Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 31, 2018 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | FIDELITY D & D BANCORP INC | |
Entity Central Index Key | 1,098,151 | |
Trading Symbol | fdbc | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 3,752,005 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and due from banks | $ 15,903 | $ 14,143 |
Interest-bearing deposits with financial institutions | 2,069 | 1,682 |
Total cash and cash equivalents | 17,972 | 15,825 |
Available-for-sale securities | 164,403 | 157,385 |
Federal Home Loan Bank stock | 3,490 | 2,832 |
Loans and leases, net (allowance for loan losses of $9,527 in 2018; $9,193 in 2017) | 676,161 | 628,767 |
Loans held-for-sale (fair value $1,328 in 2018, $2,221 in 2017) | 1,305 | 2,181 |
Foreclosed assets held-for-sale | 539 | 973 |
Bank premises and equipment, net | 16,189 | 16,576 |
Cash surrender value of bank owned life insurance | 20,315 | 20,017 |
Accrued interest receivable | 3,130 | 2,786 |
Goodwill | 209 | 209 |
Other assets | 18,888 | 16,086 |
Total assets | 922,601 | 863,637 |
Liabilities: | ||
Deposits: Interest-bearing | 565,894 | 551,515 |
Deposits: Non-interest-bearing | 212,364 | 178,631 |
Total deposits | 778,258 | 730,146 |
Accrued interest payable and other liabilities | 7,234 | 6,402 |
Short-term borrowings | 29,553 | 18,502 |
FHLB advances | 18,704 | 21,204 |
Total liabilities | 833,749 | 776,254 |
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; 3,752,005 in 2018; and 3,734,478 in 2017) | 29,016 | 28,361 |
Retained earnings | 61,119 | 57,218 |
Accumulated other comprehensive (loss) income | (1,283) | 1,804 |
Total shareholders' equity | 88,852 | 87,383 |
Total liabilities and shareholders' equity | $ 922,601 | $ 863,637 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Consolidated Balance Sheets [Abstract] | ||
Loans and leases, allowance for loan losses | $ 9,527 | $ 9,193 |
Loans held-for-sale, fair value | $ 1,328 | $ 2,221 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, no par value | ||
Preferred stock, shares issued | 0 | 0 |
Capital stock, no par value | ||
Capital stock, shares authorized | 10,000,000 | 10,000,000 |
Capital stock, shares issued | 3,752,005 | 3,734,478 |
Capital stock, shares outstanding | 3,752,005 | 3,734,478 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Interest income: | |||||
Loans and leases: Taxable | $ 7,029 | $ 6,566 | $ 13,728 | $ 12,726 | |
Loans and leases: Nontaxable | 221 | 217 | 433 | 427 | |
Interest-bearing deposits with financial institutions | 42 | 4 | 84 | 10 | |
Restricted regulatory securities | 38 | 37 | 78 | 56 | |
Investment securities: | |||||
U.S. government agency and corporations | 803 | 658 | 1,578 | 1,277 | |
States and political subdivisions (nontaxable) | 396 | 367 | 766 | 713 | |
Other securities | 6 | 5 | 11 | 11 | |
Total interest income | 8,535 | 7,854 | 16,678 | 15,220 | |
Interest expense: | |||||
Deposits | 886 | 643 | 1,690 | 1,229 | |
Securities sold under repurchase agreements | 3 | 5 | 10 | 12 | |
Other short-term borrowings and other | 57 | 80 | 64 | 137 | |
FHLB advances | 66 | 59 | 132 | 97 | |
Total interest expense | 1,012 | 787 | 1,896 | 1,475 | |
Net interest income | 7,523 | 7,067 | 14,782 | 13,745 | |
Provision for loan losses | 425 | 225 | 725 | 550 | |
Net interest income after provision for loan losses | 7,098 | 6,842 | 14,057 | 13,195 | |
Other income: | |||||
Service charges on deposit accounts | 540 | 549 | 1,093 | 1,092 | |
Interchange fees | 506 | 425 | 975 | 825 | |
Fees from trust fiduciary activities | 326 | 308 | 727 | 503 | |
Fees from financial services | 195 | 119 | 372 | 265 | |
Service charges on loans | 136 | 176 | 307 | 396 | |
Fees and other revenue | 247 | 229 | 479 | 439 | |
Earnings on bank-owned life insurance | 146 | 157 | 298 | 264 | |
Gain (loss) on sale or disposal of: | |||||
Loans | 168 | 168 | 354 | 452 | |
Available-forsale debt securities | 6 | ||||
Equity securities | 107 | 44 | |||
Premises and equipment | (1) | ||||
Total other income | 2,371 | 2,131 | 4,654 | 4,236 | |
Other expenses: | |||||
Salaries and employee benefits | 3,420 | 3,239 | 6,787 | 6,324 | |
Premises and equipment | 929 | 912 | 1,897 | 1,897 | |
Advertising and marketing | 217 | 345 | 621 | 580 | |
Professional services | 480 | 528 | 882 | 926 | |
Data processing and communication | 368 | 280 | 722 | 583 | |
Automated transaction processing | 193 | 184 | 378 | 358 | |
Office supplies and postage | 104 | 107 | 208 | 230 | |
FDIC assessment | 65 | 68 | 133 | 133 | |
PA shares tax | 195 | 47 | 236 | 211 | |
Loan collection | 28 | 47 | 51 | 107 | |
Other real estate owned | 5 | 109 | 65 | 146 | |
Other | 158 | 185 | 390 | 353 | |
Total other expenses | 6,162 | 6,051 | 12,370 | 11,848 | |
Income before income taxes | 3,307 | 2,922 | 6,341 | 5,583 | |
Provision for income taxes | 539 | 739 | 1,045 | 1,420 | |
Net income | $ 2,768 | $ 2,183 | $ 5,296 | $ 4,163 | |
Per share data: | |||||
Net income - basic | [1] | $ 0.74 | $ 0.59 | $ 1.41 | $ 1.12 |
Net income - diluted | [1] | 0.73 | 0.59 | 1.40 | 1.12 |
Dividends | [1] | $ 0.24 | $ 0.21 | $ 0.48 | $ 0.41 |
[1] | On August 15, 2017, the Company declared a three-for-two stock split effected in the form of a 50% stock dividend. Per share data for the three and six months ended June 30, 2017 has been restated for the effects thereof. |
Consolidated Statements of Inc5
Consolidated Statements of Income (Parenthetical) | Aug. 15, 2017 | Jun. 30, 2018 |
Consolidated Statements of Income [Abstract] | ||
Dividend declared | Aug. 15, 2017 | |
Stock split ratio | 1.5 | |
Stock dividend, percentage | 50.00% |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 2,768 | $ 2,183 | $ 5,296 | $ 4,163 |
Other comprehensive (loss) income, before tax: | ||||
Unrealized holding (loss) gain on available-for-sale debt securities | (892) | 687 | (3,369) | 714 |
Reclassification adjustment for net gains realized in income | (6) | |||
Net unrealized (loss) gain | (892) | 687 | (3,375) | 714 |
Tax effect | 188 | (234) | 709 | (243) |
Unrealized (loss) gain, net of tax | (704) | 453 | (2,666) | 471 |
Other comprehensive (loss) income, net of tax | (704) | 453 | (2,666) | 471 |
Total comprehensive income, net of tax | $ 2,064 | $ 2,636 | $ 2,630 | $ 4,634 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Capital Stock [Member] | Retained earnings [Member] | Accumulated other comprehensive income (loss) [Member] | Total |
Balance at Dec. 31, 2016 | $ 27,155 | $ 52,095 | $ 1,381 | $ 80,631 |
Balance, shares at Dec. 31, 2016 | 2,453,805 | |||
Net income | 4,163 | 4,163 | ||
Other comprehensive income (loss) | 471 | 471 | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 126 | 126 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 4,085 | |||
Issuance of common stock through Dividend Reinvestment Plan | $ 90 | 90 | ||
Issuance of common stock through Dividend Reinvestment Plan, shares | 2,478 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 9,657 | |||
Issuance of common stock through exercise of stock options | $ 15 | 15 | ||
Issuance of common stock through exercise of stock options, shares | 519 | |||
Stock-based compensation expense | $ 179 | 179 | ||
Cash dividends declared | (1,539) | (1,539) | ||
Balance, shares at Jun. 30, 2017 | 2,470,544 | |||
Balance at Jun. 30, 2017 | $ 27,565 | 54,719 | 1,852 | 84,136 |
Balance at Dec. 31, 2017 | $ 28,361 | 57,218 | 1,804 | 87,383 |
Balance, shares at Dec. 31, 2017 | 3,734,478 | |||
Net income | 5,296 | 5,296 | ||
Other comprehensive income (loss) | (2,666) | (2,666) | ||
Effect of adopting ASU 2016-01 | 421 | (421) | ||
Issuance of common stock through Employee Stock Purchase Plan | $ 149 | 149 | ||
Issuance of common stock through Employee Stock Purchase Plan, shares | 6,783 | |||
Issuance of common stock from vested restricted share grants through stock compensation plans, shares | 9,994 | |||
Issuance of common stock through exercise of stock options | $ 14 | 14 | ||
Issuance of common stock through exercise of stock options, shares | 750 | |||
Stock-based compensation expense | $ 492 | 492 | ||
Cash dividends declared | (1,816) | (1,816) | ||
Balance, shares at Jun. 30, 2018 | 3,752,005 | |||
Balance at Jun. 30, 2018 | $ 29,016 | $ 61,119 | $ (1,283) | $ 88,852 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||||||
Net income | $ 2,768 | $ 2,183 | $ 5,296 | $ 4,163 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||
Depreciation, amortization and accretion | 1,504 | 1,528 | ||||
Provision for loan losses | 425 | 225 | 725 | 550 | $ 1,450 | |
Deferred income tax expense | 511 | 585 | ||||
Stock-based compensation expense | 432 | 288 | ||||
Excess tax benefit from exercise of stock options | 4 | 1 | ||||
Proceeds from sale of loans held-for-sale | 16,452 | 20,700 | ||||
Originations of loans held-for-sale | (15,134) | (17,279) | ||||
Earnings from bank-owned life insurance | (146) | (157) | $ (264) | (298) | (264) | |
Net gain from sales of loans | (354) | (452) | ||||
Net gain from sales of investment securities | (50) | |||||
Net loss from sale and write-down of foreclosed assets held-for-sale | 13 | 75 | ||||
Net loss from disposal of equipment | 1 | |||||
Change in: | ||||||
Accrued interest receivable | (344) | (456) | ||||
Other assets | (2,104) | (3,542) | ||||
Accrued interest payable and other liabilities | 892 | 938 | ||||
Net cash provided by operating activities | 7,546 | 6,835 | ||||
Available-for-sale securities: | ||||||
Proceeds from sales | 11,425 | |||||
Proceeds from maturities, calls and principal pay-downs | 10,397 | 8,285 | ||||
Purchases | (32,734) | (31,487) | ||||
Increase in FHLB stock | (658) | (1,423) | ||||
Net increase in loans and leases | (49,115) | (39,785) | ||||
Purchase of life insurance policies | (8,000) | |||||
Purchases of bank premises and equipment | (821) | (472) | ||||
Net cash acquired in acquisition of bank branch | 11,817 | |||||
Proceeds from sale of bank premises and equipment | 6 | |||||
Proceeds from sale of foreclosed assets held-for-sale | 1,097 | 463 | ||||
Net cash used by investing activities | (60,409) | (60,596) | ||||
Cash flows from financing activities: | ||||||
Net increase (decrease) in deposits | 48,112 | (9,832) | ||||
Net increase in short-term borrowings | 11,051 | 30,232 | ||||
Proceeds from issuance of FHLB advances | 23,704 | |||||
Repayment of FHLB advances | (2,500) | |||||
Proceeds from employee stock purchase plan participants | 149 | 126 | ||||
Exercise of stock options | 14 | 15 | ||||
Dividends paid, net of dividends reinvested | (1,816) | (1,450) | ||||
Net cash provided by financing activities | 55,010 | 42,795 | ||||
Net increase (decrease) in cash and cash equivalents | 2,147 | (10,966) | ||||
Cash and cash equivalents, beginning | $ 25,843 | 15,825 | 25,843 | 25,843 | ||
Cash and cash equivalents, ending | 17,972 | 14,877 | 17,972 | 14,877 | 15,825 | |
Supplemental Disclosures of Cash Flow Information, Cash payments for: | ||||||
Interest | 1,838 | 1,319 | ||||
Income tax | 900 | |||||
Supplemental Disclosures of Non-cash Investing Activities: | ||||||
Net change in unrealized gains on available-for-sale securities | (3,375) | 714 | ||||
Transfers from loans to foreclosed assets held-for-sale | 676 | 202 | ||||
Transfers from loans to loans held-for-sale | 320 | 2,318 | ||||
Goodwill | $ 209 | $ 209 | $ 209 | |||
West Scranton branch of Wayne Bank [Member] | ||||||
Supplemental Disclosures of Non-cash Investing Activities: | ||||||
Loans | 1,574 | 1,574 | ||||
Bank premises and equipment | 264 | 264 | ||||
Goodwill | 209 | 209 | ||||
Accrued interest receivable and other assets | 4 | 4 | ||||
Total non-cash assets acquired | 2,051 | 2,051 | ||||
Deposits | 13,809 | 13,809 | ||||
Accrued interest payable and other liabilities | 59 | 59 | ||||
Total liabilities assumed | $ 13,868 | $ 13,868 |
Nature Of Operations And Critic
Nature Of Operations And Critical Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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, 201 7 . 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 June 30, 2018 and December 31, 201 7 and the related consolidated statements of income and consolidated statements of comprehensive income for the three and six months ended June 30, 2018 and 2017 , and consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 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 201 7 financial statements to conform to the 201 8 presentation. On August 15, 2017 , the Company declared a three -for-two stock split effected in the form of a 50% stock dividend on its common stock outstanding to shareholders as of September 18, 2017 and distributed on September 28, 2017. All share and per share information included in the accompanying consolidated financial statements and footnotes has been retroactively adjusted to reflect this stock split. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after June 30, 2018 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, 201 7 , 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 June 30 , 2018 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. All of the Company’s debt securities are classified as available-for-sale (AFS). AFS debt 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 June 30, 2018 and December 31, 2017 , 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 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. Goodwill is recorded on the consolidated balance sheets as the excess of liabilities assumed over identifiable assets acquired on the acquisition date. Goodwill is recorded at its net carrying value which represents estimated fair value. The goodwill is deductible for tax purposes over a 15 year period. The Company holds separate supplemental executive retirement (SERP) agreements for certain officers and an amount is credited to each participant’s SERP account monthly while they are actively employed by the bank until retirement. A deferred tax asset is provided for the non-deductible SERP expense. The Company also entered into separate split dollar life insurance arrangements with three executives providing post-retirement benefits and accrues monthly expense for this benefit . The split dollar life insurance expense is not deductible for tax purposes. M onthly expenses for the SERP and post-retirement split dollar life benefit are recorded as components of salaries and employee benefit expense on 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. Expenditures for construction in process, a component of other assets in the consolidated balance sheets, are included in acquisition of premises and equipment. Revenue Recognition As of January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The Company has elected to use the modified retrospective approach with prior period financial statements unadjusted and presented with historical revenue recognition methods. The implementation of the new standard had no material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. The majority of the Company’s revenues are generated through interest earned on securities and loans, which is explicitly excluded from the scope of the guidance. