Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
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 | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Entity Common stock, Shares Outstanding | 8,363,466 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and due from banks | $ 6,929 | $ 5,037 |
Interest-earning deposits | 9,066 | 13,717 |
Total cash and cash equivalents | 15,995 | 18,754 |
Investment securities: | ||
Available for sale, at fair value | 112,495 | 105,458 |
Held to maturity (fair value of $103,351 and $111,865 at March 31, 2018 and December 31, 2017, respectively) | 102,756 | 110,267 |
Total investment securities | 215,251 | 215,725 |
Loans held for sale | 1,919 | 4,254 |
Loans | 776,661 | 789,906 |
Less: allowance for loan losses | (8,297) | (8,013) |
Net loans | 768,364 | 781,893 |
Premises and equipment, net | 10,591 | 10,705 |
Accrued interest receivable | 3,202 | 3,478 |
Bank-owned life insurance | 24,272 | 25,051 |
Goodwill and intangible assets | 12,404 | 12,496 |
Other assets | 8,412 | 6,918 |
Total assets | 1,060,410 | 1,079,274 |
Deposits | ||
Non-interest bearing | 192,771 | 196,509 |
Interest bearing | 698,315 | 725,497 |
Total deposits | 891,086 | 922,006 |
Overnight borrowings | 29,825 | 20,500 |
Redeemable subordinated debentures | 18,557 | 18,557 |
Accrued interest payable | 775 | 804 |
Accrued expenses and other liabilities | 6,933 | 5,754 |
Total liabilities | 947,176 | 967,621 |
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; 8,145,590 and 8,116,201 shares issued and 8,112,292 and 8,082,903 shares outstanding as of March 31, 2018 and December 31, 2017, respectively | 73,192 | 72,935 |
Retained earnings | 42,190 | 39,822 |
Treasury stock, 33,298 shares at March 31, 2018 and December 31, 2017 | (368) | (368) |
Accumulated other comprehensive loss | (1,780) | (736) |
Total shareholders' equity | 113,234 | 111,653 |
Total liabilities and shareholders' equity | $ 1,060,410 | $ 1,079,274 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value (in Dollars) | $ 103,351 | $ 111,865 |
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 | 8,145,590 | 8,116,201 |
Common Stock, shares outstanding | 8,112,292 | 8,082,903 |
Treasury stock (in shares) | 33,298 | 33,298 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest income | ||
Loans, including fees | $ 9,536 | $ 8,043 |
Securities: | ||
Taxable | 866 | 815 |
Tax-exempt | 515 | 553 |
Federal funds sold and short-term investments | 138 | 72 |
Total interest income | 11,055 | 9,483 |
Interest expense | ||
Deposits | 1,219 | 1,043 |
Borrowings | 7 | 127 |
Redeemable subordinated debentures | 150 | 119 |
Total interest expense | 1,376 | 1,289 |
Net interest income | 9,679 | 8,194 |
Provision for loan losses | 225 | 150 |
Net interest income after provision for loan losses | 9,454 | 8,044 |
Non-interest income | ||
Service charges on deposit accounts | 150 | 154 |
Gain on sales of loans | 1,149 | 1,589 |
Income on Bank-owned life insurance | 114 | 130 |
Gain on sales of securities | 6 | 106 |
Other income | 466 | 434 |
Total non-interest income | 1,885 | 2,413 |
Non-interest expense | ||
Salaries and employee benefits | 4,738 | 4,501 |
Occupancy expense | 812 | 838 |
Data processing expenses | 309 | 318 |
FDIC insurance expense | 130 | 80 |
Merger-related expenses | 164 | 0 |
Other operating expenses | 1,492 | 1,919 |
Total non-interest expenses | 7,645 | 7,656 |
Income before income taxes | 3,694 | 2,801 |
Income taxes | 841 | 852 |
Net income | $ 2,853 | $ 1,949 |
Net income per common share | ||
Basic (in Dollars per share) | $ 0.35 | $ 0.24 |
Diluted (in Dollars per share) | $ 0.34 | $ 0.23 |
Weighted average shares outstanding | ||
Basic (in Shares) | 8,111,490 | 8,026,037 |
Diluted (in Shares) | 8,386,751 | 8,304,589 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,853 | $ 1,949 | |
Unrealized holding (losses) gains on securities available for sale | |||
Unrealized holding (losses) gains on securities available for sale | (1,351) | 181 | |
Tax effect | 322 | (69) | |
Net of tax amount | (1,029) | 112 | |
Reclassification adjustment for losses (gains) on securities available for sale | |||
Reclassification adjustment for losses (gains) on securities available for sale | [1] | (6) | (82) |
Tax effect | [2] | 2 | 33 |
Net of tax amount | (4) | (49) | |
Reclassification adjustment for actuarial gains for unfunded pension liability | |||
Income | [3] | (15) | (19) |
Tax effect | [2] | 4 | 7 |
Net of tax amount | (11) | (12) | |
Total other comprehensive (loss) income | (1,044) | 51 | |
Comprehensive income | $ 1,809 | $ 2,000 | |
[1] | Included in gain on sale of securities 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] |
Beginning balance at Dec. 31, 2016 | $ 104,801 | $ 71,695 | $ 34,074 | $ (368) | $ (600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,949 | 1,949 | |||
Exercise of stock options | 36 | 36 | |||
Share-based compensation | 199 | 199 | |||
Dividends on common stock ($0.05 per share 2017 Q1 YTD and $0.06 per share 2018 Q1 YTD ) | (401) | (401) | |||
Other comprehensive income (loss) | 51 | 51 | |||
Ending balance at Mar. 31, 2017 | 106,635 | 71,930 | 35,622 | (368) | (549) |
Beginning balance at Dec. 31, 2017 | 111,653 | 72,935 | 39,822 | (368) | (736) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 2,853 | 2,853 | |||
Exercise of stock options | 20 | 20 | |||
Share-based compensation | 237 | 237 | |||
Dividends on common stock ($0.05 per share 2017 Q1 YTD and $0.06 per share 2018 Q1 YTD ) | (485) | (485) | |||
Other comprehensive income (loss) | (1,044) | (1,044) | |||
Ending balance at Mar. 31, 2018 | $ 113,234 | $ 73,192 | $ 42,190 | $ (368) | $ (1,780) |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock issued for stock options exercised (in Shares) | 2,989 | 5,438 |
Cash dividends declared per share (in dollars per share) | $ 0.06 | $ 0.05 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Operating Activities: | ||
Net income | $ 2,853 | $ 1,949 |
Adjustments to reconcile net income to net cash provided by operating activities- | ||
Provision for loan losses | 225 | 150 |
Depreciation and amortization | 332 | 350 |
Net amortization of premiums and discounts on securities | 152 | 254 |
SBA discount accretion | (73) | (52) |
Gains on sales and calls of securities available for sale | (6) | (106) |
Gains on sales of loans held for sale | (1,149) | (1,589) |
Originations of loans held for sale | (25,471) | (26,933) |
Proceeds from sales of loans held for sale | 28,955 | 39,991 |
Income on Bank–owned life insurance | (128) | (130) |
Loss on cash surrender value on Bank-owned life insurance | 14 | 0 |
Share-based compensation expense | 237 | 199 |
Increase in deferred tax asset | (36) | 0 |
Decrease in accrued interest receivable | 276 | 306 |
Increase in other assets | (991) | (508) |
Decrease in accrued interest payable | (29) | (34) |
Increase (decrease) in accrued expenses and other liabilities | 1,164 | (1,403) |
Net cash provided by operating activities | 6,325 | 12,444 |
Purchases of securities: | ||
Available for sale | (12,057) | (9,186) |
Held to maturity | (1,200) | (13,975) |
Proceeds from maturities and payments of securities: | ||
Available for sale | 3,584 | 5,867 |
Held to maturity | 8,645 | 14,208 |
Proceeds from sales of securities: | ||
Available for sale | 0 | 1,449 |
Held to maturity | 0 | 582 |
Proceeds from Bank-owned life insurance | 893 | 0 |
Net purchase of restricted stock | (195) | |
Net redemption of restricted stock | 2,837 | |
Net decrease in loans | 13,377 | 48,090 |
Capital expenditures | (71) | (177) |
Net cash provided by investing activities | 12,976 | 49,695 |
Financing Activities: | ||
Exercise of stock options | 20 | 36 |
Cash dividends paid to shareholders | (485) | (401) |
Net (decrease) increase in deposits | (30,920) | 34,304 |
Increase (decrease) in overnight borrowings | 9,325 | (63,050) |
Net cash used in financing activities | (22,060) | (29,111) |
(Decrease) increase in cash and cash equivalents | (2,759) | 33,028 |
Cash and Cash Equivalents at Beginning of Period | 18,754 | 14,886 |
Cash and Cash Equivalents at End of Period | 15,995 | 47,914 |
Cash paid during the period for - | ||
Interest | 1,405 | 1,323 |
Income taxes | 62 | 1,527 |
Transfer of loans to other real estate owned | $ 0 | $ 265 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
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. 1 ST 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 for the year ended December 31, 2017 , filed with the SEC on March 19, 2018. In the opinion of the Company, all adjustments (consisting only of normal recurring accruals) that 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. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2018 for items that should potentially be recognized or disclosed in these financial statements. The evaluation was conducted through the date these financial statements were issued. Adoption of New Accounting Standards ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "Topic 606"), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain or loss from the transfer of nonfinancial assets, such as other real estate owned ("OREO"). The majority of the Company's revenues come from interest income, other services to customers and other sources, including loans, leases and securities that are outside the scope of Topic 606. The Company's services that fall within the scope of Topic 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of Topic 606 include service charges on deposits, interchange income, other services and the sale of OREO. Refer to Note 5 - Revenue from Contracts with Customers - for further discussion on the Company's accounting policies for revenue sources within the scope of Topic 606. The Company adopted Topic 606 using the modified retrospective method for reporting periods beginning after January 1, 2018. The Company did not have any contracts that were not completed as of January 1, 2018. The adoption of Topic 606 did not result in a change to the accounting for any of the in-scope revenue streams; therefore, no cumulative effect adjustment was recorded. 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. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The adoption of this guidance in 2018 did not have a material impact on the Company's 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 the Company, 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 adoption of this guidance in 2018 did not have a material impact on the Company's 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 the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company currently classifies cash flows related to BOLI in accordance with the guidance, and the adoption of this guidance in 2018 did not have a material impact on its consolidated financial statements. 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. |
Net Income Per Common Share
Net Income Per Common Share | 3 Months Ended |
Mar. 31, 2018 | |
