Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 30, 2016 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FIDELITY D & D BANCORP INC | |
Entity Central Index Key | 1,098,151 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,453,455 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets: | ||
Cash and due from banks | $ 12,672 | $ 12,259 |
Interest-bearing deposits with financial institutions | 28,419 | 18 |
Total cash and cash equivalents | 41,091 | 12,277 |
Available-for-sale securities | 128,673 | 125,232 |
Federal Home Loan Bank stock | 1,420 | 2,120 |
Loans and leases, net (allowance for loan losses of $9,384 in 2016; $9,527 in 2015) | 546,707 | 546,682 |
Loans held-for-sale (fair value $1,224 in 2016, $1,444 in 2015) | 1,202 | 1,421 |
Foreclosed assets held-for-sale | 1,766 | 1,074 |
Bank premises and equipment, net | 16,519 | 16,723 |
Cash surrender value of bank owned life insurance | 11,169 | 11,082 |
Accrued interest receivable | 2,202 | 2,210 |
Other assets | 12,633 | 10,537 |
Total assets | 763,382 | 729,358 |
Liabilities: | ||
Deposits: Interest-bearing | 510,553 | 477,901 |
Deposits: Non-interest-bearing | 157,358 | 142,774 |
Total deposits | 667,911 | 620,675 |
Accrued interest payable and other liabilities | 4,397 | 4,128 |
Short-term borrowings | 12,765 | 28,204 |
Total liabilities | $ 685,073 | $ 653,007 |
Shareholders' Equity: | ||
Preferred stock authorized 5,000,000 shares with no par value; none issued | ||
Capital stock, no par value (10,000,000 shares authorized; shares issued and outstanding; 2,453,455 in 2016; and 2,443,405 in 2015) | $ 26,909 | $ 26,700 |
Retained earnings | 48,497 | 47,463 |
Accumulated other comprehensive income | 2,903 | 2,188 |
Total shareholders' equity | 78,309 | 76,351 |
Total liabilities and shareholders' equity | $ 763,382 | $ 729,358 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Consolidated Balance Sheets [Abstract] | ||
Loans, allowance for loan losses | $ 9,384 | $ 9,527 |
Loans held-for-sale | $ 1,224 | $ 1,444 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, no par value | ||
Preferred stock, shares issued | 0 | 0 |
Common stock, no par value | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 2,453,455 | 2,443,405 |
Common stock, shares outstanding | 2,453,455 | 2,443,405 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans and leases: Taxable | $ 5,815 | $ 5,499 |
Loans and leases: Nontaxable | 191 | 139 |
Interest-bearing deposits with financial institutions | 22 | 16 |
Investment securities: | ||
U.S. government agency and corporations | 370 | 260 |
States and political subdivisions (nontaxable) | 317 | 313 |
Other securities | 21 | 77 |
Total interest income | 6,736 | 6,304 |
Interest expense: | ||
Deposits | 580 | 557 |
Securities sold under repurchase agreements | 8 | 8 |
Other short-term borrowings and other | 10 | 1 |
Long-term debt | 131 | |
Total interest expense | 598 | 697 |
Net interest income | 6,138 | 5,607 |
Provision for loan losses | 150 | 150 |
Net interest income after provision for loan losses | 5,988 | 5,457 |
Other income: | ||
Service charges on deposit accounts | 488 | 415 |
Interchange fees | 356 | 302 |
Fees from trust fiduciary activities | 170 | 217 |
Fees from financial services | 104 | 127 |
Service charges on loans | 178 | 176 |
Fees and other revenue | 197 | 196 |
Earnings on bank-owned life insurance | 87 | 85 |
Gain on sale or disposal of: | ||
Loans | 107 | 229 |
Investment securities | 2 | |
Premises and equipment | 1 | |
Total other income | 1,687 | 1,750 |
Other expenses: | ||
Salaries and employee benefits | 2,875 | 2,653 |
Premises and equipment | 918 | 941 |
Advertising and marketing | 255 | 387 |
Professional services | 389 | 338 |
FDIC assessment | 125 | 107 |
Loan collection | 44 | 30 |
Other real estate owned | 22 | 99 |
Office supplies and postage | 119 | 101 |
Automated transaction processing | 127 | 120 |
Data processing and communication | 188 | 105 |
Other | 326 | 206 |
Total other expenses | 5,388 | 5,087 |
Income before income taxes | 2,287 | 2,120 |
Provision for income taxes | 586 | 547 |
Net income | $ 1,701 | $ 1,573 |
Per share data: | ||
Net income - basic | $ 0.69 | $ 0.65 |
Net income - diluted | 0.69 | 0.64 |
Dividends | $ 0.27 | $ 0.25 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 1,701 | $ 1,573 |
Other comprehensive income, before tax: | ||
Unrealized holding gain on available-for-sale securities | 1,084 | 235 |
Reclassification adjustment for net gains realized in income | (2) | |
Net unrealized gain | 1,084 | 233 |
Tax effect | (369) | (79) |
Unrealized gain, net of tax | 715 | 154 |
Other comprehensive income, net of tax | 715 | 154 |
Total comprehensive income, net of tax | $ 2,416 | $ 1,727 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Capital Stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income [Member] | Total |
Balance at Dec. 31, 2014 | $ 26,272 | $ 43,204 | $ 2,743 | $ 72,219 |
Balance, shares at Dec. 31, 2014 | 2,427,767 | |||
Net income | 1,573 | 1,573 | ||
Other comprehensive income | 154 | 154 | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 102 | $ 102 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 4,358 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 7,780 | |||
Issuance of common stock through exercise of stock options, shares | 0 | |||
Stock-based compensation expense | $ 87 | $ 87 | ||
Cash dividends declared | (613) | (613) | ||
Balance, shares at Mar. 31, 2015 | 2,439,905 | |||
Balance at Mar. 31, 2015 | $ 26,461 | 44,164 | 2,897 | 73,522 |
Balance at Dec. 31, 2015 | $ 26,700 | 47,463 | 2,188 | 76,351 |
Balance, shares at Dec. 31, 2015 | 2,443,405 | |||
Net income | 1,701 | 1,701 | ||
Other comprehensive income | 715 | 715 | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 111 | 111 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 3,695 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 5,855 | |||
Issuance of common stock through exercise of stock options | $ 14 | $ 14 | ||
Issuance of common stock through exercise of stock options, shares | 500 | 500 | ||
Stock-based compensation expense | $ 84 | $ 84 | ||
Cash dividends declared | (667) | (667) | ||
Balance, shares at Mar. 31, 2016 | 2,453,455 | |||
Balance at Mar. 31, 2016 | $ 26,909 | $ 48,497 | $ 2,903 | $ 78,309 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 1,701 | $ 1,573 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion | 865 | 806 |
Provision for loan losses | 150 | 150 |
Deferred income tax expense | 556 | 588 |
Stock-based compensation expense | 118 | 87 |
Proceeds from sale of loans held-for-sale | 6,563 | 10,318 |
Originations of loans held-for-sale | (5,738) | (10,227) |
Earnings from bank-owned life insurance | (87) | (85) |
Net gain from sales of loans | (107) | (229) |
Net gain from sales of investment securities | (2) | |
Net loss from sale and write-down of foreclosed assets held-for-sale | 36 | |
Change in: | ||
Accrued interest receivable | 8 | (4) |
Other assets | (2,245) | (954) |
Accrued interest payable and other liabilities | (285) | 117 |
Net cash provided by operating activities | 1,499 | 2,174 |
Available-for-sale securities: | ||
Proceeds from sales | 3,573 | |
Proceeds from maturities, calls and principal pay-downs | 3,873 | 6,772 |
Purchases | (6,628) | (39,025) |
Decrease in FHLB stock | 700 | 15 |
Net increase in loans and leases | (1,446) | (4,725) |
Acquisition of bank premises and equipment | (440) | (664) |
Proceeds from sale of foreclosed assets held-for-sale | 921 | |
Net cash used in investing activities | (3,941) | (33,133) |
Cash flows from financing activities: | ||
Net increase in deposits | 47,237 | 14,798 |
Net (decrease) increase in short-term borrowings | (15,439) | 9,804 |
Proceeds from employee stock purchase plan participants | 111 | 102 |
Exercise of stock options | 14 | |
Dividends paid, net of dividends reinvested | (667) | (613) |
Net cash provided by financing activities | 31,256 | 24,091 |
Net increase (decrease) in cash and cash equivalents | 28,814 | (6,868) |
Cash and cash equivalents, beginning | 12,277 | 25,851 |
Cash and cash equivalents, ending | $ 41,091 | $ 18,983 |
Nature Of Operations And Critic
Nature Of Operations And Critical Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Nature Of Operations And Critical Accounting Policies [Abstract] | |
Nature Of Operations And Critical Accounting Policies | 1. Nature of operations and critical accounting policies Nature of operations Fidelity Deposit and Discount Bank (the Bank) is a commercial bank chartered under the law of the Commonwealth of Pennsylvania and a wholly-owned subsidiary of Fidelity D & D Bancorp, Inc. (collectively, the Company). Having commenced operations in 1903 , the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna and Luzerne Counties. Principles of consolidation The accompanying unaudited consolidated financial statements of the Company and the Bank 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 this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. For additional information and disclosures required under GAAP, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company’s assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company. In the opinion of management, the consolidated balance sheets as of March 31, 2016 and December 31, 2015 and the related consolidated statements of income and consolidated statements of comprehensive income for the three months ended March 31, 2016 and 2015, and consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2015 financial statements to conform to the 2016 presentation. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after March 31, 2016 through the date these consolidated financial statements were issued. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2015, and the notes included therein, included within the Company’s Annual Report filed on Form 10-K. Critical accounting policies The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at March 31, 2016 is adequate and reasonable. Given the subjective nature of identifying and estimating loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance amount. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination. Another material estimate is the calculation of fair values of the Company’s investment securities. Fair values of investment securities are determined by pricing provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. The majority of the Company’s investment securities are classified as available-for-sale (AFS). AFS securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders’ equity as a component of accumulated other comprehensive income (AOCI). The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells residential mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these circumstances, pricing may be obtained from other entities and the residential mortgage loans are transferred at the lower of cost or market value and simultaneously sold. For other loans transferred to HFS, pricing may be obtained from other entities or modeled and the other loans are transferred at the lower of cost or market value and then sold. As of March 31, 2016 and December 31, 2015 , loans classified as HFS consisted of residential mortgage loans. Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest income on automobile direct finance leasing is determined using the interest method to arrive at a level effective yield over the life of the lease. Foreclosed assets held-for-sale includes other real estate acquired through foreclosure (ORE) and may, from time-to-time, include repossessed assets such as automobiles. ORE is carried at the lower of cost (principal balance at date of foreclosure) or fair value less estimated cost to sell. Any write-downs at the date of foreclosure or within a reasonable period of time after foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain ORE properties, subsequent write downs to the asset’s fair value, any rental income received and gains or losses on disposal are included as components of other real estate owned expense in the consolidated statements of income. For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. For each of the three months ended March 31, 2016 and 2015, the Company paid interest of $0.6 million and $0.7 million, respectively. The Company did not make an income tax payment in the first quarters of 2016 and 2015. For the three months ended March 31, 2016 and 2015 , the Company had a net change in unrealized gains on available for sale securities of $ 1.1 million and $ 0.2 million, respectively. Transfers from loans to foreclosed assets held-for-sale amounted to $ 0.7 million and $ 0.4 million during the three months ended March 31, 2016 and 2015 , respectively. During the same respective periods, t ransfers from loans to loans held-for-sale amounted to $0. 6 million and $ 0 . Expenditures for construction in process, a component of other assets in the consolidated balance sheets, are included in acquisition of premises and equipment. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2016 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New accounting pronouncements In an exposure draft issued in the fourth quarter of 2012, the Financial Accounting Standards Board (FASB) proposed changes to the accounting guidance related to the impairment of financial assets and the recognition of credit losses. The FASB proposal would require financial institutions to reserve for losses for the duration of the credit exposure as opposed to reserving for probable losses. The new methodology would be known as the “current expected credit losses” (CECL) methodology. The FASB is currently in the process of re-deliberating significant issues raised through feedback received from comment letters and outreach activities. Among other things, the guidance in the proposed update regarding an entity’s estimate of expected credit losses will be clarified as follows: · An entity should revert to a historical average loss experience for the future periods beyond which the entity is able to make or obtain reasonable and supportable forecasts; · An entity should consider all contractual cash flows over the life of the related financial assets; · When determining the contractual cash flows and the life of the related financial assets: o An entity should consider expected prepayments; o An entity should not consider expected extensions, renewals, and modifications unless the entity reasonably expects that it will execute a troubled debt restructuring with a borrower; · An entity’s estimate of expected credit losses should always reflect the risk of loss, even when that risk is remote. However, an entity would not be required to recognize a loss on a financial asset in which the risk of nonpayment is greater than zero yet the amount of loss would be zero; · In addition to using a discounted cash flow model to estimate expected credit losses, an entity would not be prohibited from developing an estimate of credit losses using loss-rate methods, probability-of-default methods or a provision matrix using loss factors; · The final guidance on expected credit losses will include implementation guidance describing the factors that an entity should consider to adjust historical loss experience for current conditions and reasonable and supportable forecast. FASB expects to issue this proposed accounting standard update in June 2016 with implementation beginning in the fiscal year following December 15, 2019 for public companies. Upon adoption, the change in this accounting guidance could result in an increase in the Company's allowance for loan losses and require the Company to record loan losses more rapidly. Upon final issuance of the standard, the Company will be able to better evaluate the potential impact of this new standard on its consolidated financial statements. In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718) Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period, an amendment to the stock compensation accounting guidance to clarify that a performance target that affects vesting of a share-based payment and that could be achieved after the requisite service period be treated as a performance condition. As such, the performance target should not be reflected in estimating the grant-date fair value of the award. Compensation cost should be recognized in the period in which it becomes probable that the performance target will be achieved and should represent the compensation cost attributable to the period(s) for which the requisite service has already been rendered. This amendment is effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 2015. Early adoption is permitted. Entities may apply the amendments in this update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. The Company adopted this accounting standard update during the first quarter of 2016 and does not expect this amendment to have a material impact on its consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. The areas for simplification in the update involve several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. T he amendments in this update are effective for annual reporting periods, including interim periods within those annual periods, beginning after December 15, 201 6 . Early adoption is permitted. Amendments should be applied using either a modified retrospective transition method by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted, retrospectively, prospectively, or using either a prospective transition method or a retrospective transition method. The Company does not expect this amendment to have a material impact on its consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; recognize revenue when (or as) the entity satisfies a performance obligation. