4,498 270 3,288 5 Residential 1,835 2,104 192 1,995 9 Consumer 201 219 231 Total $ 11,224 $ 13,044 $ 1,226 $ 10,674 $ 36 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,638 $ 4,175 $ 3,907 $ 63 Real estate: Commercial 1,918 2,205 2,385 38 Residential 1,718 2,060 1,362 25 Consumer 261 274 233 Total 7,535 8,714 7,887 126 With an allowance recorded: Commercial 1,020 1,038 363 1,012 32 Real estate: Commercial 1,130 1,811 279 1,050 10 Residential 435 450 135 1,408 29 Consumer 20 Total 2,585 3,299 777 3,490 71 Total impaired loans Commercial 4,658 5,213 363 4,919 95 Real estate: Commercial 3,048 4,016 279 3,435 48 Residential 2,153 2,510 135 2,770 54 Consumer 261 274 253 Total $ 10,120 $ 12,013 $ 777 $ 11,377 $ 197 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 6,072 $ 6,407 $ 3,817 $ Real estate: Commercial 2,098 2,184 2,034 Residential 860 1,287 1,415 Consumer 238 245 195 Total 9,268 10,123 7,461 37 With an allowance recorded: Commercial 940 990 $ 138 808 7 Real estate: Commercial 1,437 1,563 389 1,295 5 Residential 2,035 2,078 461 2,068 11 Consumer 30 Total 4,412 4,631 988 4,201 23 Total impaired loans Commercial 7,012 7,397 138 4,625 24 Real estate: Commercial 3,535 3,747 389 3,329 18 Residential 2,895 3,365 461 3,483 18 Consumer 238 245 — 225 Total $ 13,680 $ 14,754 $ 988 $ 11,662 $ 60 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 $2,140 at March 31, 2020, $2,193 at December 31, 2019 and $3,096 at March 31, 2019. 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 were no loans modified as troubled debt restructurings during the three months ended March 31, 2020. For the three months ended March 31 2019, there was one commercial real estate loan modified as troubled debt restructuring in the amount of $340. During the three months ended March 31, 2020, there was one payment default on a residential real estate loan in the amount of $52 and there were no payment defaults on troubled debt restructings. During the three months ended March 31, 2019, there were no payment defaults on restructured loans. |
Other assets
Other assets | 3 Months Ended |
Mar. 31, 2020 | |
Other assets | |
Other assets | 6. Other assets: The components of other assets at March 31, 2020, and December 31, 2019 are summarized as follows: March 31, 2020 December 31, 2019 Other real estate owned $ 903 $ 450 Investment in low income housing partnership 6,782 6,901 Mortgage servicing rights 741 738 Bank owned life insurance 35,224 35,041 Restricted equity securities (FHLB and other) 10,684 10,201 Net deferred tax asset 1,598 3,362 Interest rate floor 1,966 944 Interest rate swaps 14,679 4,728 Other assets 6,743 6,855 Total $ 79,320 $ 69,220 |
Fair value estimates
Fair value estimates | 3 Months Ended |
Mar. 31, 2020 | |
Fair value of financial instruments | |
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. During the periods ended March 31, 2020 and December 31, 2019 there were no significant transfers between Level 1 and Level 2 and no transfers in or out of Level 3. The following methods and assumptions were used by the Company to calculate fair values and related carrying amounts of financial instruments: 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. Interest rate swaps and options: The Company’s interest rate swaps and options are reported at fair value utilizing Level 2 inputs. Values of these instruments are obtained through an independent pricing source utilizing information which may include market observed quotations for interest rate, forward rates, rate volatility, and volatility surface . Derivative contracts create exposure to interest rate movements as well as risks from the potential of non-performance of the counterparty. Assets and liabilities measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 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, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 22,121 $ 22,121 $ U.S. government-sponsored enterprises 84,590 $ 84,590 State and municipals: Taxable 32,560 32,560 Tax-exempt 39,980 39,980 Mortgage-backed securities: U.S. government agencies 7,300 7,300 U.S. government-sponsored enterprises 116,333 116,333 Common equity securities 299 299 Loan held for sale 270 270 Interest rate floor-other assets 1,966 1,966 Interest rate swap-other assets 14,679 14,679 Interest rate swap-other liabilities (14,762) (14,762) Total $ 305,336 $ 22,420 $ 282,916 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,128 $ 24,128 $ U.S. government-sponsored enterprises 87,110 $ 87,110 State and municipals: Taxable 34,898 34,898 Tax-exempt 60,163 60,163 Mortgage-backed securities: U.S. government agencies 8,470 8,470 U.S. government-sponsored enterprises 115,709 115,709 Common equity securities 423 423 Loan held for sale 986 986 Interest rate floor-other assets 944 944 Interest rate swap-other assets 4,728 4,728 Interest rate swap-other liabilities (4,680) (4,680) Total $ 332,879 $ 24,551 $ 308,328 $ Assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2020 and December 31, 2019 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, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,699 $ 2,699 Other real estate owned $ 550 $ 550 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,808 $ 1,808 Other real estate owned $ 283 $ 283 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, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,699 Appraisal of collateral Appraisal adjustments 11.7% to 97.0% (62.5)% Liquidation expenses 3.0% to 6.0% (5.7)% Other real estate owned $ 550 Appraisal of collateral Appraisal adjustments 18.4% to 63.5% (40.3)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,808 Appraisal of collateral Appraisal adjustments 8.6% to 97.0% (54.4)% Liquidation expenses 3.0% to 6.0% (5.2)% Other real estate owned $ 283 Appraisal of collateral Appraisal adjustments 20.0% to 63.6% (43.7)% 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, 2020 and December 31, 2019 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, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 35,327 $ 35,327 $ 35,327 Investment securities: Available-for-sale 302,884 302,884 22,121 $ 280,763 Common equity securities 299 299 299 Held-to-maturity 7,520 7,687 7,687 Loans held for sale 270 270 270 Net loans 1,997,469 1,963,402 $ 1,963,402 Accrued interest receivable 7,283 7,283 7,283 Mortgage servicing rights 741 1,299 1,299 Restricted equity securities (FHLB and other) 10,684 10,684 10,684 Interest rate floor 1,966 1,966 1,966 Interest rate swaps 14,679 14,679 14,679 Total $ 2,379,122 $ 2,345,780 Financial liabilities: Deposits $ 2,009,995 $ 2,014,166 $ 2,014,166 Long-term debt 32,250 32,864 32,864 Accrued interest payable 1,336 1,336 1,336 Interest rate swaps 14,762 14,762 14,762 Total $ 2,058,343 $ 2,063,128 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 31,153 $ 31,153 $ 31,153 Investment securities: Available-for-sale 330,478 330,478 24,128 $ 306,350 Common equity securities 423 423 423 Held-to-maturity 7,656 7,889 7,889 Loans held for sale 986 986 986 Net loans 1,915,563 1,881,658 $ 1,881,658 Accrued interest receivable 6,981 6,981 6,981 Mortgage servicing rights 738 1,444 1,444 Restricted equity securities (FHLB and other) 10,201 10,201 10,201 Interest rate floor 944 944 944 Interest rate swaps 4,728 4,728 4,728 Total $ 2,309,851 $ 2,276,885 Financial liabilities: Deposits $ 1,971,489 $ 1,972,084 $ 1,972,084 Short-term borrowings Long-term debt 32,733 33,075 33,075 Accrued interest payable 1,277 1,277 1,277 Interest rate swaps 4,680 4,680 4,680 Total $ 2,010,179 $ 2,011,116 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2020 | |
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 Supplemental Executive Retirement Plans (“SERPs”) and an Employees’ Pension Plan, which is currently frozen. For the three months ended March 31, salaries and employee benefits expense includes approximately $306 in 2020 and $340 in 2019 relating to the employee benefit plans. Pension Benefits Three Months Ended March 31, 2020 2019 Components of net periodic pension benefit: Interest cost $ 54 $ 128 Expected return on plan assets (123) (217) Amortization of unrecognized net gain 22 45 Net periodic benefit $ (47) $ (44) The 2008 long-term incentive plan (“2008 Plan”) allowed for eligible participants to be granted equity awards. No awards may be made under the 2008 Plan after January 15, 2018. In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). The 2017 Plan allows for eligible participants to be granted equity awards. Under the 2017 Plan the Compensation Committee of the Board of Directors has the authority to, among other things: · Select the persons to be granted awards under the 2017 Plan. · Determine the type, size and term of awards. · Determine whether such performance objectives and conditions have been met. · Accelerate the vesting or excercisability of an award. Persons eligible to receive awards under the 2017 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries. As of March 31, 2020, there were 54,506 shares of the Company’s common stock available for grant as awards pursuant to the 2017 Plan. The 2008 Plan expired in January 2018 but remained in effect in accordance with its terms to govern outstanding awards under that plan. If any outstanding awards under the 2017 Plan are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. For the three months ended March 31, 2020 and 2019, the Company granted awards of restricted stock and restricted stock units under the 2017 Plan, with an aggregate of 16,854 shares and 17,345 shares underlying such awards, respectively. The non-performance restricted stock grants made in 2020, 2019 and 2018 vest equally over three years from the grant date. The performance-based restricted stock units vest over three fiscal years 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. 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 recognized net compensation costs of $5 for the three months ended March 31, 2020 for awards granted under the 2017 Plan. The Company recognized compensation expense of $83 for the three months ended March 31, 2019 for awards granted under the 2017 Plan. As of March 31, 2020, the Company had $861 of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of just under 2.6 years. |
Derivatives and hedging activit
Derivatives and hedging activities | 3 Months Ended |
Mar. 31, 2020 | |
Derivatives and hedging activities | |