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. Awards of restricted shares are included in outstanding shares when granted. Unvested restricted shares are entitled to non-forfeitable dividends and participate in undistributed earnings with common shares. Awards of this nature are considered participating securities and basic and diluted earnings per share are computed under the two-class method. 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. For the quarters ended March 31, 2018 and 2017 , 19,350 and 9,900 options, respectively, were anti-dilutive and were not included in the computation of diluted earnings per common share. The following table illustrates the calculation of both basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: March 31, (Dollars in thousands, except per share data) 2018 2017 Net income $ 2,853 $ 1,949 Basic weighted average shares outstanding 8,111,490 8,026,037 Plus: common stock equivalents 275,261 278,552 Diluted weighted average shares outstanding 8,386,751 8,304,589 Earnings per share: Basic $ 0.35 $ 0.24 Diluted $ 0.34 $ 0.23 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities A summary of amortized cost and approximate fair value of investment securities available for sale follows: March 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ 1,997 $ — $ (55 ) $ 1,942 Residential collateralized mortgage obligations - GSE 25,959 10 (726 ) 25,243 Residential mortgage backed securities - GSE 13,238 67 (168 ) 13,137 Obligations of state and political subdivisions 19,243 90 (392 ) 18,941 Trust preferred debt securities - single issuer 2,482 — (144 ) 2,338 Corporate debt securities 27,892 10 (520 ) 27,382 Other debt securities 23,611 8 (107 ) 23,512 Total $ 114,422 $ 185 $ (2,112 ) $ 112,495 December 31, 2017 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities ("GSE") and agencies $ 1,997 $ — $ (30 ) $ 1,967 Residential collateralized mortgage obligations - GSE 27,688 18 (381 ) 27,325 Residential mortgage backed securities - GSE 14,231 129 (72 ) 14,288 Obligations of state and political subdivisions 19,575 227 (82 ) 19,720 Trust preferred debt securities - single issuer 2,481 — (132 ) 2,349 Corporate debt securities 27,917 14 (248 ) 27,683 Other debt securities 12,140 12 (26 ) 12,126 Total $ 106,029 $ 400 $ (971 ) $ 105,458 A summary of amortized cost, carrying value and approximate fair value of investment securities held to maturity follows: March 31, 2018 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities and obligations of U.S. government-sponsored entities ("GSE") and agencies $ 3,233 $ — $ 3,233 $ — $ (89 ) $ 3,144 Residential collateralized mortgage obligations - GSE 8,138 — 8,138 37 (173 ) 8,002 Residential mortgage backed securities - GSE 33,359 — 33,359 126 (502 ) 32,983 Obligations of state and political subdivisions 57,597 — 57,597 876 (147 ) 58,326 Trust preferred debt securities - pooled 657 (501 ) 156 467 — 623 Other debt securities 273 — 273 — — 273 Total $ 103,257 $ (501 ) $ 102,756 $ 1,506 $ (911 ) $ 103,351 December 31, 2017 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities and obligations of U.S. government-sponsored entities ("GSE") and agencies $ 3,234 $ — $ 3,234 $ — $ (84 ) $ 3,150 Residential collateralized mortgage obligations - GSE 8,701 — 8,701 94 (123 ) 8,672 Residential mortgage backed securities - GSE 34,072 — 34,072 231 (127 ) 34,176 Obligations of state and political subdivisions 63,797 — 63,797 1,224 (35 ) 64,986 Trust preferred debt securities - pooled 657 (501 ) 156 418 — 574 Other debt securities 307 — 307 — — 307 Total $ 110,768 $ (501 ) $ 110,267 $ 1,967 $ (369 ) $ 111,865 Restricted stock was included in other assets at March 31, 2018 and December 31, 2017 and totaled $1.7 million and $1.6 million , respectively. Restricted stock consisted of $1.7 million of Federal Home Loan Bank of New York stock and $65,000 of Atlantic Community Bankers Bank stock at March 31, 2018 and $1.5 million of Federal Home Loan Bank of New York stock and $65,000 of Atlantic Community Bankers Bank stock at December 31, 2017 . 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 March 31, 2018 . 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. March 31, 2018 (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 1,189 $ 1,188 1.76 % Due after one year through five years 30,644 30,215 2.60 Due after five years through ten years 25,346 24,938 2.67 Due after ten years 57,243 56,154 2.62 Total $ 114,422 $ 112,495 2.62 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 25,444 $ 25,506 2.11 % Due after one year through five years 15,964 16,444 4.03 Due after five years through ten years 16,942 17,087 3.22 Due after ten years 44,406 44,314 2.96 Total $ 102,756 $ 103,351 2.96 % 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 March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 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 entities (GSE) and agencies 2 $ 1,942 $ (55 ) $ 3,144 $ (89 ) $ 5,086 $ (144 ) Residential collateralized mortgage obligations - GSE 20 19,881 (490 ) 8,256 (409 ) $ 28,137 $ (899 ) Residential mortgage backed securities - GSE 53 35,284 (560 ) 2,939 (110 ) $ 38,223 $ (670 ) Obligations of state and political subdivisions 68 21,414 (489 ) 2,540 (50 ) $ 23,954 $ (539 ) Trust preferred debt securities - single issuer 4 — — 2,338 (144 ) $ 2,338 $ (144 ) Corporate debt securities 8 18,784 (305 ) 7,581 (215 ) $ 26,365 $ (520 ) Other debt securities 8 20,916 (106 ) 19 (1 ) $ 20,935 $ (107 ) Total temporarily impaired securities 163 $ 118,221 $ (2,005 ) $ 26,817 $ (1,018 ) $ 145,038 $ (3,023 ) December 31, 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 2 $ 1,967 $ (30 ) $ 3,150 $ (84 ) $ 5,117 $ (114 ) Residential collateralized mortgage obligations - GSE 11 19,237 (205 ) 8,788 (299 ) $ 28,025 $ (504 ) Residential mortgage backed securities - GSE 35 21,770 (141 ) 3,074 (58 ) $ 24,844 $ (199 ) Obligations of state and political subdivisions 42 11,594 (82 ) 2,717 (35 ) $ 14,311 $ (117 ) Trust preferred debt securities - single issuer 4 — — 2,349 (132 ) $ 2,349 $ (132 ) Corporate debt securities 7 11,967 (98 ) 7,662 (150 ) $ 19,629 $ (248 ) Other debt securities 4 8,840 (25 ) 21 (1 ) $ 8,861 $ (26 ) Total temporarily impaired securities 105 $ 75,375 $ (581 ) $ 27,761 $ (759 ) $ 103,136 $ (1,340 ) U.S. Treasury securities and obligations of U.S. Government sponsored entitites 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. Both of the issuers 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 March 31, 2018 |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 3 Months Ended |
Mar. 31, 2018 | |
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 March 31, 2018 : (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 $ 1,525 $ 498 $ — $ 2,023 $ 121,678 $ 123,701 $ — $ — Commercial Business 303 17 1,082 1,402 90,395 91,797 — 4,163 Commercial Real Estate 7,090 537 2,422 10,049 326,013 336,062 — 2,422 Mortgage Warehouse Lines — — — — 162,729 162,729 — — Residential Real Estate 510 — 663 1,173 40,451 41,624 — 663 Consumer Loans to Individuals 400 — 269 669 19,406 20,075 — 485 Other — — — — 175 175 — — Total loans $ 9,828 $ 1,052 $ 4,436 $ 15,316 $ 760,847 776,163 $ — $ 7,733 Deferred loan costs, net 498 Total loans, net $ 776,661 The following table provides an aging of the loan portfolio by loan class at December 31, 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 $ — $ — $ — $ — $ 136,412 $ 136,412 $ — $ — Commercial Business 180 545 619 1,344 91,562 92,906 — 4,212 Commercial Real Estate 540 — 2,465 3,005 305,919 308,924 — 2,465 Mortgage Warehouse Lines — — — — 189,412 189,412 — — Residential Real Estate 911 256 69 1,236 39,258 40,494 — 69 Consumer Loans to Individuals 119 — 116 235 20,790 21,025 — 368 Other — — — — 183 183 — — Total loans $ 1,750 $ 801 $ 3,269 $ 5,820 $ 783,536 789,356 $ — $ 7,114 Deferred loan costs, net 550 Total loans, net $ 789,906 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. At March 31, 2018 and December 31, 2017 , there were no purchased credit impaired ("PCI") loans that 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 their 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 Company and adequately margined. Loans that are based upon "blue chip" stocks listed on the major stock 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 management 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 Company management that require closer supervision. Such problems have not developed to the point that requires a "special mention" rating. This category also covers situations where the Company 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 Company's credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. 5. Substandard - A "substandard" loan is inadequately protected by the current 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 Company will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified as "doubtful" has all the weaknesses inherent in a loan 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 occur in the future. The following table provides a breakdown of the loan portfolio by credit quality indicator at March 31, 2018 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Grade: Pass $ 120,428 $ 83,387 $ 316,000 $ 162,729 $ 40,675 Special Mention 3,273 3,769 13,676 — 65 Substandard — 4,380 6,386 — 884 Doubtful — 261 — — — Total $ 123,701 $ 91,797 $ 336,062 $ 162,729 $ 41,624 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 19,590 $ 175 Non-performing 485 — Total $ 20,075 $ 175 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 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 $ 136,180 $ 84,746 $ 289,203 $ 189,412 $ 39,539 Special Mention 232 3,454 13,267 — 666 Substandard — 1,252 6,454 — 289 Doubtful — 3,454 — — — Total $ 136,412 $ 92,906 $ 308,924 $ 189,412 $ 40,494 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 20,657 $ 183 Non-performing 368 — Total $ 21,025 $ 183 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 March 31, 2018 and December 31, 2017 : March 31, 2018 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 527 $ 69 $ — $ — $ — $ — $ — $ 596 Loans acquired with deteriorated credit quality — — — — — — — — — Collectively evaluated for impairment 1,612 1,148 3,097 732 446 129 — 537 7,701 Ending Balance $ 1,612 $ 1,675 $ 3,166 $ 732 $ 446 $ 129 $ — $ 537 $ 8,297 Loans receivable: Individually evaluated for impairment $ 104 $ 4,408 $ 5,654 $ — $ 663 $ 486 $ — $ — $ 11,315 Loans acquired with deteriorated credit quality — 283 584 — — — — — 867 Collectively evaluated for impairment 123,597 87,106 329,824 162,729 40,961 19,589 175 — 763,981 Ending Balance $ 123,701 $ 91,797 $ 336,062 $ 162,729 $ 41,624 $ 20,075 $ 175 $ — 776,163 Deferred loan costs, net 498 $ 776,661 December 31, 2017 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 592 $ 92 $ — $ — $ — $ — $ — $ 684 Loans acquired with deteriorated credit quality — — — — — — — — — Collectively evaluated for impairment 1,703 1,128 2,857 852 392 114 — 283 7,329 Ending Balance $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Loans receivable: Individually evaluated for impairment $ 232 $ 4,459 $ 5,713 $ — $ 69 $ 368 $ — $ — $ 10,841 Loans acquired with deteriorated credit quality — 274 590 — — — — — 864 Collectively evaluated for impairment 136,180 88,173 302,621 189,412 40,425 20,657 183 — 777,651 Ending Balance $ 136,412 $ 92,906 $ 308,924 $ 189,412 $ 40,494 $ 21,025 $ 183 $ — 789,356 Deferred loan costs, net 550 $ 789,906 The activity in the allowance for loan loss by loan class for the three months ended March 31, 2018 and 2017 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 - January 1, 2018 $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Provision charged/(credited) to operations (91 ) (52 ) 164 (120 ) 54 15 1 254 225 Loans charged off — — — — — — (1 ) — (1 ) Recoveries of loans charged off — 7 53 — — — — — 60 Balance - March 31, 2018 $ 1,612 $ 1,675 $ 3,166 $ 732 $ 446 $ 129 $ — $ 537 $ 8,297 Balance - January 1, 2017 $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ 7,494 Provision charged/(credited) 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 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) Three Months Ended March 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 104 $ 104 $ — $ 147 $ 2 Commercial Business 1,331 1,372 — 1,250 27 Commercial Real Estate 3,289 3,807 — 1,965 17 Mortgage Warehouse Lines — — — — — Subtotal 4,724 5,283 — 3,362 46 Residential Real Estate 663 720 — 266 — Consumer: Loans to Individuals 486 537 — 405 — Other — — — — — Subtotal 486 537 — 405 — With no allowance: $ 5,873 $ 6,540 $ — $ 4,033 $ 46 With an allowance: Commercial: Construction $ — $ — $ — $ — $ — Commercial Business 3,360 3,362 527 3,425 46 Commercial Real Estate 2,949 2,949 69 4,282 41 Mortgage Warehouse Lines — — — — — Subtotal 6,309 6,311 596 7,707 87 Residential Real Estate — — — — — Consumer: Loans to Individuals — — — — — Other — — — — — Subtotal — — — — — With an allowance: $ 6,309 $ 6,311 $ 596 $ 7,707 $ 87 Total: Construction 104 104 — 147 2 Commercial Business 4,691 4,734 527 4,675 73 Commercial Real Estate 6,238 6,756 69 6,247 58 Mortgage Warehouse Lines — — — — — Residential Real Estate 663 720 — 266 — Consumer 486 537 — 405 — Total $ 12,182 $ 12,851 $ 596 $ 11,740 $ 133 Impaired Loans Receivables (By Class) December 31, 2017 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Commercial: Construction $ 232 $ 232 $ — Commercial Business 1,271 1,419 — Commercial Real Estate 1,348 1,372 — Mortgage Warehouse Lines — — — Subtotal 2,851 3,023 — Residential Real Estate 69 123 — Consumer: Loans to Individuals 368 438 — Other — — — Subtotal 368 438 — With no allowance $ 3,288 $ 3,584 $ — With an allowance: Commercial: Construction $ — $ — $ — Commercial Business 3,462 3,464 592 Commercial Real Estate 4,955 5,748 92 Mortgage Warehouse Lines — — — Subtotal 8,417 