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, loan service charges, life insurance earnings, rental income and gains/losses on the sale of loans and securities are not in the scope of the new guidance. The main types of contracts with customers that are in the scope of the new guidance are: · Service charges on deposit accounts – Deposit service charges represent fees charged by the Company for the performance obligation of providing services to a customer’s deposit account. The transaction price for deposit services includes both fixed and variable amounts based on the Company’s fee schedules. Revenue is recognized and payment is received either at a point in time for transactional fees or on a monthly basis for non-transactional fees. · Interchange fees – Interchange fees represent fees charged by the Company for customers using debit cards. The contract is between the Company and the processor and the performance obligation is the ability of customers to use debit cards to make purchases at a point in time. The transaction price is a percentage of debit card usage and the processor pays the Company and revenue is recorded throughout the month as the performance obligations are being me t . · Fees from trust fiduciary activities – Trust fees represent fees charged by the Company for the management, custody and/or administration of trusts. These are mostly monthly fees based on the market value of assets in the trust account at the prior month end. Payment is generally received a few weeks after month end through a direct charge to customers’ accounts. Estate fees are recognized and charged as the Company reaches each of six different stages of the estate administration process. · Fees from financial services – Financial service fees represent fees charged by the Company for the performance obligation of providing various services for an investment account. Revenue is recognized twice monthly for fees on sales transactions and on a monthly basis for advisory fees and quarterly for trail fees. · Gain/loss on ORE sales – Gain/loss on the sale of ORE is recognized at the closing date when the sales proceeds are received. In seller-financed ORE transactions, the contract is made subject to our normal underwriting standards and pricing. The Company does not have any obligation or right to repurchase any sales of ORE. Contract balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before the payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity already received payment (or payment is due) from the customer. The Company’s non-interest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company typically does not enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. Remaining performance obligations The Company’s performance obligations have an original expected duration of less than one year and follow the relevant guidance for recognizing revenue over time. There is no variable consideration subject to constraint that is not included in information about transaction price. Contract acquisition costs In connection with the adoption of Topic 606, an entity is required to capitalize and subsequently amortize into expense, certain incremental costs of obtaining a contract if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | 2. New accounting pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update (ASU) 2016-13, Financial Instruments – Credit Losses (Topic 326) Measurement of Credit Losses on Financial Instruments . The amendments in this update require financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. Previously, when credit losses were measured under GAAP, an entity only considered past events and current conditions when measuring the incurred loss. The amendments in this update broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. An entity must use judgement in determining the relevant information and estimation methods that are appropriate under the circumstances. The amendments in this update also require that credit losses on available-for-sale debt securities be presented as an allowance for credit losses rather than a writedown. The amendments in this update are effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019 for public companies. Early adoption is permitted beginning after December 15, 2018, including interim periods within those fiscal years. An entity will apply the amendments in this update through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption (modified-retrospective approach). 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. The Company is currently evaluating the impact of ASU 2016-13 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 Company adopted this guidance on January 1, 2018 using the modified retrospective approach. The adoption of ASU 2014-09 did not materially change the method in which the Company recognizes revenue. As a result, the Company changed the process for recognizing revenue for estate fees within fees from trust fiduciary services. The Company concluded the cumulative adjustment to retained earnings for estates in process was immaterial and the income was recognized during the first quarter of 2018. See “Revenue Recognition” in footnote 1 for more information. In January 2016, the FASB issued ASU 2016-01 related to F inancial 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 to available-for-sale securities. The Company adopted this guidance on January 1, 2018. The adoption did not have a material impact on the consolidated financial statements. As a result of this guidance, the Company reclassified $0.4 million in net unrealized gains on equity securities from accumulated other comprehensive income to retained earnings on January 1, 2018 and the Company measured the fair value of its loan portfolio using the exit price notion. See “Fair Value Measurements” in footnote 8 for more information about the fair value measurement of the loan portfolio. 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 Company is expected to make an election to exclude leases less than 12 months from the provisions of this ASU. 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 is 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 has several lease agreements, such as branch locations, which are currently considered operating leases, and therefore not recognized on the Company’s consolidated balance sheets. Therefore, the adoption of ASU 2016-02 is expected to impact the Company’s consolidated balance sheets, along with our regulatory capital ratios. Upon adoption, this change in accounting guidance could also potentially impact debt covenant agreements with our customers. The Company is currently evaluating the amount of the impact of ASU 2016-02 on its consolidated financial statements. In July 2018, the FASB issued ASU 2018-10, Codification Improvements to Topic 842, Leases and ASU 2018-11, Leases (Topic 842) Targeted Improvements to clarify how to apply certain aspects of ASU 2016-02 and to simplify adoption and reduce costs. ASU 2018-11 allows companies the option to apply the provisions of the new lease standard prospectively as of the effective date, without adjusting comparative periods , and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption . The Company anticipates using this additional transition method. The amendments in this update are effective upon adoption of Topic 842. In August 2016, the FASB released ASU 2016-15, Statement of Cash Flows (Topic 230) to clarify the presentation of certain cash receipts and payments on the statement of cash flows. The update addressed eight specific cash flow issues with the objective of reducing the existing diversity in practice. The amendments in this update are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The amendments in this update should be applied using a retrospective transition method to each period presented. The Company adopted ASU 2016-15 on January 1, 2018 and it did not have a significant impact on the Company’s consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350) to simplify the test for goodwill impairment. To simplify the subsequent measurement of goodwill, the FASB eliminated Step 2 from the goodwill impairment test. Under the amendments in this update, an entity should perform its annual goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting units fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. An entity should apply the amendments in his update on a prospective basis. The amendments in this update are effective for the Company for its annual goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017 . The Company adopted this standard in 2017 and it did not have an impact on its consolidated financial statements. The Company did not have any goodwill prior to adoption of this update. In March 2017, the FASB issued ASU 2017-08, Receivables-Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities to amend the amortization period for certain purchased callable debt securities held at a premium. The amendments in this update shorten the amortization period for the premium to the earliest call date. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. An entity should apply the amendments in this update on a modified retrospective basis through a cumulative effect adjustment directly to retained earnings as of the beginning of the period of adoption. The Company adopted this standard in 2017 and it did not have an effect on its consolidated financial statements. In February 2018, the FASB released ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) to allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The amendments in this update also require certain disclosures about stranded tax effects. The guidance is effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted for periods for which financial statements have not yet been issued or available for issuance, including in the period the Act was enacted. The Company elected to early adopt and reclassify the stranded income tax effects of the Act from accumulated other comprehensive income to retained earnings during the fourth quarter of 2017. The reclassification increased AOCI and decreased retained earnings by $0.3 million, with zero net effect on total shareholders’ equity. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2018 | |
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 six months ended June 30, 2018 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ 1,804 Other comprehensive loss before reclassifications, net of tax (2,661) Amounts reclassified from accumulated other comprehensive income, net of tax (5) Effect of adopting ASU 2016-01, net of tax* (421) Net current-period other comprehensive loss (3,087) Ending balance $ (1,283) *The Company adopted ASU 2016-01 on January 1, 2018. As a result, unrealized gains on equity securities were reclassified from accumulated other comprehensive income to retained earnings. As of and for the three months ended June 30, 2018 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ (579) Other comprehensive loss before reclassifications, net of tax (704) Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income (704) Ending balance $ (1,283) As of and for the six months ended June 30, 2017 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,381 Other comprehensive income before reclassifications, net of tax 471 Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income 471 Ending balance $ 1,852 As of and for the three months ended June 30, 2017 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,399 Other comprehensive income before reclassifications, net of tax 453 Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income 453 Ending balance $ 1,852 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 For the six months ended June 30, June 30, 2018 2017 2018 2017 Unrealized gains on AFS debt securities $ - $ - $ 6 $ - Gain on sale of investment securities Income tax effect - - (1) - Provision for income taxes Total reclassifications for the period $ - $ - $ 5 $ - Net income |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and December 31, 201 7 are summarized as follows: Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value June 30, 2018 Available-for-sale debt securities: Agency - GSE $ 5,918 $ 5 $ (46) $ 5,877 Obligations of states and political subdivisions 45,233 1,336 (208) 46,361 MBS - GSE residential 114,877 231 (2,943) 112,165 Total available-for-sale debt securities $ 166,028 $ 1,572 $ (3,197) $ 164,403 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2017 Available-for-sale securities: Agency - GSE $ 9,120 $ 3 $ (24) $ 9,099 Obligations of states and political subdivisions 42,300 2,036 (30) 44,306 MBS - GSE residential 103,386 519 (753) 103,152 Total debt securities 154,806 2,558 (807) 156,557 Equity securities - financial services 294 534 - 828 Total available-for-sale securities $ 155,100 $ 3,092 $ (807) $ 157,385 The Company adopted ASU 2016-01, Financial Instruments – Overall (Topic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities effective January 1, 2018. The Company sold all of its equity securities during the first half of 2018. The amortized cost and fair value of debt securities at June 30, 2018 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 $ - $ - Due after one year through five years 2,816 2,880 Due after five years through ten years 8,523 8,547 Due after ten years 39,812 40,811 MBS - GSE residential 114,877 112,165 Total available-for-sale debt securities $ 166,028 $ 164,403 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 debt 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 June 30, 2018 and December 31, 201 7: Less than 12 months More than 12 months Total Fair Unrealized Fair Unrealized Fair Unrealized (dollars in thousands) value losses value losses value losses June 30, 2018 Agency - GSE $ 4,871 $ (46) $ - $ - $ 4,871 $ (46) Obligations of states and political subdivisions 9,864 (113) 2,038 (95) 11,902 (208) MBS - GSE residential 78,856 (1,849) 26,912 (1,094) 105,768 (2,943) Total $ 93,591 $ (2,008) $ 28,950 $ (1,189) $ 122,541 $ (3,197) Number of securities 73 21 94 December 31, 2017 Agency - GSE $ 6,020 $ (14) $ 1,008 $ (10) $ 7,028 $ (24) Obligations of states and political subdivisions 425 (1) 2,109 (29) 2,534 (30) MBS - GSE residential 61,349 (437) 15,309 (316) 76,658 (753) Total $ 67,794 $ (452) $ 18,426 $ (355) $ 86,220 $ (807) Number of securities 45 14 59 The Company had ninety-four debt securities in an unrealized loss position at June 30, 2018, including f ive agency securities, sixty- seven mortgage-backed securities and twenty-t wo municipal securities. The severity of these unrealized losses based on their underlying cost basis was as follows at June 30, 2018: 0.94% for agencies; 2.71% for total MBS-GSE; and 1.72% for municipals. Of these securities, seventeen mortgage-backed securities and four municipal securities had been in an unrealized loss position in excess of 12 months. The changes in the prices on these securities in an unrealized loss position in excess of 12 months are the result of interest rate movement and management believes they 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 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 to pics related to debt 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 securities. For all security types, as of June 30, 2018 , 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 | 6 Months Ended |
Jun. 30, 2018 | |
Loans And Leases [Abstract] | |
Loans And Leases | 5. Loans and leases The classifications of loans and leases at June 30, 2018 and December 31, 201 7 are summarized as follows: (dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 126,006 $ 113,601 Commercial real estate: Non-owner occupied 90,494 92,851 Owner occupied 113,103 109,383 Construction 5,988 6,228 Consumer: Home equity installment 29,017 27,317 Home equity line of credit 53,911 53,273 Auto loans and leases 105,588 83,510 Other 5,744 5,604 Residential: Real estate 144,864 136,901 Construction 11,831 9,931 Total 686,546 638,599 Less: Allowance for loan losses (9,527) (9,193) Unearned lease revenue (858) (639) Loans and leases, net $ 676,161 $ 628,767 Net deferred loan costs of $2.4 million and $2.1 million have been included in the carrying values of loans at June 30, 2018 and December 31, 201 7 , 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 residual value of leases is fully guaranteed by the dealerships. Residual values, a component of other assets on the balance sheet, amounted to $10.4 million and $9.4 million at June 30, 2018 and December 31, 2017, respectively. 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 $302.3 million as of June 30, 2018 and $299.3 million as of December 31, 201 7 . Mortgage servicing rights amounted to $1.2 million and $1.3 million as of June 30, 2018 and December 31, 2017 , 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. C&I and 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 June 30, 2018 and December 31, 201 7, were as follows: (dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 100 $ 36 Commercial real estate: Non-owner occupied 501 649 Owner occupied 923 942 Construction 159 161 Consumer: Home equity installment 82 15 Home equity line of credit 31 559 Auto loans and leases 51 5 Residential: Real estate 916 1,074 Total $ 2,763 $ 3,441 Troubled Debt Restructuring A modification of a loan constitutes a 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 typically considers the following concessions when modifying a loan, which may include lowering interest rates below the market rate, temporary interest-only payment periods, term extensions at interest rates lower than the current market rate for new debt with similar risk and/or converting revolving credit lines to term loans. The Company typically does not consider forgiveness of principal when granting a TDR modification. Of the TDRs outstanding as of June 30, 2018 and 2017, 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 six months ended: (dollars in thousands) June 30, 2018 June 30, 2017 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 real estate - non-owner occupied - $ - $ - 1 $ 119 $ 3 Commercial real estate - owner occupied - - - 5 918 163 Consumer home equity installment 1 413 350 - - - Residential real estate 1 316 - - - - Total 2 $ 729 $ 350 6 $ 1,037 $ 166 Loans modified as TDRs for the three months ended: (dollars in thousands) June 30, 2018 June 30, 2017 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 real estate - owner occupied - $ - $ - 1 $ 142 $ 7 In the above table s , the period end balance is inclusive of all partial pay downs and charge-offs since the modification date. For all loans modified in a TDR, the pre-modification recorded investment was the same as the post-modification recorded investment. The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following modification) during the periods indicated: Loans modified as a TDR within the previous twelve months that subsequently defaulted during the six months ended: (dollars in thousands) June 30, 2018 June 30, 2017 Number of Recorded Number of Recorded contracts investment contracts investment Commercial real estate - owner occupied - $ - 1 $ 142 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 for possible further impairment. 