Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Jul. 31, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | 1ST CONSTITUTION BANCORP | |
Document Type | 10-Q | |
Current Fiscal year End Date | --12-31 | |
Amendment Flag | false | |
Entity CIK | 1,141,807 | |
Entity Filer Category | Accelerated Filer | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Entity Common stock, Shares Outstanding | 8,069,273 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and Due From Banks | $ 14,211 | $ 14,886 |
Total cash and cash equivalents | 14,211 | 14,886 |
Investment Securities: | ||
Available for sale, at fair value | 112,952 | 103,794 |
Held to maturity (fair value of $127,075 and $128,559 at June 30, 2017 and December 31, 2016, respectively) | 124,922 | 126,810 |
Total investment securities | 237,874 | 230,604 |
Loans Held for Sale | 3,594 | 14,829 |
Loans | 762,619 | 724,808 |
Less- Allowance for loan losses | (7,707) | (7,494) |
Net loans | 754,912 | 717,314 |
Premises and Equipment, Net | 10,691 | 10,673 |
Accrued Interest Receivable | 3,060 | 3,095 |
Bank-Owned Life Insurance | 22,444 | 22,184 |
Other Real Estate Owned | 356 | 166 |
Goodwill and Intangible Assets | 12,687 | 12,880 |
Other Assets | 12,245 | 11,582 |
Total assets | 1,072,074 | 1,038,213 |
Deposits | ||
Non-interest bearing | 189,653 | 170,854 |
Interest bearing | 674,762 | 663,662 |
Total deposits | 864,415 | 834,516 |
Borrowings | 73,825 | 73,050 |
Redeemable Subordinated Debentures | 18,557 | 18,557 |
Accrued Interest Payable | 812 | 866 |
Accrued Expenses and Other Liabilities | 5,617 | 6,423 |
Total liabilities | 963,226 | 933,412 |
SHAREHOLDERS’ EQUITY | ||
Preferred stock, no par value; 5,000,000 shares authorized, none issued | 0 | 0 |
Common Stock, no par value; 30,000,000 shares authorized; 8,079,495 and 8,027,087 shares issued and 8,046,197 and 7,993,789 shares outstanding as of June 30, 2017 and December 31, 2016, respectively | 72,292 | 71,695 |
Retained earnings | 37,139 | 34,074 |
Treasury Stock, 33,298 shares at June 30, 2017 and December 31, 2016, respectively | (368) | (368) |
Accumulated other comprehensive loss | (215) | (600) |
Total shareholders’ equity | 108,848 | 104,801 |
Total liabilities and shareholders’ equity | $ 1,072,074 | $ 1,038,213 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in Dollars) | $ 127,075 | $ 128,559 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 8,079,495 | 8,027,087 |
Common Stock, shares outstanding | 8,046,197 | 7,993,789 |
Treasury stock (in shares) | 33,298 | 33,298 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
INTEREST INCOME | ||||
Loans, including fees | $ 8,697 | $ 8,133 | $ 16,745 | $ 16,070 |
Securities: | ||||
Taxable | 839 | 815 | 1,654 | 1,632 |
Tax-exempt | 548 | 520 | 1,101 | 1,040 |
Federal funds sold and short-term investments | 86 | 18 | 158 | 67 |
Total interest income | 10,170 | 9,486 | 19,658 | 18,809 |
INTEREST EXPENSE | ||||
Deposits | 1,104 | 988 | 2,147 | 1,938 |
Borrowings | 109 | 165 | 236 | 301 |
Redeemable subordinated debentures | 127 | 104 | 246 | 203 |
Total interest expense | 1,340 | 1,257 | 2,629 | 2,442 |
Net interest income | 8,830 | 8,229 | 17,029 | 16,367 |
PROVISION (CREDIT) FOR LOAN LOSSES | 150 | (100) | 300 | (300) |
Net interest income after provision (credit) for loan losses | 8,680 | 8,329 | 16,729 | 16,667 |
NON-INTEREST INCOME | ||||
Service charges on deposit accounts | 149 | 176 | 303 | 373 |
Gain on sales of loans, net | 1,018 | 747 | 2,607 | 1,650 |
Income on Bank-owned life insurance | 130 | 157 | 260 | 301 |
(Loss) gain on sales of securities | (2) | 0 | 104 | 0 |
Other income | 471 | 456 | 895 | 808 |
Total non-interest income | 1,766 | 1,536 | 4,169 | 3,132 |
NON-INTEREST EXPENSES | ||||
Salaries and employee benefits | 5,127 | 4,291 | 10,050 | 8,607 |
Occupancy expense | 820 | 835 | 1,739 | 1,708 |
Data processing expenses | 326 | 314 | 645 | 627 |
FDIC insurance expense | 80 | 105 | 160 | 223 |
Other real estate owned expenses | 11 | 35 | 15 | 65 |
Other operating expenses | 1,322 | 858 | 2,728 | 1,872 |
Total non-interest expenses | 7,686 | 6,438 | 15,337 | 13,102 |
Income before income taxes | 2,760 | 3,427 | 5,561 | 6,697 |
INCOME TAXES | 841 | 1,113 | 1,693 | 2,161 |
Net income | $ 1,919 | $ 2,314 | $ 3,868 | $ 4,536 |
NET INCOME PER COMMON SHARE | ||||
Basic (in Dollars per share) | $ 0.24 | $ 0.29 | $ 0.48 | $ 0.57 |
Diluted (in Dollars per share) | $ 0.23 | $ 0.28 | $ 0.47 | $ 0.56 |
WEIGHTED AVERAGE SHARES OUTSTANDING | ||||
Basic (in Shares) | 8,033,299 | 7,947,146 | 8,029,690 | 7,944,069 |
Diluted (in Shares) | 8,301,939 | 8,151,796 | 8,301,431 | 8,144,458 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income | $ 1,919 | $ 2,314 | $ 3,868 | $ 4,536 | |
Unrealized holding gains on securities available for sale | |||||
Unrealized holding gains on securities available for sale | 545 | 738 | 726 | 1,257 | |
Tax effect | (198) | (268) | (267) | (457) | |
Net of tax amount | 347 | 470 | 459 | 800 | |
Reclassification adjustment for losses (gains) on securities available for sale | |||||
Reclassification adjustment for losses (gains) on securities available for sale | [1] | 2 | 0 | (80) | 0 |
Tax effect | [2] | (1) | 0 | 32 | 0 |
Net of tax amount | 1 | 0 | (48) | 0 | |
Pension liability | |||||
Pension liability | 0 | 34 | 0 | 34 | |
Tax effect | 0 | (14) | 0 | (14) | |
Net of tax amount | 0 | 20 | 0 | 20 | |
Reclassification adjustment for actuarial gains for unfunded pension liability | |||||
Income | [3] | (24) | (46) | (43) | (72) |
Tax effect | [2] | 10 | 18 | 17 | 29 |
Net of tax amount | (14) | (28) | (26) | (43) | |
Total other comprehensive income | 334 | 462 | 385 | 777 | |
Comprehensive income | $ 2,253 | $ 2,776 | $ 4,253 | $ 5,313 | |
[1] | Included in non-interest income on the consolidated statements of income | ||||
[2] | Included in income taxes on the consolidated statements of income | ||||
[3] | Included in salaries and employee benefits expense on the consolidated statements of income |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance, beginning of period at Dec. 31, 2015 | $ 95,960 | $ 70,845 | $ 25,589 | $ (344) | $ (130) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (12,361 shares YTD 2017 and 3,564 shares YTD 2016) | 17 | 17 | |||
Share-based compensation | 362 | 362 | |||
Treasury stock purchased (2,000 shares) | (24) | (24) | |||
Net income | 4,536 | 4,536 | |||
Other comprehensive income | 777 | 777 | |||
Balance, end of period at Jun. 30, 2016 | 101,628 | 71,224 | 30,125 | (368) | 647 |
Balance, beginning of period at Mar. 31, 2016 | 185 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,314 | ||||
Other comprehensive income | 462 | ||||
Balance, end of period at Jun. 30, 2016 | 101,628 | 71,224 | 30,125 | (368) | 647 |
Balance, beginning of period at Dec. 31, 2016 | 104,801 | 71,695 | 34,074 | (368) | (600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of stock options (12,361 shares YTD 2017 and 3,564 shares YTD 2016) | 113 | 113 | |||
Share-based compensation | 484 | 484 | |||
Cash dividends declared | (803) | (803) | |||
Net income | 3,868 | 3,868 | |||
Other comprehensive income | 385 | 385 | |||
Balance, end of period at Jun. 30, 2017 | 108,848 | 72,292 | 37,139 | (368) | (215) |
Balance, beginning of period at Mar. 31, 2017 | (549) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,919 | ||||
Other comprehensive income | 334 | ||||
Balance, end of period at Jun. 30, 2017 | $ 108,848 | $ 72,292 | $ 37,139 | $ (368) | $ (215) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Exercise of stock options (in shares) | 12,361 | |
Common Stock [Member] | ||
Exercise of stock options (in shares) | 12,361 | 3,564 |
Treasury Stock [Member] | ||
Treasury stock purchased (in shares) | 2,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
OPERATING ACTIVITIES: | ||
Net income | $ 3,868 | $ 4,536 |
Adjustments to reconcile net income to net cash provided by operating activities- | ||
Provision (credit) for loan losses | 300 | (300) |
Depreciation and amortization | 694 | 646 |
Net amortization of premiums and discounts on securities | 482 | 547 |
Gains on sales of securities | (104) | 0 |
Gains on sales of other real estate owned | (14) | (31) |
Gains on sales of loans held for sale | (2,607) | (1,650) |
Originations of loans held for sale | (52,391) | (35,727) |
Proceeds from sales of loans held for sale | 66,233 | 38,497 |
Income on bank–owned life insurance | (260) | (301) |
Share-based compensation expense | 484 | 362 |
Decrease (increase) in accrued interest receivable | 35 | (198) |
(Increase) decrease in other assets | (899) | 175 |
(Decrease) increase in accrued interest payable | (54) | 0 |
(Decrease) in accrued expenses and other liabilities | (806) | (621) |
Net cash provided by operating activities | 14,961 | 5,935 |
Purchases of securities - | ||
Available for sale | (25,752) | (26,138) |
Held to maturity | (16,460) | (13,997) |
Proceeds from maturities and payments of securities - | ||
Available for sale | 11,231 | 7,591 |
Held to maturity | 17,645 | 14,581 |
Proceeds from sales of securities available for sale | 5,728 | 0 |
Proceeds from sales of securities held to maturity | 606 | 0 |
Proceeds from Bank-owned life insurance benefits paid | 0 | 248 |
Purchase of restricted stock | (105) | (2,670) |
Net increase in loans | (38,353) | (79,451) |
Capital expenditures | (439) | (181) |
Cost of improvement to OREO | (5) | (60) |
Proceeds from sales of other real estate owned | 284 | 1,033 |
Purchase of Bank-owned life insurance | 0 | (300) |
Net cash used in investing activities | (45,620) | (99,344) |
FINANCING ACTIVITIES: | ||
Exercise of stock options | 113 | 17 |
Purchase of treasury stock | 0 | (24) |
Cash dividends paid to shareholders | (803) | 0 |
Net increase in deposits | 29,899 | 4,729 |
Net increase in borrowings | 775 | 90,969 |
Net cash provided by financing activities | 29,984 | 95,691 |
(Decrease) increase in cash and cash equivalents | (675) | 2,282 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | 14,886 | 11,368 |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | 14,211 | 13,650 |
Cash paid during the period for - | ||
Interest | 2,683 | 2,442 |
Income taxes | 1,577 | 2,161 |
Non-cash items | ||
Transfer of loans to other real estate owned | $ 455 | $ 142 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accompanying unaudited consolidated financial statements include 1 ST Constitution Bancorp (the “Company”), its wholly-owned subsidiary, 1 ST Constitution Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, 1 ST Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street Corp., and 249 New York Avenue, LLC. 1st Constitution Capital Trust II, a subsidiary of the Company, is not included in the Company’s consolidated financial statements, as it is a variable interest entity and the Company is not the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation and certain prior period amounts have been reclassified to conform to current year presentation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Form 10-K/A for the year ended December 31, 2016 , filed with the SEC on March 20, 2017. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) which are necessary for a fair presentation of the operating results for the interim periods have been included. The results of operations for periods of less than a year are not necessarily indicative of results for the full year. During the review of the second quarter ended June 30, 2017, management became aware that during previously reported periods the amortization of deferred loan origination costs was being recorded in other operating expense and not as an adjustment to yield as required by ASC 310-20. As such, management has adjusted interest income and other operating expenses in the amounts of $435,000 and $384,000 for the three months ended June 30, 2017 and June 30, 2016, respectively. The adjustment to interest income and other operating expenses was $883,000 and $755,000 for the six months ended June 30, 2017 and June 30, 2016, respectively. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2017 |
Net Income Per Common Share
Net Income Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Net Income Per Common Share | Net Income Per Common Share Basic net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted net income per common share is calculated by dividing net income by the weighted average number of common shares outstanding, as adjusted for the assumed exercise of dilutive common stock warrants and common stock options using the treasury stock method. The following tables illustrate the reconciliation of the numerators and denominators of the basic and diluted earnings per common share (EPS) calculations. Dilutive securities in the tables below exclude common stock options and warrants with exercise prices that exceed the average market price of the Company’s common stock during the periods presented. Inclusion of these common stock options and warrants would be anti-dilutive to the diluted earnings per common share calculation. (Dollars in thousands, except per share data) Three Months Ended June 30, 2017 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 1,919 8,033,299 $ 0.24 Effect of dilutive securities: Stock options and warrants 268,640 Diluted EPS: Net income plus assumed conversion $ 1,919 8,301,939 $ 0.23 (Dollars in thousands, except per share data) Three Months Ended June 30, 2016 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 2,314 7,947,146 $ 0.29 Effect of dilutive securities: Stock options and warrants 204,650 Diluted EPS: Net income plus assumed conversion $ 2,314 8,151,796 $ 0.28 For the three months ended June 30, 2017 and 2016 , 9,500 and 20,060 (Dollars in thousands, except per share data) Six Months Ended June 30, 2017 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 3,868 8,029,690 $ 0.48 Effect of dilutive securities: Stock options and warrants 271,741 Diluted EPS: Net income plus assumed conversion $ 3,868 8,301,431 $ 0.47 (Dollars in thousands, except per share data) Six Months Ended June 30, 2016 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 4,536 7,944,069 $ 0.57 Effect of dilutive securities: Stock options and warrants 200,389 Diluted EPS: Net income plus assumed conversion $ 4,536 8,144,458 $ 0.56 For the six months ended June 30, 2017 and 2016 , 9,500 and 20,060 |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Amortized cost, carrying value, gross unrealized gains and losses, and the fair value by security type are as follows: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for sale U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies $ 3,510 $ — $ (10 ) $ 3,500 Residential collateralized mortgage obligations- GSE 25,739 52 (121 ) 25,670 Residential mortgage backed securities – GSE 22,825 213 (39 ) 22,999 Obligations of state and political subdivisions 20,134 256 (62 ) 20,328 Trust preferred debt securities – single issuer 2,480 — (114 ) 2,366 Corporate debt securities 24,965 148 (147 ) 24,966 Other debt securities 13,117 15 (9 ) 13,123 $ 112,770 $ 684 $ (502 ) $ 112,952 June 30, 2017 Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Held to maturity U. S. Treasury securities and obligations of U.S. Government $ 3,448 $ — $ 3,448 $ — $ (67 ) $ 3,381 Residential collateralized mortgage obligations – GSE 10,218 — 10,218 187 (103 ) 10,302 Residential mortgage backed securities – GSE 38,326 — 38,326 415 (94 ) 38,647 Obligations of state and political subdivisions 72,394 — 72,394 1,488 (62 ) 73,820 Trust preferred debt securities-pooled 657 (501 ) 156 389 — 545 Other debt securities 380 — 380 — — 380 $ 125,423 $ (501 ) $ 124,922 $ 2,479 $ (326 ) $ 127,075 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for sale U. S. Treasury securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies $ 3,514 $ — $ (35 ) $ 3,479 Residential collateralized mortgage obligations- GSE 22,647 58 (145 ) 22,560 Residential mortgage backed securities - GSE 31,207 388 (119 ) 31,476 Obligations of state and political subdivisions 21,604 152 (356 ) 21,400 Trust preferred debt securities-single issuer 2,478 — (206 ) 2,272 Corporate debt securities 21,963 10 (205 ) 21,768 Other debt securities 845 — (6 ) 839 $ 104,258 $ 608 $ (1,072 ) $ 103,794 December 31, 2016 Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Held to maturity U. S. Treasury securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies $ 3,727 $ — $ 3,727 $ — $ (116 ) $ 3,611 Residential collateralized mortgage obligations-GSE 11,882 — 11,882 247 (130 ) 11,999 Residential mortgage backed securities - GSE 40,565 — 40,565 540 (113 ) 40,992 Obligations of state and political subdivisions 70,017 — 70,017 1,274 (255 ) 71,036 Trust preferred debt securities - pooled 657 (501 ) 156 303 — 459 Other debt securities 463 — 463 — (1 ) 462 $ 127,311 $ (501 ) $ 126,810 $ 2,364 $ (615 ) $ 128,559 Restricted stock is included in other assets at June 30, 2017 and December 31, 2016 and totaled $4.1 million and $4.0 million , respectively, and consisted of $4.0 million of Federal Home Loan Bank of New York stock and $65,000 of Atlantic Community Bankers Bank stock at June 30, 2017 and $3.9 million of Federal Home Loan Bank of New York stock and $65,000 of Atlantic Community Bankers Bank stock at December 31, 2016. During the first quarter of 2017, the Company sold fifty-four mortgage backed securities totaling $2.0 million , each with a principal balance outstanding of less than $150,000 . Of the fifty-four mortgage backed securities sold, six of such securities with an aggregate outstanding principal balance of $582,000 were in the held to maturity portfolio, and a net gain of $24,000 was realized on the sale of these securities. Each of the six mortgage backed securities that were sold from the held to maturity portfolio had a principal balance that was less than 15% of the original principal balance outstanding at the time of purchase. Accounting Standards Codification ("ASC") 320-10-25-14 provides that sales of debt securities that are categorized as held to maturity and are sold after 85% of the principal outstanding at acquisition had been collected shall be equivalent to holding the security to maturity. Accordingly, the sales of the six mortgage backed securities that were classified as held to maturity were treated as held to maturity. During the second quarter of 2017, the Company sold seven mortgage backed securities totaling $4.2 million from the available for sale portfolio. A loss of $1,740 was realized on the sale. Gross unrealized losses on available for sale and held to maturity securities and the fair value of the related securities aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government sponsored corporations (GSE) and agencies 3 $ 6,881 $ (77 ) $ — $ — $ 6,881 $ (77 ) Residential collateralized mortgage obligations –GSE 8 17,025 (201 ) 1,646 (23 ) 18,671 (224 ) Residential mortgage backed securities-GSE 30 25,807 (133 ) — — 25,807 (133 ) Obligations of state and political subdivisions 32 12,224 (124 ) — — 12,224 (124 ) Trust preferred debt securities- single issuer 4 — — 2,366 (114 ) 2,366 (114 ) Corporate debt securities 3 2,786 (57 ) 4,910 (90 ) 7,696 (147 ) Other debt securities 3 3,008 (7 ) 719 (2 ) 3,727 (9 ) Total temporarily impaired securities 83 $ 67,731 $ (599 ) $ 9,641 $ (229 ) $ 77,372 $ (828 ) December 31, 2016 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government sponsored corporations (GSE) and agencies 3 $ 7,090 $ (151 ) $ — $ — $ 7,090 $ (151 ) Residential collateralized mortgage obligations –GSE 7 17,242 (275 ) — — 17,242 (275 ) Residential mortgage backed securities - GSE 29 26,581 (216 ) 3,542 (16 ) 30,123 (232 ) Obligations of state and political subdivisions 74 25,545 (611 ) — — 25,545 (611 ) Trust preferred debt securities- single issuer 4 — — 2,272 (206 ) 2,272 (206 ) Corporate debt securities 6 12,700 (204 ) 1,999 (1 ) 14,699 (205 ) Other debt securities 3 — — 1,276 (7 ) 1,276 (7 ) Total temporarily impaired securities 126 $ 89,158 $ (1,457 ) $ 9,089 $ (230 ) $ 98,247 $ (1,687 ) The following table sets forth certain information regarding the amortized cost, carrying value, fair value, weighted average yields and contractual maturities of the Company’s investment portfolio as of June 30, 2017 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) June 30, 2017 Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 3,508 $ 3,502 3.01% Due after one year through five years 20,639 20,747 2.18% Due after five years through ten years 34,307 34,422 2.60% Due after ten years 54,316 54,281 2.62% Total $ 112,770 $ 112,952 2.54% Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 33,723 $ 33,739 1.56% Due after one year through five years 17,087 17,756 4.57% Due after five years through ten years 20,523 21,077 3.50% Due after ten years 53,589 54,503 3.26% Total $ 124,922 $ 127,075 3.02% U.S. Treasury securities and obligations of U.S. Government sponsored corporations and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Residential collateralized mortgage obligations and residential mortgage backed securities: The unrealized losses on investments in residential collateralized mortgage obligations and mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuers, which are primarily government or government sponsored agencies. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. The decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Obligations of state and political subdivisions: The unrealized losses on investments in these securities were caused by increases in market interest rates. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. None of the issuers have defaulted on interest payments. These investments are not considered to be other than temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Corporate debt securities: The unrealized losses on investments in corporate debt securities were caused by increases in market interest rates. None of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes in interest rates and not a decline in credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – single issuer : The investments in these securities with unrealized losses are comprised of four corporate trust preferred securities issued by two large financial institutions that mature in 2027. The contractual terms of the trust preferred securities do not allow the issuer to settle the securities at a price less than the face value of the trust preferred securities, which is greater than the amortized cost of the trust preferred securities. One of the issuers continues to maintain an investment grade credit rating and neither has defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate and credit spreads and the lack of an active trading market for these securities. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – pooled: This trust preferred debt security was issued by a two issuer pool (Preferred Term Securities XXV, Ltd. co-issued by Keefe, Bruyette and Woods, Inc. and First Tennessee (“PRETSL XXV”)) consisting primarily of debt securities issued by financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment of $865,000 , of which $364,000 was determined to be a credit loss and charged to operations and $501,000 was recognized in the other comprehensive income (loss) component of shareholders’ equity. The primary factor used to determine the credit portion of the impairment loss recognized in the income statement for this security was the discounted present value of projected cash flow where that present value of cash flow was less than the amortized cost basis of the security. The present value of cash flow was developed using a model that considered performing collateral ratios, the level of subordination to senior tranches of the security, and credit ratings of and projected credit defaults in the underlying collateral. On a quarterly basis, management evaluates the security to determine if any additional other-than-temporary impairment is required. As of June 30, 2017 |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality The Company’s primary lending emphasis is the origination of commercial business and commercial real estate loans and mortgage warehouse lines of credit. Based on the composition of the loan portfolio, the inherent primary risks are deteriorating credit quality, a decline in the economy, and a decline in New Jersey real estate market values. Any one, or a combination, of these events may adversely affect the loan portfolio and may result in increased delinquencies, loan losses and increased future provision levels. The following table provides an aging of the loan portfolio by loan class at June 30, 2017 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial Construction Loans $ — $ — $ — $ — $ 116,464 $ 116,464 $ — $ — Commercial Business 122 192 408 722 93,513 94,235 46 3,454 Commercial Real Estate 712 — 1,868 2,580 283,340 285,920 — 2,180 Mortgage Warehouse Lines — — — — 200,380 200,380 — — Residential Real Estate Loans — — 80 80 41,936 42,016 — 80 Consumer Loans to Individuals 32 22 70 124 22,587 22,711 — 310 Other — — — — 182 182 — — Total loans 866 214 2,426 3,506 758,402 761,908 46 6,024 Deferred loan fees and costs, net — — — — 711 711 — — Total loans, net $ 866 $ 214 $ 2,426 $ 3,506 $ 759,113 $ 762,619 $ 46 $ 6,024 The following table provides an aging of the loan portfolio by loan class at December 31, 2016 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial Construction Loans $ — $ — $ 186 $ 186 $ 95,849 $ 96,035 $ — $ 186 Commercial Business 113 115 790 1,018 98,632 99,650 — 920 Commercial Real Estate 741 942 2,707 4,390 238,003 242,393 — 3,187 Mortgage Warehouse Lines — — — — 216,259 216,259 — — Residential Real Estate Loans 564 — 392 956 43,835 44,791 — 544 Consumer Loans to Individuals — 29 361 390 23,346 23,736 24 337 Other — — — — 207 207 — — Total loans 1,418 1,086 4,436 6,940 716,131 723,071 24 5,174 Deferred loan fees and costs, net — — — — 1,737 1,737 — — Total loans, net $ 1,418 $ 1,086 $ 4,436 $ 6,940 $ 717,868 $ 724,808 $ 24 $ 5,174 As provided by ASC 310-30, the excess of cash flows expected at acquisition over the initial investment in the loan is recognized as interest income over the life of the loan. Accordingly, acquired loans with evidence of deteriorated credit quality of $0 at June 30, 2017 and $439,000 at December 31, 2016 were not classified as non-performing loans. The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list are treated as “pass” for grading purposes: 1. Excellent - Loans that are based upon cash collateral held at the Bank and adequately margined. Loans that are based upon "blue chip" stocks listed on the major exchanges and adequately margined. 2. Above Average - Loans to companies whose balance sheets show excellent liquidity and long-term debt is on well-spread schedules of repayment easily covered by cash flow. Such companies have been consistently profitable and have diversification in their product lines or sources of revenue. The continuation of profitable operations for the foreseeable future is likely. Management is comprised of a mix of ages, experience, and backgrounds, and management succession is in place. Sources of raw materials and, for service companies, the sources of revenue are abundant. Future needs have been planned for. Character and ability of individuals or company principals are excellent. Loans to individuals are supported by high net worths and liquid assets. 3. Good - Loans to companies whose balance sheets show good liquidity and cash flow adequate to meet maturities of long-term debt with a comfortable margin. Such companies have established profitable records over a number of years, and there has been growth in net worth. Operating ratios are in line with those of the industry, and expenses are in proper relationship to the volume of business done and the profits achieved. Management is well-balanced and competent in their responsibilities. Economic environment is favorable; however, competition is strong. The prospects for growth are good. Loans in this category do not meet the collateral requirements of loans in categories 1 and 2 above. Loans to individuals are supported by good net worth but whose supporting assets are illiquid. 3w. Watch - Included in this category are loans evidencing problems identified by Bank management that require closer supervision. Such problems have not developed to the point which requires a "special mention" rating. This category also covers situations where the Bank does not have adequate current information upon which credit quality can be determined. The account officer has the obligation to correct these deficiencies within 30 days from the time of notification. 4. Special Mention - A "special mention" loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank's credit position at some future date. Special mention loans are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. 5. Substandard - A "substandard" loan is inadequately protected by the current sound net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified as "doubtful" has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. 7. Loss - A loan classified as "loss" is considered uncollectible and of such little value that its continuance on the books is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this loan even though partial recovery may be affected in the future. The following table provides a breakdown of the loan portfolio by credit quality indicator at June 30, 2017 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Grade: Pass $ 116,163 $ 87,086 $ 266,312 $ 200,380 $ 41,042 Special Mention 301 3,471 13,939 — 682 Substandard — 636 5,669 — 292 Doubtful — 3,042 — — — Total $ 116,464 $ 94,235 $ 285,920 $ 200,380 $ 42,016 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 22,401 $ 182 Nonperforming 310 — Total $ 22,711 $ 182 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2016 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Grade: Pass $ 95,548 $ 91,908 $ 223,435 $ 216,259 $ 43,950 Special Mention 301 7,102 14,334 — 244 Substandard 186 611 4,624 — 597 Doubtful — 29 — — — Total $ 96,035 $ 99,650 $ 242,393 $ 216,259 $ 44,791 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 23,375 $ 207 Nonperforming 361 — Total $ 23,736 $ 207 Impaired Loans Loans are considered to be impaired when, based on current information and events, it is determined that the Company will not be able to collect all amounts due according to the loan agreement, including scheduled interest payments. When a loan is placed on non-accrual status, it is also considered to be impaired. Loans are placed on non-accrual status when: (1) the full collection of interest or principal becomes uncertain or (2) they are contractually past due 90 days or more as to interest or principal payments unless the loans are both well secured and in the process of collection. The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at June 30, 2017 and December 31, 2016 : June 30, 2017 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Fees/Costs Total Allowance for loan losses: Individually evaluated for impairment $ — $ 255 $ 87 $ — $ — $ — $ — $ — $ — $ 342 Loans acquired with deteriorated credit quality — — — — — — — — — — Collectively evaluated for impairment 1,455 1,182 2,904 902 385 120 — 417 — 7,365 Ending Balance $ 1,455 $ 1,437 $ 2,991 $ 902 $ 385 $ 120 $ — $ 417 $ — $ 7,707 Loans receivable: Individually evaluated for impairment $ 205 $ 3,492 $ 5,142 $ — $ 80 $ 310 $ — $ — $ — $ 9,229 Loans acquired with deteriorated credit quality — 252 602 — — — — — — 854 Collectively evaluated for impairment 116,259 90,491 280,176 200,380 41,936 22,401 182 — 711 752,536 Ending Balance $ 116,464 $ 94,235 $ 285,920 $ 200,380 $ 42,016 $ 22,711 $ 182 $ — $ 711 $ 762,619 December 31, 2016 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Fees/Costs Total Allowance for loan losses: Individually evaluated for impairment $ 7 $ 101 $ 114 $ — $ 38 $ — $ — $ — $ — $ 260 Loans acquired with deteriorated credit quality — — — — — — — — — — Collectively evaluated for impairment 1,197 1,631 2,460 973 329 112 — 532 — 7,234 Ending Balance $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ — $ 7,494 Loans receivable: Individually evaluated for impairment $ 391 $ 947 $ 3,817 $ — $ 544 $ 337 $ — $ — $ — $ 6,036 Loans acquired with deteriorated credit quality — 191 930 — — — — — — 1,121 Collectively evaluated for impairment 95,644 98,512 237,646 216,259 44,247 23,399 207 — 1,737 717,651 Ending Balance $ 96,035 $ 99,650 $ 242,393 $ 216,259 $ 44,791 $ 23,736 $ 207 $ — $ 1,737 $ 724,808 The activity in the allowance for loan loss by loan class for the three and six months ended June 30, 2017 and 2016 was as follows : (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Balance - December 31, 2016 $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ 7,494 Provision (Credit) charged to operations 166 88 56 (331 ) 99 9 — 63 150 Loans charged off — — — — (101 ) — — — (101 ) Recoveries of loans charged off — 2 4 — — 1 — — 7 Balance - March 31, 2017 $ 1,370 $ 1,822 $ 2,634 $ 642 $ 365 $ 122 $ — $ 595 $ 7,550 Provision (Credit) charged to operations 85 (386 ) 352 260 20 (3 ) — (178 ) 150 Loans charged off — — — — — — — — — Recoveries of loans charged off — 1 5 — — 1 — — 7 Balance - June 30, 2017 $ 1,455 $ 1,437 $ 2,991 $ 902 $ 385 $ 120 $ — $ 417 $ 7,707 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Balance - December 31, 2015 $ 1,025 $ 2,005 $ 3,049 $ 866 $ 288 $ 109 $ — $ 218 $ 7,560 (Credit) Provision charged to operations (44 ) (657 ) 311 1 (96 ) (92 ) — 377 (200 ) Loans charged off — — (60 ) — — — — — (60 ) Recoveries of loans charged off — — — — — 2 — — 2 Balance - March 31, 2016 $ 981 $ 1,348 $ 3,300 $ 867 $ 192 $ 19 $ — $ 595 $ 7,302 (Credit) Provision charged to operations (6 ) (284 ) (263 ) 323 85 3 — 42 (100 ) Loans charged off — (101 ) — — — — — — (101 ) Recoveries of loans charged off — 1 378 — — 2 — — 381 Balance - June 30, 2016 $ 975 $ 964 $ 3,415 $ 1,190 $ 277 $ 24 $ — $ 637 $ 7,482 When a loan is identified as impaired, the measurement of impairment is based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole remaining source of repayment for the loan is the liquidation of the collateral. In such cases, the current fair value of the collateral less selling costs is used. If the value of the impaired loan is less than the recorded investment in the loan, the impairment is recognized through an allowance estimate or a charge to the allowance. Impaired Loans Receivables (By Class) – June 30, 2017 (Dollars in thousands) Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest With no allowance: Construction $ 205 $ 205 $ — $ 188 $ 3 $ 186 $ 6 Commercial Business 702 857 — 688 82 741 86 Commercial Real Estate 2,756 2,771 — 2,723 92 2,772 105 Mortgage Warehouse Lines — — — — — — — Subtotal 3,663 3,833 — 3,599 177 3,699 197 Residential Real Estate 80 80 — 181 — 210 — Consumer Loans to Individuals 310 310 — 297 — 316 — Other — — — — — — — Subtotal 310 310 — 297 — 316 — With no allowance: $ 4,053 $ 4,223 $ — $ 4,077 $ 177 $ 4,225 $ 197 With an allowance: Construction $ — $ — $ — $ 137 $ — $ 171 $ — Commercial Business 3,042 3,042 255 3,680 60 2,595 127 Commercial Real Estate 2,988 2,988 87 2,989 43 2,600 85 Mortgage Warehouse Lines — — — — — — — Subtotal 6,030 6,030 342 6,806 103 5,366 212 Residential Real Estate — — — — — 100 — Consumer Loans to Individuals — — — — — — — Other — — — — — — — Subtotal — — — — — — — With an allowance: $ 6,030 $ 6,030 $ 342 $ 6,806 $ 103 $ 5,466 $ 212 Total: Construction 205 205 — 325 3 357 6 Commercial Business 3,744 3,899 255 4,368 142 3,336 213 Commercial Real Estate 5,744 5,759 87 5,712 135 5,372 190 Mortgage Warehouse Lines — — — — — — — Residential Real Estate 80 80 — 181 — 310 — Consumer 310 310 — 297 — 316 — Total $ 10,083 $ 10,253 $ 342 $ 10,883 $ 280 $ 9,691 $ 409 Impaired Loans Receivables (By Class) – December 31, 2016 (Dollars in thousands Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Construction $ 186 $ 186 $ — Commercial Business 883 1,054 — Commercial Real Estate 1,380 1,380 — Mortgage Warehouse Lines — — — Subtotal 2,449 2,620 — Residential Real Estate 244 244 — Consumer Loans to Individuals 337 337 — Other — — — Subtotal 337 337 — With no allowance $ 3,030 $ 3,201 $ — With an allowance: Construction $ 205 $ 205 $ 7 Commercial Business 255 255 101 Commercial Real Estate 3,367 3,367 114 Mortgage Warehouse Lines — — — Subtotal 3,827 3,827 222 Residential Real Estate 300 316 38 Consumer Loans to Individuals — — — Other — — — Subtotal — — — With an allowance $ 4,127 $ 4,143 $ 260 Total: Construction 391 391 7 Commercial Business 1,138 1,309 101 Commercial Real Estate 4,747 4,747 114 Mortgage Warehouse Lines — — — Residential Real Estate 544 560 38 Consumer 337 337 — Total $ 7,157 $ 7,344 $ 260 Impaired Loans Receivables (By Class) – June 30, 2016 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Interest Income Recognized With no allowance: Construction $ 317 $ 2 $ 255 $ 4 Commercial Business 448 10 434 21 Commercial Real Estate 1,251 20 1,545 30 Mortgage Warehouse Lines — — — — Subtotal 2,016 32 2,234 55 Residential Real Estate 1,298 — 1,198 (2 ) Consumer Loans to Individuals 263 — 263 — Other — — — — Subtotal 263 — 263 — With no allowance: $ 3,577 $ 32 $ 3,695 $ 53 With an allowance: Construction $ — $ — $ — $ — Commercial Business 143 — 177 — Commercial Real Estate 3,888 22 3,836 38 Mortgage Warehouse Lines — — — — Subtotal 4,031 22 4,013 38 Residential Real Estate — — 100 — Consumer Loans to Individuals — — — — Other — — — — Subtotal — — — — With an allowance: $ 4,031 $ 22 $ 4,113 $ 38 Total: Construction 317 2 255 4 Commercial Business 591 10 611 21 Commercial Real Estate 5,139 42 5,381 68 Mortgage Warehouse Lines — — — — Residential Real Estate 1,298 — 1,298 (2 ) Consumer 263 — 263 — Total $ 7,608 $ 54 $ 7,808 $ 91 Purchased Credit-Impaired Loans Purchased credit-impaired loans (“PCI”) are loans acquired at a discount that are due in part to credit quality. The following table presents additional information regarding purchased credit-impaired loans at June 30, 2017 and December 31, 2016 : (Dollars in thousands) June 30, 2017 December 31, 2016 Outstanding balance $ 1,042 $ 1,470 Carrying amount $ 854 $ 1,121 Changes in accretable discount for purchased credit-impaired loans for the three and six months ended June 30, 2017 and June 30, 2016 were as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (Dollars in thousands) Balance at beginning of period $ 23 $ 52 $ 30 $ 73 Transfer from non-accretable discount 161 — 161 — Accretion of discount (13 ) (8 ) (20 ) (29 ) Balance at end of period $ 171 $ 44 $ 171 $ 44 Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in the process of foreclosure: (Dollars in thousands) June 30, 2017 December 31, 2016 Number of loans Recorded Investment Number of loans Recorded Investment 1 $ 80 3 $ 524 At June 30, 2017, there was one multi-family residential property with a fair value of $190,000 that was held in other real estate owned. At December 31, 2016, there were no residential properties held in other real estate owned. Troubled Debt Restructurings In the normal course of business, the Bank may consider modifying loan terms for various reasons. These reasons may include as a retention strategy to compete in the current interest rate environment or to re-amortize or extend a loan term to better match the loan’s repayment stream with the borrower’s cash flow. A modified loan would be considered a troubled debt restructuring (“TDR”) if the Bank grants a concession to a borrower and has determined that the borrower is troubled (i.e., experiencing financial difficulties). If the Bank restructures a loan to a troubled borrower, the loan terms (i.e., interest rate, payment, amortization period and maturity date) may be modified in various ways to enable the borrower to cover the modified debt service payments based on current financial statements and cash flow adequacy. If a borrower’s hardship is thought to be temporary, then modified terms may only be offered for that time period. Where possible, the Bank would attempt to obtain additional collateral and/or secondary repayment sources at the time of the restructuring in order to put the Bank in the best possible position if the borrower is not able to meet the modified terms. The Bank will not offer modified terms if it believes that modifying the loan terms will only delay an inevitable permanent default. In evaluating whether a restructuring constitutes a troubled debt restructuring, applicable guidance requires that a creditor must separately conclude that the restructuring constitutes a concession and the borrower is experiencing financial difficulties. There were no loans modified as a TDR during the three months ended June 30, 2017 and there was one commercial real estate loan with a pre- and post-modification recorded investment of $2.3 million that was modified as a TDR during the six months ended June 30, 2017 . The concession to the borrower was a change in monthly payments to interest only for a period of time. There were no loans modified as a TDR during the three and six months ended June 30, 2016. There was one troubled debt restructuring that defaulted within twelve months of restructuring in the amount of $458,000 during the six months ended June 30, 2017. There were no |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Compensation | Share-Based Compensation The Company’s share-based incentive plans (“Stock Plans”) authorize the issuance of an aggregate of 485,873 shares of the Company’s common stock (as adjusted for stock dividends) pursuant to awards that may be granted in the form of stock options to purchase common stock (“Options”) and awards of shares of common stock (“Stock Awards”). The purpose of the Stock Plans is to attract and retain personnel for positions of substantial responsibility and to provide additional incentive to certain officers, directors, employees and other persons to promote the success of the Company. Under the Stock Plans, options may have a term of not more than ten years after the date of grant, subject to earlier termination in certain circumstances. Options are granted with an exercise price at the closing price of the Company’s common stock on the date of grant or otherwise as provided for in the Stock Plans. The grant date fair value is calculated using the Black – Scholes option valuation model. As of June 30, 2017 , there were 148,462 shares of common stock available for future grants under the Stock Plans. The following table summarizes stock option activity during the six months ended June 30, 2017 : (Dollars in thousands, except share amounts) Number of Weighted Average Weighted Average Remaining Contractual Aggregate Intrinsic Stock Options Shares Exercise Price Term (years) Value Outstanding at January 1, 2017 165,801 $ 7.35 Granted 9,900 18.65 Exercised (12,361 ) 7.85 Forfeited (715 ) 15.71 Expired — — Outstanding at June 30, 2017 162,625 $ 7.97 4.7 $ 1,574 Exercisable at June 30, 2017 132,566 $ 6.88 3.9 $ 1,428 The fair value of each option and the significant weighted average assumptions used to calculate the fair value of the options granted for the six months ended June 30, 2017 were as follows: Fair