Derivatives and hedging activities | 9. Derivatives and hedging activities Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate floors as part of its interest rate risk management strategy. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in accumulated other comprehensive income (loss) and subsequently reclassified into interest income in the same period(s) during which the hedged transaction affects earnings. Gains and losses on the derivative representing hedge components excluded from the assessment of effectiveness are recognized over the life of the hedge on a systematic and rational basis. The earnings recognition of excluded components is presented in interest income. Amounts reported in accumulated other comprehensive income (loss) related to derivatives will be reclassified to interest income as interest payments are received on the Company’s variable-rate assets. During 2020, the Company estimates that an additional $64 will be reclassified as a reduction to interest income. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of March 31, 2020, the Company had 44 interest rate swaps with an aggregate notional amount of $225,376 related to this program. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31 2020 and December 31, 2019. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2020 As of December 31, 2019 (1) As of March 31, 2020 As of December 31, 2019 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,966 Other Assets $ Total derivatives designated as hedging instruments $ 1,966 $ Derivatives not designated as hedging instruments Interest Rate Swaps $ 225,376 Other Assets $ 14,679 Other Assets $ 4,728 Other Liabilities $ 14,762 Other Liabilities $ 4,680 Total derivatives not designated as hedging instruments $ 14,679 $ 4,728 $ 14,762 $ 4,680 (1) Assets amount does not include accrued interest receivable of $65. (2) Liabilities amount does not include accrued interest payable of $65. (3) Notional amount of interest rate swaps at March 31, 2019 $79,667. Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income (loss) as of March 31, 2020 and March 31, 2019. Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Loss Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2020 Income March 31, 2020 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ (1,072) $ (1,104) $ 36 Interest Income $ 36 $ 52 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Loss Recognized from Gain Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2019 Income March 31, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 47 $ 295 $ (248) Interest Income $ (15) $ $ (15) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2020 and March 31, 2019. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2019 Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ 36 $ (15) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 36 $ (15) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 52 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (15) Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2020 and 2019. Amount of Loss Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Three Months Ended Three Months Ended Derivatives Not Designated as Hedging Instruments Derivative March 31, 2020 March 31, 2019 Interest Rate Swaps Other non-interest income $ (131) $ (110) Fee Income Other income / (expense) $ 601 $ 391 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2020 and December 31, 2019. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Balance Sheets. Offsetting of Derivative Assets as of March 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 16,645 $ $ 16,645 $ $ 16,645 Offsetting of Derivative Liabilities as of March 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 14,762 $ $ 14,762 $ $ 14,762 Offsetting of Derivative Assets as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 5,672 $ $ 5,672 $ $ 5,672 Offsetting of Derivative Liabilities as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,680 $ $ 4,680 $ $ 4,680 Credit-risk-related Contingent Features The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. The Company has agreements with certain of its derivative counterparties that contain provisions that require the Company’s debt to maintain an investment grade credit rating from each of the major credit rating agencies. If the Company’s credit rating is reduced below investment grade then a termination event shall be deemed to have occurred and the non-affected counterparty shall have the right but not obligation to terminate all affected transactions under the agreement. As of March 31, 2020, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $83. As of December 31, 2019, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $48. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $13,090 against its obligations under these agreements as of March 31, 2020, compared to having posted collateral of $5,120 with counterparties at December 31, 2019. If the Company had breached any of these provisions it could have been required to settle its obligations under the agreements at the termination value. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits. | |
Deposits | 10. Deposits The major components of interest-bearing and noninterest-bearing deposits at March 31, 2020 and December 31, 2019 are summarized as follows: At the period end March 31, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 360,881 $ 365,463 Now accounts 408,994 402,999 Savings accounts 379,252 370,270 Time deposits less than $250 281,552 231,450 Time deposits $250 or more 112,001 138,069 Total interest-bearing deposits 1,542,680 1,508,251 Noninterest-bearing deposits 467,315 463,238 Total deposits $ 2,009,995 $ 1,971,489 For the three months ended March 31, 2020, total deposits increased $38,506 or 7.9% annualized, to $2,009,995 from $1,971,489 at December 31, 2019. The growth in deposits occurred primarily in time deposits less than $250 thousand due to the addition of $54,108 to brokered deposits which more than offset the seasonal runoff of retail and public fund deposits. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Short-term borrowings | |
Borrowings | 11. Borrowings Short-term borrowings consists of FHLB advances representing overnight borrowings or with stated original terms of less than twelve months. The table below outlines short-term borrowings at March 31, 2020 and December 31, 2019: For the three months ended March 31, 2020 Weighted Ending Maximum Weighted Average Balance Average Month-End Average Rate at at March 31, 2020 Balance Balance Rate March 31,2020 FHLB advances $ 164,150 $ 142,121 $ 164,150 1.62 % 0.62 % At and for the year ended December 31, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 152,150 $ 62,941 $ 152,150 2.61 % 1.84 % The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At March 31, 2020, the maximum borrowing capacity was $775,458 of which $196,400 was outstanding in borrowings and $155,800 was used to issue standby letters of credit to collateralize public fund deposits. At December 31, 2019, the maximum borrowing capacity was $723,608 of which $184,883 was outstanding in borrowings and $185,750 was used to issue standby letters of credit to collateralize public fund depsoits. Short-term borrowings were used to fund a portion of our loan growth during the first three months of 2020 as deposit growth lagged our loan growth. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. The short-term borrowing rate resets each day. Long-term debt consisting of advances from the FHLB at March 31, 2020 and December 31, 2019 are as follows: Interest Rate Due Fixed March 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 $ 5,000 June 2020 2.22 6,000 6,000 December 2020 1.84 5,000 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 6,250 6,733 $ 32,250 $ 32,733 Maturities of long-term debt, by contractual maturity, for the remainder of 2020 and subsequent years are as follows: 2020 $ 17,480 2021 12,058 2022 2,157 2023 555 $ 32,250 None of the advances from the FHLB are convertible. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income taxes | |
Income taxes | 12. Income taxes The effective tax rate of the Company was 11.4% for the three months ended March 31, 2020 compared to 10.6% for the three months ended March 31, 2019. The three months ended March 31, 2020 includes before tax investment tax credits of $273 compared to before tax investment tax credits and other credits of $388 for the same period last year. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
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. Unless the context indicates otherwise, all references in this quarterly report to “Peoples”, “Company”, “Bank”, “we”, “us” and “our” refer to Peoples Financial Services Corp., its subsidiaries and its and their respective predecessors. The Company services its retail and commercial customers through twenty-nine full-service community banking offices located within the Bucks, Lackawanna, Lebanon, Lehigh, Luzerne, Monroe, Montgomery, Northampton, Susquehanna, Wayne and Wyoming Counties of Pennsylvania and Broome County of New York. Additionally, we operate a limited purpose banking office (“LPO”) located in and serving Schuylkill County, Pennsylvania. |
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 consolidated 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 consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the three months ended and as of March 31, 2020, are not necessarily indicative of the results of consolidated 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, and impairment of goodwill. 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, 2019. Significant events: COVID-19 In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China, and has since spread to the United States and throughout the world. On March 11, 2020, the World Health Organization declared COVID-19, a global pandemic. In the United States, the rapid spread of the COVID-19 virus invoked various federal and state authorities to make emergency declarations and issue executive orders to limit the spread of the disease. Measures included restrictions on travel, limitations on public gatherings, implementation of social distancing protocols, school closings, orders to shelter in place and mandates to close all non-essential businesses to the public. Concerns about the spread of the disease and its anticipated negative impact on economic activity, severely disrupted domestic financial markets prompting the Federal Reserve System’s Federal Open Market Committee (“FOMC”) to aggressively cut the target federal funds rate to a range of 0% to 0.25%, including a 50 basis point reduction in the target federal funds rate on March 3, 2020 and an additional 100 basis point reduction on March 15, 2020. In addition, the Federal Reserve rolled out various market support programs to ease the stress on financial markets. As the COVID-19 events unfolded throughout the first quarter of 2020, the Company implemented its pandemic plan and executed various strategies and protocols intended to protect its employees, maintain services for customers, assure the functional continuity of the Company’s operating systems, controls and processes, and mitigate financial risks posed by changing market conditions. The Company imposed business travel restrictions, implemented quarantine and work from home protocols and physically separated, to the extent possible, the critical operations site workforce that are unable to work remotely. To limit the risk of virus spread, the Company implemented drive-thru only and by appointment operating protocols for its bank branch network. The Company also maintained active communications with its primary regulatory agencies and critical vendors in an effort to assure that all mission-critical activities and functions would be performed in line with regulatory expectations and the Company’s service standards. The impact of the COVID-19 pandemic is fluid and continues to evolve, adversely affecting many of the Bank’s clients. The COVID-19 pandemic and its associated impacts on trade (including supply chains), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets, and has had an adverse effect on our business, financial condition and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on our business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and our customers, employees and vendors. Our business, financial condition and results of operations generally rely upon the ability of our borrowers to repay their loans, the value of collateral underlying our secured loans, and demand for loans and other products and services we offer, which are highly dependent on the business environment in our primary markets where we operate and in the United States as a whole. The full impact of COVID-19 is unknown and rapidly evolving. It has caused substantial disruption in U.S. economies, markets, and employment. The outbreak may have a significant adverse impact on certain industries the Company serves. During March, the Company reviewed its commercial loan and commercial real estate portfolios and determined approximately $1.2 billion or 73% is categorized as non-life sustaining and subject to shutdown. Based on management’s application of its allowance for loan losses methodology and changes to the economic qualitative factors relating to the adverse impact of the COVID-19 crisis on economic conditions and the increased inherent risk in the loan portfolio, first quarter 2020 results included $3.5 million in provision for loan and lease losses. Because of the significant uncertainties related to the ultimate duration of the COVID-19 pandemic