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 June 30, 2018 and 2017, respectively, the allowance for impaired loans that have been modified in a TDR was $0.8 million and $0.9 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 loa ns, segregated by class , 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 June 30, 2018 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 247 $ 242 $ 100 $ 589 $ 125,417 $ 126,006 $ - Commercial real estate: Non-owner occupied 115 - 501 616 89,878 90,494 - Owner occupied 599 48 1,087 1,734 111,369 113,103 164 Construction - - 159 159 5,829 5,988 - Consumer: Home equity installment 600 31 82 713 28,304 29,017 - Home equity line of credit 365 125 31 521 53,390 53,911 - Auto loans and leases 283 91 51 425 104,305 104,730 (2) - Other 38 21 - 59 5,685 5,744 - Residential: Real estate - 407 916 1,323 143,541 144,864 - Construction - - - - 11,831 11,831 - Total $ 2,247 $ 965 $ 2,927 $ 6,139 $ 679,549 $ 685,688 $ 164 (1) Includes $ 2. 8 million of non -accrual loans. (2) Net of unearned lease revenue of $0. 9 million. (3 ) Includes net deferred loan costs of $2.4 million . Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2017 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 286 $ - $ 36 $ 322 $ 113,279 $ 113,601 $ - Commercial real estate: Non-owner occupied 51 1,018 649 1,718 91,133 92,851 - Owner occupied 52 85 942 1,079 108,304 109,383 - Construction - - 161 161 6,067 6,228 - Consumer: Home equity installment 130 30 15 175 27,142 27,317 - Home equity line of credit 276 - 559 835 52,438 53,273 - Auto loans and leases 449 85 11 545 82,326 82,871 (2) 6 Other 42 - - 42 5,562 5,604 - Residential: Real estate 38 351 1,074 1,463 135,438 136,901 - Construction - - - - 9,931 9,931 - Total $ 1,324 $ 1,569 $ 3,447 $ 6,340 $ 631,620 $ 637,960 $ 6 (1) Includes $3.4 million of non-accrual loans. (2) Net of unearned lease revenue of $0.6 million. (3) Includes net deferred loan costs of $2.1 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 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 June 30, 2018, impaired loans totaled $6.7 million consisting of $2.6 million in accruing TDRs, $2.8 million in non-accrual loans and $1.3 million in accruing impaired loans. At December 31, 2017, impaired loans totaled $6.9 million consisting of $1.9 million in accruing TDRs, $3.4 million in non-accrual loans and $1.6 million in accruing impaired loans. As of June 30, 2018, the non-accrual loans included two TDRs to two unrelated borrowers totaling $1.1 million compared with three TDRs totaling $1.6 million to three unrelated borrowers as of December 31, 2017. Impaired loans, segregated by class, as of the period indicated are detailed below: Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance June 30, 2018 Commercial and industrial $ 195 $ 76 $ 48 $ 124 $ - Commercial real estate: Non-owner occupied 2,341 1,855 311 2,166 419 Owner occupied 2,713 1,493 971 2,464 418 Construction 382 - 159 159 - Consumer: Home equity installment 529 413 82 495 350 Home equity line of credit 70 30 1 31 30 Auto loans and leases 78 - 51 51 - Other - - - - - Residential: Real estate 1,564 55 1,177 1,232 1 Construction - - - - - Total $ 7,872 $ 3,922 $ 2,800 $ 6,722 $ 1,218 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2017 Commercial and industrial $ 281 $ 225 $ 24 $ 249 $ 196 Commercial real estate: Non-owner occupied 2,426 1,975 363 2,338 488 Owner occupied 2,742 1,768 725 2,493 433 Construction 384 - 161 161 - Consumer: Home equity installment 48 - 15 15 - Home equity line of credit 878 32 527 559 25 Auto 13 - 5 5 - Other - - - - - Residential: Real estate 1,350 131 943 1,074 37 Construction - - - - - Total $ 8,122 $ 4,131 $ 2,763 $ 6,894 $ 1,179 The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. 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. For the six months ended June 30, 2018 June 30, 2017 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 $ 207 $ 1 $ - $ 237 $ 4 $ - Commercial real estate: Non-owner occupied 2,376 63 - 3,316 63 - Owner occupied 2,912 41 - 4,819 71 - Construction 166 - - 192 - - Consumer: Home equity installment 194 5 - 30 - - Home equity line of credit 388 8 - 816 - - Auto 14 - - 25 4 - Other 6 - - 5 1 - Residential: Real estate 1,278 31 - 1,282 23 - Construction - - - - - - Total $ 7,541 $ 149 $ - $ 10,722 $ 166 $ - For the three months ended June 30, 2018 June 30, 2017 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 $ 169 $ 1 $ - $ 221 $ 4 $ - Commercial real estate: Non-owner occupied 2,183 40 - 2,984 28 - Owner occupied 2,512 23 - 4,829 41 - Construction 163 - - 179 - - Consumer: Home equity installment 462 3 - 8 - - Home equity line of credit 31 - - 801 - - Auto 32 - - 21 4 - Other 11 - - 3 - - Residential: Real estate 1,238 9 - 1,493 15 - Construction - - - - - - Total $ 6,801 $ 76 $ - $ 10,539 $ 92 $ - 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 and history in assessing performance. Non-performing loans are comprised of non-accrual loans and loans past due 90 days or more and accruing. All loans not classified as non-performing are considered performing. The following table presents loans including $2.4 million and $2.1 million of deferred costs, segregated by class, categorized into the appropriate credit quality indicator category as of June 30, 2018 and December 31, 2017, respectively: Commercial credit exposure Credit risk profile by creditworthiness category June 30, 2018 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 124,480 $ 567 $ 959 $ - $ 126,006 Commercial real estate - non-owner occupied 86,543 620 3,331 - 90,494 Commercial real estate - owner occupied 107,722 752 4,629 - 113,103 Commercial real estate - construction 5,829 - 159 - 5,988 Total commercial $ 324,574 $ 1,939 $ 9,078 $ - $ 335,591 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity June 30, 2018 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 28,935 $ 82 $ 29,017 Home equity line of credit 53,880 31 53,911 Auto loans and leases (1) 104,679 51 104,730 Other 5,744 - 5,744 Total consumer $ 193,238 $ 164 $ 193,402 Residential Real estate $ 143,948 $ 916 $ 144,864 Construction 11,831 - 11,831 Total residential $ 155,779 $ 916 $ 156,695 Total consumer & residential $ 349,017 $ 1,080 $ 350,097 (1) Net of unearned lease revenue of $0. 9 million . Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2017 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 112,398 $ 509 $ 694 $ - $ 113,601 Commercial real estate - non-owner occupied 84,892 998 6,961 - 92,851 Commercial real estate - owner occupied 103,426 2,479 3,478 - 109,383 Commercial real estate - construction 6,067 - 161 - 6,228 Total commercial $ 306,783 $ 3,986 $ 11,294 $ - $ 322,063 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2017 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 27,302 $ 15 $ 27,317 Home equity line of credit 52,714 559 53,273 Auto loans and leases (2) 82,860 11 82,871 Other 5,604 - 5,604 Total consumer $ 168,480 $ 585 $ 169,065 Residential Real estate $ 135,827 $ 1,074 $ 136,901 Construction 9,931 - 9,931 Total residential $ 145,758 $ 1,074 $ 146,832 Total consumer & residential $ 314,238 $ 1,659 $ 315,897 (2) Net o f unearned lease revenue of $0.6 million. 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 (trailing 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 and legal and regulatory requirements; 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 quarterly 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 six months ended June 30, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Charge-offs (97) (130) (202) (115) - (544) Recoveries 54 33 66 - - 153 Provision 10 (149) 702 229 (67) 725 Ending balance $ 1,341 $ 3,814 $ 2,629 $ 1,722 $ 21 $ 9,527 Ending balance: individually evaluated for impairment $ - $ 837 $ 380 $ 1 $ - $ 1,218 Ending balance: collectively evaluated for impairment $ 1,341 $ 2,977 $ 2,249 $ 1,721 $ 21 $ 8,309 Loans Receivables: Ending balance (2) $ 126,006 $ 209,585 $ 193,402 (1) $ 156,695 $ - $ 685,688 Ending balance: individually evaluated for impairment $ 124 $ 4,789 $ 577 $ 1,232 $ - $ 6,722 Ending balance: collectively evaluated for impairment $ 125,882 $ 204,796 $ 192,825 $ 155,463 $ - $ 678,966 (1) Net of unearned lease revenue of $0. 9 million. (2) Includes $2.4 million of net deferred loan costs. As of and for the three months ended June 30, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,236 $ 3,988 $ 2,470 $ 1,662 $ 52 $ 9,408 Charge-offs (82) (87) (90) (110) - (369) Recoveries - 30 33 - - 63 Provision 187 (117) 216 170 (31) 425 Ending balance $ 1,341 $ 3,814 $ 2,629 $ 1,722 $ 21 $ 9,527 As of and for the year ended December 31, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,075 $ 4,706 $ 1,834 $ 1,622 $ 127 $ 9,364 Charge-offs (143) (635) (658) (309) - (1,745) Recoveries 10 47 67 - - 124 Provision 432 (58) 820 295 (39) 1,450 Ending balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Ending balance: individually evaluated for impairment $ 196 $ 921 $ 25 $ 37 $ - $ 1,179 Ending balance: collectively evaluated for impairment $ 1,178 $ 3,139 $ 2,038 $ 1,571 $ 88 $ 8,014 Loans Receivables: Ending balance (2) $ 113,601 $ 208,462 $ 169,065 (1) $ 146,832 $ - $ 637,960 Ending balance: individually evaluated for impairment $ 249 $ 4,992 $ 579 $ 1,074 $ - $ 6,894 Ending balance: collectively evaluated for impairment $ 113,352 $ 203,470 $ 168,486 $ 145,758 $ - $ 631,066 (1) Net of unearned lease revenue of $0. 6 million. (2) Includes $2.1 million of net deferred loan costs. As of and for the six months ended June 30, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,075 $ 4,706 $ 1,834 $ 1,622 $ 127 $ 9,364 Charge-offs (30) (368) (160) (38) - (596) Recoveries 3 41 44 - - 88 Provision 335 131 221 (73) (64) 550 Ending balance $ 1,383 $ 4,510 $ 1,939 $ 1,511 $ 63 $ 9,406 As of and for the three months ended June 30, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,263 $ 4,922 $ 1,731 $ 1,519 $ 113 $ 9,548 Charge-offs (30) (301) (84) - - (415) Recoveries 1 31 16 - - 48 Provision 149 (142) 276 (8) (50) 225 Ending balance $ 1,383 $ 4,510 $ 1,939 $ 1,511 $ 63 $ 9,406 |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 6. Ear nings 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 and six months ended June 30, 2018 , there were 27,894 and 26,674 potentially dilutive shares related to issued and unexercised stock options and SSARs compared to 12,206 and 10,529 for the same 2017 periods, respectively . For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 11,137 and 11,006 potentially dilutive shares related to unvested restricted share grants as of the three and six months ended June 30, 2018 compared to 6,148 and 7,243 for the same 2017 periods , 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 and compensation cost for future service that the Company has not yet recognized in earnings. 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 June 30, Six months ended June 30, 2018 2017 2018 2017 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 2,768 $ 2,183 $ 5,296 $ 4,163 Weighted-average common shares outstanding 3,751,728 3,705,534 3,749,389 3,701,078 Basic EPS $ 0.74 $ 0.59 $ 1.41 $ 1.12 Diluted EPS: Net income available to common shareholders $ 2,768 $ 2,183 $ 5,296 $ 4,163 Weighted-average common shares outstanding 3,751,728 3,705,534 3,749,389 3,701,078 Potentially dilutive common shares 39,031 18,354 37,680 17,772 Weighted-average common and potentially dilutive shares outstanding 3,790,759 3,723,888 3,787,069 3,718,850 Diluted EPS $ 0.73 $ 0.59 $ 1.40 $ 1.12 |
Stock Plans
Stock Plans | 6 Months Ended |
Jun. 30, 2018 | |
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 750,000 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 period 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, in February 2017 based on 2016 performance and in February 2018 based on 2017 performance and 2015-2017 3-year cumulative performance . The following table summarizes the weighted-average fair value and vesting of restricted stock grants awarded during the periods ended June 30, 2018 and 2017 under the 2012 stock incentive plans: June 30, 2018 June 30, 2017 Weighted- Weighted- average average Shares grant date Shares grant date granted fair value granted fair value Director plan 8,400 (3) $ 49.50 8,400 (2) $ 26.17 Omnibus plan 10,800 (3) 45.83 4,749 (3) 23.93 Omnibus plan 50 (1) 49.50 75 (1) 26.17 Total 19,250 $ 47.44 13,224 $ 25.36 (1) Vest after 1 year (2 ) Vest after 2 years – 50 % each year (3) Vest after 3 years – 33% each year The fair value of the 10,800 shares granted on February 6, 2018 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 $49.50 and the discount of 7.423% was calculated using an interest rate of 2.504% and a 5 year historical volatility of 17.617% . 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, 2017 8,400 12,304 20,704 $ 23.59 Granted 8,400 10,850 19,250 47.44 Vested (4,200) (5,794) (9,994) 23.69 Non-vested balance at June 30, 2018 12,600 17,360 29,960 $ 38.99 The Company granted 38,941 SSARs under the Omnibus Plan on February 6, 2018. 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 $13.73 per share, based on a risk-free interest rate of 2.771% , a dividend yield of 1.762% and a volatility of 23.906% 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, 2017 53,360 $ 4.20 8.5 Granted 38,941 13.73 10.0 Exercised - - Forfeited - - Outstanding June 30, 2018 92,301 $ 8.22 8.7 O f the SSARs outstanding at June 30, 2018 , 27,453 vested and were exercisable. 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 and six months ended June 30, 2018 and 2017 and the unrecognized stock-based compensation expense as of June 30, 2018 : Three months ended June 30, Six months ended June 30, (dollars in thousands) 2018 2017 2018 2017 Stock-based compensation expense: Director stock incentive plan $ 62 $ 27 $ 113 $ 61 Omnibus stock incentive plan 132 50 236 95 Employee stock purchase plan - - 143 23 Total stock-based compensation expense $ 194 $ 77 $ 492 $ 179 In addition, during the three and six months ended June 30, 2018, the Company reversed accruals of ( $35 thousand) and ( $60 thousand) in stock-based compensation expense for restricted stock and SSARs awarded under the Omnibus Plan. The Company accrued $54 thousand and $109 thousand in stock- based compensation expense during the three and six months ended June 30 , 2017 . As of (dollars in thousands) June 30, 2018 Unrecognized stock-based compensation expense: Director plan $ 422 Omnibus plan 1,076 Total unrecognized stock-based compensation expense $ 1,498 The unrecognized stock-based compensation expense as of June 30, 2018 will be recognized ratably over the periods ended January 20 21 and January 202 1 for the Director Plan and the Omnibus Plan, respectively. Transactions under the Com pany’s stock option plan for the six months ended June 30, 2018 are presented in the following table: Options Weighted-average exercise price Weighted-average remaining contractual term (years) Outstanding and exercisable, December 31, 2017 750 $ 18.50 0.2 Granted - - Exercised (750) 18.50 Forfeited - - Outstanding and exercisable, June 30, 2018 - $ - - During the first quarter of 201 8 , there were 750 stock options exercised at a price of $18.50 per share. The intrinsic value of these stock options was $2,585 . The tax deduction realized from the exercise of these options was $22,875 resulting in a tax benefit of $4,804 . During the first quarter of 2017, there were 779 stock options exercised at a price of $19.27 per share. The intrinsic value of these stock options was $2,891 and the tax deduction realized from the exercise of these options was $5,761 resulting in a tax benefit of $1,959 . The Company has not issued stock options since 2008. In addition to the 2012 stock incentive plans, the Company established the 2002 Employee Stock Purchase Plan (the ESPP) and reserved 165,000 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 June 30, 2018 , 76,484 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 and it is included as a component of salaries and employee benefits in the co nsolidated statements of income . |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2018 | |