value of options granted $ 6.05 Risk-free rate of return 2.45 % Expected option life in years 7 Expected volatility 31.25 % Expected dividends (1) 1.19 % (1) The Company declared its first cash dividend on September 15, 2016. The following table summarizes the activity in non-vested restricted shares for the six months ended June 30, 2017 : Number of Average Grant-Date Non-vested shares Shares Fair Value Non-vested at January 1, 2017 143,259 $ 9.02 Granted 39,100 18.26 Vested (26,210 ) 11.08 Forfeited (1,287 ) 14.94 Non-vested at June 30, 2017 154,862 $ 10.96 The fair value of restricted shares is based upon the closing price of the common stock on the date of grant. The shares generally vest over a 4 year service period for employees and a 2 year service period for non-employee directors with compensation expense recognized on a straight-line basis. Share-based compensation expense related to options was $28,000 for the six months ended June 30, 2017 and $22,000 for the six months ended June 30, 2016. Share-based compensation expense related to stock grants was $456,000 and $340,000 for the six months ended June 30, 2017 and 2016 , respectively. As of June 30, 2017 , there was approximately $103,000 of unrecognized compensation cost related to non-vested stock options and $1.6 million of unrecognized compensation cost related to non-vested stock grants. Except for stock option grants and restricted stock grants to employees that are older than or will be of retirement age of 65 years old in the current year, as described in the stock option agreements and restricted stock agreements, the unrecognized compensation expense is expected to be recognized over the next four years. Unvested grants of stock options and restricted stock to employees who are older than or are of such retirement age, as described in the stock option agreements and restricted stock agreements, become 100% vested upon an employee's retirement, unless the employee’s employment contract provides for a different vesting period. Accordingly, the full compensation cost related to these stock options and restricted stock grants are recognized at the time of the grant. Compensation costs related to non-vested stock grants for non-employee directors are recognized over two |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Bank has a 401(k) plan which covers substantially all employees with six months or more of service. The Bank's 401(k) plan permits all eligible employees to make contributions to the plan up to the IRS salary deferral limit. The Bank’s contributions to the 401(k) plan are expensed as incurred. The Company also provides retirement benefits to certain employees under supplemental executive retirement plans . The plans are unfunded and the Company accrues actuarially determined benefit costs over the estimated service period of the employees in the plans. The Company recognizes the over-funded or under-funded status of a defined benefit post-retirement plan as an asset or liability on its balance sheet and recognizes changes in that funded status in the year in which the changes occur, through comprehensive income. In connection with the benefit plans, the Bank has life insurance policies on the lives of its executives, directors and employees. The Bank is the owner and beneficiary of these policies. The cash surrender values of these policies totaled approximately $22.4 million and $22.2 million at June 30, 2017 and December 31, 2016 , respectively. The components of net periodic expense for the Company’s supplemental executive retirement plans for the three and six months ended June 30, 2017 and 2016 were as follows: (Dollars in thousands) Three Months Ended Six Months Ended 2017 2016 2017 2016 Service cost $ 79 $ 56 $ 112 $ 105 Interest cost 33 47 78 85 Actuarial gain recognized (24 ) (46 ) (43 ) (72 ) Total $ 88 $ 57 $ 147 $ 118 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) Other comprehensive income (loss) is the total of (1) net income (loss), and (2) all other changes in equity from non-shareholder sources, which are referred to as other comprehensive income (loss). The components of accumulated other comprehensive loss, and the related tax effects, are as follows: Before-Tax Income Tax Net-of-Tax (Dollars in thousands) June 30, 2017 Unrealized net holding gains on available-for-sale securities $ 182 $ (106 ) $ 76 Reclassification adjustment for loss realized in income 2 (1 ) 1 Other comprehensive income on available for sale securities 184 (107 ) 77 Unrealized impairment loss on held to maturity security (501 ) 170 (331 ) Unfunded pension liability: Plan actuarial gains included in other comprehensive income 66 (27 ) 39 Accumulated other comprehensive loss $ (251 ) $ 36 $ (215 ) Before-Tax Amount Income Tax Effect Net-of-Tax Amount December 31, 2016 Unrealized net holding losses on available-for-sale securities $ (464 ) $ 130 $ (334 ) Reclassification adjustment for (gains) losses realized in income — — — Other comprehensive loss on securities available for sale (464 ) 130 (334 ) Unrealized impairment loss on held to maturity security (501 ) 170 (331 ) Unfunded pension liability: Changes from plan actuarial gains and losses included in other comprehensive income 269 (108 ) 161 Reclassification adjustment for gains realized in income $ (160 ) $ 64 $ (96 ) Other comprehensive gain from plan actuarial gains $ 109 $ (44 ) $ 65 Accumulated other comprehensive loss $ (856 ) $ 256 $ (600 ) Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax: Unrealized Holding Gains (Losses) on Available for Sale Securities Unrealized Impairment Loss on Held to Maturity Security Unfunded Pension Liability Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Three Months Ended June 30, 2017: Balance, beginning of period $ (271 ) $ (331 ) $ 53 $ (549 ) Other comprehensive income before reclassifications 347 — — 347 Amounts reclassified from accumulated other comprehensive income (loss) — — (14 ) (14 ) Reclassification adjustment for loss realized in income 1 — — 1 Other comprehensive income 348 — (14 ) 334 Balance, end of period $ 77 $ (331 ) $ 39 $ (215 ) Unrealized Holding Gains (Losses) on Available for Sale Securities Unrealized Impairment Loss on Held to Maturity Security Unfunded Pension Liability Accumulated Other Comprehensive Income Three Months Ended June 30, 2016: Balance, beginning of period $ 420 $ (331 ) $ 96 $ 185 Other comprehensive income before reclassifications 470 — 20 490 Amounts reclassified from accumulated other comprehensive income — — (28 ) (28 ) Other comprehensive income 470 — (8 ) 462 Balance, end of period $ 890 $ (331 ) $ 88 $ 647 Unrealized Unrealized Unfunded Accumulated (Dollars in thousands) Six Months Ended June 30, 2017: Balance, beginning of period $ (334 ) $ (331 ) $ 65 $ (600 ) Other comprehensive income before reclassifications 459 — — 459 Amounts reclassified from accumulated other comprehensive income (loss) — — (26 ) (26 ) Reclassification adjustment for gains realized in income (48 ) — (48 ) Other comprehensive income 411 — (26 ) 385 Balance, end of period $ 77 $ (331 ) $ 39 $ (215 ) Unrealized Unrealized Unfunded Accumulated Six Months Ended June 30, 2016: Balance, beginning of period $ 90 $ (331 ) $ 111 $ (130 ) Other comprehensive income before reclassifications 800 — 20 820 Amounts reclassified from accumulated other comprehensive income — — (43 ) (43 ) Other comprehensive income 800 — (23 ) 777 Balance, end of period $ 890 $ (331 ) $ 88 $ 647 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU Update 2017-09 - Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 "Scope of Modification Accounting," which clarifies Topic 718 Compensation-Stock Compensation, such that an entity must apply modification accounting to changes in the terms or conditions of a share-based payment award unless all of the following criteria are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before modification. The standard indicates that if the modification does not affect any of the inputs to the valuation technique used to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before modification; and (3) the classification of the modification award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the modification. The amendments are effective for all entities for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-08 - Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08 "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization) rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans and not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07 "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires that an employer disaggregate the service cost component from the other components of net benefit costs as follows: (1) service cost must be presented in the same line item(s) as other employee compensation costs. These costs are generally included within income from continuing operations but in some cases, may be eligible for capitalization if certain criteria are met; and (2) all other components of net benefit cost must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. These generally include interest cost, actual return on plan assets, amortization of prior service cost included in accumulated other comprehensive income and gains or losses from changes in the value of the projected benefit obligation or plan assets. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted as of the beginning of an annual period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-04 - Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04 "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The primary goal of this ASU is to simplify the goodwill impairment test and provide cost savings for all entities by removing the requirement to determine the fair value of individual assets and liabilities in order to calculate a reporting unit's "implied" goodwill under current U.S. GAAP. The amendments have staggered effective dates: a public business entity that is an SEC filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be adopted prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of a Business," which clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a more robust framework to use in determining when a set of assets and activities is a business. The current definition of a business is interpreted broadly and can be difficult to apply. Stakeholders indicated that analyzing transactions is inefficient and costly and the definition does not permit the use of reasonable judgment. Under current implementation guidance, there are three elements of a business: inputs, processes and outputs. While an integrated set of assets and activities (collectively referred to as a "set") that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs, for example, by integrating the acquired set with their own inputs and processes. The ASU introduces a "screen" to assist entities in determining when a set should not be considered a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not considered a business. If the screen is not met, the ASU requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Further, the ASU removes the evaluation of whether a market participant could replace missing elements (as required under current U.S. GAAP). For public business entities, the ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-20 - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. In December 2016, the FASB issued ASU 2016-20 "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," amending the new revenue recognition standard that it jointly issued with the International Accounting Standards Board ("IASB") in 2014. The amendments do not change the core principles of the standard, but clarify certain narrow aspects of the standard, including its scope, contract cost accounting, disclosures, illustrative examples and other matters. The ASU becomes effective concurrently with ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)." The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-18 - Restricted Cash. In November 2016, the FASB issued ASU 2016-18 "Restricted Cash," which updates Topic 230-Statement of Cash Flows, to require that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. Consequently, transfers between cash and restricted cash will not be presented as a separate line item in the operating, investing or financing sections of the cash flow statement. The ASU includes examples of the revised presentation guidance, and additional presentation and disclosure requirements apply. For public business entities, the amendments are effective 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. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-17 - Interests Held Through Related Parties That Are Under Common Control . In October 2016, the FASB issued ASU 2016-17 "Interests Held Through Related Parties That Are Under Common Control," which amends the variable interest entity ("VIE") guidance within Topic 810. It does not change the two required characteristics for a single decision maker to be the primary beneficiary ("power" and "economics"), but it revised one aspect of the related analysis. The amendments change how a single decision maker of a VIE treats an indirect variable interest held through related parties that are under common control when determining whether it is the primary beneficiary of that VIE. The ASU requires consideration of such indirect interests on a proportionate basis instead of being the equivalent of direct interests in their entity, thereby making consolidation less likely. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted; however, if an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of that fiscal year. The Company has adopted this guidance and it did not have a material impact on its consolidated financial statements. ASU Update 2016-15 - Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . In August 2016, the FASB issued ASU 2016-15 "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies whether the following items should be categorized as operating, investing or financing in the statement of cash flows: (1) debt prepayment and extinguishment costs, (2) settlement of zero-coupon debt, (3) settlement of contingent consideration, (4) insurance proceeds, (5) settlement of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) policies, (6) distributions from equity method investees, (7) beneficial interests in securitization transactions and (8) receipts and payments with aspects of more than one class of cash flows. For public business entities, the amendments are effective 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. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company currently classifies cash flows related to BOLI in accordance with the guidance and does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires credit losses on most financial assets to be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination ("PCD assets") should be determined in a similar manner to other financial assets measured on an amortized cost basis. Upon initial recognition, the allowance for credit losses is added to the purchase price ("gross up approach") to determine the initial amortized cost basis. The subsequent accounting for PCD assets will use the CECL model described above. The ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities as of the fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. ASU Update 2016-02: Leases. In February 2016, the FASB issued ASU 2016-02 "Leases ." From the lessee's perspective, the new standard establishes a right- of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In 2017, the Company plans to complete an evaluation of all of its leases to determine the potential impact on the Company's consolidated financial statements as a result of this new standard. ASU Update 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The guidance in the ASU, among other things, requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income, the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU 2014-9 Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-9, deferred by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606).” The amendments in this update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry specific guidance such as the real estate, construction and software industries. The revenue standard's core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. |
Fair Value Disclosures
Fair Value Disclosures | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | Fair Value Disclosures U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and counterparty creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale . Securities classified as available for sale are reported at fair value utilizing quoted market prices on nationally recognized exchanges (Level 1) or by using Level 2 inputs. For Level 2 securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. Impaired loans. Impaired loans are those which the Company has measured and recognized impairment, generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third party appraisals of the collateral or discounted cash flows based on the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less specific valuation allowances. Other Real Estate Owned. Foreclosed properties are adjusted to fair value less estimated selling costs at the time of foreclosure in preparation for transfer from portfolio loans to other real estate owned (“OREO”), thereby establishing a new accounting basis. The Company subsequently adjusts the fair value of the OREO, utilizing Level 3 inputs on a non-recurring basis to reflect partial write-downs based on the observable market price, current appraised value of the asset or other estimates of fair value. The fair value of other real estate owned is determined using appraisals, which may be discounted based on management’s review and changes in market conditions. The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value June 30, 2017: Securities available for sale: U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies $ — $ 3,500 $ — $ 3,500 Residential collateralized mortgage obligations- GSE — 25,670 — 25,670 Residential mortgage backed securities – GSE — 22,999 — 22,999 Obligations of state and political subdivisions — 20,328 — 20,328 Trust preferred debt securities – single issuer 945 1,421 — 2,366 Corporate debt securities 16,257 8,709 — 24,966 Other debt securities — 13,123 — 13,123 Total $ 17,202 $ 95,750 $ — $ 112,952 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value December 31, 2016: Securities available for sale: U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies $ — $ 3,479 $ — $ 3,479 Residential collateralized mortgage obligations- GSE — 22,560 — 22,560 Residential mortgage backed securities – GSE — 31,476 — 31,476 Obligations of state and political subdivisions — 21,400 — 21,400 Trust preferred debt securities – single issuer — 2,272 — 2,272 Corporate debt securities 12,826 8,942 — 21,768 Other debt securities — 839 — 839 Total $ 12,826 $ 90,968 $ — $ 103,794 Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities subject to fair value adjustments (impairment) on a nonrecurring basis for the six months ended June 30, 2017 and the twelve months ended December 31, 2016 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value June 30, 2017: Impaired loans $ — $ — $ 6,124 $ 6,124 Other real estate owned — — 190 190 December 31, 2016: Impaired loans $ — $ — $ 4,130 $ 4,130 Impaired loans measured at fair value and included in the above table at June 30, 2017 consisted of ten loans having an aggregate recorded investment of $6.5 million and specific loan loss allowances of $342,000 . Impaired loans measured at fair value and included in the above table at December 31, 2016 consisted of nine loans having an aggregate balance of $4.4 million with a specific loan loss allowance of $255,000 . The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis, where there was evidence of impairment, and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range ( Weighted Average ) June 30, 2017 Impaired loans $ 6,124 Appraisal of Appraisal adjustments (2) 13% - 42% (32.3%) Other real estate owned $ 190 Appraisal of Appraisal adjustments (2) —% December 31, 2016 Impaired loans $ 4,130 Appraisal of collateral (1) Appraisal adjustments (2) 3%-100% (29.1%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) Includes quantitative adjustments by management and estimated liquidation expenses. The following is a summary of fair value versus carrying value of all of the Company’s financial instruments. For the Company and the Bank, as with most financial institutions, the bulk of assets and liabilities are considered financial instruments. Many of the financial instruments lack an available trading market as characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimations and present value calculations were used for the purpose of this note. Changes in assumptions could significantly affect these estimates. Estimated fair values have been determined by using the best available data and an estimation methodology suitable for each category of financial instruments as follows: Cash and Cash Equivalents, Accrued Interest Receivable and Accrued Interest Payable (Carried at Cost). The carrying amounts reported in the balance sheet for cash and cash equivalents, accrued interest receivable and accrued interest payable approximate fair value. Securities Held to Maturity (Carried at Amortized Cost). The fair values of securities held to maturity are determined in the same manner as for securities available for sale. Loans Held For Sale (Carried at Lower of Aggregated Cost or Fair Value). The fair values of loans held for sale are determined, when possible, using quoted secondary market prices. If no such quoted market prices exist, fair values are determined using quoted prices for similar loans, adjusted for the specific attributes of the loans. Gross Loans Receivable (Carried at Cost). The fair values of loans, excluding impaired loans subject to specific loss reserves, are estimated using discounted cash flow analyses that use market rates as of the balance sheet date that reflect the credit and interest rate-risk inherent in the loans. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Generally, for variable rate loans that re-price frequently and with no significant change in credit risk, fair values are based on carrying values. SBA servicing asset . Servicing assets do not trade in an active market with readily observable prices. The Company estimates the fair value of an SBA servicing asset using a discounted cash flow model, which incorporates assumptions based on observable discount rates and prepayment speeds. Interest rate lock derivatives . Interest rate lock commitments do not trade in active markets with readily observable prices. The fair value of an interest rate lock commitment is estimated based upon the forward sales price that is obtained in the best efforts commitment at the time the borrower locks in the interest rate on the loan and the probability that the locked rate commitment will close. Federal Home Loan Bank Stock . FHLB stock is carried at cost. The carrying value approximates fair value based upon the redemption price provision of the FHLB stock. Deposit Liabilities (Carried at Cost). The fair values disclosed for demand deposits (e.g., interest and non-interest demand and savings accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates of deposit to a schedule of aggregated expected monthly maturities on time deposits. Borrowings and Subordinated Debt (Carried at Cost). The carrying amounts of short-term borrowings approximate their fair values. The fair values of long-term FHLB advances are estimated using discounted cash flow analysis, based on quoted or estimated interest rates for new borrowings with similar credit risk characteristics, terms and remaining maturity. For subordinated debt, which reprices quarterly, the fair value is based on inputs that are observable either directly or indirectly for similar debt obligations. The estimated fair values and carrying amounts of financial assets and liabilities as of June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Inputs Inputs Inputs Value Cash and cash equivalents $ 14,211 $ 14,211 $ — $ — $ 14,211 Securities available for sale 112,952 17,202 95,750 — 112,952 Securities held to maturity 124,922 — 127,075 — 127,075 Loans held for sale 3,594 — 3,651 — 3,651 Loans, net 754,912 — — 762,068 762,068 SBA servicing asset 665 — 822 — 822 Interest rate lock derivative 145 — 145 — 145 Accrued interest receivable 3,060 — 3,060 — 3,060 FHLB stock 4,003 — 4,003 — 4,003 Deposits (864,415 ) — (863,537 ) — (863,537 ) Borrowings (73,825 ) — (73,848 ) — (73,848 ) Redeemable subordinated debentures (18,557 ) — (12,150 ) — (12,150 ) Accrued interest payable (812 ) — (812 ) — (812 ) December 31, 2016 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Inputs Inputs Inputs Value Cash and cash equivalents $ 14,886 $ 14,668 $ — $ — $ 14,668 Securities available for sale 103,794 12,826 90,968 — 103,794 Securities held to maturity 126,810 — 128,559 — 128,559 Loans held for sale 14,829 — 15,103 — 15,103 Loans, net 717,314 — — 721,285 721,285 SBA servicing asset 605 — 822 — 822 Interest rate lock derivative 123 — 123 — 123 Accrued interest receivable 3,095 — 3,095 — 3,095 FHLB stock 3,962 — 3,962 — 3,962 Deposits (834,516 ) — (834,050 ) — (834,050 ) Borrowings (73,050 ) — (73,222 ) — (73,222 ) Redeemable subordinated debentures (18,557 ) — (11,922 ) — (11,922 ) Accrued interest payable (866 ) — (866 ) — (866 ) Loan commitments and standby letters of credit as of June 30, 2017 and December 31, 2016 |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Consolidation Policy | The accompanying unaudited consolidated financial statements include 1 ST Constitution Bancorp (the “Company”), its wholly-owned subsidiary, 1 ST Constitution Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, 1 ST Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street Corp., and 249 New York Avenue, LLC. 1st Constitution Capital Trust II, a subsidiary of the Company, is not included in the Company’s consolidated financial statements, as it is a variable interest entity and the Company is not the primary beneficiary. All significant intercompany accounts and transactions have been eliminated in consolidation and certain prior period amounts have been reclassified to conform to current year presentation. The accounting and reporting policies of the Company and its subsidiaries conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”), including the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and footnote disclosures normally included in financial statements have been condensed or omitted pursuant to such rules and regulations. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company’s Form 10-K/A for the year ended December 31, 2016 |
Subsequent Events | The Company has evaluated events and transactions occurring subsequent to the balance sheet date of June 30, 2017 |
Investment Securities | U.S. Treasury securities and obligations of U.S. Government sponsored corporations and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Residential collateralized mortgage obligations and residential mortgage backed securities: The unrealized losses on investments in residential collateralized mortgage obligations and mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuers, which are primarily government or government sponsored agencies. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. The decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Obligations of state and political subdivisions: The unrealized losses on investments in these securities were caused by increases in market interest rates. It is expected that the securities would not be settled at a price less than the amortized cost of the investment. None of the issuers have defaulted on interest payments. These investments are not considered to be other than temporarily impaired because the decline in fair value is attributable to changes in interest rates and not credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Corporate debt securities: The unrealized losses on investments in corporate debt securities were caused by increases in market interest rates. None of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes in interest rates and not a decline in credit quality. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – single issuer : The investments in these securities with unrealized losses are comprised of four corporate trust preferred securities issued by two large financial institutions that mature in 2027. The contractual terms of the trust preferred securities do not allow the issuer to settle the securities at a price less than the face value of the trust preferred securities, which is greater than the amortized cost of the trust preferred securities. One of the issuers continues to maintain an investment grade credit rating and neither has defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate and credit spreads and the lack of an active trading market for these securities. The Company does not intend to sell these investments and it is not more likely than not that the Company will be required to sell these investments before a market price recovery or maturity. Therefore, these investments are not considered other-than-temporarily impaired. Trust preferred debt securities – pooled: This trust preferred debt security was issued by a two issuer pool (Preferred Term Securities XXV, Ltd. co-issued by Keefe, Bruyette and Woods, Inc. and First Tennessee (“PRETSL XXV”)) consisting primarily of debt securities issued by financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment of $865,000 , of which $364,000 was determined to be a credit loss and charged to operations and $501,000 was recognized in the other comprehensive income (loss) component of shareholders’ equity. The primary factor used to determine the credit portion of the impairment loss recognized in the income statement for this security was the discounted present value of projected cash flow where that present value of cash flow was less than the amortized cost basis of the security. The present value of cash flow was developed using a model that considered performing collateral ratios, the level of subordination to senior tranches of the security, and credit ratings of and projected credit defaults in the underlying collateral. On a quarterly basis, management evaluates the security to determine if any additional other-than-temporary impairment is required. As of June 30, 2017 |
Allowance for Loan Losses and Credit Quality Disclosure | The Company’s internal credit risk grades are based on the definitions currently utilized by the banking regulatory agencies. The grades assigned and definitions are as follows, and loans graded excellent, above average, good and watch list are treated as “pass” for grading purposes: 1. Excellent - Loans that are based upon cash collateral held at the Bank and adequately margined. Loans that are based upon "blue chip" stocks listed on the major exchanges and adequately margined. 2. Above Average - Loans to companies whose balance sheets show excellent liquidity and long-term debt is on well-spread schedules of repayment easily covered by cash flow. Such companies have been consistently profitable and have diversification in their product lines or sources of revenue. The continuation of profitable operations for the foreseeable future is likely. Management is comprised of a mix of ages, experience, and backgrounds, and management succession is in place. Sources of raw materials and, for service companies, the sources of revenue are abundant. Future needs have been planned for. Character and ability of individuals or company principals are excellent. Loans to individuals are supported by high net worths and liquid assets. 3. Good - Loans to companies whose balance sheets show good liquidity and cash flow adequate to meet maturities of long-term debt with a comfortable margin. Such companies have established profitable records over a number of years, and there has been growth in net worth. Operating ratios are in line with those of the industry, and expenses are in proper relationship to the volume of business done and the profits achieved. Management is well-balanced and competent in their responsibilities. Economic environment is favorable; however, competition is strong. The prospects for growth are good. Loans in this category do not meet the collateral requirements of loans in categories 1 and 2 above. Loans to individuals are supported by good net worth but whose supporting assets are illiquid. 3w. Watch - Included in this category are loans evidencing problems identified by Bank management that require closer supervision. Such problems have not developed to the point which requires a "special mention" rating. This category also covers situations where the Bank does not have adequate current information upon which credit quality can be determined. The account officer has the obligation to correct these deficiencies within 30 days from the time of notification. 4. Special Mention - A "special mention" loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Bank's credit position at some future date. Special mention loans are not adversely classified and do not expose the Bank to sufficient risk to warrant adverse classification. 5. Substandard - A "substandard" loan is inadequately protected by the current sound net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified as "doubtful" has all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently known facts, conditions and values, highly questionable and improbable. 7. Loss |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU Update 2017-09 - Scope of Modification Accounting In May 2017, the FASB issued ASU 2017-09 "Scope of Modification Accounting," which clarifies Topic 718 Compensation-Stock Compensation, such that an entity must apply modification accounting to changes in the terms or conditions of a share-based payment award unless all of the following criteria are met: (1) the fair value of the modified award is the same as the fair value of the original award immediately before modification. The standard indicates that if the modification does not affect any of the inputs to the valuation technique used to value the award, the entity is not required to estimate the value immediately before and after the modification; (2) the vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before modification; and (3) the classification of the modification award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the modification. The amendments are effective for all entities for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-08 - Premium Amortization on Purchased Callable Debt Securities In March 2017, the FASB issued ASU 2017-08 "Premium Amortization on Purchased Callable Debt Securities," which shortens the amortization period for premiums on purchased callable debt securities to the earliest call date (i.e., yield-to-earliest call amortization) rather than amortizing over the full contractual term. The ASU does not change the accounting for securities held at a discount. The amendments apply to callable debt securities with explicit, non-contingent call features that are callable at fixed prices and on preset dates. If a security may be prepaid based upon prepayments of the underlying loans and not because the issuer exercised a date specific call option, it is excluded from the scope of the new standard. However, for instruments with contingent call features, once the contingency is resolved and the security is callable at a fixed price and preset date, the security is within the scope of the amendments. Further, the amendments apply to all premiums on callable debt securities, regardless of how they were generated. The amendments require companies to reset the effective yield using the payment terms of the debt security if the call option is not exercised on the earliest call date. If the security has additional future call dates, any excess of the amortized cost basis over the amount repayable by the issuer at the next call date should be amortized to the next call date. The amendments are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those years. Early adoption is permitted, including adoption in an interim period. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes the interim period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-07 - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost In March 2017, the FASB issued ASU 2017-07 "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost," which requires that an employer disaggregate the service cost component from the other components of net benefit costs as follows: (1) service cost must be presented in the same line item(s) as other employee compensation costs. These costs are generally included within income from continuing operations but in some cases, may be eligible for capitalization if certain criteria are met; and (2) all other components of net benefit cost must be presented in the income statement separately from the service cost component and outside a subtotal of income from operations, if one is presented. These generally include interest cost, actual return on plan assets, amortization of prior service cost included in accumulated other comprehensive income and gains or losses from changes in the value of the projected benefit obligation or plan assets. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those years. Early adoption is permitted as of the beginning of an annual period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-04 - Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04 "Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment," which simplifies how all entities assess goodwill for impairment by eliminating Step 2 from the goodwill impairment test. As amended, the goodwill impairment test will consist of one step comparing the fair value of a reporting unit with its carrying amount. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. The primary goal of this ASU is to simplify the goodwill impairment test and provide cost savings for all entities by removing the requirement to determine the fair value of individual assets and liabilities in order to calculate a reporting unit's "implied" goodwill under current U.S. GAAP. The amendments have staggered effective dates: a public business entity that is an SEC filer should adopt the amendments for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The amendments should be adopted prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2017-01 - Business Combinations (Topic 805): Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-01 "Business Combinations (Topic 805): Clarifying the Definition of a Business," which clarifies the definition of a business with the objective of adding guidance to assist companies and other reporting organizations with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The amendments in this ASU provide a more robust framework to use in determining when a set of assets and activities is a business. The current definition of a business is interpreted broadly and can be difficult to apply. Stakeholders indicated that analyzing transactions is inefficient and costly and the definition does not permit the use of reasonable judgment. Under current implementation guidance, there are three elements of a business: inputs, processes and outputs. While an integrated set of assets and activities (collectively referred to as a "set") that is a business usually has outputs, outputs are not required to be present. Additionally, all the inputs and processes that a seller uses in operating a set are not required if market participants can acquire the set and continue to produce outputs, for example, by integrating the acquired set with their own inputs and processes. The ASU introduces a "screen" to assist entities in determining when a set should not be considered a business. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, the set is not considered a business. If the screen is not met, the ASU requires that to be considered a business, a set must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create output. Further, the ASU removes the evaluation of whether a market participant could replace missing elements (as required under current U.S. GAAP). For public business entities, the ASU is effective for annual periods beginning after December 15, 2017, including interim periods within those periods. The amendments in this ASU should be applied prospectively on or after the effective date. No disclosures are required at transition. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-20 - Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers. In December 2016, the FASB issued ASU 2016-20 "Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers," amending the new revenue recognition standard that it jointly issued with the International Accounting Standards Board ("IASB") in 2014. The amendments do not change the core principles of the standard, but clarify certain narrow aspects of the standard, including its scope, contract cost accounting, disclosures, illustrative examples and other matters. The ASU becomes effective concurrently with ASU 2014-09 "Revenue from Contracts with Customers (Topic 606)." The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-18 - Restricted Cash. In November 2016, the FASB issued ASU 2016-18 "Restricted Cash," which updates Topic 230-Statement of Cash Flows, to require that restricted cash and restricted cash equivalents be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total cash amounts shown on the statement of cash flows. Consequently, transfers between cash and restricted cash will not be presented as a separate line item in the operating, investing or financing sections of the cash flow statement. The ASU includes examples of the revised presentation guidance, and additional presentation and disclosure requirements apply. For public business entities, the amendments are effective 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. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-17 - Interests Held Through Related Parties That Are Under Common Control . In October 2016, the FASB issued ASU 2016-17 "Interests Held Through Related Parties That Are Under Common Control," which amends the variable interest entity ("VIE") guidance within Topic 810. It does not change the two required characteristics for a single decision maker to be the primary beneficiary ("power" and "economics"), but it revised one aspect of the related analysis. The amendments change how a single decision maker of a VIE treats an indirect variable interest held through related parties that are under common control when determining whether it is the primary beneficiary of that VIE. The ASU requires consideration of such indirect interests on a proportionate basis instead of being the equivalent of direct interests in their entity, thereby making consolidation less likely. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. Early adoption is permitted; however, if an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of that fiscal year. The Company has adopted this guidance and it did not have a material impact on its consolidated financial statements. ASU Update 2016-15 - Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments . In August 2016, the FASB issued ASU 2016-15 "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments," which clarifies whether the following items should be categorized as operating, investing or financing in the statement of cash flows: (1) debt prepayment and extinguishment costs, (2) settlement of zero-coupon debt, (3) settlement of contingent consideration, (4) insurance proceeds, (5) settlement of corporate-owned life insurance (COLI) and bank-owned life insurance (BOLI) policies, (6) distributions from equity method investees, (7) beneficial interests in securitization transactions and (8) receipts and payments with aspects of more than one class of cash flows. For public business entities, the amendments are effective 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. If an entity early adopts the amendments in an interim period, any adjustments should be reflected as of the beginning of the fiscal year that includes that interim period. An entity that elects early adoption must adopt all of the amendments in the same period. The Company currently classifies cash flows related to BOLI in accordance with the guidance and does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU Update 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. In June 2016, the FASB issued ASU 2016-13 "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which requires credit losses on most financial assets to be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (CECL) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The ASU also replaces the current accounting model for purchased credit impaired loans and debt securities. The allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination ("PCD assets") should be determined in a similar manner to other financial assets measured on an amortized cost basis. Upon initial recognition, the allowance for credit losses is added to the purchase price ("gross up approach") to determine the initial amortized cost basis. The subsequent accounting for PCD assets will use the CECL model described above. The ASU made certain targeted amendments to the existing impairment model for available-for-sale (AFS) debt securities. For an AFS debt security for which there is neither the intent nor a more-likely-than-not requirement to sell, an entity will record credit losses as an allowance rather than a write-down of the amortized cost basis. For public business entities that are SEC filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for all entities as of the fiscal year beginning after December 15, 2018, including interim periods within those fiscal years. The Company is currently evaluating the impact of the pending adoption of the new standard on its consolidated financial statements. ASU Update 2016-02: Leases. In February 2016, the FASB issued ASU 2016-02 "Leases ." From the lessee's perspective, the new standard establishes a right- of-use ("ROU") model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement for a lessee. From the lessor's perspective, the new standard requires a lessor to classify leases as either sales-type, finance or operating. A lease will be treated as a sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. A modified retrospective transition approach is required for lessors for sales-type, direct financing and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. In 2017, the Company plans to complete an evaluation of all of its leases to determine the potential impact on the Company's consolidated financial statements as a result of this new standard. ASU Update 2016-01 Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016, the FASB issued ASU 2016-01 "Financial Instruments-Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." The guidance in the ASU, among other things, requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income; simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income, the portion of the change in fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities. The guidance in this ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. ASU 2014-9 Revenue from Contracts with Customers (Topic 606) In May 2014, the FASB issued ASU 2014-9, deferred by ASU 2015-14, “Revenue from Contracts with Customers (Topic 606).” The amendments in this update establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry specific guidance such as the real estate, construction and software industries. The revenue standard's core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: (1) identify the contract with the customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract and (5) recognize revenue when (or as) the entity satisfies a performance obligation. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted only as of annual reporting periods beginning after December 15, 2016, including interim periods within that year. |
Fair Value Disclosures | U.S. GAAP has established a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are as follows: Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical unrestricted assets or liabilities. Level 2: Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. These valuation methodologies were applied to all of the Company’s financial assets and financial liabilities carried at fair value. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. These adjustments may include amounts to reflect counterparty credit quality and counterparty creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. The Company’s valuation methodologies may produce a fair value calculation that may not be indicative of net realizable value or reflective of future values. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities Available for Sale . Securities classified as available for sale are reported at fair value utilizing quoted market prices on nationally recognized exchanges (Level 1) or by using Level 2 inputs. For Level 2 securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other things. Impaired loans. Impaired loans are those which the Company has measured and recognized impairment, generally based on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third party appraisals of the collateral or discounted cash flows based on the expected proceeds. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. The fair value consists of the loan balances less specific valuation allowances. Other Real Estate Owned. |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following tables illustrate the reconciliation of the numerators and denominators of the basic and diluted earnings per common share (EPS) calculations. Dilutive securities in the tables below exclude common stock options and warrants with exercise prices that exceed the average market price of the Company’s common stock during the periods presented. Inclusion of these common stock options and warrants would be anti-dilutive to the diluted earnings per common share calculation. (Dollars in thousands, except per share data) Three Months Ended June 30, 2017 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 1,919 8,033,299 $ 0.24 Effect of dilutive securities: Stock options and warrants 268,640 Diluted EPS: Net income plus assumed conversion $ 1,919 8,301,939 $ 0.23 (Dollars in thousands, except per share data) Three Months Ended June 30, 2016 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 2,314 7,947,146 $ 0.29 Effect of dilutive securities: Stock options and warrants 204,650 Diluted EPS: Net income plus assumed conversion $ 2,314 8,151,796 $ 0.28 (Dollars in thousands, except per share data) Six Months Ended June 30, 2017 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 3,868 8,029,690 $ 0.48 Effect of dilutive securities: Stock options and warrants 271,741 Diluted EPS: Net income plus assumed conversion $ 3,868 8,301,431 $ 0.47 (Dollars in thousands, except per share data) Six Months Ended June 30, 2016 Net Income Weighted-average shares Per share amount Basic earnings per common share: Net income $ 4,536 7,944,069 $ 0.57 Effect of dilutive securities: Stock options and warrants 200,389 Diluted EPS: Net income plus assumed conversion $ 4,536 8,144,458 $ 0.56 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | Amortized cost, carrying value, gross unrealized gains and losses, and the fair value by security type are as follows: June 30, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for sale U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies $ 3,510 $ — $ (10 ) $ 3,500 Residential collateralized mortgage obligations- GSE 25,739 52 (121 ) 25,670 Residential mortgage backed securities – GSE 22,825 213 (39 ) 22,999 Obligations of state and political subdivisions 20,134 256 (62 ) 20,328 Trust preferred debt securities – single issuer 2,480 — (114 ) 2,366 Corporate debt securities 24,965 148 (147 ) 24,966 Other debt securities 13,117 15 (9 ) 13,123 $ 112,770 $ 684 $ (502 ) $ 112,952 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available for sale U. S. Treasury securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies $ 3,514 $ — $ (35 ) $ 3,479 Residential collateralized mortgage obligations- GSE 22,647 58 (145 ) 22,560 Residential mortgage backed securities - GSE 31,207 388 (119 ) 31,476 Obligations of state and political subdivisions 21,604 152 (356 ) 21,400 Trust preferred debt securities-single issuer 2,478 — (206 ) 2,272 Corporate debt securities 21,963 10 (205 ) 21,768 Other debt securities 845 — (6 ) 839 $ 104,258 $ 608 $ (1,072 ) $ 103,794 |
Held-to-maturity Securities | December 31, 2016 Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Held to maturity U. S. Treasury securities and obligations of U.S. Government sponsored corporations ("GSE") and agencies $ 3,727 $ — $ 3,727 $ — $ (116 ) $ 3,611 Residential collateralized mortgage obligations-GSE 11,882 — 11,882 247 (130 ) 11,999 Residential mortgage backed securities - GSE 40,565 — 40,565 540 (113 ) 40,992 Obligations of state and political subdivisions 70,017 — 70,017 1,274 (255 ) 71,036 Trust preferred debt securities - pooled 657 (501 ) 156 303 — 459 Other debt securities 463 — 463 — (1 ) 462 $ 127,311 $ (501 ) $ 126,810 $ 2,364 $ (615 ) $ 128,559 June 30, 2017 Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Held to maturity U. S. Treasury securities and obligations of U.S. Government $ 3,448 $ — $ 3,448 $ — $ (67 ) $ 3,381 Residential collateralized mortgage obligations – GSE 10,218 — 10,218 187 (103 ) 10,302 Residential mortgage backed securities – GSE 38,326 — 38,326 415 (94 ) 38,647 Obligations of state and political subdivisions 72,394 — 72,394 1,488 (62 ) 73,820 Trust preferred debt securities-pooled 657 (501 ) 156 389 — 545 Other debt securities 380 — 380 — — 380 $ 125,423 $ (501 ) $ 124,922 $ 2,479 $ (326 ) $ 127,075 |
Investment Securities, Continuous Unrealized Loss Position, Fair Value | Gross unrealized losses on available for sale and held to maturity securities and the fair value of the related securities aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government sponsored corporations (GSE) and agencies 3 $ 6,881 $ (77 ) $ — $ — $ 6,881 $ (77 ) Residential collateralized mortgage obligations –GSE 8 17,025 (201 ) 1,646 (23 ) 18,671 (224 ) Residential mortgage backed securities-GSE 30 25,807 (133 ) — — 25,807 (133 ) Obligations of state and political subdivisions 32 12,224 (124 ) — — 12,224 (124 ) Trust preferred debt securities- single issuer 4 — — 2,366 (114 ) 2,366 (114 ) Corporate debt securities 3 2,786 (57 ) 4,910 (90 ) 7,696 (147 ) Other debt securities 3 3,008 (7 ) 719 (2 ) 3,727 (9 ) Total temporarily impaired securities 83 $ 67,731 $ (599 ) $ 9,641 $ (229 ) $ 77,372 $ (828 ) December 31, 2016 Less than 12 months 12 months or longer Total (Dollars in thousands) Number of Securities Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury securities and obligations of U.S. Government sponsored corporations (GSE) and agencies 3 $ 7,090 $ (151 ) $ — $ — $ 7,090 $ (151 ) Residential collateralized mortgage obligations –GSE 7 17,242 (275 ) — — 17,242 (275 ) Residential mortgage backed securities - GSE 29 26,581 (216 ) 3,542 (16 ) 30,123 (232 ) Obligations of state and political subdivisions 74 25,545 (611 ) — — 25,545 (611 ) Trust preferred debt securities- single issuer 4 — — 2,272 (206 ) 2,272 (206 ) Corporate debt securities 6 12,700 (204 ) 1,999 (1 ) 14,699 (205 ) Other debt securities 3 — — 1,276 (7 ) 1,276 (7 ) Total temporarily impaired securities 126 $ 89,158 $ (1,457 ) $ 9,089 $ (230 ) $ 98,247 $ (1,687 ) |
Investments Classified by Contractual Maturity Date | The following table sets forth certain information regarding the amortized cost, carrying value, fair value, weighted average yields and contractual maturities of the Company’s investment portfolio as of June 30, 2017 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) June 30, 2017 Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 3,508 $ 3,502 3.01% Due after one year through five years 20,639 20,747 2.18% Due after five years through ten years 34,307 34,422 2.60% Due after ten years 54,316 54,281 2.62% Total $ 112,770 $ 112,952 2.54% Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 33,723 $ 33,739 1.56% Due after one year through five years 17,087 17,756 4.57% Due after five years through ten years 20,523 21,077 3.50% Due after ten years 53,589 54,503 3.26% Total $ 124,922 $ 127,075 3.02% |
Allowance for Loan Losses and21
Allowance for Loan Losses and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Past Due Financing Receivables | The following table provides an aging of the loan portfolio by loan class at June 30, 2017 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial Construction Loans $ — $ — $ — $ — $ 116,464 $ 116,464 $ — $ — Commercial Business 122 192 408 722 93,513 94,235 46 3,454 Commercial Real Estate 712 — 1,868 2,580 283,340 285,920 — 2,180 Mortgage Warehouse Lines — — — — 200,380 200,380 — — Residential Real Estate Loans — — 80 80 41,936 42,016 — 80 Consumer Loans to Individuals 32 22 70 124 22,587 22,711 — 310 Other — — — — 182 182 — — Total loans 866 214 2,426 3,506 758,402 761,908 46 6,024 Deferred loan fees and costs, net — — — — 711 711 — — Total loans, net $ 866 $ 214 $ 2,426 $ 3,506 $ 759,113 $ 762,619 $ 46 $ 6,024 The following table provides an aging of the loan portfolio by loan class at December 31, 2016 : (Dollars in thousands) 30-59 Days 60-89 Days Greater than 90 Days Total Past Due Current Total Loans Receivable Recorded Investment > 90 Days Accruing Non-accrual Loans Commercial Construction Loans $ — $ — $ 186 $ 186 $ 95,849 $ 96,035 $ — $ 186 Commercial Business 113 115 790 1,018 98,632 99,650 — 920 Commercial Real Estate 741 942 2,707 4,390 238,003 242,393 — 3,187 Mortgage Warehouse Lines — — — — 216,259 216,259 — — Residential Real Estate Loans 564 — 392 956 43,835 44,791 — 544 Consumer Loans to Individuals — 29 361 390 23,346 23,736 24 337 Other — — — — 207 207 — — Total loans 1,418 1,086 4,436 6,940 716,131 723,071 24 5,174 Deferred loan fees and costs, net — — — — 1,737 1,737 — — Total loans, net $ 1,418 $ 1,086 $ 4,436 $ 6,940 $ 717,868 $ 724,808 $ 24 $ 5,174 |
Allowance for Credit Losses on Financing Receivables | The following tables summarize the distribution of the allowance for loan losses and loans receivable by loan class and impairment method at June 30, 2017 and December 31, 2016 : June 30, 2017 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Fees/Costs Total Allowance for loan losses: Individually evaluated for impairment $ — $ 255 $ 87 $ — $ — $ — $ — $ — $ — $ 342 Loans acquired with deteriorated credit quality — — — — — — — — — — Collectively evaluated for impairment 1,455 1,182 2,904 902 385 120 — 417 — 7,365 Ending Balance $ 1,455 $ 1,437 $ 2,991 $ 902 $ 385 $ 120 $ — $ 417 $ — $ 7,707 Loans receivable: Individually evaluated for impairment $ 205 $ 3,492 $ 5,142 $ — $ 80 $ 310 $ — $ — $ — $ 9,229 Loans acquired with deteriorated credit quality — 252 602 — — — — — — 854 Collectively evaluated for impairment 116,259 90,491 280,176 200,380 41,936 22,401 182 — 711 752,536 Ending Balance $ 116,464 $ 94,235 $ 285,920 $ 200,380 $ 42,016 $ 22,711 $ 182 $ — $ 711 $ 762,619 December 31, 2016 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Fees/Costs Total Allowance for loan losses: Individually evaluated for impairment $ 7 $ 101 $ 114 $ — $ 38 $ — $ — $ — $ — $ 260 Loans acquired with deteriorated credit quality — — — — — — — — — — Collectively evaluated for impairment 1,197 1,631 2,460 973 329 112 — 532 — 7,234 Ending Balance $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ — $ 7,494 Loans receivable: Individually evaluated for impairment $ 391 $ 947 $ 3,817 $ — $ 544 $ 337 $ — $ — $ — $ 6,036 Loans acquired with deteriorated credit quality — 191 930 — — — — — — 1,121 Collectively evaluated for impairment 95,644 98,512 237,646 216,259 44,247 23,399 207 — 1,737 717,651 Ending Balance $ 96,035 $ 99,650 $ 242,393 $ 216,259 $ 44,791 $ 23,736 $ 207 $ — $ 1,737 $ 724,808 |
Schedule of Credit Losses Related to Financing Receivables, Current and Noncurrent | The activity in the allowance for loan loss by loan class for the three and six months ended June 30, 2017 and 2016 was as follows : (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Balance - December 31, 2016 $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ 7,494 Provision (Credit) charged to operations 166 88 56 (331 ) 99 9 — 63 150 Loans charged off — — — — (101 ) — — — (101 ) Recoveries of loans charged off — 2 4 — — 1 — — 7 Balance - March 31, 2017 $ 1,370 $ 1,822 $ 2,634 $ 642 $ 365 $ 122 $ — $ 595 $ 7,550 Provision (Credit) charged to operations 85 (386 ) 352 260 20 (3 ) — (178 ) 150 Loans charged off — — — — — — — — — Recoveries of loans charged off — 1 5 — — 1 — — 7 Balance - June 30, 2017 $ 1,455 $ 1,437 $ 2,991 $ 902 $ 385 $ 120 $ — $ 417 $ 7,707 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Balance - December 31, 2015 $ 1,025 $ 2,005 $ 3,049 $ 866 $ 288 $ 109 $ — $ 218 $ 7,560 (Credit) Provision charged to operations (44 ) (657 ) 311 1 (96 ) (92 ) — 377 (200 ) Loans charged off — — (60 ) — — — — — (60 ) Recoveries of loans charged off — — — — — 2 — — 2 Balance - March 31, 2016 $ 981 $ 1,348 $ 3,300 $ 867 $ 192 $ 19 $ — $ 595 $ 7,302 (Credit) Provision charged to operations (6 ) (284 ) (263 ) 323 85 3 — 42 (100 ) Loans charged off — (101 ) — — — — — — (101 ) Recoveries of loans charged off — 1 378 — — 2 — — 381 Balance - June 30, 2016 $ 975 $ 964 $ 3,415 $ 1,190 $ 277 $ 24 $ — $ 637 $ 7,482 |
Impaired Financing Receivables | The following table presents additional information regarding purchased credit-impaired loans at June 30, 2017 and December 31, 2016 : (Dollars in thousands) June 30, 2017 December 31, 2016 Outstanding balance $ 1,042 $ 1,470 Carrying amount $ 854 $ 1,121 Impaired Loans Receivables (By Class) – June 30, 2017 (Dollars in thousands) Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Interest With no allowance: Construction $ 205 $ 205 $ — $ 188 $ 3 $ 186 $ 6 Commercial Business 702 857 — 688 82 741 86 Commercial Real Estate 2,756 2,771 — 2,723 92 2,772 105 Mortgage Warehouse Lines — — — — — — — Subtotal 3,663 3,833 — 3,599 177 3,699 197 Residential Real Estate 80 80 — 181 — 210 — Consumer Loans to Individuals 310 310 — 297 — 316 — Other — — — — — — — Subtotal 310 310 — 297 — 316 — With no allowance: $ 4,053 $ 4,223 $ — $ 4,077 $ 177 $ 4,225 $ 197 With an allowance: Construction $ — $ — $ — $ 137 $ — $ 171 $ — Commercial Business 3,042 3,042 255 3,680 60 2,595 127 Commercial Real Estate 2,988 2,988 87 2,989 43 2,600 85 Mortgage Warehouse Lines — — — — — — — Subtotal 6,030 6,030 342 6,806 103 5,366 212 Residential Real Estate — — — — — 100 — Consumer Loans to Individuals — — — — — — — Other — — — — — — — Subtotal — — — — — — — With an allowance: $ 6,030 $ 6,030 $ 342 $ 6,806 $ 103 $ 5,466 $ 212 Total: Construction 205 205 — 325 3 357 6 Commercial Business 3,744 3,899 255 4,368 142 3,336 213 Commercial Real Estate 5,744 5,759 87 5,712 135 5,372 190 Mortgage Warehouse Lines — — — — — — — Residential Real Estate 80 80 — 181 — 310 — Consumer 310 310 — 297 — 316 — Total $ 10,083 $ 10,253 $ 342 $ 10,883 $ 280 $ 9,691 $ 409 Impaired Loans Receivables (By Class) – December 31, 2016 (Dollars in thousands Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Construction $ 186 $ 186 $ — Commercial Business 883 1,054 — Commercial Real Estate 1,380 1,380 — Mortgage Warehouse Lines — — — Subtotal 2,449 2,620 — Residential Real Estate 244 244 — Consumer Loans to Individuals 337 337 — Other — — — Subtotal 337 337 — With no allowance $ 3,030 $ 3,201 $ — With an allowance: Construction $ 205 $ 205 $ 7 Commercial Business 255 255 101 Commercial Real Estate 3,367 3,367 114 Mortgage Warehouse Lines — — — Subtotal 3,827 3,827 222 Residential Real Estate 300 316 38 Consumer Loans to Individuals — — — Other — — — Subtotal — — — With an allowance $ 4,127 $ 4,143 $ 260 Total: Construction 391 391 7 Commercial Business 1,138 1,309 101 Commercial Real Estate 4,747 4,747 114 Mortgage Warehouse Lines — — — Residential Real Estate 544 560 38 Consumer 337 337 — Total $ 7,157 $ 7,344 $ 260 Impaired Loans Receivables (By Class) – June 30, 2016 Three Months Ended June 30, 2016 Six Months Ended June 30, 2016 (Dollars in thousands) Average Recorded Investment Interest Income Recognized Average Interest Income Recognized With no allowance: Construction $ 317 $ 2 $ 255 $ 4 Commercial Business 448 10 434 21 Commercial Real Estate 1,251 20 1,545 30 Mortgage Warehouse Lines — — — — Subtotal 2,016 32 2,234 55 Residential Real Estate 1,298 — 1,198 (2 ) Consumer Loans to Individuals 263 — 263 — Other — — — — Subtotal 263 — 263 — With no allowance: $ 3,577 $ 32 $ 3,695 $ 53 With an allowance: Construction $ — $ — $ — $ — Commercial Business 143 — 177 — Commercial Real Estate 3,888 22 3,836 38 Mortgage Warehouse Lines — — — — Subtotal 4,031 22 4,013 38 Residential Real Estate — — 100 — Consumer Loans to Individuals — — — — Other — — — — Subtotal — — — — With an allowance: $ 4,031 $ 22 $ 4,113 $ 38 Total: Construction 317 2 255 4 Commercial Business 591 10 611 21 Commercial Real Estate 5,139 42 5,381 68 Mortgage Warehouse Lines — — — — Residential Real Estate 1,298 — 1,298 (2 ) Consumer 263 — 263 — Total $ 7,608 $ 54 $ 7,808 $ 91 |