and its potential effects on clients and prospects, and on the national and local economy as a whole, there can be no assurances as to how the crisis may ultimately affect the Company’s loan portfolio. With respect to the Company’s lending activities, the Company implemented a customer payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19 related challenges. On March 22, 2020, the federal bank regulatory agencies issued an “Interagency Statement on Loan Modifications and Reporting for Financial Institutions Working with Customers Affected by the Coronavirus.” This guidance encourages financial institutions to work prudently with borrowers that may be unable to meet their contractual obligations because of the effects of COVID-19. The guidance goes on to explain that, in consultation with the FASB staff, the federal bank regulatory agencies concluded that short-term modifications (e.g. six months) made on a good faith basis to borrowers who were current as of the implementation date of a relief program are not troubled debt restructurings (“TDRs”). Section 4013 of the CARES Act also addresses COVID-19 related modifications and specifies that COVID-19 related modifications on loans that were current as of December 31, 2019 are not TDRs. Through May 6, 2020, the Company granted payment deferral requests for up to four months to 390 business loans and for up to six months on 451 consumer loans, representing $313.6 million of the Company’s loan balances. Loans in deferment status will continue to accrue interest during the deferment period unless otherwise classified as nonperforming. The Company has also participated as a lender in the Coronavirus Aid, Relief and Economic Security Act (“CARES Act”), Paycheck Protection Program, a $349 billion specialized low-interest loan program funded by the U.S. Treasury Department and administered by the U.S. Small Business Administration (“SBA”). The Paycheck Protection Program (“PPP”) provides borrower guarantees for lenders, as well as loan forgiveness incentives for borrowers that utilize the loan proceeds to cover employee compensation-related business operating costs. Between April 3 and April 17, 2020, the Company processed 836 applications providing over $177.9 million in loans through Phase I of the SBA PPP with an average loan amount of $213 thousand. Through May 6, 2020, the Company processed another 455 applications providing over $24.0 million in loans through Phase II of the PPP with an average loan amount of $53 thousand furthering Peoples’ commitment to support small businesses. Funding these loans will generate approximately $6.6 million of SBA processing fees. The Company intends to utilize the Federal Reserve’s Paycheck Protection Program Liquidity Facility (“PPPLF”) to replace liquidity used to fund PPP loans. The Company also has goodwill with a net carrying value of $63.4 million at March 31, 2020 and December 31, 2019. The Company completes a goodwill impairment analysis at least annually, or more often if events and circumstances indicate that there may be impairment. In connection with the emergence of COVID-19 as a global pandemic and the decline in our stock price during the 2020 first quarter, management performed a qualitative assessment to determine whether goodwill was impaired. Management assessed factors that could potentially indicate impairment, including: regional and national economic conditions, banking industry conditions and trends, historical financial performance, and other banking specific factors. After assessing the factors in totality, management determined that it was more likely than not that the fair value of the Company is higher than its book value as of March 31, 2020, and, therefore, goodwill is not considered impaired. In the event of a sustained decline in share price or further deterioration in the macroeconomic outlook, continued assessments of the Company's goodwill balance will likely be required in future periods with no assurance that the future impairment assessments or tests will not result in a charge to earnings. |
Recent accounting standards | Recent accounting standards: 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 GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU 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. In November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. The Company qualifies as a smaller reporting company and therefore guidance is effective for the Company in 2023. 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. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” - Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating the requirement to calculate the implied fair value of goodwill to measure a goodwill impairment charge. The Company adopted this guidance effective January 1, 2020. Adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-13 Fair Value Measurement (Topic 820): “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement” which modifies the disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement, based on the FASB Concepts Statement, “Conceptual Framework for Financial Reporting – Chapter 8: Notes to Financial Statements”. In accordance with the Concepts Statement, this ASU removes, modifies and adds select disclosure requirements under Topic 820 after consideration of costs and benefits. The Company adopted this guidance effective January 1, 2020. The adoption of this guidance on January 1, 2020 did not have a material effect on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20)”, which provides changes to the disclosure requirements for defined benefit plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments are a result of the disclosure framework project that focuses on improvements to the effectiveness of disclosures in the notes to financial statements. The amendments remove and add certain disclosure requirements. The disclosure requirements being removed relating to public companies are (1) the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year, (2) the amount and timing of plan assets expected to be returned to the employer, (3) the 2001 disclosure requirement relating to Japanese Welfare Pension Insurance Law, (4) related party disclosures about the amount of future annual benefits covered by insurance, and (5) the effects of a one-percentage-point change in assumed health care cost trends on the benefit cost and obligation. The disclosure requirements being added relating to public companies are (1) the weighted-average interest crediting rates for cash balance plans, and (2) an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU 2018-14 is effective for the Company on January 1, 2021 and early adoption is permitted. The amendments should be applied retrospectively however, the Company does not expect the guidance to have a material impact on its disclosures to the consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes”, which aims to simplify the accounting for income taxes by removing certain exceptions to the general principles and also simplification of areas such as franchise taxes, step-up in tax basis goodwill, separate entity financial statements and interim recognition of enactment of tax laws or rate changes. The ASU will be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2019-12 on the consolidated financial statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting ” , which provides optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company is currently evaluating the impact that adopting this new accounting standard will have on the consolidated financial statements. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss) | |
Schedule of components of accumulated other comprehensive loss | March 31, 2020 December 31, 2019 Net unrealized gain on investment securities available-for-sale $ 9,197 $ 1,835 Income tax 1,932 385 Net of income taxes 7,265 1,450 Benefit plan adjustments (6,579) (6,579) Income tax (1,382) (1,382) Net of income taxes (5,197) (5,197) Derivative adjustments 1,723 687 Income tax 363 144 Net of income taxes 1,360 543 Accumulated other comprehensive income (loss) $ 3,428 $ (3,205) |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings per share | |
Schedule of earnings per share | 2020 2019 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net income $ 5,281 $ 5,281 $ 6,412 $ 6,412 Average common shares outstanding 7,379,438 7,406,291 7,399,054 7,408,536 Earnings per share $ 0.72 $ 0.71 $ 0.87 $ 0.87 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Schedule of amortized cost and fair value of investment securities aggregated by investment category | Gross Gross Amortized Unrealized Unrealized Fair March 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 21,471 $ 650 $ 22,121 U.S. government-sponsored enterprises 83,028 1,562 84,590 State and municipals: Taxable 32,116 772 $ 328 32,560 Tax-exempt 38,392 1,596 8 39,980 Residential mortgage-backed securities: U.S. government agencies 7,125 178 3 7,300 U.S. government-sponsored enterprises 98,880 4,143 3 103,020 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,675 638 13,313 Total $ 293,687 $ 9,539 $ 342 $ 302,884 Held-to-maturity: Tax-exempt state and municipals $ 6,851 $ 153 $ 15 $ 6,989 Residential mortgage-backed securities: U.S. government agencies 28 28 U.S. government-sponsored enterprises 641 30 1 670 Total $ 7,520 $ 183 $ 16 $ 7,687 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2019 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 23,966 162 $ $ 24,128 U.S. government-sponsored enterprises 87,156 $ 181 227 87,110 State and municipals: Taxable 35,418 295 815 34,898 Tax-exempt 59,127 1,056 20 60,163 Residential mortgage-backed securities: U.S. government agencies 8,368 112 10 8,470 U.S. government-sponsored enterprises 101,914 1,011 77 102,848 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,694 171 4 12,861 Total $ 328,643 $ 2,988 $ 1,153 $ 330,478 Held-to-maturity: Tax-exempt state and municipals $ 6,852 $ 208 $ $ 7,060 Residential mortgage-backed securities: U.S. government agencies 31 31 U.S. government-sponsored enterprises 773 25 798 Total $ 7,656 $ 233 $ $ 7,889 |
Schedule of 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, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 8,632 $ 328 $ 8,632 $ 328 Tax-exempt 3,149 23 3,149 23 Residential mortgage-backed securities: U.S. government agencies $ 1,133 $ 3 1,133 3 U.S. government-sponsored enterprises 22 1 747 3 769 4 Total $ 11,803 $ 352 $ 1,880 $ 6 $ 13,683 $ 358 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2019 Value Losses Value Losses Value Losses U.S. government-sponsored enterprises $ 13,695 $ 149 $ 36,070 $ 78 $ 49,765 $ 227 State and municipals: Taxable 23,929 815 23,929 815 Tax-exempt 2,684 19 1,098 1 3,782 20 Residential mortgage-backed securities: U.S. government agencies 992 1 2,362 9 3,354 10 U.S. government-sponsored enterprises 36,939 51 3,751 30 40,690 81 Total $ 78,239 $ 1,035 $ 43,281 $ 118 $ 121,520 $ 1,153 |
Summary of unrealized and realized gains and losses | The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31 2020 (in thousands): For the Three Months Ended March 31, 2020 2019 Net (loss) gains recognized during the period on equity securities $ (123) $ 1 Less: Net gains (loss) recognized during the period on equity securities sold during the period Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date $ (123) $ 1 |
Available-for-Sale Securities. | |
Schedule of maturity distribution of fair value | Fair March 31, 2020 Value Within one year $ 37,800 After one but within five years 79,696 After five but within ten years 18,995 After ten years 39,313 175,804 Mortgage-backed and other amortizing securities 127,080 Total $ 302,884 |
Held-to-maturity Securities. | |
Schedule of maturity distribution of fair value | Amortized Fair March 31, 2020 Cost Value After ten years $ 6,851 $ 6,989 6,851 6,989 Mortgage-backed securities 669 698 Total $ 7,520 $ 7,687 |
Loans, net and allowance for _2