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein, using either of the following transition methods: a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or a retrospective approach with the cumulative effect of initially adopting ASU 2014-09 recognized at the date of adoption (which includes additional footnote disclosures). The Company is evaluating the impact of the adoption of ASU 2014-09 on its consolidated financial statements and has not yet determined the method by which it will adopt the standard effective in the first quarter of 2018. In January 2016, the FASB issued ASU 2016-01 related to Financial Instruments - Overall (Subtopic 825-10) Recognition and Measurement of Financial Assets and Financial Liabilities. The update applies to all entities that hold financial assets or owe financial liabilities. The amendments in this update make targeted improvements to U.S. GAAP as follows: · Require equity investments to be measured at fair value with changes in fair value recognized in net income; · Simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; · Require public business entities to use the exit price notion when measuring fair value of financial instruments for disclosure purposes; · Require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset; · Clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related t o available-for-sale securities. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company is evaluating the impact of the adoption of ASU 2016-01 on its consolidated financial statements, but does not expect it to have a significant impact. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. ASU 2016-02 requires the recognition of a right-of-use asset and related lease liability by lessees for leases classified as operating leases under GAAP. The amendments in this update are effective for the Company for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption of the amendments in this update are permitted. A modified retroactive approach must be applied for leases existing at, or entered into after, the beginning of the earliest comparative period. The Company is currently evaluating the impact of adopting this new guidance on the consolidated financial statements. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | 3. Accumulated other comprehensive income The following tables illustrate the changes in accumulated other comprehensive income by component and the details about the components of accumulated other comprehensive income as of and for the periods indicated: As of and for the three months ended March 31, 2016 Unrealized gains on available-for- (dollars in thousands) sale securities Total Beginning balance $ 2,188 $ 2,188 Other comprehensive income before reclassifications, net of tax 715 715 Amounts reclassified from accumulated other comprehensive income, net of tax - - Net current-period other comprehensive income 715 715 Ending balance $ 2,903 $ 2,903 As of and for the three months ended March 31, 2015 Unrealized gains on available-for- (dollars in thousands) sale securities Total Beginning balance $ 2,743 $ 2,743 Other comprehensive income before reclassifications, net of tax 155 155 Amounts reclassified from accumulated other comprehensive income, net of tax (1) (1) Net current-period other comprehensive income 154 154 Ending balance $ 2,897 $ 2,897 Details about accumulated other comprehensive income components Amount reclassified from accumulated Affected line item in the statement (dollars in thousands) other comprehensive income where net income is presented For the three months ended March 31, 2016 2015 Unrealized gains on AFS securities $ - $ 2 Gain on sale of investment securities - (1) Provision for income taxes Total reclassifications for the period $ - $ 1 Net income |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2016 | |
Investment Securities [Abstract] | |
Investment Securities | 4. Investment securities Agency – Government-sponsored enterprise (GSE) and MBS - GSE residential Agency – GSE and MBS – GSE residential securities consist of short- to long-term notes issued by Federal Home Loan Mortgage Corporation (FHLMC), Federal National Mortgage Association (FNMA), Federal Home Loan Bank (FHLB) and Government National Mortgage Association (GNMA). These securities have interest rates that are fixed and adjustable, have varying short- to long-term maturity dates and have contractual cash flows guaranteed by the U.S. government or agencies of the U.S. government. Obligations of states and political subdivisions The municipal securities are bank qualified or bank eligible, general obligation and revenue bonds rated as investment grade by various credit rating agencies and have fixed rates of interest with mid- to long-term maturities. Fair values of these securities are highly driven by interest rates. Management performs ongoing credit quality reviews on these issues. The amortized cost and fair value of investment securities at March 31, 2016 and December 31, 201 5 are summarized as follows: Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value March 31, 2016 Available-for-sale securities: Agency - GSE $ 18,369 $ 169 $ (10) $ 18,528 Obligations of states and political subdivisions 35,122 2,500 (13) 37,609 MBS - GSE residential 70,488 1,540 (26) 72,002 Total debt securities 123,979 4,209 (49) 128,139 Equity securities - financial services 294 240 - 534 Total available-for-sale securities $ 124,273 $ 4,449 $ (49) $ 128,673 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2015 Available-for-sale securities: Agency - GSE $ 18,374 $ 36 $ (24) $ 18,386 Obligations of states and political subdivisions 34,599 2,310 (24) 36,885 MBS - GSE residential 68,648 1,066 (299) 69,415 Total debt securities 121,621 3,412 (347) 124,686 Equity securities - financial services 295 251 - 546 Total available-for-sale securities $ 121,916 $ 3,663 $ (347) $ 125,232 The amortized cost and fair value of debt securities at March 31, 2016 by contractual maturity are summarized below: Amortized Fair (dollars in thousands) cost value Available-for-sale securities: Debt securities: Due in one year or less $ 3,434 $ 3,439 Due after one year through five years 13,290 13,455 Due after five years through ten years 3,712 3,902 Due after ten years 33,055 35,341 Total debt securities 53,491 56,137 MBS - GSE residential 70,488 72,002 Total available-for-sale debt securities $ 123,979 $ 128,139 Actual maturities will differ from contractual maturities because issuers and borrowers may have the right to call or repay obligations with or without call or prepayment penalty. Agency – GSE and municipal securities are included based on their original stated maturity. MBS – GSE residential, which are based on weighted-average lives and subject to monthly principal pay-downs, are listed in total. Most of the securities have fixed rates or have predetermined scheduled rate changes and many have call features that allow the issuer to call the security at par before its stated maturity without penalty. The following table presents the fair value and gross unrealized losses of investment securities aggregated by investment type, the length of time and the number of securities that have been in a continuous unrealized loss position as of March 31, 2016 and December 31, 201 5 : Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses March 31, 2016 Agency - GSE $ 1,036 $ (10) $ - $ - $ 1,036 $ (10) Obligations of states and political subdivisions 543 (9) 1,534 (4) 2,077 (13) MBS - GSE residential 8,255 (22) 1,288 (4) 9,543 (26) Total $ 9,834 $ (41) $ 2,822 $ (8) $ 12,656 $ (49) Number of securities 6 3 9 December 31, 2015 Agency - GSE $ 8,156 $ (24) $ - $ - $ 8,156 $ (24) Obligations of states and political subdivisions 3,656 (20) 485 (4) 4,141 (24) MBS - GSE residential 36,899 (299) - - 36,899 (299) Total $ 48,711 $ (343) $ 485 $ (4) $ 49,196 $ (347) Number of securities 32 1 33 The Company had nine securities in an unrealized loss position at March 31, 2016, including one agency security, five mortgage-backed securities and three municipal securities. The severity of these unrealized losses based on their underlying cost basis were as follows at March 31, 2016: 0.98% for agencies; 0.27% for MBS - GSE; and 0.62% for the municipals. In addition, only three of these securities have been in an unrealized loss position in excess of 12 months. The changes in the prices on these securities are the result of interest rate movement and are temporary in nature. Management believes the cause of the unrealized losses is related to changes in interest rates, instability in the capital markets or the limited trading activity due to illiquid conditions in the debt market and is not directly related to credit quality. Quarterly, management conducts a formal review of investment securities for the presence of other-than-temporary impairment (OTTI). The accounting guidance related to OTTI requires the Company to assess whether OTTI is present when the fair value of a debt security is less than its amortized cost as of the balance sheet date. Under those circumstances, OTTI is considered to have occurred if: (1) the entity has intent to sell the security; (2) more likely than not the entity will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not sufficient to recover the entire amortized cost. The accounting guidance requires that credit-related OTTI be recognized in earnings while non-credit-related OTTI on securities not expected to be sold be recognized in other comprehensive income (OCI). Non -credit-related OTTI is based on other factors affecting market value, including illiquidity. The Company’s OTTI evaluation process also follows the guidance set forth in topics related to debt and equity securities. The guidance set forth in the pronouncements require the Company to take into consideration current market conditions, fair value in relationship to cost, extent and nature of changes in fair value, issuer rating changes and trends, volatility of earnings, current analysts’ evaluations, all available information relevant to the collectability of debt securities, the ability and intent to hold investments until a recovery of fair value which may be to maturity and other factors when evaluating for the existence of OTTI. The guidance requires that credit-related OTTI be recognized as a realized loss through earnings when there has been an adverse change in the holder’s expected cash flows such that the full amount (principal and interest) will probably not be received. This requirement is consistent with the impairment model in the guidance for accounting for debt and equity securities. For all security types, as of March 31, 2016, the Company applied the criteria provided in the recognition and presentation guidance related to OTTI. That is, management has no intent to sell the securities and no conditions were identified by management that more likely than not would require the Company to sell the securities before recovery of their amortized cost basis. The results indicated there was no presence of OTTI in the Company’s security portfolio. In addition, management believes the change in fair value is attributable to changes in interest rates. |
Loans And Leases
Loans And Leases | 3 Months Ended |
Mar. 31, 2016 | |
Loans And Leases [Abstract] | |
Loans And Leases | 5. Loans and leases The classifications of loans and leases at March 31, 2016 and December 31, 201 5 are summarized as follows: (dollars in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 103,703 $ 102,653 Commercial real estate: Non-owner occupied 95,303 95,745 Owner occupied 98,523 101,652 Construction 4,904 4,481 Consumer: Home equity installment 30,017 30,935 Home equity line of credit 48,331 48,060 Auto loans and leases 29,556 29,758 Other 5,770 6,208 Residential: Real estate 130,270 126,992 Construction 10,109 10,060 Total 556,486 556,544 Less: Allowance for loan losses (9,384) (9,527) Unearned lease revenue (395) (335) Loans and leases, net $ 546,707 $ 546,682 Net deferred loan costs of $1.5 million have been included in the carrying values of loans at March 31, 2016 and December 31, 2015, respectively. Unearned lease revenue represents the difference between the lessor’s investment in the property and the gross investment in the lease. Unearned revenue is accrued over the life of the lease using the effective interest method. The Company services real estate loans for investors in the secondary mortgage market which are not included in the accompanying consolidated balance sheets. The approximate unpaid principal balance of mortgages serviced amounted to $269.6 million as of March 31, 2016 and $269.5 million as of December 31, 201 5 . Mortgage servicing rights amounted to $1.2 million both as of March 31, 2016 and December 31, 2015 , respectively. Management is responsible for conducting the Company’s credit risk evaluation process, which includes credit risk grading of individual commercial and industrial and commercial real estate loans. Commercial and industrial and commercial real estate loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The Company utilizes an external independent loan review firm that reviews and validates the credit risk program on at least an annual basis. Results of these reviews are presented to management and the board of directors. The loan review process complements and reinforces the risk identification and assessment decisions made by lenders and credit personnel, as well as the Company’s policies and procedures. Non-accrual loans The decision to place loans on non-accrual status is made on an individual basis after considering factors pertaining to each specific loan. Commercial and industrial (C&I) and commercial real estate (CRE) loans are placed on non-accrual status when management has determined that payment of all contractual principal and interest is in doubt or the loan is past due 90 days or more as to principal and interest, unless well-secured and in the process of collection. Consumer loans secured by real estate and residential mortgage loans are placed on non-accrual status at 120 days past due as to principal and interest and unsecured consumer loans are charged-off when the loan is 90 days or more past due as to principal and interest. The Company considers all non-accrual loans to be impaired loans. Non-accrual loans, segregated by class, at March 31, 2016 and December 31, 201 5 , were as follows: (dollars in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 32 $ 30 Commercial real estate: Non-owner occupied 6,178 6,193 Owner occupied 559 988 Construction 218 226 Consumer: Home equity installment 92 167 Home equity line of credit 438 512 Auto loans and leases 23 45 Other 6 6 Residential: Real estate 760 836 Total $ 8,306 $ 9,003 Troubled Debt Restructuring A modification of a loan constitutes a troubled debt restructuring (TDR) when a borrower is experiencing financial difficulty and the modification constitutes a concession. The Company considers all TDRs to be impaired loans. The Company offers various types of concessions when modifying a loan, however, forgiveness of principal is rarely granted. C&I loans modified in a TDR often involve temporary interest-only payments, term extensions, and converting revolving credit lines to term loans. Additional collateral, a co-borrower, or a guarantor is often requested. CRE loans modified in a TDR can involve reducing the interest rate for the remaining term of the loan, extending the maturity date at an interest rate lower than the current market rate for new debt with similar risk, or substituting or adding a new borrower or guarantor. Commercial real estate construction loans modified in a TDR may also involve extending the interest-only payment period. Residential mortgage loans modified in a TDR are primarily comprised of loans where monthly payments are lowered to accommodate the borrowers’ financial needs for an extended period of time. After the lowered monthly payment period ends, the borrower would revert back to paying principal and interest pursuant to the original terms with the maturity date adjusted accordingly. Consumer loan modifications are typically not granted and therefore standard modification terms do not exist for loans of this type. Loans modified in a TDR may or may not be placed on non-accrual status. As of March 31, 2016, total TDRs amounted to $3.0 million, consisting of 10 loans ( 7 CRE loans, 2 C &I loans and 1 HELOC to 6 unrelated borrowers ), of which 2 of the CRE loans, totaling $0.2 million, were on non-accrual status. The first quarter 2016 balance represents a $0.6 million incr ease over the December 31, 2015 balance, which amounted to $2.4 million (consisting of 7 CRE loans and 2 C&I loans to 5 unrelated borrowers) , with none of these loans on non-accrual status. The increase in the first quarter of 2016 was attributed to the addition of a $0.7 million HELOC into the TDR classification. Of the TDRs outstanding as of March 31, 2016 and December 31, 2015, when modified, the concessions granted consisted of temporary interest-only payments, extensions of maturity date, or a reduction in the rate of interest to a below-market rate for a contractual period of time. Other than the TDRs that were placed on non-accrual status, the TDRs were performing in accordance with their modified terms. The following presents by class, information related to loans modified in a TDR: Loans modified as TDRs for the: (dollars in thousands) Three months ended March 31, 2016 Three months ended March 31, 2015 Recorded Increase in Recorded Increase in Number investment allowance Number investment allowance of (as of (as of of (as of (as of contracts period end) period end) contracts period