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: June 30, 2018 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 $ 17,972 $ 17,972 $ 17,972 $ - $ - Available-for-sale debt securities 164,403 164,403 - 164,403 - FHLB stock 3,490 3,490 - 3,490 - Loans and leases, net 676,161 667,199 - - 667,199 Loans held-for-sale 1,305 1,328 - 1,328 - Accrued interest receivable 3,130 3,130 - 3,130 - Financial liabilities: Deposits with no stated maturities 667,573 667,573 - 667,573 - Time deposits 110,685 109,028 - 109,028 - Short-term borrowings 29,553 29,553 - 29,553 - FHLB advances 18,704 18,583 - 18,583 - Accrued interest payable 404 404 - 404 - December 31, 2017 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 $ 15,825 $ 15,825 $ 15,825 $ - $ - Available-for-sale securities 157,385 157,385 828 156,557 - FHLB stock 2,832 2,832 - 2,832 - Loans and leases, net 628,767 625,052 - - 625,052 Loans held-for-sale 2,181 2,221 - 2,221 - Accrued interest receivable 2,786 2,786 - 2,786 - Financial liabilities: Deposits with no stated maturities 623,080 623,080 - 623,080 - Time deposits 107,066 105,758 - 105,758 - Short-term borrowings 18,502 18,502 - 18,502 - FHLB advances 21,204 21,066 - 21,066 - Accrued interest payable 346 346 - 346 - 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 services to financial institutions. Loans and leases : The fair value of accruing loans is estimated by calculating the net present value of the future expected cash flows discounted using the exit price notion. The discount rate is based upon current offering rates, with an additional discount for expected potential charge-offs. Additionally, an environmental general credit risk adjustment is subtracted from the net present value to arrive at the total estimated fair value of the accruing loan portfolio. 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. The net carrying value of loans acquired through the Wayne Bank branch acquisition approximates the fair value of the loans. Non- accrual loans: Loans which the Company has measured as non-accruing are generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third-party appraisals of the properties. These loans are classified within Level 3 of the fair value hierarchy. The fair value consists of loan balances less the valuation allowance. 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 fair value of certificates of deposit acquired through the Wayne Bank branch acquisition represents the estimated fair value of these deposits. FHLB advances: Fair value is estimated using the rates currently offered for similar borrowings. 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) June 30, 2018 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 5,877 $ - $ 5,877 $ - Obligations of states and political subdivisions 46,361 - 46,361 - MBS - GSE residential 112,165 - 112,165 - Total available-for-sale debt securities $ 164,403 $ - $ 164,403 $ - Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 9,099 $ - $ 9,099 $ - Obligations of states and political subdivisions 44,306 - 44,306 - MBS - GSE residential 103,152 - 103,152 - Equity securities - financial services 828 828 - - Total available-for-sale securities $ 157,385 $ 828 $ 156,557 $ - Equity securities 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 June 30, 2018 and December 31, 2017, 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 June 30, 2018 and December 31, 2017, respectively. The following table illustrates the financial instruments newly measured at fair value on a non-recurring basis segregated by hierarchy fair value lev els 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 June 30, 2018 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,704 $ - $ - $ 2,704 Other real estate owned 532 - - 532 Total $ 3,236 $ - $ - $ 3,236 Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2017 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,952 $ - $ - $ 2,952 Other real estate owned 814 - - 814 Total $ 3,766 $ - $ - $ 3,766 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 June 30, 2018 and December 31, 2017, the range of liquidation expenses and other valuation adjustments applied to impaired loans ranged from -17.30% to -49.89% and from -15.95% to -51.55% respectively. The weighted-average of liquidation expenses and other valuation adjustments applied to impaired loans amounted to -27.05% as of June 30, 2018 and -23.03% as of December 31, 2017, 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 June 30, 2018 and December 31, 2017, the discounts applied to the appraised values of ORE ranged from -25.71% to -68.96% and from -17.95% to -99.00% , respectively. As of June 30, 2018 and December 31, 2017, the weighted-average of discount to the appraisal values of ORE amounted to -38.09% and -35.30% respectively. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Acquisition [Abstract] | |
Acquistion | 9. Acquisition On March 17, 2017, the Company completed the acquisition of the West Scranton branch of Wayne Bank, the wholly owned banking subsidiary of Norwood Financial Corp., pursuant to the terms of the Branch Purchase and Deposit Assumption Agreement dated September 29, 2016. The Company purchased all of the deposit liabilities associated with the branch, certain loans, and the branch real estate, and immediately closed the branch and consolidated the acquired deposits and loans into its nearby West Scranton branch office. The Company expects this transaction to expand its customer base in West Scranton. The transaction has been accounted for using the acquisition method of accounting. The acquired assets and assumed liabilities were recorded at book value which also represented estimated fair value at the date of acquisition. Management made significant estimates and exercised significant judgement in estimating fair value, but the fair value adjustments were deemed immaterial to the financial statements. The Company recognized $41 thousand of acquisition-related costs during 2017. These costs were expensed as incurred and are presented in non-interest expenses on the consolidated statements of income. Costs incurred in 2017 consist principally of legal fees and other professional fees. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition : (dollars in thousands) March 17, 2017 Cash and cash equivalents $ 11,817 Loans 1,574 Bank premises and equipment 264 Goodwill 209 Accrued interest receivable and other assets 4 Total assets acquired $ 13,868 Deposits $ 13,809 Accrued interest payable and other liabilities 59 Total liabilities assumed $ 13,868 The Company acquired $1.6 million in residential and consumer loans. None of the loans that were acquired had evidence of credit quality deterioration. The Company recorded goodwill associated with the acquisition of the West Scranton branch of Wayne bank totaling $0.2 million. Goodwill is not amortized, but is periodically evaluated for impairment. The Company did not recognize any impairment during 2017. For income tax purposes, goodwill will be deducted over a 15 year period. |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Employee Benefits [Abstract] | |
Employee Benefits | 10. Employee Benefits Bank-Owned Life Insurance (BOLI) The Company has purchased single premium BOLI policies on certain officers. The policies are recorded at their cash surrender values. Increases in cash surrender values are included in non-interest income in the consolidated statements of income. In March 2017, the Company purchased an additional $8.0 million of BOLI. The policies’ cash surrender value totaled $20. 3 million and $ 19.7 million, respectively, as of June 30, 2018 and 201 7 and is reflected as an asset on the consolidated balance sheets. As of June 30, 2018 and 2017 , the Com pany has recorded income of $298 thousand and $264 thousand, respectively. Officer Life Insurance In 2017, the Bank entered into separate split dollar life insurance arrangements (Split Dollar Agreements) with eleven officers. This plan provides each officer a specified death benefit should the officer die while in the Bank’s employ. The Bank paid the insurance premiums in March 2017 and the arrangements were effective in March 2017. The Bank owns the policies and all cash values thereunder. Upon death of the covered employee, the agreed-upon amount of death proceeds from the policies will be paid directly to the insured’s beneficiary. As of June 30 , 20 18, the policies had total death benefits of $20.5 million of which $4.0 million would have been paid to the officer’s beneficiaries and the remaining $16.5 million would have been paid to the Bank. In addition , three executive officers have the opportunity to retain a split dollar benefit equal to two times their highest base salary after separation from service if the vesting requirements are met. As of June 30, 2018 , the Company accrued expenses of $47 thousand for the split dollar benefit. Supplemental Executive Retirement plan (SERP) On March 29, 2017, the Bank entered into separate supplemental executive retirement agreements (individually the “SERP Agreement”) with five officers, pursuant to which the Bank will credit an amount to a SERP account established on each participant’s behalf while they are actively employed by the Bank for each calendar month from March 1, 2017 until retirement. As of June 30, 2018 , the Company accrued expenses of $624 thousand in connection with the SERP. |
Nature Of Operations And Crit19
Nature Of Operations And Critical Accounting Policies (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
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, 201 7 . 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 June 30, 2018 and December 31, 201 7 and the related consolidated statements of income and consolidated statements of comprehensive income for the three and six months ended June 30, 2018 and 2017 , and consolidated statements of changes in shareholders’ equity and consolidated statements of cash flows for the six months ended June 30, 2018 and 2017 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 201 7 financial statements to conform to the 201 8 presentation. On August 15, 2017 , the Company declared a three -for-two stock split effected in the form of a 50% stock dividend on its common stock outstanding to shareholders as of September 18, 2017 and distributed on September 28, 2017. All share and per share information included in the accompanying consolidated financial statements and footnotes has been retroactively adjusted to reflect this stock split. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred after June 30, 2018 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, 201 7 , 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 June 30 , 2018 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. |
Investment Securities | 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. All of the Company’s debt securities are classified as available-for-sale (AFS). AFS debt 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 June 30, 2018 and December 31, 2017 , 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 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. |
Goodwill | Goodwill is recorded on the consolidated balance sheets as the excess of liabilities assumed over identifiable assets acquired on the acquisition date. Goodwill is recorded at its net carrying value which represents estimated fair value. The goodwill is deductible for tax purposes over a 15 year period. |
Employee Benefits | The Company holds separate supplemental executive retirement (SERP) agreements for certain officers and an amount is credited to each participant’s SERP account monthly while they are actively employed by the bank until retirement. A deferred tax asset is provided for the non-deductible SERP expense. The Company also entered into separate split dollar life insurance arrangements with three executives providing post-retirement benefits and accrues monthly expense for this benefit . The split dollar life insurance expense is not deductible for tax purposes. M onthly expenses for the SERP and post-retirement split dollar life benefit are recorded as components of salaries and employee benefit expense on 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. Expenditures for construction in process, a component of other assets in the consolidated balance sheets, are included in acquisition of premises and equipment. |
Revenue Recognition | Revenue Recognition As of January 1, 2018, the Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. The Company has elected to use the modified retrospective approach with prior period financial statements unadjusted and presented with historical revenue recognition methods. The implementation of the new standard had no material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. The majority of the Company’s revenues are generated through interest earned on securities and loans, which is explicitly excluded from the scope of the guidance. In addition, certain non-interest income streams such as fees associated with mortgage servicing rights, loan service charges, life insurance earnings, rental income and gains/losses on the sale of loans and securities are not in the scope of the new guidance. The main types of contracts with customers that are in the scope of the new guidance are: · Service charges on deposit accounts – Deposit service charges represent fees charged by the Company for the performance obligation of providing services to a customer’s deposit account. The transaction price for deposit services includes both fixed and variable amounts based on the Company’s fee schedules. Revenue is recognized and payment is received either at a point in time for transactional fees or on a monthly basis for non-transactional fees. · Interchange fees – Interchange fees represent fees charged by the Company for customers using debit cards. The contract is between the Company and the processor and the performance obligation is the ability of customers to use debit cards to make purchases at a point in time. The transaction price is a percentage of debit card usage and the processor pays the Company and revenue is recorded throughout the month as the performance obligations are being me t . · Fees from trust fiduciary activities – Trust fees represent fees charged by the Company for the management, custody and/or administration of trusts. These are mostly monthly fees based on the market value of assets in the trust account at the prior month end. Payment is generally received a few weeks after month end through a direct charge to customers’ accounts. Estate fees are recognized and charged as the Company reaches each of six different stages of the estate administration process. · Fees from financial services – Financial service fees represent fees charged by the Company for the performance obligation of providing various services for an investment account. Revenue is recognized twice monthly for fees on sales transactions and on a monthly basis for advisory fees and quarterly for trail fees. · Gain/loss on ORE sales – Gain/loss on the sale of ORE is recognized at the closing date when the sales proceeds are received. In seller-financed ORE transactions, the contract is made subject to our normal underwriting standards and pricing. The Company does not have any obligation or right to repurchase any sales of ORE. Contract balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before the payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity already received payment (or payment is due) from the customer. The Company’s non-interest income streams are largely based on transactional activity, or standard month-end revenue accruals such as asset management fees based on month-end market values. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company typically does not enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of June 30, 2018 and December 31, 2017, the Company did not have any significant contract balances. Remaining performance obligations The Company’s performance obligations have an original expected duration of less than one year and follow the relevant guidance for recognizing revenue over time. There is no variable consideration subject to constraint that is not included in information about transaction price. Contract acquisition costs In connection with the adoption of Topic 606, an entity is required to capitalize and subsequently amortize into expense, certain incremental costs of obtaining a contract if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition costs. |
Earnings Per Share (Policy)
Earnings Per Share (Policy) | 6 Months Ended |
Jun. 30, 2018 | |