Loans, net and allowance for loan losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans, net and allowance for loan losses | |
Schedule of major classifications of loans outstanding | March 31, 2020 December 31, 2019 Commercial $ 537,949 $ 522,957 Real estate: Commercial 1,082,124 1,011,423 Residential 307,215 301,378 Consumer 95,867 102,482 Total $ 2,023,155 $ 1,938,240 |
Schedule of 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, 2020 and 2019 are summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2020 $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (650) (54) (94) (798) Recoveries 267 10 30 307 Provisions 1,464 1,511 442 83 3,500 Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Real estate March 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2019 $ 5,516 $ 10,736 $ 3,892 $ 1,235 $ 21,379 Charge-offs (77) (6) (159) (132) (374) Recoveries 8 4 38 50 Provisions 508 344 143 55 1,050 Ending balance $ 5,955 $ 11,074 $ 3,880 $ 1,196 $ 22,105 The Company's allowance for loan losses increased $3.0 million or 13.3% in the first quarter of 2020, due largely to the adjustment of qualitative factors in our allowance for loan losses methodology, which reflect current economic decline and expectation of increased credit losses due to COVID-19's adverse impact on economic and business operating conditions. The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2020 and December 31, 2019 is summarized as follows: Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Ending balance: individually evaluated for impairment 764 270 192 1,226 Ending balance: collectively evaluated for impairment $ 7,205 $ 12,737 $ 3,432 $ 1,086 $ 24,460 Loans receivable: Ending balance $ 537,949 $ 1,082,124 $ 307,215 $ 95,867 $ 2,023,155 Ending balance: individually evaluated for impairment 5,662 3,526 1,835 201 11,224 Ending balance: collectively evaluated for impairment $ 532,287 $ 1,078,598 $ 305,380 $ 95,666 $ 2,011,931 Real estate December 31, 2019 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Ending balance: individually evaluated for impairment 363 279 135 777 Ending balance: collectively evaluated for impairment $ 6,525 $ 11,217 $ 3,091 $ 1,067 $ 21,900 Loans receivable: Ending balance $ 522,957 $ 1,011,423 $ 301,378 $ 102,482 $ 1,938,240 Ending balance: individually evaluated for impairment 4,658 3,048 2,153 261 10,120 Ending balance: collectively evaluated for impairment $ 518,299 $ 1,008,375 $ 299,225 $ 102,221 $ 1,928,120 |
Schedule of major classification of loans portfolio summarized by credit quality | Special March 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 528,747 $ 3,776 $ 5,426 $ $ 537,949 Real estate: Commercial 1,067,426 5,156 9,542 1,082,124 Residential 304,238 2,977 307,215 Consumer 95,607 260 95,867 Total $ 1,996,018 $ 8,932 $ 18,205 $ $ 2,023,155 Special December 31, 2019 Pass Mention Substandard Doubtful Total Commercial $ 513,994 $ 3,837 $ 5,126 $ $ 522,957 Real estate: Commercial 993,645 2,508 15,270 1,011,423 Residential 298,449 597 2,332 301,378 Consumer 102,145 337 102,482 Total $ 1,908,233 $ 6,942 $ 23,065 $ $ 1,938,240 |
Schedule of information concerning nonaccrual loans by major loan classification | March 31, 2020 December 31, 2019 Commercial $ 4,373 $ 3,336 Real estate: Commercial 3,258 2,765 Residential 843 1,148 Consumer 201 261 Total $ 8,675 $ 7,510 |
Schedule of 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, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 196 11 $ 4,373 $ 4,580 $ 533,369 $ 537,949 Real estate: Commercial 2,861 $ 187 3,258 6,306 1,075,818 1,082,124 Residential 3,924 256 1,266 5,446 301,769 307,215 $ 423 Consumer 520 147 201 868 94,999 95,867 Total $ 7,501 $ 601 $ 9,098 $ 17,200 $ 2,005,955 $ 2,023,155 $ 423 The increase in the total past due loans was due to an increase in nonaccrual loans which are included in the greater than 90 day category, coupled with an increase in 30-59 days past due as borrowers began experiencing the initial impact of COVID-19. Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2019 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 75 $ $ 3,036 $ 3,111 $ 519,846 $ 522,957 Real estate: Commercial 926 175 2,765 3,866 1,007,557 1,011,423 $ Residential 2,164 1,227 1,526 4,917 296,461 301,378 378 Consumer 523 123 261 907 101,575 102,482 Total $ 3,688 $ 1,525 $ 7,588 $ 12,801 $ 1,925,439 $ 1,938,240 $ 378 |
Summarized information concerning impaired loans | For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,706 $ 4,249 $ 3,672 $ 16 Real estate: Commercial 2,263 2,574 2,091 5 Residential 1,129 1,369 1,424 5 Consumer 201 219 231 Total 7,299 8,411 7,418 26 With an allowance recorded: Commercial 1,956 1,974 764 1,488 6 Real estate: Commercial 1,263 1,924 270 1,197 Residential 706 735 192 571 4 Consumer Total 3,925 4,633 1,226 3,256 10 Total impaired loans Commercial 5,662 6,223 764 5,160 22 Real estate: Commercial 3,526 4,498 270 3,288 5 Residential 1,835 2,104 192 1,995 9 Consumer 201 219 231 Total $ 11,224 $ 13,044 $ 1,226 $ 10,674 $ 36 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,638 $ 4,175 $ 3,907 $ 63 Real estate: Commercial 1,918 2,205 2,385 38 Residential 1,718 2,060 1,362 25 Consumer 261 274 233 Total 7,535 8,714 7,887 126 With an allowance recorded: Commercial 1,020 1,038 363 1,012 32 Real estate: Commercial 1,130 1,811 279 1,050 10 Residential 435 450 135 1,408 29 Consumer 20 Total 2,585 3,299 777 3,490 71 Total impaired loans Commercial 4,658 5,213 363 4,919 95 Real estate: Commercial 3,048 4,016 279 3,435 48 Residential 2,153 2,510 135 2,770 54 Consumer 261 274 253 Total $ 10,120 $ 12,013 $ 777 $ 11,377 $ 197 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 6,072 $ 6,407 $ 3,817 $ Real estate: Commercial 2,098 2,184 2,034 Residential 860 1,287 1,415 Consumer 238 245 195 Total 9,268 10,123 7,461 37 With an allowance recorded: Commercial 940 990 $ 138 808 7 Real estate: Commercial 1,437 1,563 389 1,295 5 Residential 2,035 2,078 461 2,068 11 Consumer 30 Total 4,412 4,631 988 4,201 23 Total impaired loans Commercial 7,012 7,397 138 4,625 24 Real estate: Commercial 3,535 3,747 389 3,329 18 Residential 2,895 3,365 461 3,483 18 Consumer 238 245 — 225 Total $ 13,680 $ 14,754 $ 988 $ 11,662 $ 60 |
Other assets (Tables)
Other assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other assets | |
Schedule of components of other assets | March 31, 2020 December 31, 2019 Other real estate owned $ 903 $ 450 Investment in low income housing partnership 6,782 6,901 Mortgage servicing rights 741 738 Bank owned life insurance 35,224 35,041 Restricted equity securities (FHLB and other) 10,684 10,201 Net deferred tax asset 1,598 3,362 Interest rate floor 1,966 944 Interest rate swaps 14,679 4,728 Other assets 6,743 6,855 Total $ 79,320 $ 69,220 |
Fair value estimates (Tables)
Fair value estimates (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair value of financial instruments | |
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, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 22,121 $ 22,121 $ U.S. government-sponsored enterprises 84,590 $ 84,590 State and municipals: Taxable 32,560 32,560 Tax-exempt 39,980 39,980 Mortgage-backed securities: U.S. government agencies 7,300 7,300 U.S. government-sponsored enterprises 116,333 116,333 Common equity securities 299 299 Loan held for sale 270 270 Interest rate floor-other assets 1,966 1,966 Interest rate swap-other assets 14,679 14,679 Interest rate swap-other liabilities (14,762) (14,762) Total $ 305,336 $ 22,420 $ 282,916 $ Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 24,128 $ 24,128 $ U.S. government-sponsored enterprises 87,110 $ 87,110 State and municipals: Taxable 34,898 34,898 Tax-exempt 60,163 60,163 Mortgage-backed securities: U.S. government agencies 8,470 8,470 U.S. government-sponsored enterprises 115,709 115,709 Common equity securities 423 423 Loan held for sale 986 986 Interest rate floor-other assets 944 944 Interest rate swap-other assets 4,728 4,728 Interest rate swap-other liabilities (4,680) (4,680) Total $ 332,879 $ 24,551 $ 308,328 $ |
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, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,699 $ 2,699 Other real estate owned $ 550 $ 550 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2019 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 1,808 $ 1,808 Other real estate owned $ 283 $ 283 |
Schedule of 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, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,699 Appraisal of collateral Appraisal adjustments 11.7% to 97.0% (62.5)% Liquidation expenses 3.0% to 6.0% (5.7)% Other real estate owned $ 550 Appraisal of collateral Appraisal adjustments 18.4% to 63.5% (40.3)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2019 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 1,808 Appraisal of collateral Appraisal adjustments 8.6% to 97.0% (54.4)% Liquidation expenses 3.0% to 6.0% (5.2)% Other real estate owned $ 283 Appraisal of collateral Appraisal adjustments 20.0% to 63.6% (43.7)% Liquidation expenses 3.0% to 6.0% (5.0)% |
Schedule of 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, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 35,327 $ 35,327 $ 35,327 Investment securities: Available-for-sale 302,884 302,884 22,121 $ 280,763 Common equity securities 299 299 299 Held-to-maturity 7,520 7,687 7,687 Loans held for sale 270 270 270 Net loans 1,997,469 1,963,402 $ 1,963,402 Accrued interest receivable 7,283 7,283 7,283 Mortgage servicing rights 741 1,299 1,299 Restricted equity securities (FHLB and other) 10,684 10,684 10,684 Interest rate floor 1,966 1,966 1,966 Interest rate swaps 14,679 14,679 14,679 Total $ 2,379,122 $ 2,345,780 Financial liabilities: Deposits $ 2,009,995 $ 2,014,166 $ 2,014,166 Long-term debt 32,250 32,864 32,864 Accrued interest payable 1,336 1,336 1,336 Interest rate swaps 14,762 14,762 14,762 Total $ 2,058,343 $ 2,063,128 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2019 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and cash equivalents $ 31,153 $ 31,153 $ 31,153 Investment securities: Available-for-sale 330,478 330,478 24,128 $ 306,350 Common equity securities 423 423 423 Held-to-maturity 7,656 7,889 7,889 Loans held for sale 986 986 986 Net loans 1,915,563 1,881,658 $ 1,881,658 Accrued interest receivable 6,981 6,981 6,981 Mortgage servicing rights 738 1,444 1,444 Restricted equity securities (FHLB and other) 10,201 10,201 10,201 Interest rate floor 944 944 944 Interest rate swaps 4,728 4,728 4,728 Total $ 2,309,851 $ 2,276,885 Financial liabilities: Deposits $ 1,971,489 $ 1,972,084 $ 1,972,084 Short-term borrowings Long-term debt 32,733 33,075 33,075 Accrued interest payable 1,277 1,277 1,277 Interest rate swaps 4,680 4,680 4,680 Total $ 2,010,179 $ 2,011,116 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Employee benefit plans | |
Schedule of components of net periodic benefit cost | Pension Benefits Three Months Ended March 31, 2020 2019 Components of net periodic pension benefit: Interest cost $ 54 $ 128 Expected return on plan assets (123) (217) Amortization of unrecognized net gain 22 45 Net periodic benefit $ (47) $ (44) |
Derivatives and hedging activ_2
Derivatives and hedging activities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivatives and hedging activities | |
Schedule of fair value of derivative financial instruments and balance sheet classification | Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2020 As of December 31, 2019 (1) As of March 31, 2020 As of December 31, 2019 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,966 Other Assets $ Total derivatives designated as hedging instruments $ 1,966 $ Derivatives not designated as hedging instruments Interest Rate Swaps $ 225,376 Other Assets $ 14,679 Other Assets $ 4,728 Other Liabilities $ 14,762 Other Liabilities $ 4,680 Total derivatives not designated as hedging instruments $ 14,679 $ 4,728 $ 14,762 $ 4,680 (1) Assets amount does not include accrued interest receivable of $65. (2) Liabilities amount does not include accrued interest payable of $65. (3) Notional amount of interest rate swaps at March 31, 2019 $79,667. |