end) period end) Commercial and industrial $ - $ - 1 $ 500 $ 331 Commercial real estate - owner occupied - - 2 1,107 251 Consumer home equity line of credit 1 650 128 - - Total 1 $ 650 $ 128 3 $ 1,607 $ 582 In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following a modification) during the periods indicated: Loans modified as a TDR within the previous twelve months that subsequently defaulted during the: (dollars in thousands) Three months ended March 31, 2016 Number of Recorded contracts investment Commercial real estate - owner occupied 2 $ 156 In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. Loans modified in a TDR are closely monitored for delinquency as an early indicator of possible future default. If loans modified in a TDR subsequently default, the Company evaluates the loan fo r possible further impairment . Two CRE loans that were classified as TDRs in fourth quarter of 2015 subsequently defaulted during the first quarter of 2016. Both loans defaulted due to inability to meet contractual payments and the Company continued workout efforts to collect from the owners. There were no loans modified as a TDR within the previous twelve months that subsequently defaulted during the three months ended March 31, 2015. The allowance for loan losses (allowance) may be increased, adjustments may be made in the allocation of the allowance or partial charge-offs may be taken to further write-down the carrying value of the loan. An allowance for impaired loans that have been modified in a TDR is measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the loan’s observable market price. If the loan is collateral dependent, the estimated fair value of the collateral is used to establish the allowance. As of March 31, 2016 and 2015 , the allowance for impaired loans that have been modified in a TDR was $0.8 million and $0.6 million , respectively. Past due loans Loans are considered past due when the contractual principal and/or interest is not received by the due date. An aging analysis of past due loans, segregated by class of loans, as of the period indicated is as follows (dollars in thousands): Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days March 31, 2016 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 63 $ 6 $ 59 $ 128 $ 103,575 $ 103,703 $ 27 Commercial real estate: Non-owner occupied 643 210 6,178 7,031 88,272 95,303 - Owner occupied 237 - 594 831 97,692 98,523 35 Construction - - 218 218 4,686 4,904 - Consumer: Home equity installment 370 22 92 484 29,533 30,017 - Home equity line of credit 177 - 438 615 47,716 48,331 - Auto loans and leases 232 42 580 854 28,307 29,161 (2) 557 Other 29 5 6 40 5,730 5,770 - Residential: Real estate 59 295 760 1,114 129,156 130,270 - Construction - - - - 10,109 10,109 - Total $ 1,810 $ 580 $ 8,925 $ 11,315 $ 544,776 $ 556,091 $ 619 (1) Includes $ 8.3 million of non-accrual loans. (2) Net of unearned lease revenue of $0. 4 million. (3) Includes net deferred loan costs of $1.5 million. Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2015 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 38 $ 32 $ 42 $ 112 $ 102,541 $ 102,653 $ 12 Commercial real estate: Non-owner occupied 549 1,282 6,476 8,307 87,438 95,745 283 Owner occupied - 85 988 1,073 100,579 101,652 - Construction - - 226 226 4,255 4,481 - Consumer: Home equity installment 189 92 167 448 30,487 30,935 - Home equity line of credit 109 650 512 1,271 46,789 48,060 - Auto loans and leases 394 44 76 514 28,909 29,423 (2) 31 Other 66 - 36 102 6,106 6,208 30 Residential: Real estate 46 131 836 1,013 125,979 126,992 - Construction - - - - 10,060 10,060 - Total $ 1,391 $ 2,316 $ 9,359 $ 13,066 $ 543,143 $ 556,209 $ 356 (1) Includes $ 9.0 million of non-accrual loans. (2) Net of unearned lease revenue of $0. 3 million. (3) Includes net deferred loan costs of $1.5 million. Impaired loans A loan is considered impaired when, based on current information and events; it is probable that the Company will be unable to collect the scheduled payments in accordance with the contractual terms of the loan. Factors considered in determining impairment include payment status, collateral value and the probability of collecting payments when due. The significance of payment delays and/or shortfalls is determined on a case-by-case basis. All circumstances surrounding the loan are taken into account. Such factors include the length of the delinquency, the underlying reasons and the borrower’s prior payment record. Impairment is measured on these loans on a loan-by-loan basis. Impaired loans include non-accrual loans, TDRs and other loans deemed to be impaired based on the aforementioned factors. At March 31, 2016, impaired loans consisted of accruing TDRs of $2.8 million, $8.3 million in non-accrual loans and $2.7 million in accruing loans. At December 31, 2015, impaired loans consisted of accruing TDRs totaling $2.4 million, $9.0 million of non-accrual loans and a $1.2 million accruing loan. As of December 31, 2015, the non-accrual loans did not include any TDRs compared with two TDRs with a $0.2 million balance as of March 31, 2016. Payments received from non-accruing impaired loans are first applied against the outstanding principal balance, then to the recovery of any charged-off amounts. Any excess is treated as a recovery of interest income. Payments received from accruing impaired loans are applied to principal and interest, as contractually agreed upon. Impaired loans, segregated by class, as of the perio d indicated are detailed below: Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance March 31, 2016 Commercial and industrial $ 868 $ 824 $ 44 $ 868 $ 614 Commercial real estate: Non-owner occupied 7,959 7,470 566 8,036 1,467 Owner occupied 2,878 1,832 885 2,717 560 Construction 416 - 218 218 - Consumer: Home equity installment 142 60 32 92 5 Home equity line of credit 1,129 755 333 1,088 193 Auto loans and leases 23 22 1 23 5 Other 6 6 - 6 2 Residential: Real estate 894 475 285 760 38 Construction - - - - - Total $ 14,315 $ 11,444 $ 2,364 $ 13,808 $ 2,884 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2015 Commercial and industrial $ 555 $ 500 $ 55 $ 555 $ 331 Commercial real estate: Non-owner occupied 7,960 7,209 630 7,839 1,237 Owner occupied 2,588 922 1,505 2,427 337 Construction 422 - 226 226 - Consumer: Home equity installment 230 - 167 167 - Home equity line of credit 607 28 484 512 1 Auto 47 43 2 45 7 Other 6 6 - 6 1 Residential: Real estate 891 433 403 836 95 Construction - - - - - Total $ 13,306 $ 9,141 $ 3,472 $ 12,613 $ 2,009 March 31, 2016 March 31, 2015 Cash basis Cash basis Average Interest interest Average Interest interest recorded income income recorded income income (dollars in thousands) investment recognized recognized investment recognized recognized Commercial and industrial $ 675 $ 6 $ - $ 206 $ 6 $ - Commercial real estate: Non-owner occupied 3,859 24 - 1,596 14 - Owner occupied 2,825 38 - 2,174 13 - Construction 234 - - 265 - - Consumer: Home equity installment 195 2 - 326 - - Home equity line of credit 606 11 - 428 1 - Auto 29 - - 1 - - Other 9 - - 22 - - Residential: Real estate 671 2 - 605 - - Construction - - - - - - Total $ 9,103 $ 83 $ - $ 5,623 $ 34 $ - Credit Quality Indicators Commercial and industrial and commercial real estate The Company utilizes a loan grading system and assigns a credit risk grade to its loans in the C&I and CRE portfolios. The grading system provides a means to measure portfolio quality and aids in the monitoring of the credit quality of the overall loan portfolio. The credit risk grades are arrived at using a risk rating matrix to assign a grade to each of the loans in the C&I and CRE portfolios. The following is a description of each risk rating category the Company uses to classify each of its C&I and CRE loans: Pass Loans in this category have an acceptable level of risk and are graded in a range of one to five. Secured loans generally have good collateral coverage. Current financial statements reflect acceptable balance sheet ratios, sales and earnings trends. Management is considered to be competent, and a reasonable succession plan is evident. Payment experience on the loans has been good with minor or no delinquency experience. Loans with a grade of one are of the highest quality in the range. Those graded five are of marginally acceptable quality. Special Mention Loans in this category are graded a six and may be protected but are potentially weak. They constitute a credit risk to the Company, but have not yet reached the point of adverse classification. Some of the following conditions may exist: little or no collateral coverage; lack of current financial information; delinquency problems; highly leveraged; available financial information reflects poor balance sheet ratios and profit and loss statements reflect uncertain trends; and document exceptions. Cash flow may not be sufficient to support total debt service requirements. Substandard Loans in this category are graded a seven and have a well-defined weakness which may jeopardize the ultimate collectability of the debt. The collateral pledged may be lacking in quality or quantity. Financial statements may indicate insufficient cash flow to service the debt; and/or do not reflect a sound net worth. The payment history indicates chronic delinquency problems. Management is considered to be weak. There is a distinct possibility that the Company may sustain a loss. All loans on non-accrual are rated substandard. Other loans that are included in the substandard category can be accruing, as well as loans that are current or past due. Loans 90 days or more past due, unless otherwise fully supported, are classified substandard. Also, borrowers that are bankrupt or have loans categorized as TDRs can be graded substandard. Doubtful Loans in this category are graded an eight and have a better than 50% possibility of the Company sustaining a loss, but the loss cannot be determined because of specific reasonable factors which may strengthen credit in the near-term. Many of the weaknesses present in a substandard loan exist. Liquidation of collateral, if any, is likely. Any loan graded lower than an eight is considered to be uncollectible and charged-off . Consumer and residential The consumer and residential loan segments are regarded as homogeneous loan pools and as such are not risk rated. For these portfolios, the Company utilizes payment activity, history and recency of payment in assessing performance. Non-performing loans are considered to be loans past due 90 days or more and accruing and non-accrual loans. All loans not classified as non-performing are considered performing. The following table presents loans including $1.5 million of deferred costs, segregated by class, categorized into the appropriate credit quality indicator category as of March 31, 2016 and December 31, 2015 , respectively: Commercial credit exposure Credit risk profile by creditworthiness category Commercial real estate - Commercial real estate - Commercial real estate - Commercial and industrial non-owner occupied owner occupied construction (dollars in thousands) 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 Pass $ 96,513 $ 101,342 $ 82,087 $ 82,152 $ 94,694 $ 96,401 $ 4,686 $ 4,255 Special mention 6,007 189 1,382 1,480 649 657 - - Substandard 1,183 1,122 11,834 12,113 3,180 4,594 218 226 Doubtful - - - - - - - - Total $ 103,703 $ 102,653 $ 95,303 $ 95,745 $ 98,523 $ 101,652 $ 4,904 $ 4,481 Consumer credit exposure Credit risk profile based on payment activity Home equity installment Home equity line of credit Auto loans and leases Other (dollars in thousands) 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 Performing $ 29,925 $ 30,768 $ 47,893 $ 47,548 $ 28,581 $ 29,347 $ 5,764 $ 6,172 Non-performing 92 167 438 512 580 76 6 36 Total $ 30,017 $ 30,935 $ 48,331 $ 48,060 $ 29,161 (1) $ 29,423 (2) $ 5,770 $ 6,208 (1) Net of unearned lease revenue of $0.4 million. (2) Net of unearned revenue of $0.3 million. Mortgage lending credit exposure Credit risk profile based on payment activity Residential real estate Residential construction (dollars in thousands) 3/31/2016 12/31/2015 3/31/2016 12/31/2015 Performing $ 129,510 $ 126,156 $ 10,109 $ 10,060 Non-performing 760 836 - - Total $ 130,270 $ 126,992 $ 10,109 $ 10,060 Allowance for loan losses Management continually evaluates the credit quality of the Company’s loan portfolio and performs a formal review of the adequacy of the allowance on a quarterly basis. The allowance reflects management’s best estimate of the amount of credit losses in the loan portfolio. Management’s judgment is based on the evaluation of individual loans, past experience, the assessment of current economic conditions and other relevant factors including the amounts and timing of cash flows expected to be received on impaired loans. Those estimates may be susceptible to significant change. Loan losses are charged directly against the allowance when loans are deemed to be uncollectible. Recoveries from previously charged-off loans are added to the allowance when received. Management applies two primary components during the loan review process to determine proper allowance levels. The two components are a specific loan loss allocation for loans that are deemed impaired and a general loan loss allocation for those loans not specifically allocated. The methodology to analyze the adequacy of the allowance for loan losses is as follows: § identification of specific impaired loans by loan category; § identification of specific loans that are not impaired, but have an identified potential for loss; § calculation of specific allowances where required for the impaired loans based on collateral and other objective and quantifiable evidence; § determination of loans with similar credit characteristics within each class of the loan portfolio segment and eliminating the impaired loans; § application of historical loss percentages (t railing twelve-quarter average) to pools to determine the allowance allocation; § application of qualitative factor adjustment percentages to historical losses for trends or changes in the loan portfolio. § Qualitative factor adjustments include: o levels of and trends in delinquencies and non-accrual loans; o levels of and trends in charge-offs and recoveries; o trends in volume and terms of loans; o changes in risk selection and underwriting standards; o changes in lending policies, procedures and practices; o experience, ability and depth of lending management; o national and local economic trends and conditions; and o changes in credit concentrations. Allocation of the allowance for different categories of loans is based on the methodology as explained above. A key element of the methodology to determine the allowance is the Company’s credit risk evaluation process, which includes credit risk grading of individual C&I and CRE loans. C&I and CRE loans are assigned credit risk grades based on the Company’s assessment of conditions that affect the borrower’s ability to meet its contractual obligations under the loan agreement. That process includes reviewing borrowers’ current financial information, historical payment experience, credit documentation, public information and other information specific to each individual borrower. Upon review, the commercial loan credit risk grade is revised or reaffirmed as the case may be. The credit risk grades may be changed at any time management feels an upgrade or downgrade may be warranted. The credit risk grades for the C&I and CRE loan portfolios are taken into account in the reserve methodology and loss factors are applied based upon the credit risk grades. The loss factors applied are based upon the Company’s historical experience as well as what we believe to be best practices and common industry standards. Historical experience reveals there is a direct correlation between the credit risk grades and loan charge-offs. The changes in allocations in the C&I and CRE loan portfolio from period to period are based upon the credit risk grading system and from periodic reviews of the loan portfolio. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies. Each quarter, management performs an assessment of the allowance. The Company’s Special Assets Committee meets monthly and the applicable lenders discuss each relationship under review and reach a consensus on the appropriate estimated loss amount, if applicable, based on current accounting guidance. The Special Assets Committee’s focus is on ensuring the pertinent facts are considered regarding not only loans considered for specific reserves, but also the collectability of loans that may be past due in payment. The assessment process also includes the review of all loans on a non-accruing basis as well as a review of certain loans to which the lenders or the Company’s Credit Administration function have assigned a criticized or classified risk rating. The Company’s policy is to charge-off unsecured consumer loans when they become 90 days or more past due as to principal and interest. In the other portfolio segments, amounts are charged-off at the point in time when the Company deems the balance, or a portion thereof, to be uncollectible. Information related to the change in the allowance and the Company’s recorded investment in loans by portfolio segment as of the period indicated is as follows: As of and for the three months ended March 31, 2016 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,336 $ 5,014 $ 1,533 $ 1,407 $ 237 $ 9,527 Charge-offs (14) (85) (175) (60) - (334) Recoveries 9 4 28 - - 41 Provision 309 (350) 292 32 (133) 150 Ending balance $ 1,640 $ 4,583 $ 1,678 $ 1,379 $ 104 $ 9,384 Ending balance: individually evaluated for impairment $ 614 $ 2,027 $ 205 $ 38 $ - $ 2,884 Ending balance: collectively evaluated for impairment $ 1,026 $ 2,556 $ 1,473 $ 1,341 $ 104 $ 6,500 Loans Receivables: Ending balance (2) $ 103,703 $ 198,730 $ 113,279 (1) $ 140,379 $ - $ 556,091 Ending balance: individually evaluated for impairment $ 868 $ 10,971 $ 1,209 $ 760 $ - $ 13,808 Ending balance: collectively evaluated for impairment $ 102,835 $ 187,759 $ 112,070 $ 139,619 $ - $ 542,283 ( 1) Net of unearned lease revenue of $0. 