Credit Impaired Loans Acquired, Change In Amortizable Yield | Changes in accretable discount for purchased credit-impaired loans for the three and six months ended June 30, 2017 and June 30, 2016 were as follows: Three months ended June 30, Six months ended June 30, 2017 2016 2017 2016 (Dollars in thousands) Balance at beginning of period $ 23 $ 52 $ 30 $ 73 Transfer from non-accretable discount 161 — 161 — Accretion of discount (13 ) (8 ) (20 ) (29 ) Balance at end of period $ 171 $ 44 $ 171 $ 44 |
Troubled Debt Restructurings on Financing Receivables | The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in the process of foreclosure: (Dollars in thousands) June 30, 2017 December 31, 2016 Number of loans Recorded Investment Number of loans Recorded Investment 1 $ 80 3 $ 524 |
Commercial Portfolio Segment [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing Receivable Credit Quality Indicators | The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2016 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Grade: Pass $ 95,548 $ 91,908 $ 223,435 $ 216,259 $ 43,950 Special Mention 301 7,102 14,334 — 244 Substandard 186 611 4,624 — 597 Doubtful — 29 — — — Total $ 96,035 $ 99,650 $ 242,393 $ 216,259 $ 44,791 June 30, 2017 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Grade: Pass $ 116,163 $ 87,086 $ 266,312 $ 200,380 $ 41,042 Special Mention 301 3,471 13,939 — 682 Substandard — 636 5,669 — 292 Doubtful — 3,042 — — — Total $ 116,464 $ 94,235 $ 285,920 $ 200,380 $ 42,016 |
Consumer Portfolio Segment [Member] | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |
Financing Receivable Credit Quality Indicators | Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 23,375 $ 207 Nonperforming 361 — Total $ 23,736 $ 207 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 22,401 $ 182 Nonperforming 310 — Total $ 22,711 $ 182 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes stock option activity during the six months ended June 30, 2017 : (Dollars in thousands, except share amounts) Number of Weighted Average Weighted Average Remaining Contractual Aggregate Intrinsic Stock Options Shares Exercise Price Term (years) Value Outstanding at January 1, 2017 165,801 $ 7.35 Granted 9,900 18.65 Exercised (12,361 ) 7.85 Forfeited (715 ) 15.71 Expired — — Outstanding at June 30, 2017 162,625 $ 7.97 4.7 $ 1,574 Exercisable at June 30, 2017 132,566 $ 6.88 3.9 $ 1,428 |
Fair Value Inputs, Assets, Quantitative Information | The fair value of each option and the significant weighted average assumptions used to calculate the fair value of the options granted for the six months ended June 30, 2017 were as follows: Fair value of options granted $ 6.05 Risk-free rate of return 2.45 % Expected option life in years 7 Expected volatility 31.25 % Expected dividends (1) 1.19 % (1) |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the activity in non-vested restricted shares for the six months ended June 30, 2017 : Number of Average Grant-Date Non-vested shares Shares Fair Value Non-vested at January 1, 2017 143,259 $ 9.02 Granted 39,100 18.26 Vested (26,210 ) 11.08 Forfeited (1,287 ) 14.94 Non-vested at June 30, 2017 154,862 $ 10.96 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Expense | The components of net periodic expense for the Company’s supplemental executive retirement plans for the three and six months ended June 30, 2017 and 2016 were as follows: (Dollars in thousands) Three Months Ended Six Months Ended 2017 2016 2017 2016 Service cost $ 79 $ 56 $ 112 $ 105 Interest cost 33 47 78 85 Actuarial gain recognized (24 ) (46 ) (43 ) (72 ) Total $ 88 $ 57 $ 147 $ 118 |
Other Comprehensive Income (L24
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax: Unrealized Holding Gains (Losses) on Available for Sale Securities Unrealized Impairment Loss on Held to Maturity Security Unfunded Pension Liability Accumulated Other Comprehensive Income (Loss) (Dollars in thousands) Three Months Ended June 30, 2017: Balance, beginning of period $ (271 ) $ (331 ) $ 53 $ (549 ) Other comprehensive income before reclassifications 347 — — 347 Amounts reclassified from accumulated other comprehensive income (loss) — — (14 ) (14 ) Reclassification adjustment for loss realized in income 1 — — 1 Other comprehensive income 348 — (14 ) 334 Balance, end of period $ 77 $ (331 ) $ 39 $ (215 ) Unrealized Holding Gains (Losses) on Available for Sale Securities Unrealized Impairment Loss on Held to Maturity Security Unfunded Pension Liability Accumulated Other Comprehensive Income Three Months Ended June 30, 2016: Balance, beginning of period $ 420 $ (331 ) $ 96 $ 185 Other comprehensive income before reclassifications 470 — 20 490 Amounts reclassified from accumulated other comprehensive income — — (28 ) (28 ) Other comprehensive income 470 — (8 ) 462 Balance, end of period $ 890 $ (331 ) $ 88 $ 647 Unrealized Unrealized Unfunded Accumulated (Dollars in thousands) Six Months Ended June 30, 2017: Balance, beginning of period $ (334 ) $ (331 ) $ 65 $ (600 ) Other comprehensive income before reclassifications 459 — — 459 Amounts reclassified from accumulated other comprehensive income (loss) — — (26 ) (26 ) Reclassification adjustment for gains realized in income (48 ) — (48 ) Other comprehensive income 411 — (26 ) 385 Balance, end of period $ 77 $ (331 ) $ 39 $ (215 ) Unrealized Unrealized Unfunded Accumulated Six Months Ended June 30, 2016: Balance, beginning of period $ 90 $ (331 ) $ 111 $ (130 ) Other comprehensive income before reclassifications 800 — 20 820 Amounts reclassified from accumulated other comprehensive income — — (43 ) (43 ) Other comprehensive income 800 — (23 ) 777 Balance, end of period $ 890 $ (331 ) $ 88 $ 647 Before-Tax Income Tax Net-of-Tax (Dollars in thousands) June 30, 2017 Unrealized net holding gains on available-for-sale securities $ 182 $ (106 ) $ 76 Reclassification adjustment for loss realized in income 2 (1 ) 1 Other comprehensive income on available for sale securities 184 (107 ) 77 Unrealized impairment loss on held to maturity security (501 ) 170 (331 ) Unfunded pension liability: Plan actuarial gains included in other comprehensive income 66 (27 ) 39 Accumulated other comprehensive loss $ (251 ) $ 36 $ (215 ) Before-Tax Amount Income Tax Effect Net-of-Tax Amount December 31, 2016 Unrealized net holding losses on available-for-sale securities $ (464 ) $ 130 $ (334 ) Reclassification adjustment for (gains) losses realized in income — — — Other comprehensive loss on securities available for sale (464 ) 130 (334 ) Unrealized impairment loss on held to maturity security (501 ) 170 (331 ) Unfunded pension liability: Changes from plan actuarial gains and losses included in other comprehensive income 269 (108 ) 161 Reclassification adjustment for gains realized in income $ (160 ) $ 64 $ (96 ) Other comprehensive gain from plan actuarial gains $ 109 $ (44 ) $ 65 Accumulated other comprehensive loss $ (856 ) $ 256 $ (600 ) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table summarizes financial assets and financial liabilities measured at fair value on a recurring basis segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value June 30, 2017: Securities available for sale: U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies $ — $ 3,500 $ — $ 3,500 Residential collateralized mortgage obligations- GSE — 25,670 — 25,670 Residential mortgage backed securities – GSE — 22,999 — 22,999 Obligations of state and political subdivisions — 20,328 — 20,328 Trust preferred debt securities – single issuer 945 1,421 — 2,366 Corporate debt securities 16,257 8,709 — 24,966 Other debt securities — 13,123 — 13,123 Total $ 17,202 $ 95,750 $ — $ 112,952 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value December 31, 2016: Securities available for sale: U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies $ — $ 3,479 $ — $ 3,479 Residential collateralized mortgage obligations- GSE — 22,560 — 22,560 Residential mortgage backed securities – GSE — 31,476 — 31,476 Obligations of state and political subdivisions — 21,400 — 21,400 Trust preferred debt securities – single issuer — 2,272 — 2,272 Corporate debt securities 12,826 8,942 — 21,768 Other debt securities — 839 — 839 Total $ 12,826 $ 90,968 $ — $ 103,794 |
Fair Value Measurements, Nonrecurring | Assets and liabilities subject to fair value adjustments (impairment) on a nonrecurring basis for the six months ended June 30, 2017 and the twelve months ended December 31, 2016 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value June 30, 2017: Impaired loans $ — $ — $ 6,124 $ 6,124 Other real estate owned — — 190 190 December 31, 2016: Impaired loans $ — $ — $ 4,130 $ 4,130 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis, where there was evidence of impairment, and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range ( Weighted Average ) June 30, 2017 Impaired loans $ 6,124 Appraisal of Appraisal adjustments (2) 13% - 42% (32.3%) Other real estate owned $ 190 Appraisal of Appraisal adjustments (2) —% December 31, 2016 Impaired loans $ 4,130 Appraisal of collateral (1) Appraisal adjustments (2) 3%-100% (29.1%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. (2) |
Fair Value, by Balance Sheet Grouping | The estimated fair values and carrying amounts of financial assets and liabilities as of June 30, 2017 and December 31, 2016 were as follows: June 30, 2017 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Inputs Inputs Inputs Value Cash and cash equivalents $ 14,211 $ 14,211 $ — $ — $ 14,211 Securities available for sale 112,952 17,202 95,750 — 112,952 Securities held to maturity 124,922 — 127,075 — 127,075 Loans held for sale 3,594 — 3,651 — 3,651 Loans, net 754,912 — — 762,068 762,068 SBA servicing asset 665 — 822 — 822 Interest rate lock derivative 145 — 145 — 145 Accrued interest receivable 3,060 — 3,060 — 3,060 FHLB stock 4,003 — 4,003 — 4,003 Deposits (864,415 ) — (863,537 ) — (863,537 ) Borrowings (73,825 ) — (73,848 ) — (73,848 ) Redeemable subordinated debentures (18,557 ) — (12,150 ) — (12,150 ) Accrued interest payable (812 ) — (812 ) — (812 ) December 31, 2016 (Dollars in thousands) Carrying Level 1 Level 2 Level 3 Fair Value Inputs Inputs Inputs Value Cash and cash equivalents $ 14,886 $ 14,668 $ — $ — $ 14,668 Securities available for sale 103,794 12,826 90,968 — 103,794 Securities held to maturity 126,810 — 128,559 — 128,559 Loans held for sale 14,829 — 15,103 — 15,103 Loans, net 717,314 — — 721,285 721,285 SBA servicing asset 605 — 822 — 822 Interest rate lock derivative 123 — 123 — 123 Accrued interest receivable 3,095 — 3,095 — 3,095 FHLB stock 3,962 — 3,962 — 3,962 Deposits (834,516 ) — (834,050 ) — (834,050 ) Borrowings (73,050 ) — (73,222 ) — (73,222 ) Redeemable subordinated debentures (18,557 ) — (11,922 ) — (11,922 ) Accrued interest payable (866 ) — (866 ) — (866 ) |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Adjustment to interest income | $ (10,170) | $ (9,486) | $ (19,658) | $ (18,809) |
Adjustment to other operating expenses | (1,322) | (858) | (2,728) | (1,872) |
Adjustment [Member] | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Adjustment to interest income | 435 | 384 | 883 | 755 |
Adjustment to other operating expenses | $ 435 | $ 384 | $ 883 | $ 755 |
Net Income Per Common Share (Re
Net Income Per Common Share (Reconciliation of Basic and Diluted Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Basic earnings per common share: Net income | ||||
Net income (in Dollars) | $ 1,919 | $ 2,314 | $ 3,868 | $ 4,536 |
Weighted-average shares, basic | 8,033,299 | 7,947,146 | 8,029,690 | 7,944,069 |
Basic earnings per share (in Dollars per share) | $ 0.24 | $ 0.29 | $ 0.48 | $ 0.57 |
Effect of dilutive securities: | ||||
Stock options and warrants (in shares) | 268,640 | 204,650 | 271,741 | 200,389 |
Diluted EPS: | ||||
Net income plus assumed conversion (in Dollars) | $ 1,919 | $ 2,314 | $ 3,868 | $ 4,536 |
Weighted-average shares, diluted | 8,301,939 | 8,151,796 | 8,301,431 | 8,144,458 |
Diluted earnings per share (in Dollars per share) | $ 0.23 | $ 0.28 | $ 0.47 | $ 0.56 |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 9,500 | 20,060 | 9,500 | 20,060 |
Investment Securities (Availabl
Investment Securities (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | $ 112,770 | $ 104,258 |
Available for sale, gross unrealized gains | 684 | 608 |
Available for sale, gross unrealized losses | (502) | (1,072) |
Available for sale, at fair value | 112,952 | 103,794 |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 3,510 | 3,514 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | (10) | (35) |
Available for sale, at fair value | 3,500 | 3,479 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 25,739 | 22,647 |
Available for sale, gross unrealized gains | 52 | 58 |
Available for sale, gross unrealized losses | (121) | (145) |
Available for sale, at fair value | 25,670 | 22,560 |
Residential mortgage backed securities – GSE [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 22,825 | 31,207 |
Available for sale, gross unrealized gains | 213 | 388 |
Available for sale, gross unrealized losses | (39) | (119) |
Available for sale, at fair value | 22,999 | 31,476 |
Obligations of state and political subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 20,134 | 21,604 |
Available for sale, gross unrealized gains | 256 | 152 |
Available for sale, gross unrealized losses | (62) | (356) |
Available for sale, at fair value | 20,328 | 21,400 |
Trust preferred debt securities – single issuer [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 2,480 | 2,478 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | (114) | (206) |
Available for sale, at fair value | 2,366 | 2,272 |
Corporate debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 24,965 | 21,963 |
Available for sale, gross unrealized gains | 148 | 10 |
Available for sale, gross unrealized losses | (147) | (205) |
Available for sale, at fair value | 24,966 | 21,768 |
Other debt securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available for sale, amortized cost | 13,117 | 845 |
Available for sale, gross unrealized gains | 15 | 0 |
Available for sale, gross unrealized losses | (9) | (6) |
Available for sale, at fair value | $ 13,123 | $ 839 |
Investment Securities (Held-to-
Investment Securities (Held-to-maturity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Held to maturity- | ||
Held to maturity, amortized cost | $ 125,423 | $ 127,311 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | (501) | (501) |
Carrying Value, Total | 124,922 | 126,810 |
Held to maturity, gross unrealized gains | 2,479 | 2,364 |
Held to maturity, gross unrealized losses | (326) | (615) |
Held to maturity, fair value | 127,075 | 128,559 |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | ||
Held to maturity- | ||
Held to maturity, amortized cost | 3,448 | 3,727 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Carrying Value, Total | 3,448 | 3,727 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | (67) | (116) |
Held to maturity, fair value | 3,381 | 3,611 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Held to maturity- | ||
Held to maturity, amortized cost | 10,218 | 11,882 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Carrying Value, Total | 10,218 | 11,882 |
Held to maturity, gross unrealized gains | 187 | 247 |
Held to maturity, gross unrealized losses | (103) | (130) |
Held to maturity, fair value | 10,302 | 11,999 |
Residential mortgage backed securities - GSE [Member] | ||
Held to maturity- | ||
Held to maturity, amortized cost | 38,326 | 40,565 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Carrying Value, Total | 38,326 | 40,565 |
Held to maturity, gross unrealized gains | 415 | 540 |
Held to maturity, gross unrealized losses | (94) | (113) |
Held to maturity, fair value | 38,647 | 40,992 |
Obligations of state and political subdivisions [Member] | ||
Held to maturity- | ||
Held to maturity, amortized cost | 72,394 | 70,017 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Carrying Value, Total | 72,394 | 70,017 |
Held to maturity, gross unrealized gains | 1,488 | 1,274 |
Held to maturity, gross unrealized losses | (62) | (255) |
Held to maturity, fair value | 73,820 | 71,036 |
Trust preferred debt securities-pooled [Member] | ||
Held to maturity- | ||
Held to maturity, amortized cost | 657 | 657 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | (501) | (501) |
Carrying Value, Total | 156 | 156 |
Held to maturity, gross unrealized gains | 389 | 303 |
Held to maturity, gross unrealized losses | 0 | 0 |
Held to maturity, fair value | 545 | 459 |
Other debt securities [Member] | ||
Held to maturity- | ||
Held to maturity, amortized cost | 380 | 463 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Carrying Value, Total | 380 | 463 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | 0 | (1) |
Held to maturity, fair value | $ 380 | $ 462 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017USD ($)security | Mar. 31, 2017USD ($)security | Jun. 30, 2017USD ($)securityfinancial_institution | Jun. 30, 2016USD ($) | Dec. 31, 2009USD ($) | Dec. 31, 2016USD ($) | |
Schedule of Held-to-maturity Securities [Line Items] | ||||||
Proceeds from sales of securities held to maturity | $ 606,000 | $ 0 | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Restricted stock | $ 4,100,000 | 4,100,000 | $ 4,000,000 | |||
Federal Home Loan Bank, stock | $ 4,000,000 | $ 4,000,000 | 3,900,000 | |||
Other than temporary impairment | $ 865,000 | |||||
Other than temporary impairment loss, portion recognized in earnings | 364,000 | |||||
Other than temporary impairment loss, portion in other comprehensive loss | $ 501,000 | |||||
Mortgage Backed Securities [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Number of mortgage backed securities sold | security | 7 | |||||
Total mortgage backed securities sold | $ 4,200,000 | |||||
Loss realized on sale | $ 1,740 | |||||
Trust preferred debt securities – single issuer [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Number of corporate trust preferred securities issued | security | 4 | 4 | ||||
Number of issuers of corporate trust preferred securities | financial_institution | 2 | |||||
Trust preferred debt securities-pooled [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Number of issuers of corporate trust preferred securities | financial_institution | 2 | |||||
Mortgage Backed Securities [Member] | ||||||
Schedule of Held-to-maturity Securities [Line Items] | ||||||
Number of securities sold | security | 54 | |||||
Proceeds from sales of securities held to maturity | $ 2,000,000 | |||||
Total amount of securities sold (less than $150,000) | $ 150,000 | |||||
Six Mortgage Backed Securities [Member] | Mortgage Backed Securities [Member] | ||||||
Schedule of Held-to-maturity Securities [Line Items] | ||||||
Number of securities sold | security | 6 | |||||
Total amount of securities sold (less than $150,000) | $ 582,000 | |||||
Net gain | $ 24,000 | |||||
Percentage of original principal balance outstanding at the time of purchase (less than 15%) | 15.00% | |||||
Atlantic Community Bankers Bank Stock [Member] | Bankers Bank Stock [Member] | ||||||
Schedule of Available-for-sale Securities [Line Items] | ||||||
Bankers Bank Stock | $ 65,000 | $ 65,000 | $ 65,000 |
Investment Securities (Unrealiz
Investment Securities (Unrealized Losses on Available for Sale and Held to Maturity Securities) (Details) $ in Thousands | Jun. 30, 2017USD ($)security | Dec. 31, 2016USD ($)security |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 83 | 126 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 67,731 | $ 89,158 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (599) | (1,457) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 9,641 | 9,089 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (229) | (230) |
Securities in a continuous unrealized loss position, fair value | 77,372 | 98,247 |
Securities in a continuous unrealized loss position, unrealized losses | $ (828) | $ (1,687) |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 3 | 3 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 6,881 | $ 7,090 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (77) | (151) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, fair value | 6,881 | 7,090 |
Securities in a continuous unrealized loss position, unrealized losses | $ (77) | $ (151) |
Residential collateralized mortgage obligations - GSE [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 8 | 7 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 17,025 | $ 17,242 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (201) | (275) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 1,646 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (23) | 0 |