Schedule of effect of fair value and cash flow hedge accounting on accumulated other comprehensive income | Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Loss Loss Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2020 Income March 31, 2020 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ (1,072) $ (1,104) $ 36 Interest Income $ 36 $ 52 $ (16) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Loss Recognized from Gain Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2019 Income March 31, 2019 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ 47 $ 295 $ (248) Interest Income $ (15) $ $ (15) * Amounts disclosed are gross and not net of taxes. |
Schedule of effect of derivative financial instruments on Income Statement | Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2020 2019 Interest Income Interest Income Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ 36 $ (15) The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 36 $ (15) Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component 52 Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (15) |
Schedule of gain (loss) on derivative instruments not designated as hedging instruments | Amount of Loss Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Three Months Ended Three Months Ended Derivatives Not Designated as Hedging Instruments Derivative March 31, 2020 March 31, 2019 Interest Rate Swaps Other non-interest income $ (131) $ (110) Fee Income Other income / (expense) $ 601 $ 391 |
Schedule of offsetting derivatives | Offsetting of Derivative Assets as of March 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 16,645 $ $ 16,645 $ $ 16,645 Offsetting of Derivative Liabilities as of March 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 14,762 $ $ 14,762 $ $ 14,762 Offsetting of Derivative Assets as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 5,672 $ $ 5,672 $ $ 5,672 Offsetting of Derivative Liabilities as of December 31, 2019 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 4,680 $ $ 4,680 $ $ 4,680 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits. | |
Summary of major components of interest-bearing and noninterest-bearing deposits | At the period end March 31, 2020 December 31, 2019 Interest-bearing deposits: Money market accounts $ 360,881 $ 365,463 Now accounts 408,994 402,999 Savings accounts 379,252 370,270 Time deposits less than $250 281,552 231,450 Time deposits $250 or more 112,001 138,069 Total interest-bearing deposits 1,542,680 1,508,251 Noninterest-bearing deposits 467,315 463,238 Total deposits $ 2,009,995 $ 1,971,489 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Short-term borrowings | |
Summary of short-term borrowings | For the three months ended March 31, 2020 Weighted Ending Maximum Weighted Average Balance Average Month-End Average Rate at at March 31, 2020 Balance Balance Rate March 31,2020 FHLB advances $ 164,150 $ 142,121 $ 164,150 1.62 % 0.62 % At and for the year ended December 31, 2019 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 152,150 $ 62,941 $ 152,150 2.61 % 1.84 % |
Schedule of long-term debt consisting of advances | Interest Rate Due Fixed March 31, 2020 December 31, 2019 June 2020 1.74 % $ 5,000 $ 5,000 June 2020 2.22 6,000 6,000 December 2020 1.84 5,000 5,000 June 2021 1.99 10,000 10,000 March 2023 4.69 6,250 6,733 $ 32,250 $ 32,733 |
Schedule of maturities of long-term debt | 2020 $ 17,480 2021 12,058 2022 2,157 2023 555 $ 32,250 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||||
May 06, 2020USD ($)item | Apr. 17, 2020USD ($)item | May 06, 2020USD ($)customer | Mar. 31, 2020USD ($)Office | Mar. 31, 2019USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Number of full-service community banking offices | Office | 29 | ||||||
Commercial loan and commercial real estate portfolio deemed non-life sustaining | $ 1,200,000 | ||||||
Commercial loan and commercial real estate portfolio deemed non-life systaining percentage | 73.00% | ||||||
Provision for loan losses | $ 3,500 | $ 1,050 | |||||
Loan receivable balances where payment deferrals were granted | $ 313,600 | $ 313,600 | |||||
PPP loan applications number | item | 455 | 836 | |||||
PPP total loan amount | $ 24,000 | $ 177,900 | 24,000 | ||||
PPP average loan amount | 53 | $ 213 | $ 53 | ||||
Goodwill | $ 63,370 | $ 63,400 | $ 63,370 | ||||
Commercial Real Estate | |||||||
Maximum loan receivable deferred period | 4 months | ||||||
Number of business loans with payment deferrals granted | customer | 390 | ||||||
Consumer Loan | |||||||
Maximum loan receivable deferred period | 6 months | ||||||
Number of business loans with payment deferrals granted | customer | 451 | ||||||
Forecast | |||||||
SBA processing fees | $ 6,600 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss) | ||
Net unrealized gain on investment securities available-for-sale | $ 9,197 | $ 1,835 |
Income tax | 1,932 | 385 |
Net of income taxes | 7,265 | 1,450 |
Benefit plan adjustments | (6,579) | (6,579) |
Income tax | 1,382 | 1,382 |
Net of income taxes | (5,197) | (5,197) |
Derivative adjustment | 1,723 | 687 |
Income tax | 363 | 144 |
Net of income taxes | 1,360 | 543 |
Accumulated other comprehensive income (loss) | $ 3,428 | $ (3,205) |
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, 2020 | Mar. 31, 2019 | |
Earnings per share | ||
Net income, Basic | $ 5,281 | $ 6,412 |
Average common shares outstanding, Basic | 7,379,438 | 7,399,054 |
Earnings per share, Basic | $ 0.72 | $ 0.87 |
Net income, Diluted | $ 5,281 | $ 6,412 |
Average common shares outstanding, Diluted | 7,406,291 | 7,408,536 |
Earnings per share, Diluted | $ 0.71 | $ 0.87 |
Investment securities - Amortiz
Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) $ in Thousands | Mar. 31, 2020USD ($)company | Dec. 31, 2019USD ($) |
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | $ 293,687 | $ 328,643 |
Available-for-sale, Gross Unrealized Gains | 9,539 | 2,988 |
Available-for-sale, Gross Unrealized Losses | 342 | 1,153 |
Available-for-sale, Fair Value | 302,884 | 330,478 |
Held-to-maturity, Amortized Cost | 7,520 | 7,656 |
Held-to-maturity, Gross Unrealized Gains | 183 | 233 |
Held-to-maturity, Gross Unrealized Losses | 16 | |
Held-to-maturity, Fair value | 7,687 | 7,889 |
Equity investments carried at fair value | $ 299 | 423 |
Number of equity securities portfolio consisting of stock of other financial institutions | company | 2 | |
Fair value of equity portfolio in excess of cost basis | $ 22 | |
Mortgage-backed Securities, U.S. government agencies | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 7,125 | 8,368 |
Available-for-sale, Gross Unrealized Gains | 178 | 112 |
Available-for-sale, Gross Unrealized Losses | 3 | 10 |
Available-for-sale, Fair Value | 7,300 | 8,470 |
Held-to-maturity, Amortized Cost | 28 | 31 |
Held-to-maturity, Fair value | 28 | 31 |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 98,880 | 101,914 |
Available-for-sale, Gross Unrealized Gains | 4,143 | 1,011 |
Available-for-sale, Gross Unrealized Losses | 3 | 77 |
Available-for-sale, Fair Value | 103,020 | 102,848 |
Held-to-maturity, Amortized Cost | 641 | 773 |
Held-to-maturity, Gross Unrealized Gains | 30 | 25 |
Held-to-maturity, Gross Unrealized Losses | 1 | |
Held-to-maturity, Fair value | 670 | 798 |
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 12,675 | 12,694 |
Available-for-sale, Gross Unrealized Gains | 638 | 171 |
Available-for-sale, Gross Unrealized Losses | 4 | |
Available-for-sale, Fair Value | 13,313 | 12,861 |
U.S. government-sponsored enterprises state and municipals | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 83,028 | 87,156 |
Available-for-sale, Gross Unrealized Gains | 1,562 | 181 |
Available-for-sale, Gross Unrealized Losses | 227 | |
Available-for-sale, Fair Value | 84,590 | 87,110 |
U.S. Treasuries | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 21,471 | 23,966 |
Available-for-sale, Gross Unrealized Gains | 650 | 162 |
Available-for-sale, Fair Value | 22,121 | 24,128 |
Common equity securities. | ||
Schedule of Trading Securities and Other Trading Assets | ||
Equity investments carried at fair value | 299 | 423 |
State and Municipals, Taxable | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 32,116 | 35,418 |
Available-for-sale, Gross Unrealized Gains | 772 | 295 |
Available-for-sale, Gross Unrealized Losses | 328 | 815 |
Available-for-sale, Fair Value | 32,560 | 34,898 |
State and Municipals, Tax-exempt | ||
Schedule of Trading Securities and Other Trading Assets | ||
Available-for-sale, Amortized Cost | 38,392 | 59,127 |
Available-for-sale, Gross Unrealized Gains | 1,596 | 1,056 |
Available-for-sale, Gross Unrealized Losses | 8 | 20 |
Available-for-sale, Fair Value | 39,980 | 60,163 |
Held-to-maturity, Amortized Cost | 6,851 | 6,852 |
Held-to-maturity, Gross Unrealized Gains | 153 | 208 |
Held-to-maturity, Gross Unrealized Losses | 15 | |
Held-to-maturity, Fair value | $ 6,989 | $ 7,060 |
Investment securities - Unreali
Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investment securities | ||
Net (loss) gains recognized during the period on equity securities | $ (123) | $ 1 |
Unrealized (loss) gain recognized during the reporting period on equity securities still held at the reporting date | $ (123) | $ 1 |
Investment securities - Restric
Investment securities - Restricted Investment In Stock (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)security | Mar. 31, 2019USD ($) | |
Available-for-sale and Held-to-maturity securities | ||
Proceeds from sales of investment securities available-for-sale | $ | $ 26,502 | |
Number of securities in continuous unrealized loss position | 24 | |
Other-than-temporary impairments recognized | $ | $ 0 | |
State and Municipals, Tax-exempt | ||
Available-for-sale and Held-to-maturity securities | ||
Number of securities in continuous unrealized loss position | 5 | |
State and Municipals, Taxable | ||
Available-for-sale and Held-to-maturity securities | ||
Number of securities in continuous unrealized loss position | 8 | |
U.S. government-sponsored enterprises state and municipals | ||
Available-for-sale and Held-to-maturity securities | ||
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 securities in continuous unrealized loss position | 11 | |
Number of securities in continuous unrealized loss positions 12 months or longer | 10 |
Investment securities - Maturit
Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investment securities | ||
Within one year | $ 37,800 | |
After one but within five years | 79,696 | |
After five but within ten years | 18,995 | |
After ten years | 39,313 | |
Available for sale securities | 175,804 | |
Mortgage-backed securities | 127,080 | |
Total | $ 302,884 | $ 330,478 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost of Held-to-maturity Securities | ||
Amortized Cost, After ten years, Held to maturity | $ 6,851 | |
Amortized Cost, Held to maturity | 6,851 | |
Amortized Cost, Mortgage-backed securities, Held to maturity | 669 | |
Held-to-maturity, Amortized Cost | 7,520 | $ 7,656 |
Fair Value of Held-to-maturity Securities | ||
Fair Value, After ten years, Held to maturity | 6,989 | |
Fair Value, Held to maturity | 6,989 | |
Fair Value, Mortgage-backed securities, Held to maturity | 698 | |
Held to maturity, Fair Value | $ 7,687 | $ 7,889 |
Investment securities - Pledged
Investment securities - Pledged Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale and Held-to-maturity securities | ||
Carrying value of securities pledged | us-gaap:AssetPledgedAsCollateralMember | us-gaap:AssetPledgedAsCollateralMember |
Collateral Pledged | ||
Available-for-sale and Held-to-maturity securities | ||
Carrying value of securities pledged | $ 133,308 | $ 157,047 |
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, 2020 | Dec. 31, 2019 |
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | $ 11,803 | $ 78,239 |
12 Months or More, Fair Value | 1,880 | 43,281 |
Less Than 12 Months, Unrealized Losses | 352 | 1,035 |