9,212 684 Residential Real Estate — — — Consumer: Loans to Individuals — — — Other — — — Subtotal — — — With an allowance $ 8,417 $ 9,212 $ 684 Total: Construction 232 232 — Commercial Business 4,733 4,883 592 Commercial Real Estate 6,303 7,120 92 Mortgage Warehouse Lines — — — Residential Real Estate 69 123 — Consumer 368 438 — Total $ 11,705 $ 12,796 $ 684 Impaired Loans Receivables (By Class) Three Months Ended March 31, 2017 (Dollars in thousands) Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 185 $ — Commercial Business 794 3 Commercial Real Estate 2,821 12 Mortgage Warehouse Lines — — Subtotal 3,800 15 Residential Real Estate 240 — Consumer: Loans to Individuals 335 — Other — — Subtotal 335 — With no allowance: $ 4,375 $ 15 With an allowance: Commercial: Construction $ 205 $ 3 Commercial Business 1,511 67 Commercial Real Estate 2,210 43 Mortgage Warehouse Lines — — Subtotal 3,926 113 Residential Real Estate 200 — Consumer: Loans to Individuals — — Other — — Subtotal — — With an allowance: $ 4,126 $ 113 Total: Construction 390 3 Commercial Business 2,305 70 Commercial Real Estate 5,031 55 Mortgage Warehouse Lines — — Residential Real Estate 440 — Consumer 335 — Total $ 8,501 $ 128 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 March 31, 2018 and December 31, 2017 : (Dollars in thousands) March 31, 2018 December 31, 2017 Outstanding balance $ 981 $ 998 Carrying amount $ 867 $ 860 Changes in accretable discount for purchased credit-impaired loans for the three months ended March 31, 2018 and March 31, 2017 were as follows: Three months ended March 31, (Dollars in thousands) 2018 2017 Balance at beginning of period $ 126 $ 30 Transfer from non-accretable discount — — Accretion of discount (23 ) (7 ) Balance at end of period $ 103 $ 23 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): March 31, 2018 December 31, 2017 Number of loans Recorded Investment Number of loans Recorded Investment 1 $ 77 1 $ 77 At March 31, 2018 and December 31, 2017 , 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 March 31, 2018 . 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 three months ended March 31, 2017 . There were no troubled debt restructurings that subsequently defaulted within twelve months of restructuring during the three months ended March 31, 2018 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers All of the Company's revenue from contracts with customers in the scope of ASC 606 is recognized within non-interest income. The following table presents the Company's sources of non-interest income for the three months ended March 31, 2018 and 2017. Items outside the scope of ASC 606 are noted as such. Three months ended (Dollars in thousands) March 31, 2018 March 31, 2017 Service charges on deposits: Overdraft fees $ 79 $ 80 Other 71 74 Interchange income 67 74 Other income - in scope 86 77 Income on Bank-owned life insurance (1) 114 130 Net gains on sales of loans (1) 1,149 1,589 Loan servicing fees (1) 151 138 Net gains on sales of securities (1) 6 106 Other income (1) 162 145 $ 1,885 $ 2,413 (1) Not within the scope of ASC 606 A description of the Company's revenue streams accounted for under ASC 606 follows: Service Charges on Deposit Accounts: The Company earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as ATM use fees, stop payment charges, statement rendering and ACH fees, are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Company satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance. Interchange Income: The Company earns interchange fees from debit cardholder transactions conducted through the Visa payment network. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. Other Income: The Company earns other fees from the execution of and receipt of wire transfers for customers, the rental of safe deposit boxes and fees for other services provided to customers. These fees are recognized at the time the transaction is executed or the service is provided as that is the point in time the Company fulfills the customer's request. Gain or Loss on Sales of OREO: |
Share-Based Compensation
Share-Based Compensation | 3 Months Ended |
Mar. 31, 2018 | |
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”). As of March 31, 2018 , there were 90,886 shares of common stock available for future grants under the Stock Plans. The following table summarizes stock option activity during the three months ended March 31, 2018 : (Dollars in thousands, except share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 142,005 $ 7.86 Granted 10,450 18.30 Exercised (2,842 ) 6.69 Outstanding at March 31, 2018 149,613 $ 8.61 4.6 $ 1,966 Exercisable at March 31, 2018 129,893 $ 7.44 4.0 $ 1,854 The fair value of each option and the significant weighted average assumptions used to calculate the fair value of the options granted for the three months ended March 31, 2018 were as follows: Fair value of options granted $ 5.93 Risk-free rate of return 2.46 % Expected option life in years 7 Expected volatility 31.35 % Expected dividends 1.18 % Share-based compensation expense related to options was $24,000 and $11,000 for the three months ended March 31, 2018 and 2017 , respectively. As of March 31, 2018 , there was approximately $104,000 of unrecognized compensation cost related to non-vested stock options. The following table summarizes the activity in non-vested restricted shares for the three months ended March 31, 2018 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2018 150,745 $ 11.87 Granted 26,400 18.30 Vested (29,390 ) 12.67 Non-vested at March 31, 2018 147,755 $ 12.86 Share-based compensation expense related to stock grants was $213,000 and $188,000 for the three months ended March 31, 2018 and 2017 , respectively. As of March 31, 2018 , there was approximately $1.8 million |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Bank has a 401(k) plan that 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. At March 31, 2018 and December 31, 2017, the Company's President and Chief Executive Officer was the only eligible participant in the supplemental executive retirement plans. 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 $24.3 million and $25.1 million at March 31, 2018 and December 31, 2017 , respectively. The components of net periodic expense for the Company’s supplemental executive retirement plans for the three months ended March 31, 2018 and 2017 were as follows: Three Months Ended (Dollars in thousands) 2018 2017 Service cost $ 35 $ 33 Interest cost 28 45 Actuarial gain recognized (15 ) (19 ) Total $ 48 $ 59 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding losses on securities available for sale $ (1,927 ) $ 460 $ (1,467 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 96 (27 ) 69 Total other comprehensive loss $ (2,332 ) $ 552 $ (1,780 ) December 31, 2017 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized net holding losses on available for sale securities $ (571 ) $ 137 $ (434 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 111 (31 ) 80 Accumulated other comprehensive loss $ (961 ) $ 225 $ (736 ) Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax for the three months ended March 31, 2018 and 2017: (Dollars in thousands) 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) Balance January 1, 2018 $ (434 ) $ (382 ) $ 80 $ (736 ) Other comprehensive loss before reclassifications (1,029 ) — — (1,029 ) Amounts reclassified from accumulated other comprehensive income — — (11 ) (11 ) Reclassification adjustment for gains realized in income (4 ) — — (4 ) Other comprehensive loss (1,033 ) — (11 ) (1,044 ) Balance March 31, 2018 $ (1,467 ) $ (382 ) $ 69 $ (1,780 ) Balance January 1, 2017 $ (334 ) $ (331 ) $ 65 $ (600 ) Other comprehensive income before reclassifications 112 — — 112 Amounts reclassified from accumulated other comprehensive income — — (12 ) (12 ) Reclassification adjustment for gains realized in income (49 ) — — (49 ) Other comprehensive income (loss) 63 — (12 ) 51 Balance March 31, 2017 $ (271 ) $ (331 ) $ 53 $ (549 ) |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. For the Company, the provisions of this ASU are effective 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 the Company's 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. For the Company, the provisions of this ASU are effective 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 the Company's 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 the Company, the provisions of this ASU 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. |
Fair Value Disclosures
Fair Value Disclosures | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 1,942 $ — $ 1,942 Residential collateralized mortgage obligations - GSE — 25,243 — 25,243 Residential mortgage backed securities - GSE — 13,137 — 13,137 Obligations of state and political subdivisions — 18,941 — 18,941 Trust preferred debt securities - single issuer — 2,338 — 2,338 Corporate debt securities 16,462 10,920 — 27,382 Other debt securities — 23,512 — 23,512 Interest rate lock derivative — 59 — 59 Total $ 16,462 $ 96,092 $ — $ 112,554 December 31, 2017 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 1,967 $ — $ 1,967 Residential collateralized mortgage obligations - GSE — 27,325 — 27,325 Residential mortgage backed securities - GSE — 14,288 — 14,288 Obligations of state and political subdivisions — 19,720 — 19,720 Trust preferred debt securities - single issuer — 2,349 — 2,349 Corporate debt securities 16,080 11,603 — 27,683 Other debt securities — 12,126 — 12,126 Interest rate lock derivative — 135 — 135 Total $ 16,080 $ 89,513 $ — $ 105,593 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 three months ended March 31, 2018 and the twelve months ended December 31, 2017 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value March 31, 2018 Impaired loans $ — $ — $ 8,657 $ 8,657 December 31, 2017 Impaired loans $ — $ — $ 8,313 $ 8,313 Impaired loans measured at fair value and included in the above table at March 31, 2018 consisted of 13 loans having an aggregate recorded investment of $9.3 million and specific loan loss allowance of $596,000 . Impaired loans measured at fair value and included in the above table at December 31, 2017 consisted of 14 loans having an aggregate balance of $9.0 million with specific loan loss allowance of $684,000 . The following table presents additional qualitative 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: (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) March 31, 2018 Impaired loans $ 8,657 Appraisal of collateral (1) Appraisal adjustments (2) 1.7% - 100% (28.2%) December 31, 2017 Impaired loans $ 8,313 Appraisal of collateral (1) Appraisal adjustments (2) 0.5%-100% (28.2%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs that are not identifiable. (2) Includes qualitative 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. 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. The fair values of securities held to maturity are determined in the same manner as for securities available for sale. Loans Held for Sale. 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. 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. SBA Servicing Asset . Servicing assets do not trade in an active market with readily observable prices. The Company estimates the fair value of the 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 ("FHLB") 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. 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. 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 March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 15,995 $ 15,995 $ — $ — $ 15,995 Securities available for sale 112,495 16,462 96,033 — 112,495 Securities held to maturity 102,756 — 103,351 — 103,351 Loans held for sale 1,919 — 1,991 — 1,991 Loans, net 768,364 — — 771,529 771,529 SBA servicing asset 766 — 1,016 — 1,016 Interest rate lock derivative 59 — 59 — 59 Accrued interest receivable 3,202 — 3,202 — 3,202 FHLB stock 1,684 — 1,684 — 1,684 Deposits (891,086 ) — (889,198 ) — (889,198 ) Borrowings (29,825 ) — (29,825 ) — (29,825 ) Redeemable subordinated debentures (18,557 ) — (12,317 ) — (12,317 ) Accrued interest payable (775 ) — (775 ) — (775 ) December 31, 2017 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 18,754 $ 18,754 $ — $ — $ 18,754 Securities available for sale 105,458 16,080 89,378 — 105,458 Securities held to maturity 110,267 — 111,865 — 111,865 Loans held for sale 4,254 — 4,539 — 4,539 Loans, net 781,893 — — 784,064 784,064 SBA servicing asset 726 — 1,016 — 1,016 Interest rate lock derivative 135 — 135 — 135 Accrued interest receivable 3,478 — 3,478 — 3,478 FHLB stock 1,490 — 1,490 — 1,490 Deposits (922,006 ) — (920,732 ) — (920,732 ) Borrowings (20,500 ) — (20,500 ) — (20,500 ) Redeemable subordinated debentures (18,557 ) — (12,326 ) — (12,326 ) Accrued interest payable (804 ) — (804 ) — (804 ) Loan commitments and standby letters of credit as of March 31, 2018 and December 31, 2017 |