4 million. (2) Includes $1.5 million of net deferred loan costs. As of and for the three months ended March 31, 2015 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,052 $ 4,672 $ 1,519 $ 1,316 $ 614 $ 9,173 Charge-offs (24) (67) (92) - - (183) Recoveries 9 7 24 28 - 68 Provision 177 (97) 62 (1) 9 150 Ending balance $ 1,214 $ 4,515 $ 1,513 $ 1,343 $ 623 $ 9,208 As of and for the year ended December 31, 2015 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,052 $ 4,672 $ 1,519 $ 1,316 $ 614 $ 9,173 Charge-offs (25) (432) (437) (15) - (909) Recoveries 47 18 95 28 - 188 Provision 262 756 356 78 (377) 1,075 Ending balance $ 1,336 $ 5,014 $ 1,533 $ 1,407 $ 237 $ 9,527 Ending balance: individually evaluated for impairment $ 331 $ 1,574 $ 9 $ 95 $ - $ 2,009 Ending balance: collectively evaluated for impairment $ 1,005 $ 3,440 $ 1,524 $ 1,312 $ 237 $ 7,518 Loans Receivables: Ending balance (2) $ 102,653 $ 201,878 $ 114,626 (1) $ 137,052 $ - $ 556,209 Ending balance: individually evaluated for impairment $ 555 $ 10,492 $ 730 $ 836 $ - $ 12,613 Ending balance: collectively evaluated for impairment $ 102,098 $ 191,386 $ 113,896 $ 136,216 $ - $ 543,596 (1 ) Net of unearned lease revenue of $0.3 million . (2) Includes $1.5 million of net deferred loan cos ts. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Earnings per share Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options and stock-settled stock appreciation rights (SSARs), dilution would occur if Company-issued stock options or SSARs were exercised and converted into common stock. As of the three months ended March 31, 2016 and 2015, there were 1,638 and 2,545 potentially dilutive shares related to issued and unexercised stock options. There were no potentially dilutive shares related to issued and unexercised SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 4,983 , and 3,887 potentially dilutive shares related to unvested restricted share grants as of the three months ended March 31, 2016 and 2015, respectively. In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and SSARs and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include: amounts received from the exercise of outstanding stock options; compensation cost for future service that the Company has not yet recognized in earnings; and any windfall tax benefits that would be credited directly to shareholders’ equity when the grant generates a tax deduction (or a reduction in proceeds if there is a charge to equity). The Company does not consider awards from share-based grants in the computation of basic EPS. The following table illustrates the data used in computing basic and diluted EPS for the periods indicated: Three months ended March 31, 2016 2015 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 1,701 $ 1,573 Weighted-average common shares outstanding 2,450,771 2,435,884 Basic EPS $ 0.69 $ 0.65 Diluted EPS: Net income available to common shareholders $ 1,701 $ 1,573 Weighted-average common shares outstanding 2,450,771 2,435,884 Potentially dilutive common shares 6,621 6,432 Weighted-average common and potentially dilutive shares outstanding 2,457,392 2,442,316 Diluted EPS $ 0.69 $ 0.64 |
Stock Plans
Stock Plans | 3 Months Ended |
Mar. 31, 2016 | |
Stock Plans [Abstract] | |
Stock Plans | 7. Stock plans The Company has two stock-based compensation plans (the stock compensation plans) from which it can grant stock-based compensation awards, and applies the fair value method of accounting for stock-based compensation provided under current accounting guidance. The guidelines require the cost of share-based payment transactions (including those with employees and non-employees) be recognized in the financial statements. The Company’s stock compensation plans were shareholder-approved and permit the grant of share-based compensation awards to its employees and directors. The Company believes that the stock-based compensation plans will advance the development, growth and financial condition of the Company by providing incentives through participation in the appreciation in the value of the Company’s common stock. In return, the Company hopes to secure, retain and motivate the employees and directors who are responsible for the operation and the management of the affairs of the Company by aligning the interest of its employees and directors with the interest of its shareholders. In the stock compensation plans, employees and directors are eligible to be awarded stock-based compensation grants which can consist of stock options (qualified and non-qualified), stock appreciation rights (SARs) and restricted stock. At the 2012 annual shareholders’ meeting, the Company’s shareholders approved and the Company adopted the 2012 Omnibus Stock Incentive Plan and the 2012 Director Stock Incentive Plan (collectively, the 2012 stock incentive plans). The 2012 stock incentive plans replaced both the expired 2000 Independent Directors Stock Option Plan and the 2000 Stock Incentive Plan (collectively, the 2000 stock incentive plans). Unless terminated by the Company’s board of directors, the 2012 stock incentive plans will expire on, and no stock-based awards shall be granted after the year 2022. In each of the 2012 stock incentive plans, the Company has reserved 500,000 shares of its no-par common stock for future issuance. The Company recognizes share-based compensation expense over the requisite service or vesting period. During 2015, the Company created a Long-Term Incentive Plan (LTIP) that awards restricted stock and stock-settled stock appreciation rights (SSARs) to senior officers based on the attainment of performance goals. The service requirement is the participant’s continued employment throughout the LTIP with a three-year vesting period. The restricted stock has a two-year post vesting holding requirement. The SSAR awards have a ten year term from the date of each grant. The Company granted restricted stock and SSARs in February 2016 based on 2015 performance. The following table summarizes the weighted-average fair value and vesting of restricted stock grants awarded during the periods ended March 31, 2016 and 2015 under the 2012 stock incentive plans: March 31, 2016 March 31, 2015 Weighted- Weighted- average average Shares grant date Shares grant date granted fair value granted fair value Director plan 5,600 (1) $ 32.40 3,200 (1) $ 32.25 Omnibus plan 3,155 (3) 29.22 3,300 (2) 32.25 Omnibus plan 50 (1) 31.50 50 (1) 32.50 Total 8,805 $ 31.26 6,550 $ 32.25 (1) Vest after 1 year (2 ) Vest after 4 years – 25% each year (3) Vest after 3 years – 33% each year The fair value of the 3,155 shares granted on February 2, 2016 was calculated using the grant date stock price with a discount valuation. The Chaffe model was used to calculate the discount. Since the shares vest over three years and then have a further two -year holding period, the historical volatility of the five years prior to the issue date was used to estimate volatility. The five year treasury yield was used as the interest rate. The Company does pay a dividend, but since the shareholder will receive the dividends during vesting and the post-vest restriction period, no dividend yield was used in the calculation as not to inflate the discount. The grant date stock price was $32.40 and the discount was calculated using an interest rate of 1.276% and a 5 year historical volatility of 9.809% . A summary of the status of the Company’s non-vested restricted stock as of and changes during the period indicated are presented in the following table: 2012 Stock incentive plans Director Omnibus Total Weighted- average grant date fair value Non-vested balance at December 31, 2015 3,200 8,840 12,040 $ 29.50 Granted 5,600 3,205 8,805 31.26 Vested (3,200) (2,655) (5,855) 29.42 Non-vested balance at March 31, 2016 5,600 9,390 14,990 $ 30.56 The Company granted SSARs under the Omnibus Plan in February 2016. The Company estimated the fair value of SSARs using the Black-Scholes-Merton valuation model on the grant date. The Company used the following assumptions: the risk-free interest rate is the rate equivalent to the expected term of the option interpolated from the U.S. Treasury Yield Curve on the valuation date and historical volatility is calculated by taking the standard deviation of historical returns using weekly and monthly data. The fair value of these SSARs was $5.21 per share, based on a risk-free interest rate of 1.861% , a dividend yield of 3.577% and a volatility of 23.402% using an expected term of ten years. A summary of the status of the Company’s SSARs as of and changes during the period indicated are presented in the following table: Awards Weighted-average grant date fair value Weighted-average remaining contractual term (years) Outstanding December 31, 2015 - - - Granted 19,341 $ 5.21 10.0 Exercised - - Forfeited - - Outstanding March 31, 2016 19,341 $ 5.21 9.8 None of the SSARs were exercisable at March 31, 2016. SSARs vest over a three year period – 33% per year. Share-based compensation expense is included as a component of salaries and employee benefits in the consolidated statements of income. The following tables illustrate stock-based compensation expense recognized on non-vested equity awards during the three months ended March 31, 2016 and 2015 and the unrecognized stock-based compensation expense as of March 31, 2016 : Three months ended March 31, (dollars in thousands) 2016 2015 Stock-based compensation expense: Director stock incentive plan $ 39 $ 28 Omnibus stock incentive plan 31 15 Total stock-based compensation expense $ 70 $ 43 As of (dollars in thousands) March 31, 2016 Unrecognized stock-based compensation expense: Director plan $ 151 Omnibus plan 345 Total unrecognized stock-based compensation expense $ 496 The unrecognized stock-based compensation expense as of March 31, 2016 will be recognized ratably over the periods ended January 2017 and May 2019 for the Director Plan and the Omnibus Plan, respectively. Transactions under the Company’s stock option plan for the three months ended March 31, 2016 are presented in the following table: Options Weighted-average exercise price Weighted-average remaining contractual term (years) Outstanding and exercisable, December 31, 2015 15,500 28.64 2.0 Granted - - Exercised (500) 27.75 Forfeited - - Outstanding and exercisable, March 31, 2016 15,000 $ 28.67 1.7 During the first quarter of 2016, there were 500 stock options exercised at a price of $27.75 per share. The intrinsic value of these stock options was $2,585 . The tax deduction realized from the exercise of these options was $808 . There were no stock options exercised during the first quarter of 2015. In addition to the 2012 stock incentive plans, the Company established the 2002 Employee Stock Purchase Plan (the ESPP) and reserved 110,000 shares of its un-issued capital stock for issuance under the plan. The ESPP was designed to promote broad-based employee ownership of the Company’s stock and to motivate employees to improve job performance and enhance the financial results of the Company. Under the ESPP, participation is voluntary whereby employees use automatic payroll withholdings to purchase the Company’s capital stock at a discounted price based on the fair market value of the capital stock as measured on either the commencement or termination dates, as defined. As of March 31, 2016 , 42,382 shares have been issued under the ESPP. The ESPP is considered a compensatory plan and is required to comply with the provisions of current accounting guidance. The Company recognizes compensation expense on its ESPP on the date the shares are purchased. For the three months ended March 31, 2016 and 2015 , compensation expense related to the ESPP approximated $15 thousand and $44 thousand, respectively, and is included as a component of salaries and employee benefits in the co nsolidated statements of income . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | 8. Fair value measurements The accounting guidelines establish a framework for measuring and disclosing information about fair value measurements. The guidelines of fair value reporting instituted a valuation hierarchy for disclosure of the inputs used to measure fair value. This hierarchy prioritizes the inputs into three broad levels as follows: Level 1 - inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities; Level 2 - inputs are quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the financial instrument; Level 3 - inputs are unobservable and are based on the Company’s own assumptions to measure assets and liabilities at fair value. Level 3 pricing for securities may also include unobservable inputs based upon broker-traded transactions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The Company uses fair value to measure certain assets and, if necessary, liabilities on a recurring basis when fair value is the primary measure for accounting. Thus, the Company uses fair value for AFS securities. Fair value is used on a non-recurring basis to measure certain assets when adjusting carrying values to market values, such as impaired loans, other real estate owned (ORE) and other repossessed assets. The following table represents the carrying amount and estimated fair value of the Company’s financial instrumen ts as of the periods indicated: March 31, 2016 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,091 $ 41,091 $ 41,091 $ - $ - Available-for-sale securities 128,673 128,673 534 128,139 - FHLB stock 1,420 1,420 - 1,420 - Loans and leases, net 546,707 546,123 - - 546,123 Loans held-for-sale 1,202 1,224 - 1,224 - Accrued interest receivable 2,202 2,202 - 2,202 - Financial liabilities: Deposits with no stated maturities 568,182 568,182 - 568,182 - Time deposits 99,729 99,428 - 99,428 - Short-term borrowings 12,765 12,765 - 12,765 - Accrued interest payable 210 210 - 210 - December 31, 2015 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 12,277 $ 12,277 $ 12,277 $ - $ - Available-for-sale securities 125,232 125,232 546 124,686 - FHLB stock 2,120 2,120 - 2,120 - Loans and leases, net 546,682 545,523 - - 545,523 Loans held-for-sale 1,421 1,444 - 1,444 - Accrued interest receivable 2,210 2,210 - 2,210 - Financial liabilities: Deposits with no stated maturities 516,473 516,473 - 516,473 - Time deposits 104,202 103,403 - 103,403 - Short-term borrowings 28,204 28,204 - 28,204 - Accrued interest payable 189 189 - 189 - The carrying value of short-term financial instruments, as listed below, approximates their fair value. These instruments generally have limited credit exposure, no stated or short-term maturities, carry interest rates that approximate market and generally are recorded at amounts that are payable on demand : · Cash and cash equivalents; · Non-interest bearing deposit accounts; · Savings, interest-bearing checking and money market accounts and · Short-term borrowings. Securities: Fair values on investment securities are determined by prices provided by a third-party vendor, who is a provider of financial market data, analytics and related servic es to financial institutions. Loans: The fair value of loans is estimated by the net present value of the future expected cash flows discounted at current offering rates for similar loans. Current offering rates consider, among other things, credit risk. The carrying value that fair value is compared to is net of the allowance for loan losses and since there is significant judgment included in evaluating credit quality, loans are classified within Level 3 of the fair value hierarchy. Loans held-for-sale: The fair value of loans held-for-sale is estimated using rates currently offered for similar loans and is typically obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank of Pittsburgh (FHLB). Certificates of deposit: The fair value of certificates of deposit is based on discounted cash flows using rates which approximate market rates for deposits of similar maturities. The following tables illustrate the financial instruments measured at fair value on a recurring basis segregated by hierarchy fair value levels as of the period s indicated: Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) March 31, 2016 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 18,528 $ - $ 18,528 $ - Obligations of states and political subdivisions 37,609 - 37,609 - MBS - GSE residential 72,002 - 72,002 - Equity securities - financial services 534 534 - - Total available-for-sale securities $ 128,673 $ 534 $ 128,139 $ - Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2015 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 18,386 $ - $ 18,386 $ - Obligations of states and political subdivisions 36,885 - 36,885 - MBS - GSE residential 69,415 - 69,415 - Equity securities - financial services 546 546 - - Total available-for-sale securities $ 125,232 $ 546 $ 124,686 $ - Equity securities in the AFS portfolio are measured at fair value using quoted market prices for identical assets and are classified within Level 1 of the valuation hierarchy. Debt securities in the AFS portfolio are measured at fair value using market quotations provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. Assets classified as Level 2 use valuation techniques that are common to bond valuations. That is, in active markets whereby bonds of similar characteristics frequently trade, quotes for similar assets are obtained. For the periods ending March 31, 2016 and December 31, 2015, there were no transfers to or from Level 1 and Level 2 fair value measurements for financial assets measured on a recurring basis. There were no changes in Level 3 financial instruments measured at fair value on a recurring basis as of and for the periods ending March 31, 2016 and December 31, 2015 , respectively. The following table illustrates the financial instruments measured at fair value on a non-recurring basis segregated by hierarchy fair value levels as of the periods indicated: Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at March 31, 2016 (Level 1) (Level 2) (Level 3) Impaired loans $ 8,560 $ - $ - $ 8,560 Other real estate owned 1,243 - - 1,243 Total $ 9,803 $ - $ - $ 9,803 Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2015 (Level 1) (Level 2) (Level 3) Impaired loans $ 7,132 $ - $ - $ 7,132 Other real estate owned 903 - - 903 Total $ 8,035 $ - $ - $ 8,035 From time-to-time, the Company may be required to record at fair value financial instruments on a non-recurring basis, such as impaired loans, ORE and other repossessed assets. These non-recurring fair value adjustments involve the application of lower-of-cost-or-market accounting on write downs of individual assets. The following describes valuation methodologies used for financial instruments measured at fair value on a non-recurring basis. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserves, a component of the allowance for loan losses, and as such are carried at the lower of net recorded investment or the estimated fair value. Estimates of fair value of the collateral are determined based on a variety of information, including available valuations from certified appraisers for similar assets, present value of discounted cash flows and inputs that are estimated based on commonly used and generally accepted industry liquidation advance rates and estimates and assumptions developed by management. Valuation techniques for impaired loans are typically determined through independent appraisals of the underlying collateral or may be determined through present value of discounted cash flows. Both techniques include various Level 3 inputs which are not identifiable. The valuation technique may be adjusted by management for estimated liquidation expenses and qualitative factors such as economic conditions. If real estate is not the primary source of repayment, present value of discounted cash flows and estimates using generally accepted industry liquidation advance rates and other factors may be utilized to determine fair value. At March 31, 2016 and December 31, 2015, the range of liquidation expenses and other valuation adjustments applied to impaired loans ranged from -23.55% to -94.00% and from -4.92% to -50.00% respectively. The weighted-average of liquidation expenses and other valuation adjustments applied to impaired loans amounted to -32.99% and -27.84% as of March 31, 2016 and December 31, 2015, respectively. Due to the multitude of assumptions, many of which are subjective in nature, and the varying inputs and techniques used to determine fair value, the Company recognizes that valuations could differ across a wide spectrum of techniques employed. Accordingly, fair value estimates for impaired loans are classified as Level 3. For ORE, fair value is generally determined through independent appraisals of the underlying properties which generally include various Level 3 inputs which are not identifiable. Appraisals form the basis for determining the net realizable value from these properties. Net realizable value is the result of the appraised value less certain costs or discounts associated with liquidation which occurs in the normal course of business. Management’s assumptions may include consideration of the location and occupancy of the property, along with current economic conditions. Subsequently, as these properties are actively marketed, the estimated fair values may be periodically adjusted through incremental subsequent write-downs. These write-downs usually reflect decreases in estimated values resulting from sales price observations as well as changing economic and market conditions. At March 31, 2016 and December 31, 2015, the discounts applied to the appraised values of ORE ranged from -15.90% to -99.00% for both periods. As of March 31, 2016 and December 31, 2015, the weighted-average of discount to the appraisal values of ORE amounted to -37.34% and -37.64% , respectively . |
Nature Of Operations And Crit16
Nature Of Operations And Critical Accounting Policies (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
Nature Of Operations And Critical Accounting Policies [Abstract] | |
Nature Of Operations | Nature of operations Fidelity Deposit and Discount Bank (the Bank) is a commercial bank chartered under the law of the Commonwealth of Pennsylvania and a wholly-owned subsidiary of Fidelity D & D Bancorp, Inc. (collectively, the Company). Having commenced operations in 1903 , the Bank is committed to provide superior customer service, while offering a full range of banking products and financial and trust services to both our consumer and commercial customers from our main office located in Dunmore and other branches located throughout Lackawanna and Luzerne Counties. |
Principles Of Consolidation | Principles of consolidation The accompanying unaudited consolidated financial statements of the Company and the Bank 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 this Form 10-Q and Rule 8-03 of Regulation S-X. Accordingly, they do not include all of the information and footnote disclosures required by GAAP for complete financial statements. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the financial condition and results of operations for the periods have been included. All significant inter-company balances and transactions have been eliminated in consolidation. For additional information and disclosures required under GAAP, refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2015. Management is responsible for the fairness, integrity and objectivity of the unaudited financial statements included in this report. Management prepared the unaudited financial statements in accordance with GAAP. In meeting its responsibility for the financial statements, management depends on the Company's accounting systems and related internal controls. These systems and controls are designed to provide reasonable but not absolute assurance that the financial records accurately reflect the transactions of the Company, the Company’s assets are safeguarded and that the financial statements present fairly the financial condition and results of operations of the Company. In the opinion of management, the consolidated balance sheets as of March 31, 2016 and December 31, 2015 and the related consolidated statements of income and consolidated statements of comprehensive income for the three months ended March 31, 2016 and 2015, and consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows for the three months ended March 31, 2016 and 2015 present fairly the financial condition and results of operations of the Company. All material adjustments required for a fair presentation have been made. These adjustments are of a normal recurring nature. Certain reclassifications have been made to the 2015 financial statements to conform to the 2016 presentation. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after March 31, 2016 through the date these consolidated financial statements were issued. This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s audited financial statements for the year ended December 31, 2015, and the notes included therein, included within the Company’s Annual Report filed on Form 10-K. |
Use Of Estimates | The preparation of 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 financial statements and the reported amounts of revenues and expenses during the reported periods. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change relates to the determination of the allowance for loan losses. Management believes that the allowance for loan losses at March 31, 2016 is adequate and reasonable. Given the subjective nature of identifying and estimating loan losses, it is likely that well-informed individuals could make different assumptions and could, therefore, calculate a materially different allowance amount. While management uses available information to recognize losses on loans, changes in economic conditions may necessitate revisions in the future. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses. Such agencies may require the Company to recognize adjustments to the allowance based on their judgment of information available to them at the time of their examination. Another material estimate is the calculation of fair values of the Company’s investment securities. Fair values of investment securities are determined by pricing provided by a third-party vendor, who is a provider of financial market data, analytics and related services to financial institutions. |
Investment Securities | Based on experience, management is aware that estimated fair values of investment securities tend to vary among valuation services. Accordingly, when selling investment securities, price quotes may be obtained from more than one source. The majority of the Company’s investment securities are classified as available-for-sale (AFS). AFS securities are carried at fair value on the consolidated balance sheets, with unrealized gains and losses, net of income tax, reported separately within shareholders’ equity as a component of accumulated other comprehensive income (AOCI). |
Loans Held-For-Sale | The fair value of residential mortgage loans, classified as held-for-sale (HFS), is obtained from the Federal National Mortgage Association (FNMA) or the Federal Home Loan Bank (FHLB). Generally, the market to which the Company sells residential mortgages it originates for sale is restricted and price quotes from other sources are not typically obtained. On occasion, the Company may transfer loans from the loan portfolio to loans HFS. Under these circumstances, pricing may be obtained from other entities and the residential mortgage loans are transferred at the lower of cost or market value and simultaneously sold. For other loans transferred to HFS, pricing may be obtained from other entities or modeled and the other loans are transferred at the lower of cost or market value and then sold. As of March 31, 2016 and December 31, 2015 , loans classified as HFS consisted of residential mortgage loans. |
Automobile Leasing | Financing of automobiles, provided to customers under lease arrangements of varying terms, are accounted for as direct finance leases. Interest income on automobile direct finance leasing is determined using the interest method to arrive at a level effective yield over the life of the lease. |
Foreclosed Assets Held-For-Sale | Foreclosed assets held-for-sale includes other real estate acquired through foreclosure (ORE) and may, from time-to-time, include repossessed assets such as automobiles. ORE is carried at the lower of cost (principal balance at date of foreclosure) or fair value less estimated cost to sell. Any write-downs at the date of foreclosure or within a reasonable period of time after foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain ORE properties, subsequent write downs to the asset’s fair value, any rental income received and gains or losses on disposal are included as components of other real estate owned expense in the consolidated statements of income. |
Cash Flows | For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks and interest-bearing deposits with financial institutions. For each of the three months ended March 31, 2016 and 2015, the Company paid interest of $0.6 million and $0.7 million, respectively. The Company did not make an income tax payment in the first quarters of 2016 and 2015. For the three months ended March 31, 2016 and 2015 , the Company had a net change in unrealized gains on available for sale securities of $ 1.1 million and $ 0.2 million, respectively. |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic earnings per share (EPS) is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is computed in the same manner as basic EPS but also reflects the potential dilution that could occur from the grant of stock-based compensation awards. The Company maintains two active share-based compensation plans that may generate additional potentially dilutive common shares. For granted and unexercised stock options and stock-settled stock appreciation rights (SSARs), dilution would occur if Company-issued stock options or SSARs were exercised and converted into common stock. As of the three months ended March 31, 2016 and 2015, there were 1,638 and 2,545 potentially dilutive shares related to issued and unexercised stock options. There were no potentially dilutive shares related to issued and unexercised SSARs. For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 4,983 , and 3,887 potentially dilutive shares related to unvested restricted share grants as of the three months ended March 31, 2016 and 2015, respectively. In the computation of diluted EPS, the Company uses the treasury stock method to determine the dilutive effect of its granted but unexercised stock options and SSARs and unvested restricted stock. Under the treasury stock method, the assumed proceeds, as defined, received from shares issued in a hypothetical stock option exercise or restricted stock grant, are assumed to be used to purchase treasury stock. Proceeds include: amounts received from the exercise of outstanding stock options; compensation cost for future service that the Company has not yet recognized in earnings; and any windfall tax benefits that would be credited directly to shareholders’ equity when the grant generates a tax deduction (or a reduction in proceeds if there is a charge to equity). The Company does not consider awards from share-based grants in the computation of basic EPS. |
Accumulated Other Comprehensi18
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | As of and for the three months ended March 31, 2016 Unrealized gains on available-for- (dollars in thousands) sale securities Total Beginning balance $ 2,188 $ 2,188 Other comprehensive income before reclassifications, net of tax 715 715 Amounts reclassified from accumulated other comprehensive income, net of tax - - Net current-period other comprehensive income 715 715 Ending balance $ 2,903 $ 2,903 As of and for the three months ended March 31, 2015 Unrealized gains on available-for- (dollars in thousands) sale securities Total Beginning balance $ 2,743 $ 2,743 Other comprehensive income before reclassifications, net of tax 155 155 Amounts reclassified from accumulated other comprehensive income, net of tax (1) (1) Net current-period other comprehensive income 154 154 Ending balance $ 2,897 $ 2,897 |
Schedule Of Reclassification From Accumulated Other Comprehensive Income | Details about accumulated other comprehensive income components Amount reclassified from accumulated Affected line item in the statement (dollars in thousands) other comprehensive income where net income is presented For the three months ended March 31, 2016 2015 Unrealized gains on AFS securities $ - $ 2 Gain on sale of investment securities - (1) Provision for income taxes Total reclassifications for the period $ - $ 1 Net income |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Investment Securities [Abstract] | |
Amortized Cost And Fair Value Of Investment Securities | Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value March 31, 2016 Available-for-sale securities: Agency - GSE $ 18,369 $ 169 $ (10) $ 18,528 Obligations of states and political subdivisions 35,122 2,500 (13) 37,609 MBS - GSE residential 70,488 1,540 (26) 72,002 Total debt securities 123,979 4,209 (49) 128,139 Equity securities - financial services 294 240 - 534 Total available-for-sale securities $ 124,273 $ 4,449 $ (49) $ 128,673 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2015 Available-for-sale securities: Agency - GSE $ 18,374 $ 36 $ (24) $ 18,386 Obligations of states and political subdivisions 34,599 2,310 (24) 36,885 MBS - GSE residential 68,648 1,066 (299) 69,415 Total debt securities 121,621 3,412 (347) 124,686 Equity securities - financial services 295 251 - 546 Total available-for-sale securities $ 121,916 $ 3,663 $ (347) $ 125,232 |
Investments Classified By Contractual Maturity Date | Amortized Fair (dollars in thousands) cost value Available-for-sale securities: Debt securities: Due in one year or less $ 3,434 $ 3,439 Due after one year through five years 13,290 13,455 Due after five years through ten years 3,712 3,902 Due after ten years 33,055 35,341 Total debt securities 53,491 56,137 MBS - GSE residential 70,488 72,002 Total available-for-sale debt securities $ 123,979 $ 128,139 |
Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value | Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses March 31, 2016 Agency - GSE $ 1,036 $ (10) $ - $ - $ 1,036 $ (10) Obligations of states and political subdivisions 543 (9) 1,534 (4) 2,077 (13) MBS - GSE residential 8,255 (22) 1,288 (4) 9,543 (26) Total $ 9,834 $ (41) $ 2,822 $ (8) $ 12,656 $ (49) Number of securities 6 3 9 December 31, 2015 Agency - GSE $ 8,156 $ (24) $ - $ - $ 8,156 $ (24) Obligations of states and political subdivisions 3,656 (20) 485 (4) 4,141 (24) MBS - GSE residential 36,899 (299) - - 36,899 (299) Total $ 48,711 $ (343) $ 485 $ (4) $ 49,196 $ (347) Number of securities 32 1 33 |
Loans And Leases (Tables)
Loans And Leases (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Loans And Leases [Abstract] | |