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 and six months ended June 30, 2018 , there were 27,894 and 26,674 potentially dilutive shares related to issued and unexercised stock options and SSARs compared to 12,206 and 10,529 for the same 2017 periods, respectively . For restricted stock, dilution would occur from the Company’s previously granted but unvested shares. There were 11,137 and 11,006 potentially dilutive shares related to unvested restricted share grants as of the three and six months ended June 30, 2018 compared to 6,148 and 7,243 for the same 2017 periods , 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 and compensation cost for future service that the Company has not yet recognized in earnings. The Company does not consider awards from share-based grants in the computation of basic EPS. |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income | As of and for the six months ended June 30, 2018 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ 1,804 Other comprehensive loss before reclassifications, net of tax (2,661) Amounts reclassified from accumulated other comprehensive income, net of tax (5) Effect of adopting ASU 2016-01, net of tax* (421) Net current-period other comprehensive loss (3,087) Ending balance $ (1,283) *The Company adopted ASU 2016-01 on January 1, 2018. As a result, unrealized gains on equity securities were reclassified from accumulated other comprehensive income to retained earnings. As of and for the three months ended June 30, 2018 Unrealized gains (losses) on available-for-sale (dollars in thousands) debt securities Beginning balance $ (579) Other comprehensive loss before reclassifications, net of tax (704) Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income (704) Ending balance $ (1,283) As of and for the six months ended June 30, 2017 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,381 Other comprehensive income before reclassifications, net of tax 471 Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income 471 Ending balance $ 1,852 As of and for the three months ended June 30, 2017 Unrealized gains (losses) on available-for-sale (dollars in thousands) securities Beginning balance $ 1,399 Other comprehensive income before reclassifications, net of tax 453 Amounts reclassified from accumulated other comprehensive income, net of tax - Net current-period other comprehensive income 453 Ending balance $ 1,852 |
Schedule Of Reclassifications 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 For the six months ended June 30, June 30, 2018 2017 2018 2017 Unrealized gains on AFS debt securities $ - $ - $ 6 $ - Gain on sale of investment securities Income tax effect - - (1) - Provision for income taxes Total reclassifications for the period $ - $ - $ 5 $ - Net income |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investment Securities [Abstract] | |
Amortized Cost And Fair Value Of Investment Securities | Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value June 30, 2018 Available-for-sale debt securities: Agency - GSE $ 5,918 $ 5 $ (46) $ 5,877 Obligations of states and political subdivisions 45,233 1,336 (208) 46,361 MBS - GSE residential 114,877 231 (2,943) 112,165 Total available-for-sale debt securities $ 166,028 $ 1,572 $ (3,197) $ 164,403 Gross Gross Amortized unrealized unrealized Fair (dollars in thousands) cost gains losses value December 31, 2017 Available-for-sale securities: Agency - GSE $ 9,120 $ 3 $ (24) $ 9,099 Obligations of states and political subdivisions 42,300 2,036 (30) 44,306 MBS - GSE residential 103,386 519 (753) 103,152 Total debt securities 154,806 2,558 (807) 156,557 Equity securities - financial services 294 534 - 828 Total available-for-sale securities $ 155,100 $ 3,092 $ (807) $ 157,385 |
Amortized Cost And Fair Value Of Debt Securities By Contractual Maturity Date | Amortized Fair (dollars in thousands) cost value Available-for-sale securities: Debt securities: Due in one year or less $ - $ - Due after one year through five years 2,816 2,880 Due after five years through ten years 8,523 8,547 Due after ten years 39,812 40,811 MBS - GSE residential 114,877 112,165 Total available-for-sale debt securities $ 166,028 $ 164,403 |
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 June 30, 2018 Agency - GSE $ 4,871 $ (46) $ - $ - $ 4,871 $ (46) Obligations of states and political subdivisions 9,864 (113) 2,038 (95) 11,902 (208) MBS - GSE residential 78,856 (1,849) 26,912 (1,094) 105,768 (2,943) Total $ 93,591 $ (2,008) $ 28,950 $ (1,189) $ 122,541 $ (3,197) Number of securities 73 21 94 December 31, 2017 Agency - GSE $ 6,020 $ (14) $ 1,008 $ (10) $ 7,028 $ (24) Obligations of states and political subdivisions 425 (1) 2,109 (29) 2,534 (30) MBS - GSE residential 61,349 (437) 15,309 (316) 76,658 (753) Total $ 67,794 $ (452) $ 18,426 $ (355) $ 86,220 $ (807) Number of securities 45 14 59 |
Loans And Leases (Tables)
Loans And Leases (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Loans And Leases [Abstract] | |
Loan Classifications | (dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 126,006 $ 113,601 Commercial real estate: Non-owner occupied 90,494 92,851 Owner occupied 113,103 109,383 Construction 5,988 6,228 Consumer: Home equity installment 29,017 27,317 Home equity line of credit 53,911 53,273 Auto loans and leases 105,588 83,510 Other 5,744 5,604 Residential: Real estate 144,864 136,901 Construction 11,831 9,931 Total 686,546 638,599 Less: Allowance for loan losses (9,527) (9,193) Unearned lease revenue (858) (639) Loans and leases, net $ 676,161 $ 628,767 |
Non-Accrual Loans, Segregated By Class | (dollars in thousands) June 30, 2018 December 31, 2017 Commercial and industrial $ 100 $ 36 Commercial real estate: Non-owner occupied 501 649 Owner occupied 923 942 Construction 159 161 Consumer: Home equity installment 82 15 Home equity line of credit 31 559 Auto loans and leases 51 5 Residential: Real estate 916 1,074 Total $ 2,763 $ 3,441 |
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 six months ended: (dollars in thousands) June 30, 2018 June 30, 2017 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 real estate - non-owner occupied - $ - $ - 1 $ 119 $ 3 Commercial real estate - owner occupied - - - 5 918 163 Consumer home equity installment 1 413 350 - - - Residential real estate 1 316 - - - - Total 2 $ 729 $ 350 6 $ 1,037 $ 166 Loans modified as TDRs for the three months ended: (dollars in thousands) June 30, 2018 June 30, 2017 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 real estate - owner occupied - $ - $ - 1 $ 142 $ 7 In the above table s , the period end balance is inclusive of all partial pay downs and charge-offs since the modification date. For all loans modified in a TDR, the pre-modification recorded investment was the same as the post-modification recorded investment. The following presents by class, loans modified as a TDR that subsequently defaulted (i.e. 90 days or more past due following modification) during the periods indicated: Loans modified as a TDR within the previous twelve months that subsequently defaulted during the six months ended: (dollars in thousands) June 30, 2018 June 30, 2017 Number of Recorded Number of Recorded contracts investment contracts investment Commercial real estate - owner occupied - $ - 1 $ 142 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 June 30, 2018 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 247 $ 242 $ 100 $ 589 $ 125,417 $ 126,006 $ - Commercial real estate: Non-owner occupied 115 - 501 616 89,878 90,494 - Owner occupied 599 48 1,087 1,734 111,369 113,103 164 Construction - - 159 159 5,829 5,988 - Consumer: Home equity installment 600 31 82 713 28,304 29,017 - Home equity line of credit 365 125 31 521 53,390 53,911 - Auto loans and leases 283 91 51 425 104,305 104,730 (2) - Other 38 21 - 59 5,685 5,744 - Residential: Real estate - 407 916 1,323 143,541 144,864 - Construction - - - - 11,831 11,831 - Total $ 2,247 $ 965 $ 2,927 $ 6,139 $ 679,549 $ 685,688 $ 164 (1) Includes $ 2. 8 million of non -accrual loans. (2) Net of unearned lease revenue of $0. 9 million. (3 ) Includes net deferred loan costs of $2.4 million . Recorded Past due investment past 30 - 59 Days 60 - 89 Days 90 days Total Total due ≥ 90 days December 31, 2017 past due past due or more (1) past due Current loans (3) and accruing Commercial and industrial $ 286 $ - $ 36 $ 322 $ 113,279 $ 113,601 $ - Commercial real estate: Non-owner occupied 51 1,018 649 1,718 91,133 92,851 - Owner occupied 52 85 942 1,079 108,304 109,383 - Construction - - 161 161 6,067 6,228 - Consumer: Home equity installment 130 30 15 175 27,142 27,317 - Home equity line of credit 276 - 559 835 52,438 53,273 - Auto loans and leases 449 85 11 545 82,326 82,871 (2) 6 Other 42 - - 42 5,562 5,604 - Residential: Real estate 38 351 1,074 1,463 135,438 136,901 - Construction - - - - 9,931 9,931 - Total $ 1,324 $ 1,569 $ 3,447 $ 6,340 $ 631,620 $ 637,960 $ 6 (1) Includes $3.4 million of non-accrual loans. (2) Net of unearned lease revenue of $0.6 million. (3) Includes net deferred loan costs of $2.1 million. |
Impaired Loans | Impaired loans, segregated by class, as of the period indicated are detailed below: Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance June 30, 2018 Commercial and industrial $ 195 $ 76 $ 48 $ 124 $ - Commercial real estate: Non-owner occupied 2,341 1,855 311 2,166 419 Owner occupied 2,713 1,493 971 2,464 418 Construction 382 - 159 159 - Consumer: Home equity installment 529 413 82 495 350 Home equity line of credit 70 30 1 31 30 Auto loans and leases 78 - 51 51 - Other - - - - - Residential: Real estate 1,564 55 1,177 1,232 1 Construction - - - - - Total $ 7,872 $ 3,922 $ 2,800 $ 6,722 $ 1,218 Recorded Recorded Unpaid investment investment Total principal with with no recorded Related (dollars in thousands) balance allowance allowance investment allowance December 31, 2017 Commercial and industrial $ 281 $ 225 $ 24 $ 249 $ 196 Commercial real estate: Non-owner occupied 2,426 1,975 363 2,338 488 Owner occupied 2,742 1,768 725 2,493 433 Construction 384 - 161 161 - Consumer: Home equity installment 48 - 15 15 - Home equity line of credit 878 32 527 559 25 Auto 13 - 5 5 - Other - - - - - Residential: Real estate 1,350 131 943 1,074 37 Construction - - - - - Total $ 8,122 $ 4,131 $ 2,763 $ 6,894 $ 1,179 The following table presents the average recorded investments in impaired loans and related amount of interest income recognized during the periods indicated below. The average balances are calculated based on the quarter-end balances of impaired loans. 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. For the six months ended June 30, 2018 June 30, 2017 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 $ 207 $ 1 $ - $ 237 $ 4 $ - Commercial real estate: Non-owner occupied 2,376 63 - 3,316 63 - Owner occupied 2,912 41 - 4,819 71 - Construction 166 - - 192 - - Consumer: Home equity installment 194 5 - 30 - - Home equity line of credit 388 8 - 816 - - Auto 14 - - 25 4 - Other 6 - - 5 1 - Residential: Real estate 1,278 31 - 1,282 23 - Construction - - - - - - Total $ 7,541 $ 149 $ - $ 10,722 $ 166 $ - For the three months ended June 30, 2018 June 30, 2017 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 $ 169 $ 1 $ - $ 221 $ 4 $ - Commercial real estate: Non-owner occupied 2,183 40 - 2,984 28 - Owner occupied 2,512 23 - 4,829 41 - Construction 163 - - 179 - - Consumer: Home equity installment 462 3 - 8 - - Home equity line of credit 31 - - 801 - - Auto 32 - - 21 4 - Other 11 - - 3 - - Residential: Real estate 1,238 9 - 1,493 15 - Construction - - - - - - Total $ 6,801 $ 76 $ - $ 10,539 $ 92 $ - |
Credit Quality Indicator Loan Categories | Commercial credit exposure Credit risk profile by creditworthiness category June 30, 2018 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 124,480 $ 567 $ 959 $ - $ 126,006 Commercial real estate - non-owner occupied 86,543 620 3,331 - 90,494 Commercial real estate - owner occupied 107,722 752 4,629 - 113,103 Commercial real estate - construction 5,829 - 159 - 5,988 Total commercial $ 324,574 $ 1,939 $ 9,078 $ - $ 335,591 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity June 30, 2018 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 28,935 $ 82 $ 29,017 Home equity line of credit 53,880 31 53,911 Auto loans and leases (1) 104,679 51 104,730 Other 5,744 - 5,744 Total consumer $ 193,238 $ 164 $ 193,402 Residential Real estate $ 143,948 $ 916 $ 144,864 Construction 11,831 - 11,831 Total residential $ 155,779 $ 916 $ 156,695 Total consumer & residential $ 349,017 $ 1,080 $ 350,097 (1) Net of unearned lease revenue of $0. 9 million . Commercial credit exposure Credit risk profile by creditworthiness category December 31, 2017 (dollars in thousands) Pass Special mention Substandard Doubtful Total Commercial and industrial $ 112,398 $ 509 $ 694 $ - $ 113,601 Commercial real estate - non-owner occupied 84,892 998 6,961 - 92,851 Commercial real estate - owner occupied 103,426 2,479 3,478 - 109,383 Commercial real estate - construction 6,067 - 161 - 6,228 Total commercial $ 306,783 $ 3,986 $ 11,294 $ - $ 322,063 Consumer & Mortgage lending credit exposure Credit risk profile based on payment activity December 31, 2017 (dollars in thousands) Performing Non-performing Total Consumer Home equity installment $ 27,302 $ 15 $ 27,317 Home equity line of credit 52,714 559 53,273 Auto loans and leases (2) 82,860 11 82,871 Other 5,604 - 5,604 Total consumer $ 168,480 $ 585 $ 169,065 Residential Real estate $ 135,827 $ 1,074 $ 136,901 Construction 9,931 - 9,931 Total residential $ 145,758 $ 1,074 $ 146,832 Total consumer & residential $ 314,238 $ 1,659 $ 315,897 (2) Net o f unearned lease revenue of $0.6 million. |
Schedule Of Change In Allowance For Loan Losses And The Recorded Investment In Loans | As of and for the six months ended June 30, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Charge-offs (97) (130) (202) (115) - (544) Recoveries 54 33 66 - - 153 Provision 10 (149) 702 229 (67) 725 Ending balance $ 1,341 $ 3,814 $ 2,629 $ 1,722 $ 21 $ 9,527 Ending balance: individually evaluated for impairment $ - $ 837 $ 380 $ 1 $ - $ 1,218 Ending balance: collectively evaluated for impairment $ 1,341 $ 2,977 $ 2,249 $ 1,721 $ 21 $ 8,309 Loans Receivables: Ending balance (2) $ 126,006 $ 209,585 $ 193,402 (1) $ 156,695 $ - $ 685,688 Ending balance: individually evaluated for impairment $ 124 $ 4,789 $ 577 $ 1,232 $ - $ 6,722 Ending balance: collectively evaluated for impairment $ 125,882 $ 204,796 $ 192,825 $ 155,463 $ - $ 678,966 (1) Net of unearned lease revenue of $0. 9 million. (2) Includes $2.4 million of net deferred loan costs. As of and for the three months ended June 30, 2018 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,236 $ 3,988 $ 2,470 $ 1,662 $ 52 $ 9,408 Charge-offs (82) (87) (90) (110) - (369) Recoveries - 30 33 - - 63 Provision 187 (117) 216 170 (31) 425 Ending balance $ 1,341 $ 3,814 $ 2,629 $ 1,722 $ 21 $ 9,527 As of and for the year ended December 31, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,075 $ 4,706 $ 1,834 $ 1,622 $ 127 $ 9,364 Charge-offs (143) (635) (658) (309) - (1,745) Recoveries 10 47 67 - - 124 Provision 432 (58) 820 295 (39) 1,450 Ending balance $ 1,374 $ 4,060 $ 2,063 $ 1,608 $ 88 $ 9,193 Ending balance: individually evaluated for impairment $ 196 $ 921 $ 25 $ 37 $ - $ 1,179 Ending balance: collectively evaluated for impairment $ 1,178 $ 3,139 $ 2,038 $ 1,571 $ 88 $ 8,014 Loans Receivables: Ending balance (2) $ 113,601 $ 208,462 $ 169,065 (1) $ 146,832 $ - $ 637,960 Ending balance: individually evaluated for impairment $ 249 $ 4,992 $ 579 $ 1,074 $ - $ 6,894 Ending balance: collectively evaluated for impairment $ 113,352 $ 203,470 $ 168,486 $ 145,758 $ - $ 631,066 (1) Net of unearned lease revenue of $0. 6 million. (2) Includes $2.1 million of net deferred loan costs. As of and for the six months ended June 30, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,075 $ 4,706 $ 1,834 $ 1,622 $ 127 $ 9,364 Charge-offs (30) (368) (160) (38) - (596) Recoveries 3 41 44 - - 88 Provision 335 131 221 (73) (64) 550 Ending balance $ 1,383 $ 4,510 $ 1,939 $ 1,511 $ 63 $ 9,406 As of and for the three months ended June 30, 2017 Commercial & Commercial Residential (dollars in thousands) industrial real estate Consumer real estate Unallocated Total Allowance for Loan Losses: Beginning balance $ 1,263 $ 4,922 $ 1,731 $ 1,519 $ 113 $ 9,548 Charge-offs (30) (301) (84) - - (415) Recoveries 1 31 16 - - 48 Provision 149 (142) 276 (8) (50) 225 Ending balance $ 1,383 $ 4,510 $ 1,939 $ 1,511 $ 63 $ 9,406 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Schedule Of Earnings Per Share, Basic And Diluted | Three months ended June 30, Six months ended June 30, 2018 2017 2018 2017 (dollars in thousands except per share data) Basic EPS: Net income available to common shareholders $ 2,768 $ 2,183 $ 5,296 $ 4,163 Weighted-average common shares outstanding 3,751,728 3,705,534 3,749,389 3,701,078 Basic EPS $ 0.74 $ 0.59 $ 1.41 $ 1.12 Diluted EPS: Net income available to common shareholders $ 2,768 $ 2,183 $ 5,296 $ 4,163 Weighted-average common shares outstanding 3,751,728 3,705,534 3,749,389 3,701,078 Potentially dilutive common shares 39,031 18,354 37,680 17,772 Weighted-average common and potentially dilutive shares outstanding 3,790,759 3,723,888 3,787,069 3,718,850 Diluted EPS $ 0.73 $ 0.59 $ 1.40 $ 1.12 |
Stock Plans (Tables)
Stock Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stock Plans [Abstract] | |
Summary Of Weighted-Average Fair-Value And Vesting Of Restricted Stock Grants | June 30, 2018 June 30, 2017 Weighted- Weighted- average average Shares grant date Shares grant date granted fair value granted fair value Director plan 8,400 (3) $ 49.50 8,400 (2) $ 26.17 Omnibus plan 10,800 (3) 45.83 4,749 (3) 23.93 Omnibus plan 50 (1) 49.50 75 (1) 26.17 Total 19,250 $ 47.44 13,224 $ 25.36 (1) Vest after 1 year (2 ) Vest after 2 years – 50 % each year (3) Vest after 3 years – 33% each year |
Schedule Of Non-Vested Restricted Stock Units Activity | 2012 Stock incentive plans Director Omnibus Total Weighted- average grant date fair value Non-vested balance at December 31, 2017 8,400 12,304 20,704 $ 23.59 Granted 8,400 10,850 19,250 47.44 Vested (4,200) (5,794) (9,994) 23.69 Non-vested balance at June 30, 2018 12,600 17,360 29,960 $ 38.99 |