Subsequent Event
Subsequent Event | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On April 11, 2018, the Company closed on the merger of New Jersey Community Bank ("NJCB"), a New Jersey-chartered bank, with and into 1st Constitution Bank, with 1st Constitution Bank being the surviving entity (the "Merger"). Under the terms of the merger agreement governing the Merger (the "Merger Agreement"), each outstanding share of NJCB common stock was exchanged for the right to receive $1.60 in cash and 0.1309 shares of the Company's common stock. The Company issued 249,785 shares of its common stock, having an aggregate fair value of approximately $5.5 million , and paid cash of approximately $3.05 million , of which approximately $401,000 was placed into escrow under the terms of the Merger Agreement. As a result of the combination of the two banks following the closing of the Merger, the Company, on a consolidated basis, anticipates having approximately $1.1 billion in total assets, approximately $970.9 million in total deposits and approximately $826.4 million in total loans. In addition, the Merger expands the Company's presence in Monmouth County, New Jersey with the addition of two full service branch locations. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
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. 1 ST 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 for the year ended December 31, 2017 |
Subsequent Events | The Company has evaluated events and transactions occurring subsequent to the balance sheet date of March 31, 2018 |
Adoption of New Accounting Standards | Adoption of New Accounting Standards ASU 2014-09 - Revenue from Contracts with Customers (Topic 606) On January 1, 2018, the Company adopted Accounting Standards Update ("ASU") 2014-09 Revenue from Contracts with Customers and all subsequent amendments to the ASU (collectively, "Topic 606"), which (i) creates a single framework for recognizing revenue from contracts with customers that fall within its scope and (ii) revises when it is appropriate to recognize a gain or loss from the transfer of nonfinancial assets, such as other real estate owned ("OREO"). The majority of the Company's revenues come from interest income, other services to customers and other sources, including loans, leases and securities that are outside the scope of Topic 606. The Company's services that fall within the scope of Topic 606 are presented within non-interest income and are recognized as revenue as the Company satisfies its obligation to the customer. Services within the scope of Topic 606 include service charges on deposits, interchange income, other services and the sale of OREO. Refer to Note 5 - Revenue from Contracts with Customers - for further discussion on the Company's accounting policies for revenue sources within the scope of Topic 606. The Company adopted Topic 606 using the modified retrospective method for reporting periods beginning after January 1, 2018. The Company did not have any contracts that were not completed as of January 1, 2018. The adoption of Topic 606 did not result in a change to the accounting for any of the in-scope revenue streams; therefore, no cumulative effect adjustment was recorded. 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. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2017, including interim periods within those years. The adoption of this guidance in 2018 did not have a material impact on the Company's 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 the Company, 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 adoption of this guidance in 2018 did not have a material impact on the Company's 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 the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The Company currently classifies cash flows related to BOLI in accordance with the guidance, and the adoption of this guidance in 2018 did not have a material impact on its consolidated financial statements. 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. 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. For the Company, the provisions of this ASU are effective 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 the Company's 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. For the Company, the provisions of this ASU are effective 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 the Company's 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 the Company, the provisions of this ASU 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. |
Investment Securities | U.S. Treasury securities and obligations of U.S. Government sponsored entitites 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. Both of the issuers 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 March 31, 2018 |
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 their 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 Company and adequately margined. Loans that are based upon "blue chip" stocks listed on the major stock 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 management 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 Company management that require closer supervision. Such problems have not developed to the point that requires a "special mention" rating. This category also covers situations where the Company 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 Company's credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. 5. Substandard - A "substandard" loan is inadequately protected by the current 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 Company will sustain some loss if the deficiencies are not corrected. 6. Doubtful - A loan classified as "doubtful" has all the weaknesses inherent in a loan 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 |
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 |
Net Income Per Common Share (Ta
Net Income Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table illustrates the calculation of both basic and diluted earnings per share for the three months ended March 31, 2018 and 2017: March 31, (Dollars in thousands, except per share data) 2018 2017 Net income $ 2,853 $ 1,949 Basic weighted average shares outstanding 8,111,490 8,026,037 Plus: common stock equivalents 275,261 278,552 Diluted weighted average shares outstanding 8,386,751 8,304,589 Earnings per share: Basic $ 0.35 $ 0.24 Diluted $ 0.34 $ 0.23 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | A summary of amortized cost and approximate fair value of investment securities available for sale follows: March 31, 2018 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ 1,997 $ — $ (55 ) $ 1,942 Residential collateralized mortgage obligations - GSE 25,959 10 (726 ) 25,243 Residential mortgage backed securities - GSE 13,238 67 (168 ) 13,137 Obligations of state and political subdivisions 19,243 90 (392 ) 18,941 Trust preferred debt securities - single issuer 2,482 — (144 ) 2,338 Corporate debt securities 27,892 10 (520 ) 27,382 Other debt securities 23,611 8 (107 ) 23,512 Total $ 114,422 $ 185 $ (2,112 ) $ 112,495 December 31, 2017 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury securities and obligations of U.S. Government sponsored entities ("GSE") and agencies $ 1,997 $ — $ (30 ) $ 1,967 Residential collateralized mortgage obligations - GSE 27,688 18 (381 ) 27,325 Residential mortgage backed securities - GSE 14,231 129 (72 ) 14,288 Obligations of state and political subdivisions 19,575 227 (82 ) 19,720 Trust preferred debt securities - single issuer 2,481 — (132 ) 2,349 Corporate debt securities 27,917 14 (248 ) 27,683 Other debt securities 12,140 12 (26 ) 12,126 Total $ 106,029 $ 400 $ (971 ) $ 105,458 |
Held-to-maturity Securities | A summary of amortized cost, carrying value and approximate fair value of investment securities held to maturity follows: March 31, 2018 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities and obligations of U.S. government-sponsored entities ("GSE") and agencies $ 3,233 $ — $ 3,233 $ — $ (89 ) $ 3,144 Residential collateralized mortgage obligations - GSE 8,138 — 8,138 37 (173 ) 8,002 Residential mortgage backed securities - GSE 33,359 — 33,359 126 (502 ) 32,983 Obligations of state and political subdivisions 57,597 — 57,597 876 (147 ) 58,326 Trust preferred debt securities - pooled 657 (501 ) 156 467 — 623 Other debt securities 273 — 273 — — 273 Total $ 103,257 $ (501 ) $ 102,756 $ 1,506 $ (911 ) $ 103,351 December 31, 2017 (Dollars in thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. treasury securities and obligations of U.S. government-sponsored entities ("GSE") and agencies $ 3,234 $ — $ 3,234 $ — $ (84 ) $ 3,150 Residential collateralized mortgage obligations - GSE 8,701 — 8,701 94 (123 ) 8,672 Residential mortgage backed securities - GSE 34,072 — 34,072 231 (127 ) 34,176 Obligations of state and political subdivisions 63,797 — 63,797 1,224 (35 ) 64,986 Trust preferred debt securities - pooled 657 (501 ) 156 418 — 574 Other debt securities 307 — 307 — — 307 Total $ 110,768 $ (501 ) $ 110,267 $ 1,967 $ (369 ) $ 111,865 |
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 March 31, 2018 . 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. March 31, 2018 (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 1,189 $ 1,188 1.76 % Due after one year through five years 30,644 30,215 2.60 Due after five years through ten years 25,346 24,938 2.67 Due after ten years 57,243 56,154 2.62 Total $ 114,422 $ 112,495 2.62 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 25,444 $ 25,506 2.11 % Due after one year through five years 15,964 16,444 4.03 Due after five years through ten years 16,942 17,087 3.22 Due after ten years 44,406 44,314 2.96 Total $ 102,756 $ 103,351 2.96 % |
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 March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 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 entities (GSE) and agencies 2 $ 1,942 $ (55 ) $ 3,144 $ (89 ) $ 5,086 $ (144 ) Residential collateralized mortgage obligations - GSE 20 19,881 (490 ) 8,256 (409 ) $ 28,137 $ (899 ) Residential mortgage backed securities - GSE 53 35,284 (560 ) 2,939 (110 ) $ 38,223 $ (670 ) Obligations of state and political subdivisions 68 21,414 (489 ) 2,540 (50 ) $ 23,954 $ (539 ) Trust preferred debt securities - single issuer 4 — — 2,338 (144 ) $ 2,338 $ (144 ) Corporate debt securities 8 18,784 (305 ) 7,581 (215 ) $ 26,365 $ (520 ) Other debt securities 8 20,916 (106 ) 19 (1 ) $ 20,935 $ (107 ) Total temporarily impaired securities 163 $ 118,221 $ (2,005 ) $ 26,817 $ (1,018 ) $ 145,038 $ (3,023 ) December 31, 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 2 $ 1,967 $ (30 ) $ 3,150 $ (84 ) $ 5,117 $ (114 ) Residential collateralized mortgage obligations - GSE 11 19,237 (205 ) 8,788 (299 ) $ 28,025 $ (504 ) Residential mortgage backed securities - GSE 35 21,770 (141 ) 3,074 (58 ) $ 24,844 $ (199 ) Obligations of state and political subdivisions 42 11,594 (82 ) 2,717 (35 ) $ 14,311 $ (117 ) Trust preferred debt securities - single issuer 4 — — 2,349 (132 ) $ 2,349 $ (132 ) Corporate debt securities 7 11,967 (98 ) 7,662 (150 ) $ 19,629 $ (248 ) Other debt securities 4 8,840 (25 ) 21 (1 ) $ 8,861 $ (26 ) Total temporarily impaired securities 105 $ 75,375 $ (581 ) $ 27,761 $ (759 ) $ 103,136 $ (1,340 ) |
Allowance for Loan Losses and23