Loan Classifications | (dollars in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 103,703 $ 102,653 Commercial real estate: Non-owner occupied 95,303 95,745 Owner occupied 98,523 101,652 Construction 4,904 4,481 Consumer: Home equity installment 30,017 30,935 Home equity line of credit 48,331 48,060 Auto loans and leases 29,556 29,758 Other 5,770 6,208 Residential: Real estate 130,270 126,992 Construction 10,109 10,060 Total 556,486 556,544 Less: Allowance for loan losses (9,384) (9,527) Unearned lease revenue (395) (335) Loans and leases, net $ 546,707 $ 546,682 |
Non-Accrual Loans, Segregated By Class | (dollars in thousands) March 31, 2016 December 31, 2015 Commercial and industrial $ 32 $ 30 Commercial real estate: Non-owner occupied 6,178 6,193 Owner occupied 559 988 Construction 218 226 Consumer: Home equity installment 92 167 Home equity line of credit 438 512 Auto loans and leases 23 45 Other 6 6 Residential: Real estate 760 836 Total $ 8,306 $ 9,003 |
Information Related To Loans Modified In Troubled Debt Restructuring, By Class | The following presents by class, information related to loans modified in a TDR: Loans modified as TDRs for the: (dollars in thousands) Three months ended March 31, 2016 Three months ended March 31, 2015 Recorded Increase in Recorded Increase in Number investment allowance Number investment allowance of (as of (as of of (as of (as of contracts period end) period end) contracts period end) period end) Commercial and industrial $ - $ - 1 $ 500 $ 331 Commercial real estate - owner occupied - - 2 1,107 251 Consumer home equity line of credit 1 650 128 - - Total 1 $ 650 $ 128 3 $ 1,607 $ 582 In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following a modification) during the periods indicated: Loans modified as a TDR within the previous twelve months that subsequently defaulted during the: (dollars in thousands) Three months ended March 31, 2016 Number of Recorded contracts investment Commercial real estate - owner occupied 2 $ 156 In the above table, the period end balances are inclusive of all partial pay downs and charge-offs since the modification date. |
Past Due Loans | Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days March 31, 2016 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 63 $ 6 $ 59 $ 128 $ 103,575 $ 103,703 $ 27 Commercial real estate: Non-owner occupied 643 210 6,178 7,031 88,272 95,303 - Owner occupied 237 - 594 831 97,692 98,523 35 Construction - - 218 218 4,686 4,904 - Consumer: Home equity installment 370 22 92 484 29,533 30,017 - Home equity line of credit 177 - 438 615 47,716 48,331 - Auto loans and leases 232 42 580 854 28,307 29,161 (2) 557 Other 29 5 6 40 5,730 5,770 - Residential: Real estate 59 295 760 1,114 129,156 130,270 - Construction - - - - 10,109 10,109 - Total $ 1,810 $ 580 $ 8,925 $ 11,315 $ 544,776 $ 556,091 $ 619 (1) Includes $ 8.3 million of non-accrual loans. (2) Net of unearned lease revenue of $0. 4 million. (3) Includes net deferred loan costs of $1.5 million. Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2015 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 38 $ 32 $ 42 $ 112 $ 102,541 $ 102,653 $ 12 Commercial real estate: Non-owner occupied 549 1,282 6,476 8,307 87,438 95,745 283 Owner occupied - 85 988 1,073 100,579 101,652 - Construction - - 226 226 4,255 4,481 - Consumer: Home equity installment 189 92 167 448 30,487 30,935 - Home equity line of credit 109 650 512 1,271 46,789 48,060 - Auto loans and leases 394 44 76 514 28,909 29,423 (2) 31 Other 66 - 36 102 6,106 6,208 30 Residential: Real estate 46 131 836 1,013 125,979 126,992 - Construction - - - - 10,060 10,060 - Total $ 1,391 $ 2,316 $ 9,359 $ 13,066 $ 543,143 $ 556,209 $ 356 (1) Includes $ 9.0 million of non-accrual loans. (2) Net of unearned lease revenue of $0. 3 million. (3) Includes net deferred loan costs of $1.5 million. |
Impaired Loans | Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance March 31, 2016 Commercial and industrial $ 868 $ 824 $ 44 $ 868 $ 614 Commercial real estate: Non-owner occupied 7,959 7,470 566 8,036 1,467 Owner occupied 2,878 1,832 885 2,717 560 Construction 416 - 218 218 - Consumer: Home equity installment 142 60 32 92 5 Home equity line of credit 1,129 755 333 1,088 193 Auto loans and leases 23 22 1 23 5 Other 6 6 - 6 2 Residential: Real estate 894 475 285 760 38 Construction - - - - - Total $ 14,315 $ 11,444 $ 2,364 $ 13,808 $ 2,884 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2015 Commercial and industrial $ 555 $ 500 $ 55 $ 555 $ 331 Commercial real estate: Non-owner occupied 7,960 7,209 630 7,839 1,237 Owner occupied 2,588 922 1,505 2,427 337 Construction 422 - 226 226 - Consumer: Home equity installment 230 - 167 167 - Home equity line of credit 607 28 484 512 1 Auto 47 43 2 45 7 Other 6 6 - 6 1 Residential: Real estate 891 433 403 836 95 Construction - - - - - Total $ 13,306 $ 9,141 $ 3,472 $ 12,613 $ 2,009 March 31, 2016 March 31, 2015 Cash basis Cash basis Average Interest interest Average Interest interest recorded income income recorded income income (dollars in thousands) investment recognized recognized investment recognized recognized Commercial and industrial $ 675 $ 6 $ - $ 206 $ 6 $ - Commercial real estate: Non-owner occupied 3,859 24 - 1,596 14 - Owner occupied 2,825 38 - 2,174 13 - Construction 234 - - 265 - - Consumer: Home equity installment 195 2 - 326 - - Home equity line of credit 606 11 - 428 1 - Auto 29 - - 1 - - Other 9 - - 22 - - Residential: Real estate 671 2 - 605 - - Construction - - - - - - Total $ 9,103 $ 83 $ - $ 5,623 $ 34 $ - |
Credit Quality Indicator Loan Categories | Commercial credit exposure Credit risk profile by creditworthiness category Commercial real estate - Commercial real estate - Commercial real estate - Commercial and industrial non-owner occupied owner occupied construction (dollars in thousands) 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 Pass $ 96,513 $ 101,342 $ 82,087 $ 82,152 $ 94,694 $ 96,401 $ 4,686 $ 4,255 Special mention 6,007 189 1,382 1,480 649 657 - - Substandard 1,183 1,122 11,834 12,113 3,180 4,594 218 226 Doubtful - - - - - - - - Total $ 103,703 $ 102,653 $ 95,303 $ 95,745 $ 98,523 $ 101,652 $ 4,904 $ 4,481 Consumer credit exposure Credit risk profile based on payment activity Home equity installment Home equity line of credit Auto loans and leases Other (dollars in thousands) 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 3/31/2016 12/31/2015 Performing $ 29,925 $ 30,768 $ 47,893 $ 47,548 $ 28,581 $ 29,347 $ 5,764 $ 6,172 Non-performing 92 167 438 512 580 76 6 36 Total $ 30,017 $ 30,935 $ 48,331 $ 48,060 $ 29,161 (1) $ 29,423 (2) $ 5,770 $ 6,208 (1) Net of unearned lease revenue of $0.4 million. (2) Net of unearned revenue of $0.3 million. Mortgage lending credit exposure Credit risk profile based on payment activity Residential real estate Residential construction (dollars in thousands) 3/31/2016 12/31/2015 3/31/2016 12/31/2015 Performing $ 129,510 $ 126,156 $ 10,109 $ 10,060 Non-performing 760 836 - - Total $ 130,270 $ 126,992 $ 10,109 $ 10,060 |
Allowance For Loan Losses | As of and for the three months ended March 31, 2016 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,336 $ 5,014 $ 1,533 $ 1,407 $ 237 $ 9,527 Charge-offs (14) (85) (175) (60) - (334) Recoveries 9 4 28 - - 41 Provision 309 (350) 292 32 (133) 150 Ending balance $ 1,640 $ 4,583 $ 1,678 $ 1,379 $ 104 $ 9,384 Ending balance: individually evaluated for impairment $ 614 $ 2,027 $ 205 $ 38 $ - $ 2,884 Ending balance: collectively evaluated for impairment $ 1,026 $ 2,556 $ 1,473 $ 1,341 $ 104 $ 6,500 Loans Receivables: Ending balance (2) $ 103,703 $ 198,730 $ 113,279 (1) $ 140,379 $ - $ 556,091 Ending balance: individually evaluated for impairment $ 868 $ 10,971 $ 1,209 $ 760 $ - $ 13,808 Ending balance: collectively evaluated for impairment $ 102,835 $ 187,759 $ 112,070 $ 139,619 $ - $ 542,283 ( 1) Net of unearned lease revenue of $0. 4 million. (2) Includes $1.5 million of net deferred loan costs. As of and for the three months ended March 31, 2015 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,052 $ 4,672 $ 1,519 $ 1,316 $ 614 $ 9,173 Charge-offs (24) (67) (92) - - (183) Recoveries 9 7 24 28 - 68 Provision 177 (97) 62 (1) 9 150 Ending balance $ 1,214 $ 4,515 $ 1,513 $ 1,343 $ 623 $ 9,208 As of and for the year ended December 31, 2015 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,052 $ 4,672 $ 1,519 $ 1,316 $ 614 $ 9,173 Charge-offs (25) (432) (437) (15) - (909) Recoveries 47 18 95 28 - 188 Provision 262 756 356 78 (377) 1,075 Ending balance $ 1,336 $ 5,014 $ 1,533 $ 1,407 $ 237 $ 9,527 Ending balance: individually evaluated for impairment $ 331 $ 1,574 $ 9 $ 95 $ - $ 2,009 Ending balance: collectively evaluated for impairment $ 1,005 $ 3,440 $ 1,524 $ 1,312 $ 237 $ 7,518 Loans Receivables: Ending balance (2) $ 102,653 $ 201,878 $ 114,626 (1) $ 137,052 $ - $ 556,209 Ending balance: individually evaluated for impairment $ 555 $ 10,492 $ 730 $ 836 $ - $ 12,613 Ending balance: collectively evaluated for impairment $ 102,098 $ 191,386 $ 113,896 $ 136,216 $ - $ 543,596 (1 ) Net of unearned lease revenue of $0.3 million . (2) Includes $1.5 million of net deferred loan cos ts. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three months ended March 31, 2016 2015 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 1,701 $ 1,573 Weighted-average common shares outstanding 2,450,771 2,435,884 Basic EPS $ 0.69 $ 0.65 Diluted EPS: Net income available to common shareholders $ 1,701 $ 1,573 Weighted-average common shares outstanding 2,450,771 2,435,884 Potentially dilutive common shares 6,621 6,432 Weighted-average common and potentially dilutive shares outstanding 2,457,392 2,442,316 Diluted EPS $ 0.69 $ 0.64 |
Stock Plans (Tables)
Stock Plans (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stock Plans [Abstract] | |
Disclosure Of Share-Based Compensation Arrangements By Share-Based Payment Award | March 31, 2016 March 31, 2015 Weighted- Weighted- average average Shares grant date Shares grant date granted fair value granted fair value Director plan 5,600 (1) $ 32.40 3,200 (1) $ 32.25 Omnibus plan 3,155 (3) 29.22 3,300 (2) 32.25 Omnibus plan 50 (1) 31.50 50 (1) 32.50 Total 8,805 $ 31.26 6,550 $ 32.25 (1) Vest after 1 year (2 ) Vest after 4 years – 25% each year (3) Vest after 3 years – 33% each year |
Schedule Of Nonvested Restricted Stock Units Activity | 2012 Stock incentive plans Director Omnibus Total Weighted- average grant date fair value Non-vested balance at December 31, 2015 3,200 8,840 12,040 $ 29.50 Granted 5,600 3,205 8,805 31.26 Vested (3,200) (2,655) (5,855) 29.42 Non-vested balance at March 31, 2016 5,600 9,390 14,990 $ 30.56 |
Schedule Of SSARs Activity | Awards Weighted-average grant date fair value Weighted-average remaining contractual term (years) Outstanding December 31, 2015 - - - Granted 19,341 $ 5.21 10.0 Exercised - - Forfeited - - Outstanding March 31, 2016 19,341 $ 5.21 9.8 None of the SSARs were exercisable at March 31, 2016. SSARs vest over a three year period – 33% per year. |
Schedule Of Compensation Cost For Share-Based Payment Arrangements, Allocation Of Share-Based Compensation Costs By Plan | Three months ended March 31, (dollars in thousands) 2016 2015 Stock-based compensation expense: Director stock incentive plan $ 39 $ 28 Omnibus stock incentive plan 31 15 Total stock-based compensation expense $ 70 $ 43 |
Schedule Of Unrecognized Compensation Cost, Nonvested Awards | As of (dollars in thousands) March 31, 2016 Unrecognized stock-based compensation expense: Director plan $ 151 Omnibus plan 345 Total unrecognized stock-based compensation expense $ 496 The unrecognized stock-based compensation expense as of March 31, 2016 will be recognized ratably over the periods ended January 2017 and May 2019 for the Director Plan and the Omnibus Plan, respectively. |
Summary Of Stock Option Activity | Options Weighted-average exercise price Weighted-average remaining contractual term (years) Outstanding and exercisable, December 31, 2015 15,500 28.64 2.0 Granted - - Exercised (500) 27.75 Forfeited - - Outstanding and exercisable, March 31, 2016 15,000 $ 28.67 1.7 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value Measurements [Abstract] | |
Carrying Amount And Estimated Fair Value By Balance Sheet Grouping | March 31, 2016 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 41,091 $ 41,091 $ 41,091 $ - $ - Available-for-sale securities 128,673 128,673 534 128,139 - FHLB stock 1,420 1,420 - 1,420 - Loans and leases, net 546,707 546,123 - - 546,123 Loans held-for-sale 1,202 1,224 - 1,224 - Accrued interest receivable 2,202 2,202 - 2,202 - Financial liabilities: Deposits with no stated maturities 568,182 568,182 - 568,182 - Time deposits 99,729 99,428 - 99,428 - Short-term borrowings 12,765 12,765 - 12,765 - Accrued interest payable 210 210 - 210 - December 31, 2015 Quoted prices Significant Significant in active other other Carrying Estimated markets observable inputs unobservable inputs (dollars in thousands) amount fair value (Level 1) (Level 2) (Level 3) Financial assets: Cash and cash equivalents $ 12,277 $ 12,277 $ 12,277 $ - $ - Available-for-sale securities 125,232 125,232 546 124,686 - FHLB stock 2,120 2,120 - 2,120 - Loans and leases, net 546,682 545,523 - - 545,523 Loans held-for-sale 1,421 1,444 - 1,444 - Accrued interest receivable 2,210 2,210 - 2,210 - Financial liabilities: Deposits with no stated maturities 516,473 516,473 - 516,473 - Time deposits 104,202 103,403 - 103,403 - Short-term borrowings 28,204 28,204 - 28,204 - Accrued interest payable 189 189 - 189 - |
Fair Value, Assets And Liabilities Measured On Recurring Basis | Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) March 31, 2016 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 18,528 $ - $ 18,528 $ - Obligations of states and political subdivisions 37,609 - 37,609 - MBS - GSE residential 72,002 - 72,002 - Equity securities - financial services 534 534 - - Total available-for-sale securities $ 128,673 $ 534 $ 128,139 $ - Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2015 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 18,386 $ - $ 18,386 $ - Obligations of states and political subdivisions 36,885 - 36,885 - MBS - GSE residential 69,415 - 69,415 - Equity securities - financial services 546 546 - - Total available-for-sale securities $ 125,232 $ 546 $ 124,686 $ - |
Fair Value Measurements At Fair Value Segregated By Hierarchy Fair Value Levels | Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at March 31, 2016 (Level 1) (Level 2) (Level 3) Impaired loans $ 8,560 $ - $ - $ 8,560 Other real estate owned 1,243 - - 1,243 Total $ 9,803 $ - $ - $ 9,803 Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2015 (Level 1) (Level 2) (Level 3) Impaired loans $ 7,132 $ - $ - $ 7,132 Other real estate owned 903 - - 903 Total $ 8,035 $ - $ - $ 8,035 |
Nature Of Operations And Crit24
Nature Of Operations And Critical Accounting Policies (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Nature Of Operations And Critical Accounting Policies [Abstract] | ||
Year founded | 1,903 | |
Interest paid | $ 0.6 | $ 0.7 |
Net change in unrealized gains on available for sale securities | 1.1 | 0.2 |
Transfers from loans to foreclosed assets held-for-sale | 0.7 | 0.4 |
Transfers from loans to loans held-for-sale | $ 0.6 | $ 0 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 2,188 | $ 2,743 |
Other comprehensive income before reclassifications, net of tax | 715 | 155 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (1) | |
Net current-period other comprehensive income | 715 | 154 |
Ending balance | 2,903 | 2,897 |
Unrealized Gains On Available-For-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 2,188 | 2,743 |
Other comprehensive income before reclassifications, net of tax | 715 | 155 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (1) | |
Net current-period other comprehensive income | 715 | 154 |
Ending balance | $ 2,903 | $ 2,897 |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Schedule Of Reclassifications From Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of investment securities | $ 2 | |
Provision for income taxes | $ (586) | (547) |
Net income | $ 1,701 | 1,573 |
Unrealized Gains On Available-For-Sale Securities [Member] | Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gain on sale of investment securities | 2 | |
Provision for income taxes | (1) | |
Net income | $ 1 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - security | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 9 | 33 |
Number of securities in unrealized loss position, more than 12 months | 3 | 1 |
Agency - GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 1 | |
Severity of unrealized losses | 0.98% | |
MBS - GSE Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 5 | |
Severity of unrealized losses | 0.27% | |
Municipal Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 3 | |
Severity of unrealized losses | 0.62% |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Total Available-for-sale securities, Amortized cost | $ 124,273 | $ 121,916 |
Available-for-sale securities, Gross unrealized gains | 4,449 | 3,663 |
Available-for-sale securities, Gross unrealized losses | (49) | (347) |
Total Available-for-sale securities, Fair value | 128,673 | 125,232 |
Agency - GSE [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Total Available-for-sale securities, Amortized cost | 18,369 | 18,374 |
Available-for-sale securities, Gross unrealized gains | 169 | 36 |
Available-for-sale securities, Gross unrealized losses | (10) | (24) |
Total Available-for-sale securities, Fair value | 18,528 | 18,386 |
Obligations Of States And Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Total Available-for-sale securities, Amortized cost | 35,122 | 34,599 |