Schedule Of SSARs Activity | Awards Weighted-average grant date fair value Weighted-average remaining contractual term (years) Outstanding December 31, 2017 53,360 $ 4.20 8.5 Granted 38,941 13.73 10.0 Exercised - - Forfeited - - Outstanding June 30, 2018 92,301 $ 8.22 8.7 Of the SSARs outstanding at June 30, 2018 , 27,453 vested and were exercisable. 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 June 30, Six months ended June 30, (dollars in thousands) 2018 2017 2018 2017 Stock-based compensation expense: Director stock incentive plan $ 62 $ 27 $ 113 $ 61 Omnibus stock incentive plan 132 50 236 95 Employee stock purchase plan - - 143 23 Total stock-based compensation expense $ 194 $ 77 $ 492 $ 179 In addition, during the three and six months ended June 30, 2018, the Company reversed accruals of ( $35 thousand) and ( $60 thousand) in stock-based compensation expense for restricted stock and SSARs awarded under the Omnibus Plan. The Company accrued $54 thousand and $109 thousand in stock- based compensation expense during the three and six months ended June 30 , 2017 . |
Schedule Of Unrecognized Compensation Cost, Non-Vested Awards | As of (dollars in thousands) June 30, 2018 Unrecognized stock-based compensation expense: Director plan $ 422 Omnibus plan 1,076 Total unrecognized stock-based compensation expense $ 1,498 The unrecognized stock-based compensation expense as of June 30, 2018 will be recognized ratably over the periods ended January 20 21 and January 202 1 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, 2017 750 $ 18.50 0.2 Granted - - Exercised (750) 18.50 Forfeited - - Outstanding and exercisable, June 30, 2018 - $ - - |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Fair Value Measurements [Abstract] | |
Carrying Amount And Estimated Fair Value By Balance Sheet Grouping | June 30, 2018 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 $ 17,972 $ 17,972 $ 17,972 $ - $ - Available-for-sale debt securities 164,403 164,403 - 164,403 - FHLB stock 3,490 3,490 - 3,490 - Loans and leases, net 676,161 667,199 - - 667,199 Loans held-for-sale 1,305 1,328 - 1,328 - Accrued interest receivable 3,130 3,130 - 3,130 - Financial liabilities: Deposits with no stated maturities 667,573 667,573 - 667,573 - Time deposits 110,685 109,028 - 109,028 - Short-term borrowings 29,553 29,553 - 29,553 - FHLB advances 18,704 18,583 - 18,583 - Accrued interest payable 404 404 - 404 - December 31, 2017 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 $ 15,825 $ 15,825 $ 15,825 $ - $ - Available-for-sale securities 157,385 157,385 828 156,557 - FHLB stock 2,832 2,832 - 2,832 - Loans and leases, net 628,767 625,052 - - 625,052 Loans held-for-sale 2,181 2,221 - 2,221 - Accrued interest receivable 2,786 2,786 - 2,786 - Financial liabilities: Deposits with no stated maturities 623,080 623,080 - 623,080 - Time deposits 107,066 105,758 - 105,758 - Short-term borrowings 18,502 18,502 - 18,502 - FHLB advances 21,204 21,066 - 21,066 - Accrued interest payable 346 346 - 346 - |
Financial Instruments Measured At Fair Value On Recurring Basis | Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) June 30, 2018 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 5,877 $ - $ 5,877 $ - Obligations of states and political subdivisions 46,361 - 46,361 - MBS - GSE residential 112,165 - 112,165 - Total available-for-sale debt securities $ 164,403 $ - $ 164,403 $ - Quoted prices in active Significant other Significant other Total carrying value markets observable inputs unobservable inputs (dollars in thousands) December 31, 2017 (Level 1) (Level 2) (Level 3) Available-for-sale securities: Agency - GSE $ 9,099 $ - $ 9,099 $ - Obligations of states and political subdivisions 44,306 - 44,306 - MBS - GSE residential 103,152 - 103,152 - Equity securities - financial services 828 828 - - Total available-for-sale securities $ 157,385 $ 828 $ 156,557 $ - |
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 June 30, 2018 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,704 $ - $ - $ 2,704 Other real estate owned 532 - - 532 Total $ 3,236 $ - $ - $ 3,236 Quoted prices in Significant other Significant other Total carrying value active markets observable inputs unobservable inputs (dollars in thousands) at December 31, 2017 (Level 1) (Level 2) (Level 3) Impaired loans $ 2,952 $ - $ - $ 2,952 Other real estate owned 814 - - 814 Total $ 3,766 $ - $ - $ 3,766 |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Acquisition [Abstract] | |
Summary Of Estimated Fair Value Of Assets Acquired And Liabilities Assumed | (dollars in thousands) March 17, 2017 Cash and cash equivalents $ 11,817 Loans 1,574 Bank premises and equipment 264 Goodwill 209 Accrued interest receivable and other assets 4 Total assets acquired $ 13,868 Deposits $ 13,809 Accrued interest payable and other liabilities 59 Total liabilities assumed $ 13,868 |
Nature Of Operations And Crit28
Nature Of Operations And Critical Accounting Policies (Narrative) (Details) | Aug. 15, 2017 | Jun. 30, 2018USD ($)employee | Dec. 31, 2017USD ($) |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Year founded | 1,903 | ||
Dividend declared | Aug. 15, 2017 | ||
Stock split ratio | 1.5 | ||
Stock dividend, percentage | 50.00% | ||
Contract balance | $ 0 | $ 0 | |
Capitalized contract cost | $ 0 | ||
Executives [Member] | |||
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Line Items] | |||
Number of individuals with split dollar life insurance arrangement | employee | 3 |
New Accounting Pronouncements (
New Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2017 | Jun. 30, 2018 | |
Unrealized Gains (Losses) On Available-For-Sale Securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Equity Securities, Unrealized Gain (Loss), Reclassification from AOCI to Retained Earnings | $ 421 | |
Amounts reclassified from accumulated other comprehensive income | $ 5 | |
ASU 2018-02 [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income | $ 300 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Income (Schedule Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ 1,804 | |||
Ending balance | $ (1,283) | (1,283) | ||
Unrealized Gains (Losses) On Available-For-Sale Securities [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (579) | $ 1,399 | 1,804 | $ 1,381 |
Other comprehensive income (loss) before reclassifications, net of tax | (704) | 453 | (2,661) | 471 |
Amounts reclassified from accumulated other comprehensive income, net of tax | (5) | |||
Effect of adopting ASU 2016-01, net of tax | (421) | |||
Net current-period other comprehensive loss | (704) | 453 | (3,087) | 471 |
Ending balance | $ (1,283) | $ 1,852 | $ (1,283) | $ 1,852 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Schedule Of Reclassifications From Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ (539) | $ (739) | $ (1,045) | $ (1,420) |
Net income | $ 2,768 | $ 2,183 | 5,296 | $ 4,163 |
Reclassification Out Of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | (1) | |||
Net income | 5 | |||
Unrealized Gains (Losses) 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 | $ 6 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) - security | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 94 | 59 |
Number of securities in unrealized loss position, more than 12 months | 21 | 14 |
Agency - GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 5 | |
Severity of unrealized losses | 0.94% | |
MBS - GSE Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 67 | |
Severity of unrealized losses | 2.71% | |
Number of securities in unrealized loss position, more than 12 months | 17 | |
Obligations Of States And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of securities in unrealized loss position | 22 | |
Severity of unrealized losses | 1.72% | |
Number of securities in unrealized loss position, more than 12 months | 4 |
Investment Securities (Amortize
Investment Securities (Amortized Cost And Fair Value Of Investment Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | $ 166,028 | $ 154,806 |
Available-for-sale debt securities, Gross unrealized gains | 1,572 | 2,558 |
Available-for-sale debt securities, Gross unrealized losses | (3,197) | (807) |
Available-for-sale debt securities, Fair value | 164,403 | 156,557 |
Equity securities - financial services, Amortized cost | 294 | |
Equity securities - financial services, Gross unrealized gains | 534 | |
Equity securities - financial services, Gross unrealized losses | ||
Equity securities - financial services, Fair value | 828 | |
Available-for-sale securities, Amortized cost | 155,100 | |
Available-for-sale securities, Gross unrealized gains | 3,092 | |
Available-for-sale securities, Gross unrealized losses | (807) | |
Available-for-sale securities, Fair value | 164,403 | 157,385 |
Agency - GSE [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 5,918 | 9,120 |
Available-for-sale debt securities, Gross unrealized gains | 5 | 3 |
Available-for-sale debt securities, Gross unrealized losses | (46) | (24) |
Available-for-sale debt securities, Fair value | 5,877 | 9,099 |
Obligations Of States And Political Subdivisions [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 45,233 | 42,300 |
Available-for-sale debt securities, Gross unrealized gains | 1,336 | 2,036 |
Available-for-sale debt securities, Gross unrealized losses | (208) | (30) |
Available-for-sale debt securities, Fair value | 46,361 | 44,306 |
MBS - GSE Residential [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 114,877 | 103,386 |
Available-for-sale debt securities, Gross unrealized gains | 231 | 519 |
Available-for-sale debt securities, Gross unrealized losses | (2,943) | (753) |
Available-for-sale debt securities, Fair value | $ 112,165 | $ 103,152 |
Investment Securities (Amorti34
Investment Securities (Amortized Cost And Fair Value Of Debt Securities By Contractual Maturity Date) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Amortized cost: Due after one year through five years | $ 2,816 | |
Amortized cost: Due after five years through ten years | 8,523 | |
Amortized cost: Due after ten years | 39,812 | |
MBS - GSE residential, Amortized cost | 114,877 | |
Available-for-sale debt securities, Amortized cost | 166,028 | $ 154,806 |
Fair value: Due after one year through five years | 2,880 | |
Fair value: Due after five years through ten years | 8,547 | |
Fair value: Due after ten years | 40,811 | |
MBS - GSE residential, Fair value | 112,165 | |
Total available-for-sale debt securities, Fair value | 164,403 | 156,557 |
MBS - GSE Residential [Member] | ||
Schedule of Held-to-maturity Securities And Available-for-sale Securities [Line Items] | ||
Available-for-sale debt securities, Amortized cost | 114,877 | 103,386 |
Total available-for-sale debt securities, Fair value | $ 112,165 | $ 103,152 |
Investment Securities (Availabl
Investment Securities (Available-For-Sale Securities, Continuous Unrealized Loss Position, Fair Value) (Details) $ in Thousands | Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 93,591 | $ 67,794 |
Less than 12 months: Unrealized losses | (2,008) | (452) |
More than 12 months: Fair value | 28,950 | 18,426 |
More than 12 months: Unrealized losses | (1,189) | (355) |
Total: Fair value | 122,541 | 86,220 |
Total: Unrealized losses | $ (3,197) | $ (807) |
Less than 12 months: Number of securities | security | 73 | 45 |
More than 12 months: Number of securities | security | 21 | 14 |
Total: Number of securities | security | 94 | 59 |
Agency - GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 4,871 | $ 6,020 |
Less than 12 months: Unrealized losses | (46) | (14) |
More than 12 months: Fair value | 1,008 | |
More than 12 months: Unrealized losses | (10) | |
Total: Fair value | 4,871 | 7,028 |
Total: Unrealized losses | $ (46) | (24) |
Total: Number of securities | security | 5 | |
Obligations Of States And Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 9,864 | 425 |
Less than 12 months: Unrealized losses | (113) | (1) |
More than 12 months: Fair value | 2,038 | 2,109 |
More than 12 months: Unrealized losses | (95) | (29) |
Total: Fair value | 11,902 | 2,534 |
Total: Unrealized losses | $ (208) | (30) |
More than 12 months: Number of securities | security | 4 | |
Total: Number of securities | security | 22 | |
MBS - GSE Residential [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Less than 12 months: Fair value | $ 78,856 | 61,349 |
Less than 12 months: Unrealized losses | (1,849) | (437) |
More than 12 months: Fair value | 26,912 | 15,309 |
More than 12 months: Unrealized losses | (1,094) | (316) |
Total: Fair value | 105,768 | 76,658 |
Total: Unrealized losses | $ (2,943) | $ (753) |
More than 12 months: Number of securities | security | 17 | |
Total: Number of securities | security | 67 |
Loans And Leases (Narrative) (D
Loans And Leases (Narrative) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018USD ($)loanitem | Dec. 31, 2017USD ($)loanitem | Mar. 31, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Deferred loan costs | $ 2,400 | $ 2,100 | ||||
Residual value of leased assets | 10,400 | 9,400 | ||||
Mortgages serviced | 302,300 | 299,300 | ||||
Mortgage servicing rights | 1,200 | 1,300 | ||||
Impaired loans | 6,722 | 6,894 | ||||
Loans and leases, allowance for loan losses | 9,527 | 9,193 | $ 9,408 | $ 9,406 | $ 9,548 | $ 9,364 |
Troubled Debt Status [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans and leases, allowance for loan losses | 800 | $ 900 | ||||
Accruing TDR Balance [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Troubled Debt Restructuring balance | 2,600 | 1,900 | ||||
Non-Accrual Status [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Troubled Debt Restructuring balance | $ 1,100 | $ 1,600 | ||||
Number of loans classified as TDRs | loan | 2 | 3 | ||||
Number of unrelated borrowers that had loans modified in a TDR | item | 2 | 3 | ||||
Financing receivable, net | $ 2,800 | $ 3,400 | ||||
Impaired Loan Status [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Recorded investment in financing receivables that are not 90 days or more past due | $ 1,300 | $ 1,600 |
Loans And Leases (Loan Classifi
Loans And Leases (Loan Classifications) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $ 686,546 | $ 638,599 | ||||
Less: Allowance for loan losses | (9,527) | $ (9,408) | (9,193) | $ (9,406) | $ (9,548) | $ (9,364) |
Less: Unearned lease revenue | (858) | (639) | ||||
Loans and leases, net | 676,161 | 628,767 | ||||
Commercial And Industrial [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 126,006 | 113,601 | ||||
Less: Allowance for loan losses | (1,341) | $ (1,236) | (1,374) | $ (1,383) | $ (1,263) | $ (1,075) |
Commercial Real Estate: Non-Owner Occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 90,494 | 92,851 | ||||
Commercial Real Estate: Owner Occupied [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 113,103 | 109,383 | ||||
Commercial Real Estate: Construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 5,988 | 6,228 | ||||
Consumer: Home Equity Installment [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 29,017 | 27,317 | ||||
Consumer: Home Equity Line Of Credit [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 53,911 | 53,273 | ||||
Consumer: Auto Loans And Leases [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 105,588 | 83,510 | ||||
Consumer: Other [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 5,744 | 5,604 | ||||
Residential: Real Estate [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | 144,864 | 136,901 | ||||
Residential: Construction [Member] | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total | $ 11,831 | $ 9,931 |
Loans And Leases (Non-Accrual L
Loans And Leases (Non-Accrual Loans, Segregated By Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 2,763 | $ 3,441 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 100 | 36 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 501 | 649 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 923 | 942 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 159 | 161 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 82 | 15 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 31 | 559 |
Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | 51 | 5 |
Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual loans | $ 916 | $ 1,074 |
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 | 6 Months Ended | ||
Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2017USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 2 | 6 | ||
Recorded investment (as of period end) | $ 729 | $ 1,037 | ||
Increase in allowance (as of period end) | $ 350 | $ 166 | ||
Commercial Real Estate: Non-Owner Occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 1 | |||
Recorded investment (as of period end) | $ 119 | |||
Increase in allowance (as of period end) | $ 3 | |||
Commercial Real Estate: Owner Occupied [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 1 | 5 | ||
Recorded investment (as of period end) | $ 142 | $ 918 | ||
Increase in allowance (as of period end) | $ 7 | $ 163 | ||
Consumer: Home Equity Installment [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 1 | |||