Allowance for Loan Losses and Credit Quality (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table provides an aging of the loan portfolio by loan class at March 31, 2018 : (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 $ 1,525 $ 498 $ — $ 2,023 $ 121,678 $ 123,701 $ — $ — Commercial Business 303 17 1,082 1,402 90,395 91,797 — 4,163 Commercial Real Estate 7,090 537 2,422 10,049 326,013 336,062 — 2,422 Mortgage Warehouse Lines — — — — 162,729 162,729 — — Residential Real Estate 510 — 663 1,173 40,451 41,624 — 663 Consumer Loans to Individuals 400 — 269 669 19,406 20,075 — 485 Other — — — — 175 175 — — Total loans $ 9,828 $ 1,052 $ 4,436 $ 15,316 $ 760,847 776,163 $ — $ 7,733 Deferred loan costs, net 498 Total loans, net $ 776,661 The following table provides an aging of the loan portfolio by loan class at December 31, 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 $ — $ — $ — $ — $ 136,412 $ 136,412 $ — $ — Commercial Business 180 545 619 1,344 91,562 92,906 — 4,212 Commercial Real Estate 540 — 2,465 3,005 305,919 308,924 — 2,465 Mortgage Warehouse Lines — — — — 189,412 189,412 — — Residential Real Estate 911 256 69 1,236 39,258 40,494 — 69 Consumer Loans to Individuals 119 — 116 235 20,790 21,025 — 368 Other — — — — 183 183 — — Total loans $ 1,750 $ 801 $ 3,269 $ 5,820 $ 783,536 789,356 $ — $ 7,114 Deferred loan costs, net 550 Total loans, net $ 789,906 |
Financing Receivable Credit Quality Indicators | The following table provides a breakdown of the loan portfolio by credit quality indicator at March 31, 2018 : (Dollars in thousands) Commercial Credit Exposure - By Internally Assigned Grade Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Grade: Pass $ 120,428 $ 83,387 $ 316,000 $ 162,729 $ 40,675 Special Mention 3,273 3,769 13,676 — 65 Substandard — 4,380 6,386 — 884 Doubtful — 261 — — — Total $ 123,701 $ 91,797 $ 336,062 $ 162,729 $ 41,624 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 19,590 $ 175 Non-performing 485 — Total $ 20,075 $ 175 The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 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 $ 136,180 $ 84,746 $ 289,203 $ 189,412 $ 39,539 Special Mention 232 3,454 13,267 — 666 Substandard — 1,252 6,454 — 289 Doubtful — 3,454 — — — Total $ 136,412 $ 92,906 $ 308,924 $ 189,412 $ 40,494 Consumer Credit Exposure - By Payment Activity Loans To Individuals Other Performing $ 20,657 $ 183 Non-performing 368 — Total $ 21,025 $ 183 |
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 March 31, 2018 and December 31, 2017 : March 31, 2018 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 527 $ 69 $ — $ — $ — $ — $ — $ 596 Loans acquired with deteriorated credit quality — — — — — — — — — Collectively evaluated for impairment 1,612 1,148 3,097 732 446 129 — 537 7,701 Ending Balance $ 1,612 $ 1,675 $ 3,166 $ 732 $ 446 $ 129 $ — $ 537 $ 8,297 Loans receivable: Individually evaluated for impairment $ 104 $ 4,408 $ 5,654 $ — $ 663 $ 486 $ — $ — $ 11,315 Loans acquired with deteriorated credit quality — 283 584 — — — — — 867 Collectively evaluated for impairment 123,597 87,106 329,824 162,729 40,961 19,589 175 — 763,981 Ending Balance $ 123,701 $ 91,797 $ 336,062 $ 162,729 $ 41,624 $ 20,075 $ 175 $ — 776,163 Deferred loan costs, net 498 $ 776,661 December 31, 2017 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Total Allowance for loan losses: Individually evaluated for impairment $ — $ 592 $ 92 $ — $ — $ — $ — $ — $ 684 Loans acquired with deteriorated credit quality — — — — — — — — — Collectively evaluated for impairment 1,703 1,128 2,857 852 392 114 — 283 7,329 Ending Balance $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Loans receivable: Individually evaluated for impairment $ 232 $ 4,459 $ 5,713 $ — $ 69 $ 368 $ — $ — $ 10,841 Loans acquired with deteriorated credit quality — 274 590 — — — — — 864 Collectively evaluated for impairment 136,180 88,173 302,621 189,412 40,425 20,657 183 — 777,651 Ending Balance $ 136,412 $ 92,906 $ 308,924 $ 189,412 $ 40,494 $ 21,025 $ 183 $ — 789,356 Deferred loan costs, net 550 $ 789,906 |
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 months ended March 31, 2018 and 2017 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 - January 1, 2018 $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Provision charged/(credited) to operations (91 ) (52 ) 164 (120 ) 54 15 1 254 225 Loans charged off — — — — — — (1 ) — (1 ) Recoveries of loans charged off — 7 53 — — — — — 60 Balance - March 31, 2018 $ 1,612 $ 1,675 $ 3,166 $ 732 $ 446 $ 129 $ — $ 537 $ 8,297 Balance - January 1, 2017 $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ 7,494 Provision charged/(credited) 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 |
Impaired Financing Receivables | The following table presents additional information regarding purchased credit-impaired loans at March 31, 2018 and December 31, 2017 : (Dollars in thousands) March 31, 2018 December 31, 2017 Outstanding balance $ 981 $ 998 Carrying amount $ 867 $ 860 Impaired Loans Receivables (By Class) Three Months Ended March 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 104 $ 104 $ — $ 147 $ 2 Commercial Business 1,331 1,372 — 1,250 27 Commercial Real Estate 3,289 3,807 — 1,965 17 Mortgage Warehouse Lines — — — — — Subtotal 4,724 5,283 — 3,362 46 Residential Real Estate 663 720 — 266 — Consumer: Loans to Individuals 486 537 — 405 — Other — — — — — Subtotal 486 537 — 405 — With no allowance: $ 5,873 $ 6,540 $ — $ 4,033 $ 46 With an allowance: Commercial: Construction $ — $ — $ — $ — $ — Commercial Business 3,360 3,362 527 3,425 46 Commercial Real Estate 2,949 2,949 69 4,282 41 Mortgage Warehouse Lines — — — — — Subtotal 6,309 6,311 596 7,707 87 Residential Real Estate — — — — — Consumer: Loans to Individuals — — — — — Other — — — — — Subtotal — — — — — With an allowance: $ 6,309 $ 6,311 $ 596 $ 7,707 $ 87 Total: Construction 104 104 — 147 2 Commercial Business 4,691 4,734 527 4,675 73 Commercial Real Estate 6,238 6,756 69 6,247 58 Mortgage Warehouse Lines — — — — — Residential Real Estate 663 720 — 266 — Consumer 486 537 — 405 — Total $ 12,182 $ 12,851 $ 596 $ 11,740 $ 133 Impaired Loans Receivables (By Class) December 31, 2017 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance With no allowance: Commercial: Construction $ 232 $ 232 $ — Commercial Business 1,271 1,419 — Commercial Real Estate 1,348 1,372 — Mortgage Warehouse Lines — — — Subtotal 2,851 3,023 — Residential Real Estate 69 123 — Consumer: Loans to Individuals 368 438 — Other — — — Subtotal 368 438 — With no allowance $ 3,288 $ 3,584 $ — With an allowance: Commercial: Construction $ — $ — $ — Commercial Business 3,462 3,464 592 Commercial Real Estate 4,955 5,748 92 Mortgage Warehouse Lines — — — Subtotal 8,417 9,212 684 Residential Real Estate — — — Consumer: Loans to Individuals — — — Other — — — Subtotal — — — With an allowance $ 8,417 $ 9,212 $ 684 Total: Construction 232 232 — Commercial Business 4,733 4,883 592 Commercial Real Estate 6,303 7,120 92 Mortgage Warehouse Lines — — — Residential Real Estate 69 123 — Consumer 368 438 — Total $ 11,705 $ 12,796 $ 684 Impaired Loans Receivables (By Class) Three Months Ended March 31, 2017 (Dollars in thousands) Average Recorded Investment Interest Income Recognized With no allowance: Commercial: Construction $ 185 $ — Commercial Business 794 3 Commercial Real Estate 2,821 12 Mortgage Warehouse Lines — — Subtotal 3,800 15 Residential Real Estate 240 — Consumer: Loans to Individuals 335 — Other — — Subtotal 335 — With no allowance: $ 4,375 $ 15 With an allowance: Commercial: Construction $ 205 $ 3 Commercial Business 1,511 67 Commercial Real Estate 2,210 43 Mortgage Warehouse Lines — — Subtotal 3,926 113 Residential Real Estate 200 — Consumer: Loans to Individuals — — Other — — Subtotal — — With an allowance: $ 4,126 $ 113 Total: Construction 390 3 Commercial Business 2,305 70 Commercial Real Estate 5,031 55 Mortgage Warehouse Lines — — Residential Real Estate 440 — Consumer 335 — Total $ 8,501 $ 128 |
Credit Impaired Loans Acquired, Change In Amortizable Yield | Changes in accretable discount for purchased credit-impaired loans for the three months ended March 31, 2018 and March 31, 2017 were as follows: Three months ended March 31, (Dollars in thousands) 2018 2017 Balance at beginning of period $ 126 $ 30 Transfer from non-accretable discount — — Accretion of discount (23 ) (7 ) Balance at end of period $ 103 $ 23 |
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): March 31, 2018 December 31, 2017 Number of loans Recorded Investment Number of loans Recorded Investment 1 $ 77 1 $ 77 |
Revenue from Contracts with C24
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's sources of non-interest income for the three months ended March 31, 2018 and 2017. Items outside the scope of ASC 606 are noted as such. Three months ended (Dollars in thousands) March 31, 2018 March 31, 2017 Service charges on deposits: Overdraft fees $ 79 $ 80 Other 71 74 Interchange income 67 74 Other income - in scope 86 77 Income on Bank-owned life insurance (1) 114 130 Net gains on sales of loans (1) 1,149 1,589 Loan servicing fees (1) 151 138 Net gains on sales of securities (1) 6 106 Other income (1) 162 145 $ 1,885 $ 2,413 (1) |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 three months ended March 31, 2018 : (Dollars in thousands, except share amounts) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding at January 1, 2018 142,005 $ 7.86 Granted 10,450 18.30 Exercised (2,842 ) 6.69 Outstanding at March 31, 2018 149,613 $ 8.61 4.6 $ 1,966 Exercisable at March 31, 2018 129,893 $ 7.44 4.0 $ 1,854 |
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 three months ended March 31, 2018 were as follows: Fair value of options granted $ 5.93 Risk-free rate of return 2.46 % Expected option life in years 7 Expected volatility 31.35 % Expected dividends 1.18 % |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes the activity in non-vested restricted shares for the three months ended March 31, 2018 : (Dollars in thousands, except share amounts) Number of Shares Average Grant-Date Fair Value Outstanding at January 1, 2018 150,745 $ 11.87 Granted 26,400 18.30 Vested (29,390 ) 12.67 Non-vested at March 31, 2018 147,755 $ 12.86 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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 months ended March 31, 2018 and 2017 were as follows: Three Months Ended (Dollars in thousands) 2018 2017 Service cost $ 35 $ 33 Interest cost 28 45 Actuarial gain recognized (15 ) (19 ) Total $ 48 $ 59 |
Other Comprehensive Income (L27
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive loss, and the related tax effects, are as follows: March 31, 2018 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding losses on securities available for sale $ (1,927 ) $ 460 $ (1,467 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 96 (27 ) 69 Total other comprehensive loss $ (2,332 ) $ 552 $ (1,780 ) December 31, 2017 (Dollars in thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized net holding losses on available for sale securities $ (571 ) $ 137 $ (434 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 111 (31 ) 80 Accumulated other comprehensive loss $ (961 ) $ 225 $ (736 ) Changes in the components of accumulated other comprehensive income (loss) are as follows and are presented net of tax for the three months ended March 31, 2018 and 2017: (Dollars in thousands) 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) Balance January 1, 2018 $ (434 ) $ (382 ) $ 80 $ (736 ) Other comprehensive loss before reclassifications (1,029 ) — — (1,029 ) Amounts reclassified from accumulated other comprehensive income — — (11 ) (11 ) Reclassification adjustment for gains realized in income (4 ) — — (4 ) Other comprehensive loss (1,033 ) — (11 ) (1,044 ) Balance March 31, 2018 $ (1,467 ) $ (382 ) $ 69 $ (1,780 ) Balance January 1, 2017 $ (334 ) $ (331 ) $ 65 $ (600 ) Other comprehensive income before reclassifications 112 — — 112 Amounts reclassified from accumulated other comprehensive income — — (12 ) (12 ) Reclassification adjustment for gains realized in income (49 ) — — (49 ) Other comprehensive income (loss) 63 — (12 ) 51 Balance March 31, 2017 $ (271 ) $ (331 ) $ 53 $ (549 ) |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
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: March 31, 2018 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 1,942 $ — $ 1,942 Residential collateralized mortgage obligations - GSE — 25,243 — 25,243 Residential mortgage backed securities - GSE — 13,137 — 13,137 Obligations of state and political subdivisions — 18,941 — 18,941 Trust preferred debt securities - single issuer — 2,338 — 2,338 Corporate debt securities 16,462 10,920 — 27,382 Other debt securities — 23,512 — 23,512 Interest rate lock derivative — 59 — 59 Total $ 16,462 $ 96,092 $ — $ 112,554 December 31, 2017 (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value Securities available for sale: U.S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies $ — $ 1,967 $ — $ 1,967 Residential collateralized mortgage obligations - GSE — 27,325 — 27,325 Residential mortgage backed securities - GSE — 14,288 — 14,288 Obligations of state and political subdivisions — 19,720 — 19,720 Trust preferred debt securities - single issuer — 2,349 — 2,349 Corporate debt securities 16,080 11,603 — 27,683 Other debt securities — 12,126 — 12,126 Interest rate lock derivative — 135 — 135 Total $ 16,080 $ 89,513 $ — $ 105,593 |