Available-for-sale securities, Gross unrealized gains | 2,500 | 2,310 |
Available-for-sale securities, Gross unrealized losses | (13) | (24) |
Total Available-for-sale securities, Fair value | 37,609 | 36,885 |
MBS - GSE Residential [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Total Available-for-sale securities, Amortized cost | 70,488 | 68,648 |
Available-for-sale securities, Gross unrealized gains | 1,540 | 1,066 |
Available-for-sale securities, Gross unrealized losses | (26) | (299) |
Total Available-for-sale securities, Fair value | 72,002 | 69,415 |
Debt Securities [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Total Available-for-sale securities, Amortized cost | 123,979 | 121,621 |
Available-for-sale securities, Gross unrealized gains | 4,209 | 3,412 |
Available-for-sale securities, Gross unrealized losses | (49) | (347) |
Total Available-for-sale securities, Fair value | 128,139 | 124,686 |
Equity Securities - Financial Services [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Total Available-for-sale securities, Amortized cost | 294 | 295 |
Available-for-sale securities, Gross unrealized gains | 240 | 251 |
Total Available-for-sale securities, Fair value | $ 534 | $ 546 |
Investment Securities (Investme
Investment Securities (Investment Classified By Contractual Maturity Date) (Details) $ in Thousands | Mar. 31, 2016USD ($) |
Investment Securities [Abstract] | |
Amortized cost: Due in one year or less | $ 3,434 |
Amortized cost: Due after one year through five years | 13,290 |
Amortized cost: Due after five years through ten years | 3,712 |
Amortized cost: Due after ten years | 33,055 |
Total debt securities, Amortized Cost | 53,491 |
MBS - GSE residential, Amortized cost | 70,488 |
Total available-for-sale debt securities, Amortized cost | 123,979 |
Fair value: Due in one year or less | 3,439 |
Fair value: Due after one year through five years | 13,455 |
Fair value: Due after five years through ten years | 3,902 |
Fair value: Due after ten years | 35,341 |
Total debt securities, Fair value | 56,137 |
MBS - GSE residential, Fair value | 72,002 |
Total available-for-sale debt securities, Fair value | $ 128,139 |
Investment Securities (Availabl
Investment Securities (Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) $ in Thousands | Mar. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 9,834 | $ 48,711 |
Less than 12 months: Unrealized losses | (41) | (343) |
More than 12 months: Fair value | 2,822 | 485 |
More than 12 months: Unrealized losses | (8) | (4) |
Total: Fair value | 12,656 | 49,196 |
Total: Unrealized losses | $ (49) | $ (347) |
Less than 12 months: Number of securities | security | 6 | 32 |
More than 12 months: Number of securities | security | 3 | 1 |
Total: Number of securities | security | 9 | 33 |
Agency - GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 1,036 | $ 8,156 |
Less than 12 months: Unrealized losses | (10) | (24) |
Total: Fair value | 1,036 | 8,156 |
Total: Unrealized losses | $ (10) | (24) |
Total: Number of securities | security | 1 | |
Obligations Of States And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 543 | 3,656 |
Less than 12 months: Unrealized losses | (9) | (20) |
More than 12 months: Fair value | 1,534 | 485 |
More than 12 months: Unrealized losses | (4) | (4) |
Total: Fair value | 2,077 | 4,141 |
Total: Unrealized losses | (13) | (24) |
MBS - GSE Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | 8,255 | 36,899 |
Less than 12 months: Unrealized losses | (22) | (299) |
More than 12 months: Fair value | 1,288 | |
More than 12 months: Unrealized losses | (4) | |
Total: Fair value | 9,543 | 36,899 |
Total: Unrealized losses | $ (26) | $ (299) |
Total: Number of securities | security | 5 |
Loans And Leases (Narrative) (D
Loans And Leases (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016USD ($)loanitem | Mar. 31, 2015USD ($)loan | Dec. 31, 2015USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Deferred loan costs | $ 1,500 | $ 1,500 | |
Mortgages serviced | 269,600 | 269,500 | |
Mortgage servicing rights | 1,200 | 1,200 | |
Troubled Debt Restructuring balance | $ 700 | ||
Number of loans classified as TDRs | loan | 1 | ||
Number of contracts modified by TDR with subsequent default | loan | 0 | ||
Allowance for impaired loans that have been modified in a TDR | $ 800 | $ 600 | |
Non-accrual balance | 8,306 | 9,003 | |
Average recorded investment | $ 9,103 | $ 5,623 | |
Cash basis interest income recognized | |||
Troubled Debt Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | $ 3,000 | $ 2,400 | |
Number of loans classified as TDRs | loan | 10 | ||
Increase in Troubled Debt Restructuring balance | $ 600 | ||
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans classified as TDRs | loan | 7 | 7 | |
Commercial And Industrial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans classified as TDRs | loan | 2 | 2 | |
Number of unrelated borrowers that had loans modified in a TDR | loan | 5 | ||
Consumer: Home Equity Line Of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of unrelated borrowers that had loans modified in a TDR | item | 6 | ||
Commercial Real Estate: Owner Occupied [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of contracts modified by TDR with subsequent default | loan | 2 | ||
Nonaccrual Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | $ 200 | ||
Number of loans classified as TDRs | loan | 2 | ||
Accruing TDR Balance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Troubled Debt Restructuring balance | $ 2,800 | $ 2,400 | |
Impaired Loan Status [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-accrual balance | 8,300 | 9,000 | |
Recorded investment in financing receivables that are not 90 days or more past due | $ 2,700 | $ 1,200 |
Loans And Leases (Loan Classifi
Loans And Leases (Loan Classifications) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 556,486 | $ 556,544 | ||
Less: Allowance for loan losses | (9,384) | (9,527) | $ (9,208) | $ (9,173) |
Less: Unearned lease revenue | (395) | (335) | ||
Loans and leases, net | 546,707 | 546,682 | ||
Commercial And Industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 103,703 | 102,653 | ||
Less: Allowance for loan losses | (1,640) | (1,336) | $ (1,214) | $ (1,052) |
Commercial Real Estate: Non-Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 95,303 | 95,745 | ||
Commercial Real Estate: Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 98,523 | 101,652 | ||
Commercial Real Estate: Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 4,904 | 4,481 | ||
Consumer: Home Equity Installment [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 30,017 | 30,935 | ||
Consumer: Home Equity Line Of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 48,331 | 48,060 | ||
Consumer: Auto Loans And Leases [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 29,556 | 29,758 | ||
Consumer: Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 5,770 | 6,208 | ||
Residential: Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 130,270 | 126,992 | ||
Residential: Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $ 10,109 | $ 10,060 |
Loans And Leases (Non-Accrual L
Loans And Leases (Non-Accrual Loans, Segregated By Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 8,306 | $ 9,003 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 32 | 30 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 6,178 | 6,193 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 559 | 988 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 218 | 226 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 92 | 167 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 438 | 512 |
Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 23 | 45 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 6 | 6 |
Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 760 | $ 836 |
Loans and Leases (Information R
Loans and Leases (Information Related To Loans Modified In Troubled Debt Restructuring, By Class) (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016USD ($)contract | Mar. 31, 2015USD ($)contractloan | |
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 1 | 3 |
Recorded investment (as of period end) | $ 650 | $ 1,607 |
Increase in allowance (as of period end) | $ 128 | $ 582 |
Number of contracts, subsequent default | loan | 0 | |
Commercial And Industrial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 1 | |
Recorded investment (as of period end) | $ 500 | |
Increase in allowance (as of period end) | $ 331 | |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 2 | |
Recorded investment (as of period end) | $ 1,107 | |
Increase in allowance (as of period end) | $ 251 | |
Number of contracts, subsequent default | contract | 2 | |
Recorded investment (as of period end), subsequent defaut | $ 156 | |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Number of contracts | contract | 1 | |
Recorded investment (as of period end) | $ 650 | |
Increase in allowance (as of period end) | $ 128 |
Loans And Leases (Past Due Loan
Loans And Leases (Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | $ 1,810 | $ 1,391 |
60 - 89 Days past due | 580 | 2,316 |
Past due 90 days or more | 8,925 | 9,359 |
Total past due | 11,315 | 13,066 |
Current | 544,776 | 543,143 |
Total loans | 556,091 | 556,209 |
Recorded investment past due >=90 days and accruing | 619 | 356 |
Non-accrual loans | 8,306 | 9,003 |
Unearned lease revenue | 395 | 335 |
Deferred loan costs | 1,500 | 1,500 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 63 | 38 |
60 - 89 Days past due | 6 | 32 |
Past due 90 days or more | 59 | 42 |
Total past due | 128 | 112 |
Current | 103,575 | 102,541 |
Total loans | 103,703 | 102,653 |
Recorded investment past due >=90 days and accruing | 27 | 12 |
Non-accrual loans | 32 | 30 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 643 | 549 |
60 - 89 Days past due | 210 | 1,282 |
Past due 90 days or more | 6,178 | 6,476 |
Total past due | 7,031 | 8,307 |
Current | 88,272 | 87,438 |
Total loans | 95,303 | 95,745 |
Recorded investment past due >=90 days and accruing | 283 | |
Non-accrual loans | 6,178 | 6,193 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 237 | |
60 - 89 Days past due | 85 | |
Past due 90 days or more | 594 | 988 |
Total past due | 831 | 1,073 |
Current | 97,692 | 100,579 |
Total loans | 98,523 | 101,652 |
Recorded investment past due >=90 days and accruing | 35 | |
Non-accrual loans | 559 | 988 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past due 90 days or more | 218 | 226 |
Total past due | 218 | 226 |
Current | 4,686 | 4,255 |
Total loans | 4,904 | 4,481 |
Non-accrual loans | 218 | 226 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 370 | 189 |
60 - 89 Days past due | 22 | 92 |
Past due 90 days or more | 92 | 167 |
Total past due | 484 | 448 |
Current | 29,533 | 30,487 |
Total loans | 30,017 | 30,935 |
Non-accrual loans | 92 | 167 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 177 | 109 |
60 - 89 Days past due | 650 | |
Past due 90 days or more | 438 | 512 |
Total past due | 615 | 1,271 |
Current | 47,716 | 46,789 |
Total loans | 48,331 | 48,060 |
Non-accrual loans | 438 | 512 |
Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 232 | 394 |
60 - 89 Days past due | 42 | 44 |
Past due 90 days or more | 580 | 76 |
Total past due | 854 | 514 |
Current | 28,307 | 28,909 |
Total loans | 29,161 | 29,423 |
Recorded investment past due >=90 days and accruing | 557 | 31 |
Non-accrual loans | 23 | 45 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 29 | 66 |
60 - 89 Days past due | 5 | |
Past due 90 days or more | 6 | 36 |
Total past due | 40 | 102 |
Current | 5,730 | 6,106 |
Total loans | 5,770 | 6,208 |
Recorded investment past due >=90 days and accruing | 30 | |
Non-accrual loans | 6 | 6 |
Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
30 - 59 Days past due | 59 | 46 |
60 - 89 Days past due | 295 | 131 |
Past due 90 days or more | 760 | 836 |
Total past due | 1,114 | 1,013 |
Current | 129,156 | 125,979 |
Total loans | 130,270 | 126,992 |
Non-accrual loans | 760 | 836 |
Residential: Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 10,109 | 10,060 |
Total loans | $ 10,109 | $ 10,060 |
Loans And Leases (Impaired Loan
Loans And Leases (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | |||
Troubled Debt Restructuring balance | $ 700 | ||
Unpaid principal balance | 14,315 | $ 13,306 | |
Recorded investment with allowance | 11,444 | 9,141 | |
Recorded investment with no allowance | 2,364 | 3,472 | |
Total recorded investment | 13,808 | 12,613 | |
Related allowance | 2,884 | 2,009 | |
Average recorded investment | 9,103 | $ 5,623 | |
Interest income recognized | $ 83 | $ 34 | |
Cash basis interest income recognized | |||
Commercial And Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 868 | 555 | |
Recorded investment with allowance | 824 | 500 | |
Recorded investment with no allowance | 44 | 55 | |
Total recorded investment | 868 | 555 | |
Related allowance | 614 | 331 | |
Average recorded investment | 675 | $ 206 | |
Interest income recognized | $ 6 | $ 6 | |
Cash basis interest income recognized | |||
Commercial Real Estate: Non-Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 7,959 | 7,960 | |
Recorded investment with allowance | 7,470 | 7,209 | |
Recorded investment with no allowance | 566 | 630 | |
Total recorded investment | 8,036 | 7,839 | |
Related allowance | 1,467 | 1,237 | |
Average recorded investment | 3,859 | $ 1,596 | |
Interest income recognized | $ 24 | $ 14 | |
Cash basis interest income recognized | |||
Commercial Real Estate: Owner Occupied [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 2,878 | 2,588 | |
Recorded investment with allowance | 1,832 | 922 | |
Recorded investment with no allowance | 885 | 1,505 | |
Total recorded investment | 2,717 | 2,427 | |
Related allowance | 560 | 337 | |
Average recorded investment | 2,825 | $ 2,174 | |
Interest income recognized | $ 38 | $ 13 | |
Cash basis interest income recognized | |||
Commercial Real Estate: Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 416 | 422 | |
Recorded investment with no allowance | 218 | 226 | |
Total recorded investment | 218 | 226 | |
Average recorded investment | $ 234 | $ 265 | |
Interest income recognized | |||
Cash basis interest income recognized | |||
Consumer: Home Equity Installment [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 142 | 230 | |
Recorded investment with allowance | 60 | ||
Recorded investment with no allowance | 32 | 167 | |
Total recorded investment | 92 | 167 | |
Related allowance | 5 | ||
Average recorded investment | 195 | $ 326 | |
Interest income recognized | $ 2 | ||
Cash basis interest income recognized | |||
Consumer: Home Equity Line Of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 1,129 | 607 | |
Recorded investment with allowance | 755 | 28 | |
Recorded investment with no allowance | 333 | 484 | |
Total recorded investment | 1,088 | 512 | |
Related allowance | 193 | 1 | |
Average recorded investment | 606 | $ 428 | |
Interest income recognized | $ 11 | $ 1 | |
Cash basis interest income recognized | |||
Consumer: Auto Loans And Leases [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 23 | 47 | |
Recorded investment with allowance | 22 | 43 | |
Recorded investment with no allowance | 1 | 2 | |
Total recorded investment | 23 | 45 | |
Related allowance | 5 | 7 | |
Average recorded investment | $ 29 | $ 1 | |
Interest income recognized | |||
Cash basis interest income recognized | |||
Consumer: Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 6 | 6 | |
Recorded investment with allowance | 6 | 6 | |
Total recorded investment | 6 | 6 | |
Related allowance | 2 | 1 | |
Average recorded investment | $ 9 | $ 22 | |
Interest income recognized | |||
Cash basis interest income recognized | |||
Residential: Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Unpaid principal balance | $ 894 | 891 | |
Recorded investment with allowance | 475 | 433 | |
Recorded investment with no allowance | 285 | 403 | |
Total recorded investment | 760 | 836 | |
Related allowance | 38 | $ 95 | |
Average recorded investment | 671 | $ 605 | |
Interest income recognized | $ 2 | ||
Cash basis interest income recognized | |||
Residential: Construction [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Average recorded investment | |||
Interest income recognized | |||
Cash basis interest income recognized |
Loans And Leases (Credit Qualit
Loans And Leases (Credit Quality Indicator Loan Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Unearned lease revenue | $ 395 | $ 335 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 103,703 | 102,653 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 95,303 | 95,745 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 98,523 | 101,652 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4,904 | 4,481 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 30,017 | 30,935 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 48,331 | 48,060 |
Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 29,161 | 29,423 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 5,770 | 6,208 |
Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 130,270 | 126,992 |
Residential: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 10,109 | 10,060 |
Pass [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 96,513 | 101,342 |
Pass [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 82,087 | 82,152 |
Pass [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 94,694 | 96,401 |
Pass [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4,686 | 4,255 |
Special mention [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 6,007 | 189 |