12 Months or More, Unrealized Losses | 6 | 118 |
Total, Fair Value | 13,683 | 121,520 |
Total, Unrealized Losses | 358 | 1,153 |
State and Municipals, Taxable | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 8,632 | 23,929 |
Less Than 12 Months, Unrealized Losses | 328 | 815 |
Total, Fair Value | 8,632 | 23,929 |
Total, Unrealized Losses | 328 | 815 |
State and Municipals, Tax-exempt | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 3,149 | 2,684 |
12 Months or More, Fair Value | 1,098 | |
Less Than 12 Months, Unrealized Losses | 23 | 19 |
12 Months or More, Unrealized Losses | 1 | |
Total, Fair Value | 3,149 | 3,782 |
Total, Unrealized Losses | 23 | 20 |
U.S. government-sponsored enterprises state and municipals | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 13,695 | |
12 Months or More, Fair Value | 36,070 | |
Less Than 12 Months, Unrealized Losses | 149 | |
12 Months or More, Unrealized Losses | 78 | |
Total, Fair Value | 49,765 | |
Total, Unrealized Losses | 227 | |
Mortgage-backed Securities, U.S. government agencies | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 992 | |
12 Months or More, Fair Value | 1,133 | 2,362 |
Less Than 12 Months, Unrealized Losses | 1 | |
12 Months or More, Unrealized Losses | 3 | 9 |
Total, Fair Value | 1,133 | 3,354 |
Total, Unrealized Losses | 3 | 10 |
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 22 | |
12 Months or More, Fair Value | 747 | |
Less Than 12 Months, Unrealized Losses | 1 | |
12 Months or More, Unrealized Losses | 3 | |
Total, Fair Value | 769 | |
Total, Unrealized Losses | $ 4 | |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 36,939 | |
12 Months or More, Fair Value | 3,751 | |
Less Than 12 Months, Unrealized Losses | 51 | |
12 Months or More, Unrealized Losses | 30 | |
Total, Fair Value | 40,690 | |
Total, Unrealized Losses | $ 81 |
Investment securities - Additio
Investment securities - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)shares | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019USD ($) | |
Value of common stock | $ 14,670 | $ 14,777 | ||
Visa Class A stock | ||||
Conversion ratio of common stock | 1.6228 | |||
Visa Class B stock | ||||
Shares held | shares | 44,982 | |||
Value of common stock | $ 0 | 0 | ||
Federal Home Loan Bank of Pittsburgh (FHLB) | ||||
Value of common stock | 10,642 | 10,159 | ||
Atlantic Community Bankers Bank (ACBB) | ||||
Value of common stock | $ 42 | $ 42 | ||
U.S. government-sponsored enterprises state and municipals | ||||
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer | 10.00% | 10.00% |
Loans, net and allowance for _3
Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Loans, net and allowance for loan losses | ||
Net deferred loan costs | $ 869 | $ 908 |
Loans, net and allowance for _4
Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 2,023,155 | $ 1,938,240 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 537,949 | 522,957 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,082,124 | 1,011,423 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 307,215 | 301,378 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 95,867 | $ 102,482 |
Loans, net and allowance for _5
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, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 22,677 | $ 21,379 | ||
Charge-offs | (798) | (374) | ||
Recoveries | 307 | 50 | ||
Provisions | 3,500 | 1,050 | ||
Ending balance | 25,686 | 22,105 | ||
Beginning Balance | 22,677 | 21,379 | ||
Ending balance: individually evaluated for impairment | $ 1,226 | $ 777 | ||
Charge-offs | (798) | (374) | ||
Ending balance: collectively evaluated for impairment | 24,460 | 21,900 | ||
Recoveries | 307 | 50 | ||
Ending balance: loans acquired with deteriorated credit quality | 25,686 | 22,105 | 25,686 | 22,677 |
Provisions | 3,500 | 1,050 | ||
Allowance for credit losses increase (decrease) | $ 3,000 | |||
Allowance for credit losses increase (decrease) percentage | 13.30% | |||
Loans receivable: | ||||
Total Loans | 2,023,155 | 1,938,240 | ||
Ending balance: individually evaluated for impairment | 11,224 | 10,120 | ||
Ending balance: collectively evaluated for impairment | 2,011,931 | 1,928,120 | ||
Total Loans | 2,023,155 | 1,938,240 | ||
Ending balance | $ 25,686 | 22,105 | ||
Ending balance: individually evaluated for impairment | 11,224 | 10,120 | ||
Ending balance: collectively evaluated for impairment | 2,011,931 | 1,928,120 | ||
Commercial | ||||
Allowance for loan losses: | ||||
Beginning Balance | 6,888 | 5,516 | ||
Charge-offs | (650) | (77) | ||
Recoveries | 267 | 8 | ||
Provisions | 1,464 | 508 | ||
Ending balance | 7,969 | 5,955 | ||
Beginning Balance | 6,888 | 5,516 | ||
Ending balance: individually evaluated for impairment | 764 | 363 | ||
Charge-offs | (650) | (77) | ||
Ending balance: collectively evaluated for impairment | 7,205 | 6,525 | ||
Recoveries | 267 | 8 | ||
Ending balance: loans acquired with deteriorated credit quality | 7,969 | 5,955 | 7,969 | 6,888 |
Provisions | 1,464 | 508 | ||
Loans receivable: | ||||
Total Loans | 537,949 | 522,957 | ||
Ending balance: individually evaluated for impairment | 5,662 | 4,658 | ||
Ending balance: collectively evaluated for impairment | 532,287 | 518,299 | ||
Total Loans | 537,949 | 522,957 | ||
Ending balance | 7,969 | 5,955 | ||
Ending balance: individually evaluated for impairment | 5,662 | 4,658 | ||
Ending balance: collectively evaluated for impairment | 532,287 | 518,299 | ||
Real estate Commercial | ||||
Allowance for loan losses: | ||||
Beginning Balance | 11,496 | 10,736 | ||
Charge-offs | (6) | |||
Provisions | 1,511 | 344 | ||
Ending balance | 13,007 | 11,074 | ||
Beginning Balance | 11,496 | 10,736 | ||
Ending balance: individually evaluated for impairment | 270 | 279 | ||
Charge-offs | (6) | |||
Ending balance: collectively evaluated for impairment | 12,737 | 11,217 | ||
Ending balance: loans acquired with deteriorated credit quality | 13,007 | 11,074 | 13,007 | 11,496 |
Provisions | 1,511 | 344 | ||
Loans receivable: | ||||
Total Loans | 1,082,124 | 1,011,423 | ||
Ending balance: individually evaluated for impairment | 3,526 | 3,048 | ||
Ending balance: collectively evaluated for impairment | 1,078,598 | 1,008,375 | ||
Total Loans | 1,082,124 | 1,011,423 | ||
Ending balance | 13,007 | 11,074 | ||
Ending balance: individually evaluated for impairment | 3,526 | 3,048 | ||
Ending balance: collectively evaluated for impairment | 1,078,598 | 1,008,375 | ||
Real estate Residential | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,226 | 3,892 | ||
Charge-offs | (54) | (159) | ||
Recoveries | 10 | 4 | ||
Provisions | 442 | 143 | ||
Ending balance | 3,624 | 3,880 | ||
Beginning Balance | 3,226 | 3,892 | ||
Ending balance: individually evaluated for impairment | 192 | 135 | ||
Charge-offs | (54) | (159) | ||
Ending balance: collectively evaluated for impairment | 3,432 | 3,091 | ||
Recoveries | 10 | 4 | ||
Ending balance: loans acquired with deteriorated credit quality | 3,624 | 3,880 | 3,624 | 3,226 |
Provisions | 442 | 143 | ||
Loans receivable: | ||||
Total Loans | 307,215 | 301,378 | ||
Ending balance: individually evaluated for impairment | 1,835 | 2,153 | ||
Ending balance: collectively evaluated for impairment | 305,380 | 299,225 | ||
Total Loans | 307,215 | 301,378 | ||
Ending balance | 3,624 | 3,880 | ||
Ending balance: individually evaluated for impairment | 1,835 | 2,153 | ||
Ending balance: collectively evaluated for impairment | 305,380 | 299,225 | ||
Real estate Residential | ||||
Loans receivable: | ||||
Total Loans | 307,215 | 301,378 | ||
Total Loans | 307,215 | 301,378 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,067 | 1,235 | ||
Charge-offs | (94) | (132) | ||
Recoveries | 30 | 38 | ||
Provisions | 83 | 55 | ||
Ending balance | 1,086 | 1,196 | ||
Beginning Balance | 1,067 | 1,235 | ||
Charge-offs | (94) | (132) | ||
Ending balance: collectively evaluated for impairment | 1,086 | 1,067 | ||
Recoveries | 30 | 38 | ||
Ending balance: loans acquired with deteriorated credit quality | 1,086 | 1,196 | 1,086 | 1,067 |
Provisions | 83 | 55 | ||
Loans receivable: | ||||
Total Loans | 95,867 | 102,482 | ||
Ending balance: individually evaluated for impairment | 201 | 261 | ||
Ending balance: collectively evaluated for impairment | 95,666 | 102,221 | ||
Total Loans | 95,867 | 102,482 | ||
Ending balance | $ 1,086 | $ 1,196 | ||
Ending balance: individually evaluated for impairment | 201 | 261 | ||
Ending balance: collectively evaluated for impairment | $ 95,666 | $ 102,221 |
Loans, net and allowance for _6
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, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for loan losses: | ||||
Ending balance | $ 25,686 | $ 22,677 | $ 22,105 | $ 21,379 |
Ending balance: individually evaluated for impairment | 1,226 | 777 | ||
Ending balance: collectively evaluated for impairment | 24,460 | 21,900 | ||
Loans receivable: | ||||
Ending balance | 2,023,155 | 1,938,240 | ||
Ending balance: individually evaluated for impairment | 11,224 | 10,120 | ||
Ending balance: collectively evaluated for impairment | 2,011,931 | 1,928,120 | ||
Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 7,969 | 6,888 | 5,955 | 5,516 |
Ending balance: individually evaluated for impairment | 764 | 363 | ||
Ending balance: collectively evaluated for impairment | 7,205 | 6,525 | ||
Loans receivable: | ||||
Ending balance | 537,949 | 522,957 | ||
Ending balance: individually evaluated for impairment | 5,662 | 4,658 | ||
Ending balance: collectively evaluated for impairment | 532,287 | 518,299 | ||
Real estate Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 13,007 | 11,496 | 11,074 | 10,736 |
Ending balance: individually evaluated for impairment | 270 | 279 | ||
Ending balance: collectively evaluated for impairment | 12,737 | 11,217 | ||
Loans receivable: | ||||
Ending balance | 1,082,124 | 1,011,423 | ||
Ending balance: individually evaluated for impairment | 3,526 | 3,048 | ||
Ending balance: collectively evaluated for impairment | 1,078,598 | 1,008,375 | ||
Real estate Residential | ||||
Allowance for loan losses: | ||||
Ending balance | 3,624 | 3,226 | 3,880 | 3,892 |
Ending balance: individually evaluated for impairment | 192 | 135 | ||
Ending balance: collectively evaluated for impairment | 3,432 | 3,091 | ||
Loans receivable: | ||||
Ending balance | 307,215 | 301,378 | ||
Ending balance: individually evaluated for impairment | 1,835 | 2,153 | ||
Ending balance: collectively evaluated for impairment | 305,380 | 299,225 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Ending balance | 1,086 | 1,067 | $ 1,196 | $ 1,235 |
Ending balance: collectively evaluated for impairment | 1,086 | 1,067 | ||
Loans receivable: | ||||
Ending balance | 95,867 | 102,482 | ||
Ending balance: individually evaluated for impairment | 201 | 261 | ||
Ending balance: collectively evaluated for impairment | $ 95,666 | $ 102,221 |
Loans, net and allowance for _7
Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 2,023,155 | $ 1,938,240 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 537,949 | 522,957 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,082,124 | 1,011,423 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 307,215 | 301,378 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 307,215 | 301,378 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 95,867 | 102,482 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,996,018 | 1,908,233 |
Pass | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 528,747 | 513,994 |
Pass | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,067,426 | 993,645 |
Pass | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 304,238 | 298,449 |
Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 95,607 | 102,145 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 8,932 | 6,942 |
Special Mention | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,776 | 3,837 |
Special Mention | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 5,156 | 2,508 |