Fair Value Measurements, Nonrecurring | Assets and liabilities subject to fair value adjustments (impairment) on a nonrecurring basis for the three months ended March 31, 2018 and the twelve months ended December 31, 2017 were as follows: (Dollars in thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value March 31, 2018 Impaired loans $ — $ — $ 8,657 $ 8,657 December 31, 2017 Impaired loans $ — $ — $ 8,313 $ 8,313 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents additional qualitative 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: (Dollars in thousands) Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) March 31, 2018 Impaired loans $ 8,657 Appraisal of collateral (1) Appraisal adjustments (2) 1.7% - 100% (28.2%) December 31, 2017 Impaired loans $ 8,313 Appraisal of collateral (1) Appraisal adjustments (2) 0.5%-100% (28.2%) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs that are not identifiable. (2) |
Fair Value, by Balance Sheet Grouping | The estimated fair values and carrying amounts of financial assets and liabilities as of March 31, 2018 and December 31, 2017 were as follows: March 31, 2018 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 15,995 $ 15,995 $ — $ — $ 15,995 Securities available for sale 112,495 16,462 96,033 — 112,495 Securities held to maturity 102,756 — 103,351 — 103,351 Loans held for sale 1,919 — 1,991 — 1,991 Loans, net 768,364 — — 771,529 771,529 SBA servicing asset 766 — 1,016 — 1,016 Interest rate lock derivative 59 — 59 — 59 Accrued interest receivable 3,202 — 3,202 — 3,202 FHLB stock 1,684 — 1,684 — 1,684 Deposits (891,086 ) — (889,198 ) — (889,198 ) Borrowings (29,825 ) — (29,825 ) — (29,825 ) Redeemable subordinated debentures (18,557 ) — (12,317 ) — (12,317 ) Accrued interest payable (775 ) — (775 ) — (775 ) December 31, 2017 Carrying Level 1 Level 2 Level 3 Fair (Dollars in thousands) Value Inputs Inputs Inputs Value Cash and cash equivalents $ 18,754 $ 18,754 $ — $ — $ 18,754 Securities available for sale 105,458 16,080 89,378 — 105,458 Securities held to maturity 110,267 — 111,865 — 111,865 Loans held for sale 4,254 — 4,539 — 4,539 Loans, net 781,893 — — 784,064 784,064 SBA servicing asset 726 — 1,016 — 1,016 Interest rate lock derivative 135 — 135 — 135 Accrued interest receivable 3,478 — 3,478 — 3,478 FHLB stock 1,490 — 1,490 — 1,490 Deposits (922,006 ) — (920,732 ) — (920,732 ) Borrowings (20,500 ) — (20,500 ) — (20,500 ) Redeemable subordinated debentures (18,557 ) — (12,326 ) — (12,326 ) Accrued interest payable (804 ) — (804 ) — (804 ) |
Net Income Per Common Share (Na
Net Income Per Common Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
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) | 19,350 | 9,900 |
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 | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Net income | $ 2,853 | $ 1,949 |
Basic weighted average shares outstanding | ||
Basic weighted average shares outstanding (in Shares) | 8,111,490 | 8,026,037 |
Plus: common stock equivalents (in Shares) | 275,261 | 278,552 |
Diluted weighted average shares outstanding (in Shares) | 8,386,751 | 8,304,589 |
Earnings per share: | ||
Basic (in Dollars per share) | $ 0.35 | $ 0.24 |
Diluted (in Dollars per share) | $ 0.34 | $ 0.23 |
Investment Securities (Availabl
Investment Securities (Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Available for sale | ||
Amortized Cost | $ 114,422 | $ 106,029 |
Gross Unrealized Gains | 185 | 400 |
Gross Unrealized Losses | (2,112) | (971) |
Available for sale, at fair value | 112,495 | 105,458 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | ||
Available for sale | ||
Amortized Cost | 1,997 | 1,997 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (55) | (30) |
Available for sale, at fair value | 1,942 | 1,967 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Available for sale | ||
Amortized Cost | 25,959 | 27,688 |
Gross Unrealized Gains | 10 | 18 |
Gross Unrealized Losses | (726) | (381) |
Available for sale, at fair value | 25,243 | 27,325 |
Residential mortgage backed securities – GSE [Member] | ||
Available for sale | ||
Amortized Cost | 13,238 | 14,231 |
Gross Unrealized Gains | 67 | 129 |
Gross Unrealized Losses | (168) | (72) |
Available for sale, at fair value | 13,137 | 14,288 |
Obligations of state and political subdivisions [Member] | ||
Available for sale | ||
Amortized Cost | 19,243 | 19,575 |
Gross Unrealized Gains | 90 | 227 |
Gross Unrealized Losses | (392) | (82) |
Available for sale, at fair value | 18,941 | 19,720 |
Trust preferred debt securities – single issuer [Member] | ||
Available for sale | ||
Amortized Cost | 2,482 | 2,481 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (144) | (132) |
Available for sale, at fair value | 2,338 | 2,349 |
Corporate debt securities [Member] | ||
Available for sale | ||
Amortized Cost | 27,892 | 27,917 |
Gross Unrealized Gains | 10 | 14 |
Gross Unrealized Losses | (520) | (248) |
Available for sale, at fair value | 27,382 | 27,683 |
Other debt securities [Member] | ||
Available for sale | ||
Amortized Cost | 23,611 | 12,140 |
Gross Unrealized Gains | 8 | 12 |
Gross Unrealized Losses | (107) | (26) |
Available for sale, at fair value | $ 23,512 | $ 12,126 |
Investment Securities (Held-to-
Investment Securities (Held-to-maturity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Held to maturity | ||
Amortized Cost | $ 103,257 | $ 110,768 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | (501) | (501) |
Carrying Value | 102,756 | 110,267 |
Gross Unrealized Gains | 1,506 | 1,967 |
Gross Unrealized Losses | (911) | (369) |
Fair Value | 103,351 | 111,865 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | ||
Held to maturity | ||
Amortized Cost | 3,233 | 3,234 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 3,233 | 3,234 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (89) | (84) |
Fair Value | 3,144 | 3,150 |
Residential collateralized mortgage obligations - GSE [Member] | ||
Held to maturity | ||
Amortized Cost | 8,138 | 8,701 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 8,138 | 8,701 |
Gross Unrealized Gains | 37 | 94 |
Gross Unrealized Losses | (173) | (123) |
Fair Value | 8,002 | 8,672 |
Residential mortgage backed securities - GSE [Member] | ||
Held to maturity | ||
Amortized Cost | 33,359 | 34,072 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 33,359 | 34,072 |
Gross Unrealized Gains | 126 | 231 |
Gross Unrealized Losses | (502) | (127) |
Fair Value | 32,983 | 34,176 |
Obligations of state and political subdivisions [Member] | ||
Held to maturity | ||
Amortized Cost | 57,597 | 63,797 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 57,597 | 63,797 |
Gross Unrealized Gains | 876 | 1,224 |
Gross Unrealized Losses | (147) | (35) |
Fair Value | 58,326 | 64,986 |
Trust preferred debt securities-pooled [Member] | ||
Held to maturity | ||
Amortized Cost | 657 | 657 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | (501) | (501) |
Carrying Value | 156 | 156 |
Gross Unrealized Gains | 467 | 418 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 623 | 574 |
Other debt securities [Member] | ||
Held to maturity | ||
Amortized Cost | 273 | 307 |
Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss | 0 | 0 |
Carrying Value | 273 | 307 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 273 | $ 307 |
Investment Securities (Narrativ
Investment Securities (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018USD ($)securityfinancial_institution | Dec. 31, 2009USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Marketable Securities [Line Items] | |||
Restricted stock | $ 1,700 | $ 1,600 | |
Federal home loan bank, stock | $ 1,700 | 1,500 | |
Other than temporary impairment | $ 865 | ||
Other than temporary impairment loss, portion recognized in earnings | 364 | ||
Other than temporary impairment loss, portion in other comprehensive loss | $ 501 | ||
Trust preferred debt securities – single issuer [Member] | |||
Schedule of Marketable Securities [Line Items] | |||
Number of corporate trust preferred securities issued | security | 4 | ||
Number of issuers of corporate trust preferred securities | financial_institution | 2 | ||
Trust preferred debt securities-pooled [Member] | |||
Schedule of Marketable Securities [Line Items] | |||
Number of issuers of corporate trust preferred securities | financial_institution | 2 | ||
Atlantic Community Bankers Bank Stock [Member] | Bankers Bank Stock [Member] | |||
Schedule of Marketable Securities [Line Items] | |||
Bankers bank stock | $ 65 | $ 65 |
Investment Securities (Securiti
Investment Securities (Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Due in one year or less | $ 1,189 | |
Due after one year through five years | 30,644 | |
Due after five years through ten years | 25,346 | |
Due after ten years | 57,243 | |
Amortized Cost | 114,422 | $ 106,029 |
Fair Value | ||
Due in one year or less | 1,188 | |
Due after one year through five years | 30,215 | |
Due after five years through ten years | 24,938 | |
Due after ten years | 56,154 | |
Total | $ 112,495 | 105,458 |
Yield | ||
Due in one year or less | 1.76% | |
Due after one year through five years | 2.60% | |
Due after five years through ten years | 2.67% | |
Due after ten years | 2.62% | |
Total | 2.62% | |
Carrying Value | ||
Due in one year or less | $ 25,444 | |
Due after one year through five years | 15,964 | |
Due after five years through ten years | 16,942 | |
Due after ten years | 44,406 | |
Carrying Value | 102,756 | 110,267 |
Fair Value | ||
Due in one year or less | 25,506 | |
Due after one year through five years | 16,444 | |
Due after five years through ten years | 17,087 | |
Due after ten years | 44,314 | |
Total | $ 103,351 | $ 111,865 |
Yield | ||
Due in one year or less | 2.11% | |
Due after one year through five years | 4.03% | |
Due after five years through ten years | 3.22% | |
Due after ten years | 2.96% | |
Total | 2.96% |
Investment Securities (Unrealiz
Investment Securities (Unrealized Losses on Available for Sale and Held to Maturity Securities) (Details) $ in Thousands | Mar. 31, 2018USD ($)security | Dec. 31, 2017USD ($)security |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 163 | 105 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 118,221 | $ 75,375 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (2,005) | (581) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 26,817 | 27,761 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (1,018) | (759) |
Securities in a continuous unrealized loss position, fair value | 145,038 | 103,136 |
Securities in a continuous unrealized loss position, unrealized losses | $ (3,023) | $ (1,340) |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 2 | 2 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 1,942 | $ 1,967 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (55) | (30) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 3,144 | 3,150 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (89) | (84) |
Securities in a continuous unrealized loss position, fair value | 5,086 | 5,117 |
Securities in a continuous unrealized loss position, unrealized losses | $ (144) | $ (114) |
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 | 20 | 11 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 19,881 | $ 19,237 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (490) | (205) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 8,256 | 8,788 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (409) | (299) |
Securities in a continuous unrealized loss position, fair value | 28,137 | 28,025 |
Securities in a continuous unrealized loss position, unrealized losses | $ (899) | $ (504) |
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 | 53 | 35 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 35,284 | $ 21,770 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (560) | (141) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 2,939 | 3,074 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (110) | (58) |