Special mention [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,382 | 1,480 |
Special mention [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 649 | 657 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,183 | 1,122 |
Substandard [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 11,834 | 12,113 |
Substandard [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 3,180 | 4,594 |
Substandard [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 218 | 226 |
Performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 29,925 | 30,768 |
Performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 47,893 | 47,548 |
Performing [Member] | Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 28,581 | 29,347 |
Performing [Member] | Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 5,764 | 6,172 |
Performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 129,510 | 126,156 |
Performing [Member] | Residential: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 10,109 | 10,060 |
Non-performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 92 | 167 |
Non-performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 438 | 512 |
Non-performing [Member] | Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 580 | 76 |
Non-performing [Member] | Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 6 | 36 |
Non-performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | $ 760 | $ 836 |
Loans And Leases (Allowance For
Loans And Leases (Allowance For Loan Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for Loan Losses: Beginning balance | $ 9,527 | $ 9,173 | $ 9,173 |
Charge-offs | (334) | (183) | (909) |
Recoveries | 41 | 68 | 188 |
Provisions | 150 | 150 | 1,075 |
Allowance for Loan Losses: Ending balance | 9,384 | 9,208 | 9,527 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 2,884 | 2,009 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 6,500 | 7,518 | |
Loan Receivables: Ending balance | 556,091 | 556,209 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 13,808 | 12,613 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 542,283 | 543,596 | |
Unearned lease revenue | 395 | 335 | |
Deferred loan costs | 1,500 | 1,500 | |
Commercial And Industrial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 1,336 | 1,052 | 1,052 |
Charge-offs | (14) | (24) | (25) |
Recoveries | 9 | 9 | 47 |
Provisions | 309 | 177 | 262 |
Allowance for Loan Losses: Ending balance | 1,640 | 1,214 | 1,336 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 614 | 331 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,026 | 1,005 | |
Loan Receivables: Ending balance | 103,703 | 102,653 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 868 | 555 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 102,835 | 102,098 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 5,014 | 4,672 | 4,672 |
Charge-offs | (85) | (67) | (432) |
Recoveries | 4 | 7 | 18 |
Provisions | (350) | (97) | 756 |
Allowance for Loan Losses: Ending balance | 4,583 | 4,515 | 5,014 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 2,027 | 1,574 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 2,556 | 3,440 | |
Loan Receivables: Ending balance | 198,730 | 201,878 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 10,971 | 10,492 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 187,759 | 191,386 | |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 1,533 | 1,519 | 1,519 |
Charge-offs | (175) | (92) | (437) |
Recoveries | 28 | 24 | 95 |
Provisions | 292 | 62 | 356 |
Allowance for Loan Losses: Ending balance | 1,678 | 1,513 | 1,533 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 205 | 9 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,473 | 1,524 | |
Loan Receivables: Ending balance | 113,279 | 114,626 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 1,209 | 730 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 112,070 | 113,896 | |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 1,407 | 1,316 | 1,316 |
Charge-offs | (60) | (15) | |
Recoveries | 28 | 28 | |
Provisions | 32 | (1) | 78 |
Allowance for Loan Losses: Ending balance | 1,379 | 1,343 | 1,407 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 38 | 95 | |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,341 | 1,312 | |
Loan Receivables: Ending balance | 140,379 | 137,052 | |
Loans Receivable: Ending balance: individually evaluated for impairment | 760 | 836 | |
Loans Receivable: Ending balance: collectively evaluated for impairment | 139,619 | 136,216 | |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Allowance for Loan Losses: Beginning balance | 237 | 614 | 614 |
Provisions | (133) | 9 | (377) |
Allowance for Loan Losses: Ending balance | 104 | $ 623 | 237 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | $ 104 | $ 237 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended | |
Mar. 31, 2016itemshares | Mar. 31, 2015shares | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Number of active share-based compensation plans | item | 2 | |
Potentially dilutive common shares | 6,621 | 6,432 |
Employee Stock Option [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive common shares | 1,638 | 2,545 |
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive common shares | 0 | 0 |
Restricted Stock [Member] | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Potentially dilutive common shares | 4,983 | 3,887 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income available to common shareholders | $ 1,701 | $ 1,573 |
Weighted-average common shares outstanding | 2,450,771 | 2,435,884 |
Basic EPS | $ 0.69 | $ 0.65 |
Potentially dilutive common shares | 6,621 | 6,432 |
Weighted-average common and potentially dilutive shares outstanding | 2,457,392 | 2,442,316 |
Diluted EPS | $ 0.69 | $ 0.64 |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) | Feb. 02, 2016$ / sharesshares | Mar. 31, 2016USD ($)$ / sharesitemshares | Mar. 31, 2015USD ($)shares | Dec. 31, 2015$ / shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of active share-based compensation plans | item | 2 | |||
Common stock, no par value | $ / shares | ||||
Grant date stock price | $ / shares | $ 32.40 | |||
Interest rate | 1.276% | |||
Volatility rate | 9.809% | |||
Term used to determine historical volatility | 5 years | |||
Options exercised | 500 | 0 | ||
Options exercised, price per share | $ / shares | $ 27.75 | |||
Options exercised, intrinsic value | $ | $ 2,585 | |||
Options exercised, tax benefit | $ | 808 | |||
Stock-Based Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated compensation expense | $ | $ 70,000 | $ 43,000 | ||
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Granted | 19,341 | |||
Vesting period | 3 years | |||
Grant date stock price | $ / shares | $ 5.21 | |||
Interest rate | 1.861% | |||
Expected term | 10 years | |||
Volatility rate | 23.402% | |||
Dividend rate | 3.577% | |||
Options exercised | ||||
Options exercised, price per share | $ / shares | ||||
Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 500,000 | |||
Omnibus Plan [Member] | Stock-Based Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Allocated compensation expense | $ | $ 31,000 | $ 15,000 | ||
Director Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 500,000 | |||
Director Plan [Member] | Stock-Based Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | 1 year | ||
Allocated compensation expense | $ | $ 39,000 | $ 28,000 | ||
Employee Stock Purchase Plan [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 110,000 | |||
Number of shares issued | 42,382 | |||
Allocated compensation expense | $ | $ 15,000 | $ 44,000 | ||
Award Date One [Member] | Omnibus Plan [Member] | Stock-Based Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares Granted | 3,155 | |||
Vesting period | 3 years | 3 years | 4 years | |
Holding period | 2 years | |||
Expected term | 5 years | |||
Award Date Two [Member] | Omnibus Plan [Member] | Stock-Based Compensation Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | 1 year |
Stock Plans (Disclosure Of Shar
Stock Plans (Disclosure Of Share-Based Compensation Arrangements By Share-based Payment Award) (Details) - Stock-Based Compensation Plan [Member] - $ / shares | Feb. 02, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 8,805 | 6,550 | ||
Weighted-average grant date fair value | $ 31.26 | $ 32.25 | ||
Director Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 5,600 | 3,200 | ||
Weighted-average grant date fair value | $ 32.40 | $ 32.25 | ||
Vesting period | 1 year | 1 year | ||
Award Date One [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 3,155 | 3,300 | ||
Weighted-average grant date fair value | $ 29.22 | $ 32.25 | ||
Vesting period | 3 years | 3 years | 4 years | |
Award Date One [Member] | Omnibus Plan [Member] | Share-based Compensation Award, Tranche One [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period, percentage per year | 33.00% | 25.00% | ||
Award Date Two [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 50 | 50 | ||
Weighted-average grant date fair value | $ 31.50 | $ 32.50 | ||
Vesting period | 1 year | 1 year |
Stock Plans (Summary Of Restric
Stock Plans (Summary Of Restricted Stock Changes) (Details) | 3 Months Ended |
Mar. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average grant date fair value, Non-vested balance at December 31, 2015 | $ / shares | $ 29.50 |
Weighted average grant date fair value, Granted | $ / shares | 31.26 |
Weighted average grant date fair value, Vested | $ / shares | 29.42 |
Weighted average grant date fair value, Non-vested balance at March 31, 2016 | $ / shares | $ 30.56 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested balance at December 31, 2015 | 12,040 |
Granted | 8,805 |
Issued/Vested | (5,855) |
Non-vested balance at March 31, 2016 | 14,990 |
Restricted Stock [Member] | Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested balance at December 31, 2015 | 3,200 |
Granted | 5,600 |
Issued/Vested | (3,200) |
Non-vested balance at March 31, 2016 | 5,600 |
Restricted Stock [Member] | Omnibus Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Non-vested balance at December 31, 2015 | 8,840 |
Granted | 3,205 |
Issued/Vested | (2,655) |
Non-vested balance at March 31, 2016 | 9,390 |
Stock Plans (Schedule Of SSARs
Stock Plans (Schedule Of SSARs Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and exercisable, December 31, 2015 | 15,500 | ||
Exercised | (500) | 0 | |
Outstanding and exercisable, March 31, 2016 | 15,000 | 15,500 | |
Weighted-average exercise price, Outstanding and exercisable, December 31, 2015 | $ 28.64 | ||
Weighted-average exercise price - Exercised | 27.75 | ||
Weighted-average exercise price, Outstanding and exercisable, March 31, 2016 | $ 28.67 | $ 28.64 | |
Weighted-average remaining contractual term (years), Outstanding and exercisable | 1 year 8 months 12 days | 2 years | |
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and exercisable, December 31, 2015 | |||
Granted | 19,341 | ||
Exercised | |||
Forfeited | |||
Outstanding and exercisable, March 31, 2016 | 19,341 | ||
Weighted-average exercise price, Outstanding and exercisable, December 31, 2015 | |||
Weighted-average exercise price - Granted | $ 5.21 | ||
Weighted-average exercise price - Exercised | |||
Weighted-average exercise price - Forfeited | |||
Weighted-average exercise price, Outstanding and exercisable, March 31, 2016 | $ 5.21 | ||
Weighted-average remaining contractual term (years), Granted | 10 years | ||
Weighted-average remaining contractual term (years), Outstanding and exercisable | 9 years 9 months 18 days | ||
Exercisable | 0 | ||
Vesting period | 3 years | ||
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | Share-based Compensation Award, Tranche One [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period, percentage per year | 33.00% |
Stock Plans (Schedule Of Compen
Stock Plans (Schedule Of Compensation Cost For Share-Based Payment Arrangements, Allocation Of Share-Based Compensation Costs By Plan) (Details) - Stock-Based Compensation Plan [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 70 | $ 43 |
Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 39 | 28 |
Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 31 | $ 15 |
Stock Plans (Schedule Of Unreco
Stock Plans (Schedule Of Unrecognized Compensation Cost, Nonvested Awards) (Details) - Stock-Based Compensation Plan [Member] $ in Thousands | Mar. 31, 2016USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 496 |
Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 151 |
Omnibus Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 345 |
Stock Plans (Summary Of Stock O
Stock Plans (Summary Of Stock Option Activity) (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Stock Plans [Abstract] | |||
Outstanding and exercisable, December 31, 2015 | 15,500 | ||
Exercised | (500) | 0 | |
Outstanding and exercisable, March 31, 2016 | 15,000 | 15,500 | |
Weighted-average exercise price, Outstanding and exercisable, December 31, 2015 | $ 28.64 | ||
Weighted-average exercise price - Exercised | 27.75 | ||
Weighted-average exercise price, Outstanding and exercisable, March 31, 2016 | $ 28.67 | $ 28.64 | |
Weighted-average remaining contractual term (years), Outstanding and exercisable | 1 year 8 months 12 days | 2 years |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | $ 0 |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | $ 0 | $ 0 |
Minimum [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (23.55%) | (4.92%) |
Minimum [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (15.90%) | (15.90%) |
Maximum [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (94.00%) | (50.00%) |
Maximum [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (99.00%) | (99.00%) |
Weighted Average [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (32.99%) | (27.84%) |
Weighted Average [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (37.34%) | (37.64%) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount And Estimated Fair Value By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities | $ 128,673 | $ 125,232 |
Loans held-for-sale | 1,224 | 1,444 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 41,091 | 12,277 |
Available-for-sale Securities | 128,673 | 125,232 |
FHLB stock | 1,420 | 2,120 |
Loans and leases, net | 546,123 | 545,523 |
Loans held-for-sale | 1,224 | 1,444 |
Accrued interest receivable | 2,202 | 2,210 |
Short-term borrowings | 12,765 | 28,204 |
Accrued interest payable | 210 | 189 |
Estimated Fair Value [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 568,182 | 516,473 |
Estimated Fair Value [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 99,428 | 103,403 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 41,091 | 12,277 |
Available-for-sale Securities | 128,673 | 125,232 |
FHLB stock | 1,420 | 2,120 |
Loans and leases, net | 546,707 | 546,682 |
Loans held-for-sale | 1,202 | 1,421 |
Accrued interest receivable | 2,202 | 2,210 |
Short-term borrowings | 12,765 | 28,204 |
Accrued interest payable | 210 | 189 |
Carrying Amount [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 568,182 | 516,473 |
Carrying Amount [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 99,729 | 104,202 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 41,091 | 12,277 |
Available-for-sale Securities | 534 | 546 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale Securities | 128,139 | 124,686 |
FHLB stock | 1,420 | 2,120 |
Loans held-for-sale | 1,224 | 1,444 |
Accrued interest receivable | 2,202 | 2,210 |
Short-term borrowings | 12,765 | 28,204 |
Accrued interest payable | 210 | 189 |
Significant Other Observable Inputs (Level 2) [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 568,182 | 516,473 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 99,428 | 103,403 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases, net | $ 546,123 | $ 545,523 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value, Assets And Liabilities Measured On Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | $ 128,673 | $ 125,232 |
Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 18,528 | 18,386 |
Obligations Of States And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 37,609 | 36,885 |
MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 72,002 | 69,415 |
Equity Securities - Financial Services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 534 | 546 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 534 | 546 |
Quoted Prices In Active Markets (Level 1) [Member] | Equity Securities - Financial Services [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 534 | 546 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 128,139 | 124,686 |
Significant Other Observable Inputs (Level 2) [Member] | Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 18,528 | 18,386 |
Significant Other Observable Inputs (Level 2) [Member] | Obligations Of States And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | 37,609 | 36,885 |
Significant Other Observable Inputs (Level 2) [Member] | MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Available-for-sale securities, Fair value | $ 72,002 | $ 69,415 |
Fair Value Measurements (Fair51
Fair Value Measurements (Fair Value Measurements At Fair Value Segregated By Hierarchy Fair Value Levels) (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 9,803 | $ 8,035 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 8,560 | 7,132 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 1,243 | 903 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 9,803 | 8,035 |
Significant Other Unobservable Inputs (Level 3) [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 8,560 | 7,132 |
Significant Other Unobservable Inputs (Level 3) [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 1,243 | $ 903 |