Recorded investment (as of period end) | $ 413 | |||
Increase in allowance (as of period end) | $ 350 | |||
Consumer: Home Equity Line Of Credit [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts, subsequent default | contract | 1 | |||
Recorded investment (as of period end), subsequent default | $ 142 | |||
Residential: Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | contract | 1 | |||
Recorded investment (as of period end) | $ 316 |
Loans And Leases (Past Due Loan
Loans And Leases (Past Due Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 6,139 | $ 6,340 |
Current | 679,549 | 631,620 |
Total loans | 685,688 | 637,960 |
Recorded investment past due >=90 days and accruing | 164 | 6 |
Non-accrual loans | 2,763 | 3,441 |
Unearned lease revenue | 858 | 639 |
Deferred loan costs | 2,400 | 2,100 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,247 | 1,324 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 965 | 1,569 |
Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,927 | 3,447 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 589 | 322 |
Current | 125,417 | 113,279 |
Total loans | 126,006 | 113,601 |
Non-accrual loans | 100 | 36 |
Commercial And Industrial [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 247 | 286 |
Commercial And Industrial [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 242 | |
Commercial And Industrial [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 100 | 36 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 616 | 1,718 |
Current | 89,878 | 91,133 |
Total loans | 90,494 | 92,851 |
Non-accrual loans | 501 | 649 |
Commercial Real Estate: Non-Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 115 | 51 |
Commercial Real Estate: Non-Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,018 | |
Commercial Real Estate: Non-Owner Occupied [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 501 | 649 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,734 | 1,079 |
Current | 111,369 | 108,304 |
Total loans | 113,103 | 109,383 |
Recorded investment past due >=90 days and accruing | 164 | |
Non-accrual loans | 923 | 942 |
Commercial Real Estate: Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 599 | 52 |
Commercial Real Estate: Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 48 | 85 |
Commercial Real Estate: Owner Occupied [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,087 | 942 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 159 | 161 |
Current | 5,829 | 6,067 |
Total loans | 5,988 | 6,228 |
Non-accrual loans | 159 | 161 |
Commercial Real Estate: Construction [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 159 | 161 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 713 | 175 |
Current | 28,304 | 27,142 |
Total loans | 29,017 | 27,317 |
Non-accrual loans | 82 | 15 |
Consumer: Home Equity Installment [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 600 | 130 |
Consumer: Home Equity Installment [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 31 | 30 |
Consumer: Home Equity Installment [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 82 | 15 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 521 | 835 |
Current | 53,390 | 52,438 |
Total loans | 53,911 | 53,273 |
Non-accrual loans | 31 | 559 |
Consumer: Home Equity Line Of Credit [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 365 | 276 |
Consumer: Home Equity Line Of Credit [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 125 | |
Consumer: Home Equity Line Of Credit [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 31 | 559 |
Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 425 | 545 |
Current | 104,305 | 82,326 |
Total loans | 104,730 | 82,871 |
Recorded investment past due >=90 days and accruing | 6 | |
Non-accrual loans | 51 | 5 |
Consumer: Auto Loans And Leases [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 283 | 449 |
Consumer: Auto Loans And Leases [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 91 | 85 |
Consumer: Auto Loans And Leases [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 51 | 11 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 59 | 42 |
Current | 5,685 | 5,562 |
Total loans | 5,744 | 5,604 |
Consumer: Other [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 38 | 42 |
Consumer: Other [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 21 | |
Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,323 | 1,463 |
Current | 143,541 | 135,438 |
Total loans | 144,864 | 136,901 |
Non-accrual loans | 916 | 1,074 |
Residential: Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 38 | |
Residential: Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 407 | 351 |
Residential: Real Estate [Member] | Past Due 90 Days Or More [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 916 | 1,074 |
Residential: Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 11,831 | 9,931 |
Total loans | $ 11,831 | $ 9,931 |
Loans And Leases (Impaired Loan
Loans And Leases (Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | $ 7,872 | $ 7,872 | $ 8,122 | ||
Recorded investment with allowance | 3,922 | 3,922 | 4,131 | ||
Recorded investment with no allowance | 2,800 | 2,800 | 2,763 | ||
Total recorded investment | 6,722 | 6,722 | 6,894 | ||
Related allowance | 1,218 | 1,218 | 1,179 | ||
Average recorded investment | 6,801 | $ 10,539 | 7,541 | $ 10,722 | |
Interest income recognized | 76 | 92 | 149 | 166 | |
Cash basis interest income recognized | |||||
Commercial And Industrial [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 195 | 195 | 281 | ||
Recorded investment with allowance | 76 | 76 | 225 | ||
Recorded investment with no allowance | 48 | 48 | 24 | ||
Total recorded investment | 124 | 124 | 249 | ||
Related allowance | 196 | ||||
Average recorded investment | 169 | 221 | 207 | 237 | |
Interest income recognized | 1 | 4 | 1 | 4 | |
Cash basis interest income recognized | |||||
Commercial Real Estate: Non-Owner Occupied [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 2,341 | 2,341 | 2,426 | ||
Recorded investment with allowance | 1,855 | 1,855 | 1,975 | ||
Recorded investment with no allowance | 311 | 311 | 363 | ||
Total recorded investment | 2,166 | 2,166 | 2,338 | ||
Related allowance | 419 | 419 | 488 | ||
Average recorded investment | 2,183 | 2,984 | 2,376 | 3,316 | |
Interest income recognized | 40 | 28 | 63 | 63 | |
Cash basis interest income recognized | |||||
Commercial Real Estate: Owner Occupied [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 2,713 | 2,713 | 2,742 | ||
Recorded investment with allowance | 1,493 | 1,493 | 1,768 | ||
Recorded investment with no allowance | 971 | 971 | 725 | ||
Total recorded investment | 2,464 | 2,464 | 2,493 | ||
Related allowance | 418 | 418 | 433 | ||
Average recorded investment | 2,512 | 4,829 | 2,912 | 4,819 | |
Interest income recognized | 23 | 41 | 41 | 71 | |
Cash basis interest income recognized | |||||
Commercial Real Estate: Construction [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 382 | 382 | 384 | ||
Recorded investment with no allowance | 159 | 159 | 161 | ||
Total recorded investment | 159 | 159 | 161 | ||
Average recorded investment | 163 | 179 | 166 | 192 | |
Interest income recognized | |||||
Cash basis interest income recognized | |||||
Consumer: Home Equity Installment [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 529 | 529 | 48 | ||
Recorded investment with allowance | 413 | 413 | |||
Recorded investment with no allowance | 82 | 82 | 15 | ||
Total recorded investment | 495 | 495 | 15 | ||
Related allowance | 350 | 350 | |||
Average recorded investment | 462 | 8 | 194 | 30 | |
Interest income recognized | 3 | 5 | |||
Cash basis interest income recognized | |||||
Consumer: Home Equity Line Of Credit [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 70 | 70 | 878 | ||
Recorded investment with allowance | 30 | 30 | 32 | ||
Recorded investment with no allowance | 1 | 1 | 527 | ||
Total recorded investment | 31 | 31 | 559 | ||
Related allowance | 30 | 30 | 25 | ||
Average recorded investment | 31 | 801 | 388 | 816 | |
Interest income recognized | 8 | ||||
Cash basis interest income recognized | |||||
Consumer: Auto Loans And Leases [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 78 | 78 | 13 | ||
Recorded investment with no allowance | 51 | 51 | 5 | ||
Total recorded investment | 51 | 51 | 5 | ||
Average recorded investment | 32 | 21 | 14 | 25 | |
Interest income recognized | 4 | 4 | |||
Cash basis interest income recognized | |||||
Consumer: Other [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Average recorded investment | 11 | 3 | 6 | 5 | |
Interest income recognized | 1 | ||||
Cash basis interest income recognized | |||||
Residential: Real Estate [Member] | |||||
Financing Receivable, Impaired [Line Items] | |||||
Unpaid principal balance | 1,564 | 1,564 | 1,350 | ||
Recorded investment with allowance | 55 | 55 | 131 | ||
Recorded investment with no allowance | 1,177 | 1,177 | 943 | ||
Total recorded investment | 1,232 | 1,232 | 1,074 | ||
Related allowance | 1 | 1 | $ 37 | ||
Average recorded investment | 1,238 | 1,493 | 1,278 | 1,282 | |
Interest income recognized | $ 9 | $ 15 | 31 | 23 | |
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 | Jun. 30, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Unearned lease revenue | $ 858 | $ 639 |
Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 126,006 | 113,601 |
Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 90,494 | 92,851 |
Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 113,103 | 109,383 |
Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 5,988 | 6,228 |
Commercial Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 335,591 | 322,063 |
Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 29,017 | 27,317 |
Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 53,911 | 53,273 |
Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 104,730 | 82,871 |
Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 5,744 | 5,604 |
Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 193,402 | 169,065 |
Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 144,864 | 136,901 |
Residential: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 11,831 | 9,931 |
Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 156,695 | 146,832 |
Consumer And Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 350,097 | 315,897 |
Pass [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 124,480 | 112,398 |
Pass [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 86,543 | 84,892 |
Pass [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 107,722 | 103,426 |
Pass [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 5,829 | 6,067 |
Pass [Member] | Commercial Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 324,574 | 306,783 |
Special mention [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 567 | 509 |
Special mention [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 620 | 998 |
Special mention [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 752 | 2,479 |
Special mention [Member] | Commercial Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 1,939 | 3,986 |
Substandard [Member] | Commercial And Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 959 | 694 |
Substandard [Member] | Commercial Real Estate: Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 3,331 | 6,961 |
Substandard [Member] | Commercial Real Estate: Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 4,629 | 3,478 |
Substandard [Member] | Commercial Real Estate: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 159 | 161 |
Substandard [Member] | Commercial Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 9,078 | 11,294 |
Performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 28,935 | 27,302 |
Performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 53,880 | 52,714 |
Performing [Member] | Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 104,679 | 82,860 |
Performing [Member] | Consumer: Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 5,744 | 5,604 |
Performing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 193,238 | 168,480 |
Performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 143,948 | 135,827 |
Performing [Member] | Residential: Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 11,831 | 9,931 |
Performing [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 155,779 | 145,758 |
Performing [Member] | Consumer And Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 349,017 | 314,238 |
Non-performing [Member] | Consumer: Home Equity Installment [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 82 | 15 |
Non-performing [Member] | Consumer: Home Equity Line Of Credit [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 31 | 559 |
Non-performing [Member] | Consumer: Auto Loans And Leases [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 51 | 11 |
Non-performing [Member] | Consumer Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 164 | 585 |
Non-performing [Member] | Residential: Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 916 | 1,074 |
Non-performing [Member] | Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | 916 | 1,074 |
Non-performing [Member] | Consumer And Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Financing receivable, net | $ 1,080 | $ 1,659 |
Loans And Leases (Schedule Of C
Loans And Leases (Schedule Of Change In Allowance For Loan Losses And The Recorded Investment In Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for Loan Losses: Beginning balance | $ 9,408 | $ 9,548 | $ 9,193 | $ 9,364 | $ 9,364 |
Charge-offs | (369) | (415) | (544) | (596) | (1,745) |
Recoveries | 63 | 48 | 153 | 88 | 124 |
Provisions | 425 | 225 | 725 | 550 | 1,450 |
Allowance for Loan Losses: Ending balance | 9,527 | 9,406 | 9,527 | 9,406 | 9,193 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 1,218 | 1,218 | 1,179 | ||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 8,309 | 8,309 | 8,014 | ||
Loan Receivables: Ending balance | 685,688 | 685,688 | 637,960 | ||
Loans Receivable: Ending balance: individually evaluated for impairment | 6,722 | 6,722 | 6,894 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 678,966 | 678,966 | 631,066 | ||
Unearned lease revenue | 858 | 858 | 639 | ||
Deferred loan costs | 2,400 | 2,400 | 2,100 | ||
Commercial And Industrial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for Loan Losses: Beginning balance | 1,236 | 1,263 | 1,374 | 1,075 | 1,075 |
Charge-offs | (82) | (30) | (97) | (30) | (143) |
Recoveries | 1 | 54 | 3 | 10 | |
Provisions | 187 | 149 | 10 | 335 | 432 |
Allowance for Loan Losses: Ending balance | 1,341 | 1,383 | 1,341 | 1,383 | 1,374 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 196 | ||||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,341 | 1,341 | 1,178 | ||
Loan Receivables: Ending balance | 126,006 | 126,006 | 113,601 | ||
Loans Receivable: Ending balance: individually evaluated for impairment | 124 | 124 | 249 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 125,882 | 125,882 | 113,352 | ||
Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for Loan Losses: Beginning balance | 3,988 | 4,922 | 4,060 | 4,706 | 4,706 |
Charge-offs | (87) | (301) | (130) | (368) | (635) |
Recoveries | 30 | 31 | 33 | 41 | 47 |
Provisions | (117) | (142) | (149) | 131 | (58) |
Allowance for Loan Losses: Ending balance | 3,814 | 4,510 | 3,814 | 4,510 | 4,060 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 837 | 837 | 921 | ||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 2,977 | 2,977 | 3,139 | ||
Loan Receivables: Ending balance | 209,585 | 209,585 | 208,462 | ||
Loans Receivable: Ending balance: individually evaluated for impairment | 4,789 | 4,789 | 4,992 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 204,796 | 204,796 | 203,470 | ||
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for Loan Losses: Beginning balance | 2,470 | 1,731 | 2,063 | 1,834 | 1,834 |
Charge-offs | (90) | (84) | (202) | (160) | (658) |
Recoveries | 33 | 16 | 66 | 44 | 67 |
Provisions | 216 | 276 | 702 | 221 | 820 |
Allowance for Loan Losses: Ending balance | 2,629 | 1,939 | 2,629 | 1,939 | 2,063 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 380 | 380 | 25 | ||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 2,249 | 2,249 | 2,038 | ||
Loan Receivables: Ending balance | 193,402 | 193,402 | 169,065 | ||
Loans Receivable: Ending balance: individually evaluated for impairment | 577 | 577 | 579 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 192,825 | 192,825 | 168,486 | ||
Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for Loan Losses: Beginning balance | 1,662 | 1,519 | 1,608 | 1,622 | 1,622 |
Charge-offs | (110) | (115) | (38) | (309) | |
Recoveries | |||||
Provisions | 170 | (8) | 229 | (73) | 295 |
Allowance for Loan Losses: Ending balance | 1,722 | 1,511 | 1,722 | 1,511 | 1,608 |
Allowance for Loan Losses: Ending balance: individually evaluated for impairment | 1 | 1 | 37 | ||
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | 1,721 | 1,721 | 1,571 | ||
Loan Receivables: Ending balance | 156,695 | 156,695 | 146,832 | ||