Securities in a continuous unrealized loss position, fair value | 38,223 | 24,844 |
Securities in a continuous unrealized loss position, unrealized losses | $ (670) | $ (199) |
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 | 68 | 42 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 21,414 | $ 11,594 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (489) | (82) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 2,540 | 2,717 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (50) | (35) |
Securities in a continuous unrealized loss position, fair value | 23,954 | 14,311 |
Securities in a continuous unrealized loss position, unrealized losses | $ (539) | $ (117) |
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 | 2,338 | 2,349 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (144) | (132) |
Securities in a continuous unrealized loss position, fair value | 2,338 | 2,349 |
Securities in a continuous unrealized loss position, unrealized losses | $ (144) | $ (132) |
Corporate debt securities [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 | $ 18,784 | $ 11,967 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (305) | (98) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 7,581 | 7,662 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (215) | (150) |
Securities in a continuous unrealized loss position, fair value | 26,365 | 19,629 |
Securities in a continuous unrealized loss position, unrealized losses | $ (520) | $ (248) |
Other debt securities [Member] | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 8 | 4 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 20,916 | $ 8,840 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (106) | (25) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 19 | 21 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (1) | (1) |
Securities in a continuous unrealized loss position, fair value | 20,935 | 8,861 |
Securities in a continuous unrealized loss position, unrealized losses | $ (107) | $ (26) |
Allowance for Loan Losses and36
Allowance for Loan Losses and Credit Quality (Aging of Loan Portfolio) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | $ 776,163 | $ 789,356 |
Deferred loan costs, net | 498 | 550 |
Total loans, net | 776,661 | 789,906 |
Total Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 15,316 | 5,820 |
Total Loans Receivable | 776,163 | 789,356 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 7,733 | 7,114 |
Total Loans [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 9,828 | 1,750 |
Total Loans [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,052 | 801 |
Total Loans [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4,436 | 3,269 |
Total Loans [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 760,847 | 783,536 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,023 | 0 |
Total Loans Receivable | 123,701 | 136,412 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,525 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 498 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 121,678 | 136,412 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,402 | 1,344 |
Total Loans Receivable | 91,797 | 92,906 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 4,163 | 4,212 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 303 | 180 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 17 | 545 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,082 | 619 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 90,395 | 91,562 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 10,049 | 3,005 |
Total Loans Receivable | 336,062 | 308,924 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 2,422 | 2,465 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 7,090 | 540 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 537 | 0 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,422 | 2,465 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 326,013 | 305,919 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Total Loans Receivable | 162,729 | 189,412 |
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 | 162,729 | 189,412 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,173 | 1,236 |
Total Loans Receivable | 41,624 | 40,494 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 663 | 69 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 510 | 911 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 256 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 663 | 69 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 40,451 | 39,258 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 669 | 235 |
Total Loans Receivable | 20,075 | 21,025 |
Recorded Investment 90 Days Accruing | 0 | 0 |
Non-accrual Loans | 485 | 368 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 30 to 59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 400 | 119 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | 60 to 89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Greater than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 269 | 116 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 19,406 | 20,790 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 0 | 0 |
Total Loans Receivable | 175 | 183 |
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 | $ 175 | $ 183 |
Allowance for Loan Losses and37
Allowance for Loan Losses and Credit Quality (Narrative) (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2018propertyloan | Mar. 31, 2017USD ($)loan | Dec. 31, 2017property | |
Financing Receivable, Recorded Investment [Line Items] | |||
Number of contracts | 0 | 1 | |
Recorded investment | $ | $ 2.3 | ||
Number of troubled debt restructurings | 0 | ||
Residential [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Number of residential properties | property | 0 | 0 |
Allowance for Loan Losses and38
Allowance for Loan Losses and Credit Quality (Commercial and Consumer Loans by Credit Quality Indicators) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 776,163 | $ 789,356 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 123,701 | 136,412 |
Commercial Portfolio Segment [Member] | Construction [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 120,428 | 136,180 |
Commercial Portfolio Segment [Member] | Construction [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,273 | 232 |
Commercial Portfolio Segment [Member] | Construction [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction [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 | 91,797 | 92,906 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 83,387 | 84,746 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 3,769 | 3,454 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 4,380 | 1,252 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 261 | 3,454 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 336,062 | 308,924 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 316,000 | 289,203 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 13,676 | 13,267 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 6,386 | 6,454 |
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 | 162,729 | 189,412 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 162,729 | 189,412 |
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 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 41,624 | 40,494 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 40,675 | 39,539 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 65 | 666 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 884 | 289 |
Residential Portfolio Segment [Member] | Residential Real Estate [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 | 20,075 | 21,025 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 19,590 | 20,657 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | Non-performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 485 | 368 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 175 | 183 |
Consumer Portfolio Segment [Member] | Other [Member] | Performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 175 | 183 |
Consumer Portfolio Segment [Member] | Other [Member] | Non-performing [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Allowance for Loan Losses and39
Allowance for Loan Losses and Credit Quality (Allowance for Loan Losses by Impairment Method) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | $ 596 | $ 684 | ||
Allowance for loan losses, ending balance | 8,297 | 8,013 | $ 7,550 | $ 7,494 |
Allowance for loan losses, collectively evaluated for impairment | 7,701 | 7,329 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 11,315 | 10,841 | ||
Loans receivables, ending balance | 776,163 | 789,356 | ||
Loans receivables, collectively evaluated for impairment | 763,981 | 777,651 | ||
Deferred loan costs, net | 498 | 550 | ||
Total loans, net | 776,661 | 789,906 | ||
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 | 867 | 864 | ||
Commercial Portfolio Segment [Member] | Construction [Member] | ||||
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, ending balance | 1,612 | 1,703 | 1,370 | 1,204 |
Allowance for loan losses, collectively evaluated for impairment | 1,612 | 1,703 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 104 | 232 | ||
Loans receivables, ending balance | 123,701 | 136,412 | ||
Loans receivables, collectively evaluated for impairment | 123,597 | 136,180 | ||
Commercial Portfolio Segment [Member] | Construction [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 | 527 | 592 | ||
Allowance for loan losses, ending balance | 1,675 | 1,720 | 1,822 | 1,732 |
Allowance for loan losses, collectively evaluated for impairment | 1,148 | 1,128 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 4,408 | 4,459 | ||
Loans receivables, ending balance | 91,797 | 92,906 | ||
Loans receivables, collectively evaluated for impairment | 87,106 | 88,173 | ||
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 | 283 | 274 | ||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | 69 | 92 | ||
Allowance for loan losses, ending balance | 3,166 | 2,949 | 2,634 | 2,574 |
Allowance for loan losses, collectively evaluated for impairment | 3,097 | 2,857 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 5,654 | 5,713 | ||
Loans receivables, ending balance | 336,062 | 308,924 | ||
Loans receivables, collectively evaluated for impairment | 329,824 | 302,621 | ||
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 | 584 | 590 | ||
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, ending balance | 732 | 852 | 642 | 973 |
Allowance for loan losses, collectively evaluated for impairment | 732 | 852 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||
Loans receivables, ending balance | 162,729 | 189,412 | ||
Loans receivables, collectively evaluated for impairment | 162,729 | 189,412 | ||
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 [Member] | ||||
Allowance for loan losses: | ||||
Allowance for loan losses, individually evaluated for impairment | 0 | 0 | ||
Allowance for loan losses, ending balance | 446 | 392 | 365 | 367 |
Allowance for loan losses, collectively evaluated for impairment | 446 | 392 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 663 | 69 | ||
Loans receivables, ending balance | 41,624 | 40,494 | ||
Loans receivables, collectively evaluated for impairment | 40,961 | 40,425 | ||
Residential Portfolio Segment [Member] | Residential 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 | 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, ending balance | 129 | 114 | 122 | 112 |
Allowance for loan losses, collectively evaluated for impairment | 129 | 114 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 486 | 368 | ||
Loans receivables, ending balance | 20,075 | 21,025 | ||
Loans receivables, collectively evaluated for impairment | 19,589 | 20,657 | ||
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, ending balance | 0 | 0 | 0 | 0 |
Allowance for loan losses, collectively evaluated for impairment | 0 | 0 | ||
Loans receivable: | ||||
Loans receivables, individually evaluated for impairment | 0 | 0 | ||
Loans receivables, ending balance | 175 | 183 | ||
Loans receivables, collectively evaluated for impairment | 175 | 183 | ||
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, ending balance | 537 | 283 | $ 595 | $ 532 |