Securities in a continuous unrealized loss position, fair value | 18,671 | 17,242 |
Securities in a continuous unrealized loss position, unrealized losses | $ (224) | $ (275) |
Residential mortgage backed securities - GSE [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 30 | 29 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 25,807 | $ 26,581 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (133) | (216) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 3,542 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | (16) |
Securities in a continuous unrealized loss position, fair value | 25,807 | 30,123 |
Securities in a continuous unrealized loss position, unrealized losses | $ (133) | $ (232) |
Obligations of state and political subdivisions [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 32 | 74 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 12,224 | $ 25,545 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (124) | (611) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, fair value | 12,224 | 25,545 |
Securities in a continuous unrealized loss position, unrealized losses | $ (124) | $ (611) |
Trust preferred debt securities – single issuer [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 4 | 4 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 0 | $ 0 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | 0 | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 2,366 | 2,272 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (114) | (206) |
Securities in a continuous unrealized loss position, fair value | 2,366 | 2,272 |
Securities in a continuous unrealized loss position, unrealized losses | $ (114) | $ (206) |
Corporate debt securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 3 | 6 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 2,786 | $ 12,700 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (57) | (204) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 4,910 | 1,999 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (90) | (1) |
Securities in a continuous unrealized loss position, fair value | 7,696 | 14,699 |
Securities in a continuous unrealized loss position, unrealized losses | $ (147) | $ (205) |
Other debt securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 3 | 3 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 3,008 | $ 0 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (7) | 0 |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 719 | 1,276 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (2) | (7) |
Securities in a continuous unrealized loss position, fair value | 3,727 | 1,276 |
Securities in a continuous unrealized loss position, unrealized losses | $ (9) | $ (7) |
Investment Securities (Securiti
Investment Securities (Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year or less | $ 3,508 | |
Due after one year through five years | 20,639 | |
Due after five years through ten years | 34,307 | |
Due after ten years | 54,316 | |
Total | 112,770 | |
Fair Value | ||
Due in one year or less | 3,502 | |
Due after one year through five years | 20,747 | |
Due after five years through ten years | 34,422 | |
Due after ten years | 54,281 | |
Available for sale, at fair value | $ 112,952 | $ 103,794 |
Yield | ||
Due in one year or less (percentage) | 3.01% | |
Due after one year through five years (percentage) | 2.18% | |
Due after five years through ten years (percentage) | 2.60% | |
Due after ten years (percentage) | 2.62% | |
Total (percentage) | 2.54% | |
Carrying Value | ||
Due in one year or less | $ 33,723 | |
Due after one year through five years | 17,087 | |
Due after five years through ten years | 20,523 | |
Due after ten years | 53,589 | |
Carrying Value, Total | 124,922 | 126,810 |
Fair Value | ||
Due in one year or less | 33,739 | |
Due after one year through five years | 17,756 | |
Due after five years through ten years | 21,077 | |
Due after ten years | 54,503 | |
Held to maturity, fair value | $ 127,075 | $ 128,559 |
Yield | ||
Due in one year or less (percentage) | 1.56% | |
Due after one year through five years (percentage) | 4.57% | |
Due after five years through ten years (percentage) | 3.50% | |
Due after ten years (percentage) | 3.26% | |
Total (percentage) | 3.02% |
Allowance for Loan Losses and34
Allowance for Loan Losses and Credit Quality (Aging of Loan Portfolio) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 3,506 | $ 6,940 |
Deferred loan fees and costs, net | 711 | 1,737 |
Loans receivables, ending balance | 762,619 | 724,808 |
Recorded Investment 90 Days Accruing | 46 | 24 |
Non-accrual Loans | 6,024 | 5,174 |
30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 866 | 1,418 |
60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 214 | 1,086 |
Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,426 | 4,436 |
Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 759,113 | 717,868 |
Deferred loan fees and costs, net | 711 | 1,737 |
Total Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3,506 | 6,940 |
Total Loans Receivable | 761,908 | 723,071 |
Recorded Investment 90 Days Accruing | 46 | 24 |
Non-accrual Loans | 6,024 | 5,174 |
Total Loans [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 866 | 1,418 |
Total Loans [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 214 | 1,086 |
Total Loans [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,426 | 4,436 |
Total Loans [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 758,402 | 716,131 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 186 |
Total Loans Receivable | 116,464 | 96,035 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 0 | 186 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 186 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 116,464 | 95,849 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 722 | 1,018 |
Total Loans Receivable | 94,235 | 99,650 |
Recorded Investment 90 Days Accruing | 46 | 0 |
Non-accrual Loans | 3,454 | 920 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 122 | 113 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 192 | 115 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 408 | 790 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 93,513 | 98,632 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,580 | 4,390 |
Total Loans Receivable | 285,920 | 242,393 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 2,180 | 3,187 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 712 | 741 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 942 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,868 | 2,707 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 283,340 | 238,003 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Total Loans Receivable | 200,380 | 216,259 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 200,380 | 216,259 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 80 | 956 |
Total Loans Receivable | 42,016 | 44,791 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 80 | 544 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 564 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 80 | 392 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 41,936 | 43,835 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 124 | 390 |
Total Loans Receivable | 22,711 | 23,736 |
Recorded Investment 90 Days Accruing | 0 | 24 |
Non-accrual Loans | 310 | 337 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 32 | 0 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 22 | 29 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 70 | 361 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 22,587 | 23,346 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Total Loans Receivable | 182 | 207 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Other [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment [Member] | Other [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment [Member] | Other [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment [Member] | Other [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 182 | $ 207 |
Allowance for Loan Losses and35
Allowance for Loan Losses and Credit Quality (Narrative) (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)propertyloan | Jun. 30, 2016loan | Jun. 30, 2017USD ($)propertyloan | Jun. 30, 2016loan | Dec. 31, 2016USD ($) | |
Financing Receivable, Recorded Investment [Line Items] | |||||
Other Real Estate Owned | $ 356 | $ 356 | $ 166 | ||
Number of contracts | loan | 0 | 0 | 1 | 0 | |
Recorded investment | $ 2,300 | ||||
Number of troubled debt restructurings | loan | 1 | 0 | |||
Amount of troubled debt restructuring that subsequently defaulted | $ 458 | ||||
Multifamily [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Number of multi-family residential properties | property | 1 | 1 | |||
Multifamily [Member] | Fair Value [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Other Real Estate Owned | $ 190 | $ 190 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Carrying amount | 854 | 854 | 1,121 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | Performing loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Carrying amount | $ 0 | $ 0 | $ 439 |
Allowance for Loan Losses and36
Allowance for Loan Losses and Credit Quality (Commercial and Consumer Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 116,464 | $ 96,035 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 116,163 | 95,548 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 301 | 301 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 186 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 94,235 | 99,650 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 87,086 | 91,908 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,471 | 7,102 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 636 | 611 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,042 | 29 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 285,920 | 242,393 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 266,312 | 223,435 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 13,939 | 14,334 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 5,669 | 4,624 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 200,380 | 216,259 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 200,380 | 216,259 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 42,016 | 44,791 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 41,042 | 43,950 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 682 | 244 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 292 | 597 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 22,711 | 23,736 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 22,401 | 23,375 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Non-performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 310 | 361 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 182 | 207 |
Consumer Portfolio Segment [Member] | Other [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 182 | 207 |
Consumer Portfolio Segment [Member] | Other [Member] | Non-performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Allowance for Loan Losses and37
Allowance for Loan Losses and Credit Quality (Allowance for Loan Losses by Impairment Method) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | $ 342 | $ 260 | ||||
Deferred Loan Fees/Costs | 711 | 1,737 | ||||
Allowance for loan losses, collectively evaluated for impairment | 7,365 | 7,234 | ||||
Allowance for loan losses, ending balance | 7,707 | $ 7,550 | 7,494 | $ 7,482 | $ 7,302 | $ 7,560 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 9,229 | 6,036 | ||||
Loans receivables, collectively evaluated for impairment | 752,536 | 717,651 | ||||
Loans receivables, ending balance | 762,619 | 724,808 | ||||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 854 | 1,121 | ||||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 7 | ||||
Allowance for loan losses, collectively evaluated for impairment | 1,455 | 1,197 | ||||
Allowance for loan losses, ending balance | 1,455 | 1,370 | 1,204 | 975 | 981 | 1,025 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 205 | 391 | ||||
Loans receivables, ending balance | 116,464 | 96,035 | ||||
Loans receivables, collectively evaluated for impairment | 116,259 | 95,644 | ||||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 0 | 0 | ||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 255 | 101 | ||||
Allowance for loan losses, collectively evaluated for impairment | 1,182 | 1,631 | ||||
Allowance for loan losses, ending balance | 1,437 | 1,822 | 1,732 | 964 | 1,348 | 2,005 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 3,492 | 947 | ||||
Loans receivables, ending balance | 94,235 | 99,650 | ||||
Loans receivables, collectively evaluated for impairment | 90,491 | 98,512 | ||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 252 | 191 | ||||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 87 | 114 | ||||
Allowance for loan losses, collectively evaluated for impairment | 2,904 | 2,460 | ||||
Allowance for loan losses, ending balance | 2,991 | 2,634 | 2,574 | 3,415 | 3,300 | 3,049 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 5,142 | 3,817 | ||||
Loans receivables, ending balance | 285,920 | 242,393 | ||||
Loans receivables, collectively evaluated for impairment | 280,176 | 237,646 | ||||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 602 | 930 | ||||
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, collectively evaluated for impairment | 902 | 973 | ||||
Allowance for loan losses, ending balance | 902 | 642 | 973 | 1,190 | 867 | 866 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||||
Loans receivables, ending balance | 200,380 | 216,259 | ||||
Loans receivables, collectively evaluated for impairment | 200,380 | 216,259 | ||||
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 0 | 0 | ||||
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 38 | ||||
Allowance for loan losses, collectively evaluated for impairment | 385 | 329 | ||||
Allowance for loan losses, ending balance | 385 | 365 | 367 | 277 | 192 | 288 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 80 | 544 | ||||
Loans receivables, ending balance | 42,016 | 44,791 | ||||
Loans receivables, collectively evaluated for impairment | 41,936 | 44,247 | ||||
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 0 | 0 | ||||
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, collectively evaluated for impairment | 120 | 112 | ||||
Allowance for loan losses, ending balance | 120 | 122 | 112 | 24 | 19 | 109 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 310 | 337 | ||||
Loans receivables, ending balance | 22,711 | 23,736 | ||||
Loans receivables, collectively evaluated for impairment | 22,401 | 23,399 | ||||
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 0 | 0 | ||||
Consumer Portfolio Segment [Member] | Other [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, collectively evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, ending balance | 0 | 0 | 0 | 0 | 0 | 0 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||||
Loans receivables, ending balance | 182 | 207 | ||||
Loans receivables, collectively evaluated for impairment | 182 | 207 | ||||
Consumer Portfolio Segment [Member] | Other [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | 0 | 0 | ||||
Unallocated [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | ||||
Allowance for loan losses, collectively evaluated for impairment | 417 | 532 | ||||
Allowance for loan losses, ending balance | 417 | $ 595 | 532 | $ 637 | $ 595 | $ 218 |
Loans receivable: | ||||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||||
Loans receivables, ending balance | 0 | 0 | ||||
Loans receivables, collectively evaluated for impairment | 0 | 0 | ||||
Unallocated [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||
Allowance for loan losses: | ||||||
Allowance for loan losses, ending balance | 0 | 0 | ||||
Loans receivable: | ||||||
Loans receivables, ending balance | $ 0 | $ 0 |
Allowance for Loan Losses and38
Allowance for Loan Losses and Credit Quality (Allowance for Loan Losses Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2016 | Mar. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | $ 7,550 | $ 7,494 | $ 7,302 | $ 7,560 | $ 7,494 | $ 7,560 |
Provision (Credit) charged to operations | 150 | 150 | (100) | (200) | 300 | (300) |
Loans charged off | 0 | (101) | (101) | (60) | ||
Recoveries of loans charged off | 7 | 7 | 381 | 2 | ||
Ending Balance | 7,707 | 7,550 | 7,482 | 7,302 | 7,707 | 7,482 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 1,370 | 1,204 | 981 | 1,025 | 1,204 | 1,025 |
Provision (Credit) charged to operations | 85 | 166 | (6) | (44) | ||
Loans charged off | 0 | 0 | 0 | 0 | ||
Recoveries of loans charged off | 0 | 0 | 0 | 0 | ||
Ending Balance | 1,455 | 1,370 | 975 | 981 | 1,455 | 975 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 1,822 | 1,732 | 1,348 | 2,005 | 1,732 | 2,005 |
Provision (Credit) charged to operations | (386) | 88 | (284) | (657) | ||
Loans charged off | 0 | 0 | (101) | 0 | ||
Recoveries of loans charged off | 1 | 2 | 1 | 0 | ||
Ending Balance | 1,437 | 1,822 | 964 | 1,348 | 1,437 | 964 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 2,634 | 2,574 | 3,300 | 3,049 | 2,574 | 3,049 |
Provision (Credit) charged to operations | 352 | 56 | (263) | 311 | ||
Loans charged off | 0 | 0 | 0 | (60) | ||
Recoveries of loans charged off | 5 | 4 | 378 | 0 | ||
Ending Balance | 2,991 | 2,634 | 3,415 | 3,300 | 2,991 | 3,415 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 642 | 973 | 867 | 866 | 973 | 866 |
Provision (Credit) charged to operations | 260 | (331) | 323 | 1 | ||
Loans charged off | 0 | 0 | 0 | 0 | ||
Recoveries of loans charged off | 0 | 0 | 0 | 0 | ||
Ending Balance | 902 | 642 | 1,190 | 867 | 902 | 1,190 |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 365 | 367 | 192 | 288 | 367 | 288 |
Provision (Credit) charged to operations | 20 | 99 | 85 | (96) | ||
Loans charged off | 0 | (101) | 0 | 0 | ||
Recoveries of loans charged off | 0 | 0 | 0 | 0 | ||
Ending Balance | 385 | 365 | 277 | 192 | 385 | 277 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 122 | 112 | 19 | 109 | 112 | 109 |
Provision (Credit) charged to operations | (3) | 9 | 3 | (92) | ||
Loans charged off | 0 | 0 | 0 | 0 | ||
Recoveries of loans charged off | 1 | 1 | 2 | 2 | ||
Ending Balance | 120 | 122 | 24 | 19 | 120 | 24 |
Consumer Portfolio Segment [Member] | Other [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 0 | 0 | 0 | 0 | 0 | 0 |
Provision (Credit) charged to operations | 0 | 0 | 0 | 0 | ||
Loans charged off | 0 | 0 | 0 | 0 | ||
Recoveries of loans charged off | 0 | 0 | 0 | 0 | ||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 |
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||||
Beginning Balance | 595 | 532 | 595 | 218 | 532 | 218 |
Provision (Credit) charged to operations | (178) | 63 | 42 | 377 | ||
Loans charged off | 0 | 0 | 0 | 0 | ||
Recoveries of loans charged off | 0 | 0 | 0 | 0 | ||
Ending Balance | $ 417 | $ 595 | $ 637 | $ 595 | $ 417 | $ 637 |
Allowance for Loan Losses and39
Allowance for Loan Losses and Credit Quality (Impaired Loans Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | $ 4,053 | $ 4,053 | $ 3,030 | ||
Impaired loans with no allowance, unpaid principal balance | 4,223 | 4,223 | 3,201 | ||
Impaired loans with no allowance, average recorded investment | 4,077 | $ 3,577 | 4,225 | $ 3,695 | |
Impaired loans with no allowance, interest income recognized | 177 | 32 | 197 | 53 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 6,030 | 6,030 | 4,127 | ||
Impaired loans with an allowance, unpaid principal balance | 6,030 | 6,030 | 4,143 | ||
Impaired loans, related allowance | 342 | 342 | 260 | ||
Impaired loans with an allowance, average recorded investment | 6,806 | 4,031 | 5,466 | 4,113 | |
Impaired loans with an allowance, interest income recognized | 103 | 22 | 212 | 38 | |
Total: | |||||
Impaired loans, recorded investment | 10,083 | 10,083 | 7,157 | ||
Outstanding balance | 10,253 | 10,253 | 7,344 | ||
Impaired loans, related allowance | 342 | 342 | 260 | ||
Impaired loans, average recorded investment | 10,883 | 7,608 | 9,691 | 7,808 | |
Impaired loans, interest income recognized | 280 | 54 | 409 | 91 | |
Commercial Portfolio Segment [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 3,663 | 3,663 | 2,449 | ||
Impaired loans with no allowance, unpaid principal balance | 3,833 | 3,833 | 2,620 | ||
Impaired loans with no allowance, average recorded investment | 3,599 | 2,016 | 3,699 | 2,234 | |
Impaired loans with no allowance, interest income recognized | 177 | 32 | 197 | 55 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 6,030 | 6,030 | 3,827 | ||
Impaired loans with an allowance, unpaid principal balance | 6,030 | 6,030 | 3,827 | ||
Impaired loans, related allowance | 342 | 342 | 222 | ||
Impaired loans with an allowance, average recorded investment | 6,806 | 4,031 | 5,366 | 4,013 | |
Impaired loans with an allowance, interest income recognized | 103 | 22 | 212 | 38 | |
Total: | |||||
Impaired loans, related allowance | 342 | 342 | 222 | ||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 205 | 205 | 186 | ||
Impaired loans with no allowance, unpaid principal balance | 205 | 205 | 186 | ||
Impaired loans with no allowance, average recorded investment | 188 | 317 | 186 | 255 | |
Impaired loans with no allowance, interest income recognized | 3 | 2 | 6 | 4 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 0 | 0 | 205 | ||
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | 205 | ||