Loans Receivable: Ending balance: individually evaluated for impairment | 1,232 | 1,232 | 1,074 | ||
Loans Receivable: Ending balance: collectively evaluated for impairment | 155,463 | 155,463 | 145,758 | ||
Unallocated [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for Loan Losses: Beginning balance | 52 | 113 | 88 | 127 | 127 |
Charge-offs | |||||
Recoveries | |||||
Provisions | (31) | (50) | (67) | (64) | (39) |
Allowance for Loan Losses: Ending balance | 21 | $ 63 | 21 | $ 63 | 88 |
Allowance for Loan Losses: Ending balance: collectively evaluated for impairment | $ 21 | $ 21 | $ 88 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018shares | Jun. 30, 2017shares | Jun. 30, 2018itemshares | Jun. 30, 2017shares | |
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 | 39,031 | 18,354 | 37,680 | 17,772 |
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Potentially dilutive common shares | 27,894 | 12,206 | 26,674 | 10,529 |
Restricted Stock [Member] | ||||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||
Potentially dilutive common shares | 11,137 | 6,148 | 11,006 | 7,243 |
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 | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | ||
Earnings Per Share [Abstract] | |||||
Net income available to common shareholders | $ 2,768 | $ 2,183 | $ 5,296 | $ 4,163 | |
Weighted-average common shares outstanding | 3,751,728 | 3,705,534 | 3,749,389 | 3,701,078 | |
Basic EPS | [1] | $ 0.74 | $ 0.59 | $ 1.41 | $ 1.12 |
Potentially dilutive common shares | 39,031 | 18,354 | 37,680 | 17,772 | |
Weighted-average common and potentially dilutive shares outstanding | 3,790,759 | 3,723,888 | 3,787,069 | 3,718,850 | |
Diluted EPS | [1] | $ 0.73 | $ 0.59 | $ 1.40 | $ 1.12 |
[1] | On August 15, 2017, the Company declared a three-for-two stock split effected in the form of a 50% stock dividend. Per share data for the three and six months ended June 30, 2017 has been restated for the effects thereof. |
Stock Plans (Narrative) (Detail
Stock Plans (Narrative) (Details) | Feb. 06, 2018$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesitemshares | Jun. 30, 2017shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of active share-based compensation plans | item | 2 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option shares granted | 19,250 | 13,224 | ||
Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 38,941 | |||
Vesting period | 3 years | |||
Options exercised | ||||
Options exercised, price per share | $ / shares | ||||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | ||||
Options exercised | 779 | 750 | ||
Options exercised, price per share | $ / shares | $ 19.27 | $ 18.50 | ||
Options exercised, intrinsic value | $ | $ 2,891 | $ 2,585 | ||
Options exercised, realized tax deduction | $ | 5,761 | 22,875 | ||
Options exercised, tax benefit | $ | $ 1,959 | $ 4,804 | ||
Number of shares issued | 0 | |||
2012 Stock Incentive Plans [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award expiration date | Dec. 31, 2022 | |||
Director Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 750,000 | |||
Director Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option shares granted | 8,400 | 8,400 | ||
Vesting period | 3 years | 2 years | ||
Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 750,000 | |||
Omnibus Plan [Member] | Stock-Settled Stock Appreciation Rights (SSARs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares granted | 38,941 | |||
Expected term | 10 years | 10 years | ||
Dividend rate | 1.762% | |||
Grant date fair value stock price | $ / shares | $ 13.73 | |||
Interest rate | 2.771% | |||
Volatility rate | 23.906% | |||
Long-Term Incentive Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Long-Term Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Holding period | 2 years | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized | 165,000 | |||
Number of shares issued | 76,484 | |||
Award Date One [Member] | Omnibus Plan [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Non-option shares granted | 10,800 | 10,800 | 4,749 | |
Vesting period | 3 years | 3 years | 3 years | |
Holding period | 2 years | |||
Term used to determine historical volatility | 5 years | |||
Treasury yield | 5 years | |||
Dividend rate | 0.00% | |||
Grant date stock price | $ / shares | $ 49.50 | |||
Discount rate | 7.423% | |||
Interest rate | 2.504% | |||
Volatility rate | 17.617% |
Stock Plans (Summary Of Weighte
Stock Plans (Summary Of Weighted-Average Fair-Value And Vesting Of Restricted Stock Grants) (Details) - Restricted Stock [Member] - $ / shares | Feb. 06, 2018 | Jun. 30, 2018 | Jun. 30, 2017 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 19,250 | 13,224 | |
Weighted average grant date fair value | $ 47.44 | $ 25.36 | |
Director Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 8,400 | 8,400 | |
Weighted average grant date fair value | $ 49.50 | $ 26.17 | |
Vesting period | 3 years | 2 years | |
Director 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% | 50.00% | |
Award Date One [Member] | Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 10,800 | 10,800 | 4,749 |
Weighted average grant date fair value | $ 45.83 | $ 23.93 | |
Vesting period | 3 years | 3 years | 3 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% | 33.00% | |
Award Date Two [Member] | Omnibus Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted | 50 | 75 | |
Weighted average grant date fair value | $ 49.50 | $ 26.17 | |
Vesting period | 1 year | 1 year |
Stock Plans (Schedule Of Non-Ve
Stock Plans (Schedule Of Non-Vested Restricted Stock Units Activity) (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested balance at December 31, 2017 | 20,704 | |
Granted | 19,250 | |
Vested | (9,994) | |
Non-vested balance at June 30, 2018 | 29,960 | |
Weighted average grant date fair value, Non-vested balance at December 31, 2017 | $ 23.59 | |
Weighted average grant date fair value, Granted | 47.44 | $ 25.36 |
Weighted average grant date fair value, Vested | 23.69 | |
Weighted average grant date fair value, Non-vested balance at June 30, 2018 | $ 38.99 | |
Director Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested balance at December 31, 2017 | 8,400 | |
Granted | 8,400 | |
Vested | (4,200) | |
Non-vested balance at June 30, 2018 | 12,600 | |
Weighted average grant date fair value, Granted | $ 49.50 | $ 26.17 |
Omnibus Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Non-vested balance at December 31, 2017 | 12,304 | |
Granted | 10,850 | |
Vested | (5,794) | |
Non-vested balance at June 30, 2018 | 17,360 |
Stock Plans (Schedule Of SSARs
Stock Plans (Schedule Of SSARs Activity) (Details) - Stock-Settled Stock Appreciation Rights (SSARs) [Member] - $ / shares | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding and exercisable, December 31, 2017 | 53,360 | |
Granted | 38,941 | |
Exercised | ||
Forfeited | ||
Outstanding and exercisable, June 30, 2018 | 92,301 | 53,360 |
Weighted-average exercise price, Outstanding and exercisable, December 31, 2017 | $ 4.20 | |
Weighted-average exercise price - Granted | 13.73 | |
Weighted-average exercise price - Exercised | ||
Weighted-average exercise price - Forfeited | ||
Weighted-average exercise price, Outstanding and exercisable, June 30, 2018 | $ 8.22 | $ 4.20 |
Weighted-average remaining contractual term (years), Granted | 10 years | |
Weighted-average remaining contractual term (years), Outstanding and exercisable | 8 years 8 months 12 days | 8 years 6 months |
Vested and exercisable | 27,453 | |
Vesting period | 3 years | |
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) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-Vested Equity Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | $ 194 | $ 77 | $ 492 | $ 179 |
Non-Vested Equity Awards [Member] | Director Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 62 | 27 | 113 | 61 |
Non-Vested Equity Awards [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 132 | 50 | 236 | 95 |
Non-Vested Equity Awards [Member] | Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation expense | 143 | 23 | ||
Restricted Stock And Stock-Settled Stock Appreciation Rights [Member] | Omnibus Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Accrued stock-based compensation expense | $ (35) | $ 54 | $ (60) | $ 109 |
Stock Plans (Schedule Of Unreco
Stock Plans (Schedule Of Unrecognized Compensation Cost, Non-Vested Awards) (Details) - Stock-Based Compensation Plan [Member] $ in Thousands | Jun. 30, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 1,498 |
Director Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | 422 |
Omnibus Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized stock-based compensation expense | $ 1,076 |
Stock Plans (Summary Of Stock O
Stock Plans (Summary Of Stock Option Activity) (Details) - Employee Stock Option [Member] - $ / shares | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Jun. 30, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding and exercisable, December 31, 2017 | 750 | ||
Granted | |||
Exercised | (779) | (750) | |
Forfeited | |||
Outstanding and exercisable, June 30, 2018 | 750 | ||
Weighted-average exercise price, Outstanding and exercisable, December 31, 2017 | $ 18.50 | ||
Weighted-average exercise price - Granted | |||
Weighted-average exercise price - Exercised | $ 19.27 | 18.50 | |
Weighted-average exercise price - Forfeited | |||
Weighted-average exercise price, Outstanding and exercisable, June 30, 2018 | $ 18.50 | ||
Weighted-average remaining contractual term (years), Outstanding and exercisable | 0 years | 2 months 12 days |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount | $ 0 | |
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount | 0 | |
Transfers into (out of) Level 3 | $ 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 | (17.30%) | (15.95%) |
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 | (25.71%) | (17.95%) |
Maximum [Member] | Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value inputs, comparability adjustments | (49.89%) | (51.55%) |
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 | (68.96%) | (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 | (27.05%) | (23.03%) |
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 | (38.09%) | (35.30%) |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Amount And Estimated Fair Value By Balance Sheet Grouping) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale debt securities | $ 164,403 | $ 156,557 |
Available-for-sale securities | 164,403 | 157,385 |
Loans held-for-sale | 1,328 | 2,221 |
Carrying Amount [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 17,972 | 15,825 |
Available-for-sale debt securities | 164,403 | |
Available-for-sale securities | 157,385 | |
FHLB stock | 3,490 | 2,832 |
Loans and leases, net | 676,161 | 628,767 |
Loans held-for-sale | 1,305 | 2,181 |
Accrued interest receivable | 3,130 | 2,786 |
Short-term borrowings | 29,553 | 18,502 |
FHLB advances | 18,704 | 21,204 |
Accrued interest payable | 404 | 346 |
Carrying Amount [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 667,573 | 623,080 |
Carrying Amount [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 110,685 | 107,066 |
Estimated Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 17,972 | 15,825 |
Available-for-sale debt securities | 164,403 | |
Available-for-sale securities | 157,385 | |
FHLB stock | 3,490 | 2,832 |
Loans and leases, net | 667,199 | 625,052 |
Loans held-for-sale | 1,328 | 2,221 |
Accrued interest receivable | 3,130 | 2,786 |
Short-term borrowings | 29,553 | 18,502 |
FHLB advances | 18,583 | 21,066 |
Accrued interest payable | 404 | 346 |
Estimated Fair Value [Member] | Deposits With No Stated Maturities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 667,573 | 623,080 |
Estimated Fair Value [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 109,028 | 105,758 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 17,972 | 15,825 |
Available-for-sale securities | 828 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available-for-sale debt securities | 164,403 | |
Available-for-sale securities | 156,557 | |
FHLB stock | 3,490 | 2,832 |
Loans held-for-sale | 1,328 | 2,221 |
Accrued interest receivable | 3,130 | 2,786 |
Short-term borrowings | 29,553 | 18,502 |
FHLB advances | 18,583 | 21,066 |
Accrued interest payable | 404 | 346 |
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 | 667,573 | 623,080 |
Significant Other Observable Inputs (Level 2) [Member] | Time Deposits [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Deposit liabilities | 109,028 | 105,758 |
Significant Other Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans and leases, net | $ 667,199 | $ 625,052 |
Fair Value Measurements (Financ
Fair Value Measurements (Financial Instruments Measured At Fair Value On Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 164,403 | $ 156,557 |
Equity securities - financial services | 828 | |
Available-for-sale securities, Fair value | 164,403 | 157,385 |
Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 5,877 | 9,099 |
Obligations Of States And Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 46,361 | 44,306 |
MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 112,165 | 103,152 |
Quoted Prices In Active Markets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities - financial services | 828 | |
Available-for-sale securities, Fair value | 828 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 164,403 | |
Available-for-sale securities, Fair value | 156,557 | |
Significant Other Observable Inputs (Level 2) [Member] | Agency - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | 5,877 | 9,099 |
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] | ||
Available-for-sale debt securities | 46,361 | 44,306 |
Significant Other Observable Inputs (Level 2) [Member] | MBS - GSE Residential [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale debt securities | $ 112,165 | $ 103,152 |
Fair Value Measurements (Fair V
Fair Value Measurements (Fair Value Measurements At Fair Value Segregated By Hierarchy Fair Value Levels) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 3,236 | $ 3,766 |
Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 2,704 | 2,952 |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure, Nonrecurring | 532 | 814 |
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 | 3,236 | 3,766 |
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 | 2,704 | 2,952 |
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 | $ 532 | $ 814 |
Acquisition (Narrative) (Detail
Acquisition (Narrative) (Details) | 12 Months Ended | |||
Dec. 31, 2017USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Mar. 17, 2017USD ($)loan | |
Business Acquisition [Line Items] | ||||
Acquisition costs | $ 41,000 | |||
Number of loans acquired with evidence of credit quality deterioration | loan | 0 | |||
Goodwill | 209,000 | $ 209,000 | ||
Goodwill impairment | $ 0 | |||
West Scranton branch of Wayne Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Loans | $ 1,574,000 | $ 1,574,000 | ||
Goodwill | $ 209,000 | $ 209,000 |
Acquisition (Summary Of Estimat
Acquisition (Summary Of Estimated Fair Value Of Assets Acquired And Liabilities Assumed) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 17, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 209 | $ 209 | ||
West Scranton branch of Wayne Bank [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 11,817 | |||
Loans | $ 1,574 | 1,574 | ||
Bank premises and equipment | 264 | 264 | ||
Goodwill | 209 | 209 | ||
Accrued interest receivable and other assets | 4 | 4 | ||
Total assets acquired | 13,868 | |||
Deposits | 13,809 | 13,809 | ||
Accrued interest payable and other liabilities | 59 | 59 | ||
Total liabilities assumed | $ 13,868 | $ 13,868 |
Employee Benefits (Narrative) (
Employee Benefits (Narrative) (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)employee | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Jun. 30, 2018USD ($)employee | Jun. 30, 2017USD ($) | Dec. 31, 2017USD ($)employee | Mar. 29, 2017employee | |
Employee Benefits [Abstract] | ||||||||
Purchase of life insurance policies | $ 8,000 | $ 8,000 | ||||||
Cash surrender value of bank owned life insurance | $ 20,315 | $ 20,315 | $ 20,017 | |||||
Earnings on bank-owned life insurance | 146 | $ 157 | $ 264 | 298 | $ 264 | |||
Number of officers with split dollar life insurance arrangement | employee | 11 | |||||||
Split dollar life insurance arrangement, death benefit | 20,500 | 20,500 | ||||||
Split dollar life insurance arrangement, death benefit to be paid to insured's beneficiary | 4,000 | 4,000 | ||||||
Split dollar life insurance arrangement, death benefit to be paid to Company | $ 16,500 | $ 16,500 | ||||||
Number of officers with opportunity to retain benefit equal to two times highest base salary after separation | employee | 3 | 3 | ||||||
Split dollar life insurance arrangement, accrued expense | $ 47 | $ 47 | ||||||
Number of officers who entered into supplemental executive retirement agreement | employee | 5 | |||||||
Defined contribution plan, accrued expense | $ 624 | $ 624 |