Special Mention | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 597 | |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 18,205 | 23,065 |
Substandard | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 5,426 | 5,126 |
Substandard | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 9,542 | 15,270 |
Substandard | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,977 | 2,332 |
Substandard | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 260 | $ 337 |
Loans, net and allowance for _8
Loans, net and allowance for loan losses - Reclassification of Commercial Credits Category (Details) - Real estate Commercial $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Pass | |
Accounts, Notes, Loans and Financing Receivable | |
Change in category | $ 1.1 |
Special Mention | |
Accounts, Notes, Loans and Financing Receivable | |
Change in category | 3.8 |
Substandard | |
Accounts, Notes, Loans and Financing Receivable | |
Change in category due to construction delays | $ 5.1 |
Loans, net and allowance for _9
Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 8,675 | $ 7,510 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 4,373 | 3,336 |
Real estate Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 3,258 | 2,765 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 843 | 1,148 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 201 | $ 261 |
Loans, net and allowance for_10
Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 17,200 | $ 12,801 |
Current | 2,005,955 | 1,925,439 |
Total Loans | 2,023,155 | 1,938,240 |
Loans > 90 Days and Accruing | 423 | 378 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 7,501 | 3,688 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 601 | 1,525 |
Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 9,098 | 7,588 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 4,580 | 3,111 |
Current | 533,369 | 519,846 |
Total Loans | 537,949 | 522,957 |
Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 196 | 75 |
Commercial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 11 | |
Commercial | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 4,373 | 3,036 |
Real estate Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 6,306 | 3,866 |
Current | 1,075,818 | 1,007,557 |
Total Loans | 1,082,124 | 1,011,423 |
Real estate Commercial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 2,861 | 926 |
Real estate Commercial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 187 | 175 |
Real estate Commercial | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 3,258 | 2,765 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Loans | 307,215 | 301,378 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 5,446 | 4,917 |
Current | 301,769 | 296,461 |
Total Loans | 307,215 | 301,378 |
Loans > 90 Days and Accruing | 423 | 378 |
Real estate Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 3,924 | 2,164 |
Real estate Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 256 | 1,227 |
Real estate Residential | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 1,266 | 1,526 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 868 | 907 |
Current | 94,999 | 101,575 |
Total Loans | 95,867 | 102,482 |
Consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 520 | 523 |
Consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | 147 | 123 |
Consumer | Greater than 90 Days | ||
Financing Receivable, Recorded Investment, Past Due | ||
Total Past Due | $ 201 | $ 261 |
Loans, net and allowance for_11
Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | $ 7,299 | $ 9,268 | $ 7,535 |
Unpaid Principal Balance, With no related allowance, Total | 8,411 | 10,123 | 8,714 |
Average Recorded Investment, With no related allowance, Total | 7,418 | 7,461 | 7,887 |
Interest Income Recognized, With no related allowance, Total | 26 | 37 | 126 |
Recorded Investment, With an allowance recorded, Total | 3,925 | 4,412 | 2,585 |
Unpaid Principal Balance, With an allowance recorded, Total | 4,633 | 4,631 | 3,299 |
Related Allowance, With an allowance recorded, Total | 1,226 | 988 | 777 |
Average Recorded Investment, With an allowance recorded, Total | 3,256 | 4,201 | 3,490 |
Interest Income Recognized, With an allowance recorded, Total | 10 | 23 | 71 |
Recorded Investment, Total | 11,224 | 13,680 | 10,120 |
Unpaid Principal Balance, Total | 13,044 | 14,754 | 12,013 |
Related Allowance, With an allowance recorded, Total | 1,226 | 988 | 777 |
Average Recorded Investment, Total | 10,674 | 11,662 | 11,377 |
Interest Income Recognized, Total | 36 | 60 | 197 |
Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 3,706 | 6,072 | 3,638 |
Unpaid Principal Balance, With no related allowance, Total | 4,249 | 6,407 | 4,175 |
Average Recorded Investment, With no related allowance, Total | 3,672 | 3,817 | 3,907 |
Interest Income Recognized, With no related allowance, Total | 16 | 17 | 63 |
Recorded Investment, With an allowance recorded, Total | 1,956 | 940 | 1,020 |
Unpaid Principal Balance, With an allowance recorded, Total | 1,974 | 990 | 1,038 |
Related Allowance, With an allowance recorded, Total | 764 | 138 | 363 |
Average Recorded Investment, With an allowance recorded, Total | 1,488 | 808 | 1,012 |
Interest Income Recognized, With an allowance recorded, Total | 6 | 7 | 32 |
Recorded Investment, Total | 5,662 | 7,012 | 4,658 |
Unpaid Principal Balance, Total | 6,223 | 7,397 | 5,213 |
Related Allowance, With an allowance recorded, Total | 764 | 138 | 363 |
Average Recorded Investment, Total | 5,160 | 4,625 | 4,919 |
Interest Income Recognized, Total | 22 | 24 | 95 |
Real estate Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 2,263 | 2,098 | 1,918 |
Unpaid Principal Balance, With no related allowance, Total | 2,574 | 2,184 | 2,205 |
Average Recorded Investment, With no related allowance, Total | 2,091 | 2,034 | 2,385 |
Interest Income Recognized, With no related allowance, Total | 5 | 13 | 38 |
Recorded Investment, With an allowance recorded, Total | 1,263 | 1,437 | 1,130 |
Unpaid Principal Balance, With an allowance recorded, Total | 1,924 | 1,563 | 1,811 |
Related Allowance, With an allowance recorded, Total | 270 | 389 | 279 |
Average Recorded Investment, With an allowance recorded, Total | 1,197 | 1,295 | 1,050 |
Interest Income Recognized, With an allowance recorded, Total | 5 | 10 | |
Recorded Investment, Total | 3,526 | 3,535 | 3,048 |
Unpaid Principal Balance, Total | 4,498 | 3,747 | 4,016 |
Related Allowance, With an allowance recorded, Total | 270 | 389 | 279 |
Average Recorded Investment, Total | 3,288 | 3,329 | 3,435 |
Interest Income Recognized, Total | 5 | 18 | 48 |
Real estate Residential | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 1,129 | 860 | 1,718 |
Unpaid Principal Balance, With no related allowance, Total | 1,369 | 1,287 | 2,060 |
Average Recorded Investment, With no related allowance, Total | 1,424 | 1,415 | 1,362 |
Interest Income Recognized, With no related allowance, Total | 5 | 7 | 25 |
Recorded Investment, With an allowance recorded, Total | 706 | 2,035 | 435 |
Unpaid Principal Balance, With an allowance recorded, Total | 735 | 2,078 | 450 |
Related Allowance, With an allowance recorded, Total | 192 | 461 | 135 |
Average Recorded Investment, With an allowance recorded, Total | 571 | 2,068 | 1,408 |
Interest Income Recognized, With an allowance recorded, Total | 4 | 11 | 29 |
Recorded Investment, Total | 1,835 | 2,895 | 2,153 |
Unpaid Principal Balance, Total | 2,104 | 3,365 | 2,510 |
Related Allowance, With an allowance recorded, Total | 192 | 461 | 135 |
Average Recorded Investment, Total | 1,995 | 3,483 | 2,770 |
Interest Income Recognized, Total | 9 | 18 | 54 |
Consumer | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 201 | 238 | 261 |
Unpaid Principal Balance, With no related allowance, Total | 219 | 245 | 274 |
Average Recorded Investment, With no related allowance, Total | 231 | 195 | 233 |
Average Recorded Investment, With an allowance recorded, Total | 30 | 20 | |
Recorded Investment, Total | 201 | 238 | 261 |
Unpaid Principal Balance, Total | 219 | 245 | 274 |
Average Recorded Investment, Total | $ 231 | $ 225 | $ 253 |
Loans, net and allowance for_12
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, 2020USD ($)loansecurity | Mar. 31, 2019USD ($)security | Dec. 31, 2019USD ($) | |
Number of loans modified | loan | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ | $ 2,140 | $ 3,096 | $ 2,193 |
Number of defaults on loans modified as troubled debt restructuring | 0 | ||
Number of defaults on loans restructured | 0 | ||
Real estate Commercial | |||
Number of loans modified | 1 | ||
Recorded Investment | $ | $ 340 | ||
Real estate Residential | |||
Number of defaults on loans | 1 | ||
Recorded investment of loans with a default payment | $ | $ 52 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other real estate owned | $ 903 | $ 450 |
Investment in low income housing partnership | 6,782 | 6,901 |
Mortgage servicing rights | 741 | 738 |
Bank owned life insurance | 35,224 | 35,041 |
Restricted equity securities (FHLB and other) | 10,684 | 10,201 |
Net deferred tax asset | 1,598 | 3,362 |
Interest rate floor and swaps | 16,645 | 5,672 |
Other assets | 6,743 | 6,855 |
Total | 79,320 | 69,220 |
Interest Rate Floor | ||
Interest rate floor and swaps | 1,966 | 944 |
Interest Rate Swaps | ||
Interest rate floor and swaps | $ 14,679 | $ 4,728 |
Fair value estimates - Transfer
Fair value estimates - Transfers Between Levels (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Fair value of financial instruments | ||
Fair value of assets transfers from level 1 to level 2 | $ 0 | $ 0 |
Fair value of assets transfers from level 2 to level 1 | 0 | 0 |
Fair value of liabilities transfers from level 1 to level 2 | 0 | 0 |
Fair value of liabilities transfers from level 2 to level 1 | 0 | 0 |
Fair value of assets transfers into level 3 | 0 | 0 |
Fair value of assets transfers out of level 3 | 0 | 0 |
Fair value of liabilities transfers into level 3 | 0 | 0 |
Fair value of liabilities transfers out of level 3 | $ 0 | $ 0 |
Fair value estimates - Schedule
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | $ 305,336 | $ 332,879 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 22,121 | 24,128 |
U.S. government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 84,590 | 87,110 |
State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 32,560 | 34,898 |
State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 39,980 | 60,163 |
Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 7,300 | 8,470 |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 116,333 | 115,709 |
Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 299 | 423 |
Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,966 | 944 |
Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 14,679 | 4,728 |
Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | (14,762) | (4,680) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 22,420 | 24,551 |
Level 1 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 22,121 | 24,128 |
Level 1 | Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 299 | 423 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 282,916 | 308,328 |
Level 2 | U.S. government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 84,590 | 87,110 |
Level 2 | State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 32,560 | 34,898 |
Level 2 | State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 39,980 | 60,163 |
Level 2 | Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 7,300 | 8,470 |
Level 2 | Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 116,333 | 115,709 |
Level 2 | Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,966 | 944 |
Level 2 | Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 14,679 | 4,728 |
Level 2 | Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | $ (14,762) | $ (4,680) |
Fair value estimates - Schedu_2
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 2,699 | $ 1,808 |
Other real estate owned | 550 | 283 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 2,699 | 1,808 |