Impaired loans, related allowance | 0 | 0 | 7 | ||
Impaired loans with an allowance, average recorded investment | 137 | 0 | 171 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Impaired loans, recorded investment | 205 | 205 | 391 | ||
Outstanding balance | 205 | 205 | 391 | ||
Impaired loans, related allowance | 0 | 0 | 7 | ||
Impaired loans, average recorded investment | 325 | 317 | 357 | 255 | |
Impaired loans, interest income recognized | 3 | 2 | 6 | 4 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 702 | 702 | 883 | ||
Impaired loans with no allowance, unpaid principal balance | 857 | 857 | 1,054 | ||
Impaired loans with no allowance, average recorded investment | 688 | 448 | 741 | 434 | |
Impaired loans with no allowance, interest income recognized | 82 | 10 | 86 | 21 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 3,042 | 3,042 | 255 | ||
Impaired loans with an allowance, unpaid principal balance | 3,042 | 3,042 | 255 | ||
Impaired loans, related allowance | 255 | 255 | 101 | ||
Impaired loans with an allowance, average recorded investment | 3,680 | 143 | 2,595 | 177 | |
Impaired loans with an allowance, interest income recognized | 60 | 0 | 127 | 0 | |
Total: | |||||
Impaired loans, recorded investment | 3,744 | 3,744 | 1,138 | ||
Outstanding balance | 3,899 | 3,899 | 1,309 | ||
Impaired loans, related allowance | 255 | 255 | 101 | ||
Impaired loans, average recorded investment | 4,368 | 591 | 3,336 | 611 | |
Impaired loans, interest income recognized | 142 | 10 | 213 | 21 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 2,756 | 2,756 | 1,380 | ||
Impaired loans with no allowance, unpaid principal balance | 2,771 | 2,771 | 1,380 | ||
Impaired loans with no allowance, average recorded investment | 2,723 | 1,251 | 2,772 | 1,545 | |
Impaired loans with no allowance, interest income recognized | 92 | 20 | 105 | 30 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 2,988 | 2,988 | 3,367 | ||
Impaired loans with an allowance, unpaid principal balance | 2,988 | 2,988 | 3,367 | ||
Impaired loans, related allowance | 87 | 87 | 114 | ||
Impaired loans with an allowance, average recorded investment | 2,989 | 3,888 | 2,600 | 3,836 | |
Impaired loans with an allowance, interest income recognized | 43 | 22 | 85 | 38 | |
Total: | |||||
Impaired loans, recorded investment | 5,744 | 5,744 | 4,747 | ||
Outstanding balance | 5,759 | 5,759 | 4,747 | ||
Impaired loans, related allowance | 87 | 87 | 114 | ||
Impaired loans, average recorded investment | 5,712 | 5,139 | 5,372 | 5,381 | |
Impaired loans, interest income recognized | 135 | 42 | 190 | 68 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with no allowance, unpaid principal balance | 0 | 0 | 0 | ||
Impaired loans with no allowance, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | 0 | 0 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | 0 | ||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Impaired loans, recorded investment | 0 | 0 | 0 | ||
Outstanding balance | 0 | 0 | 0 | ||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Impaired loans, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans, interest income recognized | 0 | 0 | 0 | 0 | |
Residential Portfolio Segment [Member] | Residential Real Estate Loans [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 80 | 80 | 244 | ||
Impaired loans with no allowance, unpaid principal balance | 80 | 80 | 244 | ||
Impaired loans with no allowance, average recorded investment | 181 | 1,298 | 210 | 1,198 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | 0 | (2) | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 0 | 0 | 300 | ||
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | 316 | ||
Impaired loans, related allowance | 0 | 0 | 38 | ||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 100 | 100 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Impaired loans, recorded investment | 80 | 80 | 544 | ||
Outstanding balance | 80 | 80 | 560 | ||
Impaired loans, related allowance | 0 | 0 | 38 | ||
Impaired loans, average recorded investment | 181 | 1,298 | 310 | 1,298 | |
Impaired loans, interest income recognized | 0 | 0 | 0 | (2) | |
Consumer Portfolio Segment [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 310 | 310 | 337 | ||
Impaired loans with no allowance, unpaid principal balance | 310 | 310 | 337 | ||
Impaired loans with no allowance, average recorded investment | 297 | 263 | 316 | 263 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | 0 | 0 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | 0 | ||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Impaired loans, recorded investment | 310 | 310 | 337 | ||
Outstanding balance | 310 | 310 | 337 | ||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Impaired loans, average recorded investment | 297 | 263 | 316 | 263 | |
Impaired loans, interest income recognized | 0 | 0 | 0 | 0 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 310 | 310 | 337 | ||
Impaired loans with no allowance, unpaid principal balance | 310 | 310 | 337 | ||
Impaired loans with no allowance, average recorded investment | 297 | 263 | 316 | 263 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | 0 | 0 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | 0 | ||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 | 0 | |
Total: | |||||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Consumer Portfolio Segment [Member] | Other [Member] | |||||
With no allowance: | |||||
Impaired loans with no allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with no allowance, unpaid principal balance | 0 | 0 | 0 | ||
Impaired loans with no allowance, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | 0 | 0 | |
With a related allowance: | |||||
Impaired loans with an allowance, recorded investment | 0 | 0 | 0 | ||
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | 0 | ||
Impaired loans, related allowance | 0 | 0 | 0 | ||
Impaired loans with an allowance, average recorded investment | 0 | 0 | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | $ 0 | 0 | $ 0 | |
Total: | |||||
Impaired loans, related allowance | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses and40
Allowance for Loan Losses and Credit Quality (Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 10,253 | $ 7,344 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 1,042 | 1,470 |
Carrying amount | $ 854 | $ 1,121 |
Allowance for Loan Losses and41
Allowance for Loan Losses and Credit Quality (Changes in Accretable Discount for Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance at beginning of period | $ 23 | $ 52 | $ 30 | $ 73 |
Transfer from non-accretable discount | 161 | 0 | 161 | 0 |
Accretion of discount | (13) | (8) | (20) | (29) |
Balance at end of period | $ 171 | $ 44 | $ 171 | $ 44 |
Allowance for Loan Losses and42
Allowance for Loan Losses and Credit Quality (Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure) (Details) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 1 | 3 |
Recorded Investment | $ | $ 80 | $ 524 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 485,873 | |
Number of shares available for grant | 148,462 | |
Share-based compensation expense | $ 28 | $ 22 |
Compensation not yet recognized, stock options | $ 103 | |
Compensation cost not yet recognized, period for recognition | 4 years | |
Employees at or over Retirement Age [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Retirement age | 65 years | |
Employees at or over Retirement Age [Member] | Percentage Vested Upon Retirement [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage vested upon retirement | 100.00% | |
Employee Stock Option [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expiration period | 10 years | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 456 | $ 340 |
Share-based awards other than options | $ 1,600 | |
Restricted Stock [Member] | Employees [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 4 years | |
Restricted Stock [Member] | Non-employee directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 2 years | |
Compensation cost not yet recognized, period for recognition | 2 years |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Transactions under Stock Plans) (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | |
Number of shares outstanding, beginning of period (in shares) | shares | 165,801 |
Number of shares granted (in shares) | shares | 9,900 |
Number of shares exercised (in shares) | shares | (12,361) |
Number of shares forfeited (in shares) | shares | (715) |
Number of shares expired (in shares) | shares | 0 |
Number of shares outstanding, end of period (in shares) | shares | 162,625 |
Number of shares exercisable, end of period (in shares) | shares | 132,566 |
Weighted Average Exercise Price (in dollars per share) | |
Weighted average exercise price outstanding, beginning of period (in dollars per share) | $ / shares | $ 7.35 |
Weighted average exercise price granted (in dollars per share) | $ / shares | 18.65 |
Weighted average exercise price exercised (in dollars per share) | $ / shares | 7.85 |
Weighted average exercise price forfeited (in dollars per share) | $ / shares | 15.71 |
Weighted average exercise price expired (in dollars per share) | $ / shares | 0 |
Weighted average exercise price outstanding, end of period (in dollars per share) | $ / shares | 7.97 |
Weighted average exercise price exercisable, end of period (in dollars per share) | $ / shares | $ 6.88 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Weighted average remaining contractual term outstanding (in years), end of period | 4 years 8 months 12 days |
Weighted average remaining contractual term exercisable (in years), end of period | 3 years 10 months 24 days |
Aggregate intrinsic value outstanding, end of period | $ | $ 1,574 |
Aggregate intrinsic value exercisable, end of period | $ | $ 1,428 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value and Weighted Average Assumptions) (Details) | 6 Months Ended | |
Jun. 30, 2017$ / shares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Fair value of options granted (in dollars per share) | $ 6.05 | |
Risk-free rate of return (percentage) | 2.45% | |
Expected option life in years | 7 years | |
Expected volatility (percentage) | 31.25% | |
Expected dividends (percentage) | 1.19% | [1] |
[1] | The Company declared its first cash dividend on September 15, 2016. |
Share-Based Compensation (Sch46
Share-Based Compensation (Schedule of Restricted Shares Activity) (Details) | 6 Months Ended |
Jun. 30, 2017$ / sharesshares | |
Number of Shares | |
Non-vested at beginning of period (in shares) | shares | 143,259 |
Granted (in shares) | shares | 39,100 |
Vested (in shares) | shares | (26,210) |
Forfeited (in shares) | shares | (1,287) |
Non-vested at end of period (in shares) | shares | 154,862 |
Average Grant Date Fair Value (in dollars per share) | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 9.02 |
Granted (in dollars per share) | $ / shares | 18.26 |
Vested (in dollars per share) | $ / shares | 11.08 |
Forfeited (in dollars per share) | $ / shares | 14.94 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 10.96 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Retirement Benefits [Abstract] | ||
Period of service | 6 months | |
Cash surrender value of life insurance | $ 22.4 | $ 22.2 |
Benefit Plans (Schedule of Comp
Benefit Plans (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Retirement Benefits [Abstract] | ||||
Service cost | $ 79 | $ 56 | $ 112 | $ 105 |
Interest cost | 33 | 47 | 78 | 85 |
Actuarial gain recognized | (24) | (46) | (43) | (72) |
Net periodic benefit cost | $ 88 | $ 57 | $ 147 | $ 118 |
Other Comprehensive Income (L49
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | $ (251) | $ (856) |
Income Tax Effect | 36 | 256 |
Net-of-Tax Amount | (215) | (600) |
Unrealized net holding gains (losses) on available for sale securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | 182 | |
Income Tax Effect | (106) | |
Net-of-Tax Amount | 76 | |
Before-Tax Amount | 184 | (464) |
Income Tax Effect | (107) | 130 |
Net-of-Tax Amount | 77 | (334) |
Unrealized net holding gains (losses) on available for sale securities [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | 2 | 0 |
Income Tax Effect | (1) | 0 |
Net-of-Tax Amount | 1 | 0 |
Unrealized impairment (loss) on held to maturity security [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | (501) | (501) |
Income Tax Effect | 170 | 170 |
Net-of-Tax Amount | (331) | (331) |
Unfunded Pension Liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | 109 | |
Income Tax Effect | (44) | |
Net-of-Tax Amount | 65 | |
Plan actuarial gains (losses) included in other comprehensive income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | 66 | 269 |
Income Tax Effect | (27) | (108) |
Net-of-Tax Amount | $ 39 | 161 |
Plan actuarial gains (losses) included in other comprehensive income [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Before-Tax Amount | (160) | |
Income Tax Effect | 64 | |
Net-of-Tax Amount | $ (96) |
Other Comprehensive Income (L50
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Changes in the Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | $ 104,801 | $ 95,960 | ||
Other comprehensive income before reclassifications | $ 347 | $ 490 | 459 | 820 |
Amounts reclassified from accumulated other comprehensive income (loss) | (28) | (43) | ||
Total other comprehensive income | 334 | 462 | 385 | 777 |
Balance, end of period | 108,848 | 101,628 | 108,848 | 101,628 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (549) | 185 | (600) | (130) |
Total other comprehensive income | 385 | 777 | ||
Balance, end of period | (215) | 647 | (215) | 647 |
Unrealized Holding Gains (Losses) on Available for Sale Securities [Member] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (271) | 420 | (334) | 90 |
Other comprehensive income before reclassifications | 347 | 470 | 459 | 800 |
Amounts reclassified from accumulated other comprehensive income (loss) | 1 | 0 | (48) | 0 |
Total other comprehensive income | 348 | 470 | 411 | 800 |
Balance, end of period | 77 | 890 | 77 | 890 |
Unrealized Impairment Loss on Held to Maturity Security [Member] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | (331) | (331) | (331) | (331) |
Other comprehensive income before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | 0 | 0 |
Total other comprehensive income | 0 | 0 | 0 | 0 |
Balance, end of period | (331) | (331) | (331) | (331) |
Unfunded Pension Liability [Member] | ||||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||||
Balance, beginning of period | 53 | 96 | 65 | 111 |
Other comprehensive income before reclassifications | 0 | 20 | 0 | 20 |
Amounts reclassified from accumulated other comprehensive income (loss) | (14) | (28) | (26) | (43) |
Total other comprehensive income | (14) | (8) | (26) | (23) |
Balance, end of period | $ 39 | $ 88 | $ 39 | $ 88 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 112,952 | $ 103,794 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 17,202 | 12,826 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 95,750 | 90,968 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 3,500 | 3,479 |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 3,500 | 3,479 |
U. S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) and agencies [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 25,670 | 22,560 |
Residential collateralized mortgage obligations - GSE [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential collateralized mortgage obligations - GSE [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 25,670 | 22,560 |
Residential collateralized mortgage obligations - GSE [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential mortgage backed securities - GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 22,999 | 31,476 |
Residential mortgage backed securities - GSE [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Residential mortgage backed securities - GSE [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 22,999 | 31,476 |
Residential mortgage backed securities - GSE [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Obligations of state and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 20,328 | 21,400 |
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 20,328 | 21,400 |
Obligations of state and political subdivisions [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Trust preferred debt securities – single issuer [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 2,366 | 2,272 |
Trust preferred debt securities – single issuer [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 945 | 0 |
Trust preferred debt securities – single issuer [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 1,421 | 2,272 |
Trust preferred debt securities – single issuer [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Corporate debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 24,966 | 21,768 |
Corporate debt securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 16,257 | 12,826 |
Corporate debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 8,709 | 8,942 |
Corporate debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Other debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 13,123 | 839 |
Other debt securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 0 | 0 |
Other debt securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 13,123 | 839 |
Other debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 0 | $ 0 |
Fair Value Disclosures (Finan52
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Non-recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 6,124 | $ 4,130 |
Other real estate owned | 190 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 6,124 | $ 4,130 |
Other real estate owned | $ 190 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) $ in Thousands | Jun. 30, 2017USD ($)loan | Dec. 31, 2016USD ($)loan |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investment | $ 10,083 | $ 7,157 |
Impaired loans, related allowance | $ 342 | $ 260 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans | loan | 10 | 9 |
Impaired loans, recorded investment | $ 6,500 | $ 4,400 |
Impaired loans, related allowance | $ 342 | $ 255 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Qualitative Information) (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Fair Value Qualitative Information [Line Items] | ||
Impaired loans | $ 6,124 | $ 4,130 |
Other real estate owned | $ 190 | |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 13.00% | 3.00% |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 42.00% | 100.00% |
Impaired Loans [Member] | Weighted Average [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 32.30% | 29.10% |
Other Real Estate Owned [Member] | Weighted Average [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 0.00% |
Fair Value Disclosures (Estimat
Fair Value Disclosures (Estimated Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 14,211 | $ 14,886 |
Securities available for sale | 112,952 | 103,794 |
Securities held to maturity | 124,922 | 126,810 |
Securities held to maturity, fair value | 127,075 | 128,559 |
Loans held for sale | 3,594 | 14,829 |
Net loans | 754,912 | 717,314 |
Accrued interest receivable | 3,060 | 3,095 |
Deposits | (864,415) | (834,516) |
Accrued interest payable | (812) | (866) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 17,202 | 12,826 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 95,750 | 90,968 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 0 | 0 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 14,211 | 14,886 |
Securities available for sale | 112,952 | 103,794 |
Securities held to maturity | 124,922 | 126,810 |
Loans held for sale | 3,594 | 14,829 |
Net loans | 754,912 | 717,314 |
SBA servicing asset | 665 | 605 |
Interest rate lock derivative | 145 | 123 |
Accrued interest receivable | 3,060 | 3,095 |
FHLB stock | 4,003 | 3,962 |
Deposits | (864,415) | (834,516) |
Borrowings | (73,825) | (73,050) |
Redeemable subordinated debentures, fair value | (18,557) | (18,557) |
Accrued interest payable | (812) | (866) |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 14,211 | 14,668 |
Securities available for sale | 112,952 | 103,794 |
Securities held to maturity, fair value | 127,075 | 128,559 |
Loans held for sale, fair value | 3,651 | 15,103 |
Net loans, fair value | 762,068 | 721,285 |
SBA servicing asset | 822 | 822 |
Interest rate lock derivative | 145 | 123 |
Accrued interest receivable, fair value | 3,060 | 3,095 |
FHLB stock | 4,003 | 3,962 |
Deposits, fair value | (863,537) | (834,050) |
Borrowings, fair value | (73,848) | (73,222) |
Redeemable subordinated debentures, fair value | (12,150) | (11,922) |
Accrued interest payable, fair value | (812) | (866) |
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 14,211 | 14,668 |
Securities available for sale | 17,202 | 12,826 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Securities available for sale | 95,750 | 90,968 |
Securities held to maturity, fair value | 127,075 | 128,559 |
Loans held for sale, fair value | 3,651 | 15,103 |
SBA servicing asset | 822 | 822 |
Interest rate lock derivative | 145 | 123 |
Accrued interest receivable, fair value | 3,060 | 3,095 |
FHLB stock | 4,003 | 3,962 |
Deposits, fair value | (863,537) | (834,050) |
Borrowings, fair value | (73,848) | (73,222) |
Redeemable subordinated debentures, fair value | (12,150) | (11,922) |
Accrued interest payable, fair value | (812) | (866) |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Net loans, fair value | $ 762,068 | $ 721,285 |