Other real estate owned | $ 550 | $ 283 |
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, 2020 | Dec. 31, 2019 |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 550 | $ 283 |
Range and weighted average of appraisal adjustments | 40.30% | 43.70% |
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 | 18.40% | 20.00% |
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 | 63.50% | 63.60% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 2,699 | $ 1,808 |
Range and weighted average of appraisal adjustments | 62.50% | 54.40% |
Range and weighted average of liquidation expenses | 5.70% | 5.20% |
Impaired loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 11.70% | 8.60% |
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, 2020 | Dec. 31, 2019 |
Investment securities: | ||
Available-for-sale | $ 302,884 | $ 330,478 |
Common equity securities | 299 | 423 |
Held-to-maturity | 7,687 | 7,889 |
Loans held for sale | 270 | 986 |
Mortgage servicing rights | 741 | 738 |
Other assets | 79,320 | 69,220 |
Carrying Value | ||
Financial assets: | ||
Cash and cash equivalents | 35,327 | 31,153 |
Investment securities: | ||
Available-for-sale | 302,884 | 330,478 |
Common equity securities | 299 | 423 |
Held-to-maturity | 7,520 | 7,656 |
Loans held for sale | 270 | 986 |
Net loans | 1,997,469 | 1,915,563 |
Accrued interest receivable | 7,283 | 6,981 |
Mortgage servicing rights | 741 | 738 |
Restricted equity securities (FHLB and other) | 10,684 | 10,201 |
Interest rate floor | 1,966 | 944 |
Interest rate swaps | 14,679 | 4,728 |
Total assets | 2,379,122 | 2,309,851 |
Financial liabilities: | ||
Deposits | 2,009,995 | 1,971,489 |
Long-term debt | 32,250 | 32,733 |
Accrued interest payable | 1,336 | 1,277 |
Interest rate swap | 14,762 | 4,680 |
Total liabilities | 2,058,343 | 2,010,179 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 35,327 | 31,153 |
Investment securities: | ||
Available-for-sale | 302,884 | 330,478 |
Common equity securities | 299 | 423 |
Held-to-maturity | 7,687 | 7,889 |
Loans held for sale | 270 | 986 |
Net loans | 1,963,402 | 1,881,658 |
Accrued interest receivable | 7,283 | 6,981 |
Mortgage servicing rights | 1,299 | 1,444 |
Restricted equity securities (FHLB and other) | 10,684 | 10,201 |
Interest rate floor | 1,966 | 944 |
Interest rate swaps | 14,679 | 4,728 |
Total assets | 2,345,780 | 2,276,885 |
Financial liabilities: | ||
Deposits | 2,014,166 | 1,972,084 |
Long-term debt | 32,864 | 33,075 |
Accrued interest payable | 1,336 | 1,277 |
Interest rate swap | 14,762 | 4,680 |
Total liabilities | 2,063,128 | 2,011,116 |
Level 1 | ||
Financial assets: | ||
Cash and cash equivalents | 35,327 | 31,153 |
Investment securities: | ||
Available-for-sale | 22,121 | 24,128 |
Common equity securities | 299 | 423 |
Level 2 | ||
Investment securities: | ||
Available-for-sale | 280,763 | 306,350 |
Held-to-maturity | 7,687 | 7,889 |
Loans held for sale | 270 | 986 |
Accrued interest receivable | 7,283 | 6,981 |
Mortgage servicing rights | 1,299 | 1,444 |
Restricted equity securities (FHLB and other) | 10,684 | 10,201 |
Interest rate floor | 1,966 | 944 |
Interest rate swaps | 14,679 | 4,728 |
Financial liabilities: | ||
Deposits | 2,014,166 | 1,972,084 |
Long-term debt | 32,864 | 33,075 |
Accrued interest payable | 1,336 | 1,277 |
Interest rate swap | 14,762 | 4,680 |
Level 3 | ||
Investment securities: | ||
Net loans | $ 1,963,402 | $ 1,881,658 |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net periodic pension benefit: | ||
Labor and Related Expense | $ 7,856 | $ 7,595 |
Pension Benefits | ||
Net periodic pension benefit: | ||
Labor and Related Expense | 306 | 340 |
Interest cost | 54 | 128 |
Expected return on plan assets | (123) | (217) |
Amortization of unrecognized net gain | 22 | 45 |
Net periodic benefit | $ (47) | $ (44) |
Employee benefit plans - Additi
Employee benefit plans - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Salaries and employee benefits expense | $ 5 | $ 83 |
Common stock available for grant as awards | 54,506 | |
Non-Performance-based restricted stock | 2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares or units vesting period | 3 years | |
Performance-based restricted stock units | 2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
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 | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Weighted average vesting period | 2 years 7 months 6 days | |
Restricted Stock | 2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted shares | 16,854 | |
Unrecognized compensation expense | $ 861 | |
Restricted stock units (RSUs) | 2017 Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted shares | 17,345 |
Derivatives and hedging activ_3
Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020USD ($)security | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | |
Derivatives, Fair Value | ||||
Asset Derivatives | $ 16,645 | $ 5,672 | ||
Liability Derivatives | 14,762 | 4,680 | ||
Interest Receivable | 7,283 | 6,981 | ||
Interest Payable | 1,336 | 1,277 | ||
Net Amounts of Assets presented in the Balance Sheet | 14,762 | 4,680 | ||
Interest income | ||||
Derivatives, Fair Value | ||||
Amount of gain or (loss) reclassified as a reduction to interest income | 52 | |||
Interest Rate Floor | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 1,966 | 944 | ||
Interest Rate Swaps | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 14,679 | 4,728 | ||
Credit-risk contract | ||||
Derivatives, Fair Value | ||||
Posted collateral | 13,090 | 5,120 | ||
Net Amounts of Assets presented in the Balance Sheet | 83 | 48 | ||
Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 1,966 | 944 | ||
Derivatives designated as hedging instruments | Interest Rate Floor | ||||
Derivatives, Fair Value | ||||
Notional amount | 25 | |||
Asset Derivatives | 944 | |||
Derivatives designated as hedging instruments | Interest Rate Floor | Other Assets. | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 1,966 | |||
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Assets. | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 14,679 | 4,728 | ||
Derivatives designated as hedging instruments | Interest Rate Swaps | Other Liabilities. | ||||
Derivatives, Fair Value | ||||
Liability Derivatives | 14,762 | 4,680 | ||
Derivatives not designated as hedging instruments | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 14,679 | 4,728 | ||
Liability Derivatives | $ 14,762 | 4,680 | ||
Derivatives not designated as hedging instruments | Interest Rate Swaps | ||||
Derivatives, Fair Value | ||||
Number of instruments held | security | 44 | |||
Notional amount | $ 225,376 | $ 79,667 | ||
Interest Receivable | 65 | |||
Interest Payable | $ 65 | |||
Forecast | Cash Flow Hedge | Interest income | ||||
Derivatives, Fair Value | ||||
Amount of gain or (loss) reclassified as a reduction to interest income | $ 64 |
Derivatives and hedging activ_4
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain Recognized in OCI Included Component | $ 1,723 | $ 687 | |
Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Reclassified from Accumulated OCI into Income | 36 | $ (15) | |
Cash Flow Hedge | Interest Rate Floor | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Loss Recognized in OCI on Derivative | (1,072) | 47 | |
Amount of Gain Recognized in OCI Included Component | (1,104) | 295 | |
Amount of Gain Recognized in OCI Excluded Component | 36 | (248) | |
Amount of Loss Reclassified from Accumulated OCI into Income | 36 | (15) | |
Amount of Gain Reclassified from Accumulated OCI into Income Included Component | 52 | ||
Amount of Loss Reclassified from Accumulated OCI into Income Excluded Component | $ (16) | $ (15) |
Derivatives and hedging activ_5
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments, Gain (Loss) | ||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | $ 1,036 | $ 63 |
Interest income | ||
Derivative Instruments, Gain (Loss) | ||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | 36 | (15) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 36 | (15) |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component | 52 | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component | $ (16) | $ (15) |
Derivatives and hedging activ_6
Derivatives and hedging activities - Effect of Other Derivative Instruments on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Fee Income | Other income/(expense) | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain Recognized in Income | $ 601 | $ 391 |
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other non-interest income | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain Recognized in Income | $ (131) | $ (110) |
Derivatives and hedging activ_7
Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 16,645 | $ 5,672 |
Net Amounts of Assets presented in the Balance Sheet | 16,645 | 5,672 |
Net Amount | 16,645 | 5,672 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 14,762 | 4,680 |
Net Amounts of Assets presented in the Balance Sheet | 14,762 | 4,680 |
Net Amount | $ 14,762 | $ 4,680 |
Deposits - Components of Intere
Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Deposits. | ||
Money market accounts | $ 360,881 | $ 365,463 |
Now accounts | 408,994 | 402,999 |
Savings accounts | 379,252 | 370,270 |
Time deposits less than $250 | 281,552 | 231,450 |
Time deposits $250 or more | 112,001 | 138,069 |
Total interest-bearing deposits | 1,542,680 | 1,508,251 |
Noninterest-bearing deposits | 467,315 | 463,238 |
Total deposits | 2,009,995 | $ 1,971,489 |
Increase (decrease) in deposits | $ 38,506 | |
Increase (decrease) in deposits percentage | 7.90% | |
Increase (decrease) in deposits of accounts with balances less than $250 thousand | $ 54,108 |
Borrowings - Summary of Short-t
Borrowings - Summary of Short-term Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Short-term Debt | ||
Ending Balance | $ 164,150 | $ 152,150 |
FHLB advances | ||
Short-term Debt | ||
Ending Balance | 164,150 | 152,150 |
Average Balance | 142,121 | 62,941 |
Maximum Month-End Balance | $ 164,150 | $ 152,150 |
Weighted Average Rate for | 1.62% | 2.61% |
Weighted Average Rate at | 0.62% | 1.84% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - Peoples Bank - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Short-term Debt | ||
Maximum borrowing capacity | $ 775,458 | $ 723,608 |
Outstanding amount in borrowings | 196,400 | 184,883 |
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits | $ 155,800 | $ 185,750 |
Borrowings - Long-term debt adv
Borrowings - Long-term debt advances (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Long-term debt | $ 32,250 | $ 32,733 |
Long-term 1.74% fixed rate debt due June 2020 | ||
Debt Instrument | ||
Long-term debt | $ 5,000 | 5,000 |
Fixed interest rate (as a percent) | 1.74% | |
Long-term 2.22% fixed rate debt due June 2020 | ||
Debt Instrument | ||
Long-term debt | $ 6,000 | 6,000 |
Fixed interest rate (as a percent) | 2.22% | |
Long-term 1.84% fixed rate debt due December 2020 | ||
Debt Instrument | ||
Long-term debt | $ 5,000 | 5,000 |
Fixed interest rate (as a percent) | 1.84% | |
Long-term 1.99% fixed rate debt due June 2021 | ||
Debt Instrument | ||
Long-term debt | $ 10,000 | 10,000 |
Fixed interest rate (as a percent) | 1.99% | |
Long-term 4.69% fixed rate debt due March 2023 | ||
Debt Instrument | ||
Long-term debt | $ 6,250 | $ 6,733 |
Fixed interest rate (as a percent) | 4.69% |
Borrowings - Maturities of long
Borrowings - Maturities of long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Long-term debt. | ||
2020 | $ 17,480 | |
2021 | 12,058 | |
2022 | 2,157 | |
2023 | 555 | |
Total long-term debt | $ 32,250 | $ 32,733 |
Borrowings - Fixed and adjustab
Borrowings - Fixed and adjustable rate information (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Long-term debt. | |
Convertible Debt | $ 0 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income taxes | ||
Federal statutory rate | 11.40% | 10.60% |
Investment and other tax credits | $ 273 | $ 388 |