Allowance for loan losses, collectively evaluated for impairment | 537 | 283 | ||
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 and40
Allowance for Loan Losses and Credit Quality (Allowance for Loan Losses Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | $ 8,013 | $ 7,494 |
Provision charged/(credited) to operations | 225 | 150 |
Loans charged off | (1) | (101) |
Recoveries of loans charged off | 60 | 7 |
Ending Balance | 8,297 | 7,550 |
Commercial Portfolio Segment [Member] | Construction [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 1,703 | 1,204 |
Provision charged/(credited) to operations | (91) | 166 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 1,612 | 1,370 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 1,720 | 1,732 |
Provision charged/(credited) to operations | (52) | 88 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 7 | 2 |
Ending Balance | 1,675 | 1,822 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 2,949 | 2,574 |
Provision charged/(credited) to operations | 164 | 56 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 53 | 4 |
Ending Balance | 3,166 | 2,634 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 852 | 973 |
Provision charged/(credited) to operations | (120) | (331) |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 732 | 642 |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 392 | 367 |
Provision charged/(credited) to operations | 54 | 99 |
Loans charged off | 0 | (101) |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 446 | 365 |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 114 | 112 |
Provision charged/(credited) to operations | 15 | 9 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 1 |
Ending Balance | 129 | 122 |
Consumer Portfolio Segment [Member] | Other [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 0 | 0 |
Provision charged/(credited) to operations | 1 | 0 |
Loans charged off | (1) | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | 0 | 0 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||
Beginning Balance | 283 | 532 |
Provision charged/(credited) to operations | 254 | 63 |
Loans charged off | 0 | 0 |
Recoveries of loans charged off | 0 | 0 |
Ending Balance | $ 537 | $ 595 |
Allowance for Loan Losses and41
Allowance for Loan Losses and Credit Quality (Impaired Loans Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
With no allowance: | |||
Impaired loans with no allowance, recorded investment | $ 5,873 | $ 3,288 | |
Impaired loans with no allowance, unpaid principal balance | 6,540 | 3,584 | |
Impaired loans with no allowance, average recorded investment | 4,033 | $ 4,375 | |
Impaired loans with no allowance, interest income recognized | 46 | 15 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 6,309 | 8,417 | |
Impaired loans with an allowance, unpaid principal balance | 6,311 | 9,212 | |
Impaired loans, related allowance | 596 | 684 | |
Impaired loans with an allowance, average recorded investment | 7,707 | 4,126 | |
Impaired loans with an allowance, interest income recognized | 87 | 113 | |
Total: | |||
Impaired loans, recorded investment | 12,182 | 11,705 | |
Outstanding balance | 12,851 | 12,796 | |
Impaired loans, related allowance | 596 | 684 | |
Impaired loans, average recorded investment | 11,740 | 8,501 | |
Impaired loans, interest income recognized | 133 | 128 | |
Commercial Portfolio Segment [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 4,724 | 2,851 | |
Impaired loans with no allowance, unpaid principal balance | 5,283 | 3,023 | |
Impaired loans with no allowance, average recorded investment | 3,362 | 3,800 | |
Impaired loans with no allowance, interest income recognized | 46 | 15 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 6,309 | 8,417 | |
Impaired loans with an allowance, unpaid principal balance | 6,311 | 9,212 | |
Impaired loans, related allowance | 596 | 684 | |
Impaired loans with an allowance, average recorded investment | 7,707 | 3,926 | |
Impaired loans with an allowance, interest income recognized | 87 | 113 | |
Total: | |||
Impaired loans, related allowance | 596 | 684 | |
Commercial Portfolio Segment [Member] | Construction [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 104 | 232 | |
Impaired loans with no allowance, unpaid principal balance | 104 | 232 | |
Impaired loans with no allowance, average recorded investment | 147 | 185 | |
Impaired loans with no allowance, interest income recognized | 2 | 0 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans with an allowance, average recorded investment | 0 | 205 | |
Impaired loans with an allowance, interest income recognized | 0 | 3 | |
Total: | |||
Impaired loans, recorded investment | 104 | 232 | |
Outstanding balance | 104 | 232 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, average recorded investment | 147 | 390 | |
Impaired loans, interest income recognized | 2 | 3 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 1,331 | 1,271 | |
Impaired loans with no allowance, unpaid principal balance | 1,372 | 1,419 | |
Impaired loans with no allowance, average recorded investment | 1,250 | 794 | |
Impaired loans with no allowance, interest income recognized | 27 | 3 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 3,360 | 3,462 | |
Impaired loans with an allowance, unpaid principal balance | 3,362 | 3,464 | |
Impaired loans, related allowance | 527 | 592 | |
Impaired loans with an allowance, average recorded investment | 3,425 | 1,511 | |
Impaired loans with an allowance, interest income recognized | 46 | 67 | |
Total: | |||
Impaired loans, recorded investment | 4,691 | 4,733 | |
Outstanding balance | 4,734 | 4,883 | |
Impaired loans, related allowance | 527 | 592 | |
Impaired loans, average recorded investment | 4,675 | 2,305 | |
Impaired loans, interest income recognized | 73 | 70 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 3,289 | 1,348 | |
Impaired loans with no allowance, unpaid principal balance | 3,807 | 1,372 | |
Impaired loans with no allowance, average recorded investment | 1,965 | 2,821 | |
Impaired loans with no allowance, interest income recognized | 17 | 12 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 2,949 | 4,955 | |
Impaired loans with an allowance, unpaid principal balance | 2,949 | 5,748 | |
Impaired loans, related allowance | 69 | 92 | |
Impaired loans with an allowance, average recorded investment | 4,282 | 2,210 | |
Impaired loans with an allowance, interest income recognized | 41 | 43 | |
Total: | |||
Impaired loans, recorded investment | 6,238 | 6,303 | |
Outstanding balance | 6,756 | 7,120 | |
Impaired loans, related allowance | 69 | 92 | |
Impaired loans, average recorded investment | 6,247 | 5,031 | |
Impaired loans, interest income recognized | 58 | 55 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 0 | 0 | |
Impaired loans with no allowance, unpaid principal balance | 0 | 0 | |
Impaired loans with no allowance, average recorded investment | 0 | 0 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans with an allowance, average recorded investment | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | |
Total: | |||
Impaired loans, recorded investment | 0 | 0 | |
Outstanding balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, average recorded investment | 0 | 0 | |
Impaired loans, interest income recognized | 0 | 0 | |
Residential Portfolio Segment [Member] | Residential Real Estate [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 663 | 69 | |
Impaired loans with no allowance, unpaid principal balance | 720 | 123 | |
Impaired loans with no allowance, average recorded investment | 266 | 240 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans with an allowance, average recorded investment | 0 | 200 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | |
Total: | |||
Impaired loans, recorded investment | 663 | 69 | |
Outstanding balance | 720 | 123 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, average recorded investment | 266 | 440 | |
Impaired loans, interest income recognized | 0 | 0 | |
Consumer Portfolio Segment [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 486 | 368 | |
Impaired loans with no allowance, unpaid principal balance | 537 | 438 | |
Impaired loans with no allowance, average recorded investment | 405 | 335 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans with an allowance, average recorded investment | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | |
Total: | |||
Impaired loans, recorded investment | 486 | 368 | |
Outstanding balance | 537 | 438 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, average recorded investment | 405 | 335 | |
Impaired loans, interest income recognized | 0 | 0 | |
Consumer Portfolio Segment [Member] | Loan to Individuals [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 486 | 368 | |
Impaired loans with no allowance, unpaid principal balance | 537 | 438 | |
Impaired loans with no allowance, average recorded investment | 405 | 335 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans with an allowance, average recorded investment | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | 0 | |
Total: | |||
Impaired loans, related allowance | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other [Member] | |||
With no allowance: | |||
Impaired loans with no allowance, recorded investment | 0 | 0 | |
Impaired loans with no allowance, unpaid principal balance | 0 | 0 | |
Impaired loans with no allowance, average recorded investment | 0 | 0 | |
Impaired loans with no allowance, interest income recognized | 0 | 0 | |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 0 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 0 | 0 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans with an allowance, average recorded investment | 0 | 0 | |
Impaired loans with an allowance, interest income recognized | 0 | $ 0 | |
Total: | |||
Impaired loans, related allowance | $ 0 | $ 0 |
Allowance for Loan Losses and42
Allowance for Loan Losses and Credit Quality (Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 12,851 | $ 12,796 |
Receivables Acquired with Deteriorated Credit Quality [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 981 | 998 |
Carrying amount | $ 867 | $ 860 |
Allowance for Loan Losses and43
Allowance for Loan Losses and Credit Quality (Changes in Accretable Discount for Acquired Credit Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance at beginning of period | $ 126 | $ 30 |
Transfer from non-accretable discount | 0 | 0 |
Accretion of discount | (23) | (7) |
Balance at end of period | $ 103 | $ 23 |
Allowance for Loan Losses and44
Allowance for Loan Losses and Credit Quality (Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 1 | 1 |
Recorded Investment | $ | $ 77 | $ 77 |
Revenue from Contracts with C45
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Income on Bank-owned life insurance | $ 114 | $ 130 |
Net gains on sales of loans | 1,149 | 1,589 |
Loan servicing fees | 151 | 138 |
Net gains on sales of securities | 6 | 106 |
Other income | 162 | 145 |
Total non-interest income | 1,885 | 2,413 |
Service Charges on Deposits, Overdraft fees [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, including assessed tax | 79 | 80 |
Service Charges on Deposits, Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, including assessed tax | 71 | 74 |
Interchange income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, including assessed tax | 67 | 74 |
Other income - in scope [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from contract with customer, including assessed tax | $ 86 | $ 77 |
Share-Based Compensation (Narra
Share-Based Compensation (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 485,873 | |
Number of shares available for grant | 90,886 | |
Compensation not yet recognized, stock options | $ 104 | |
Compensation not yet recognized, other than options | 1,800 | |
Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | 24 | $ 11 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based compensation expense | $ 213 | $ 188 |
Share-Based Compensation (Sched
Share-Based Compensation (Schedule of Transactions under Stock Plans) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / sharesshares | |
Number of Shares | |
Number of shares outstanding, beginning of period (in shares) | shares | 142,005 |
Number of shares granted (in shares) | shares | 10,450 |
Number of shares exercised (in shares) | shares | (2,842) |
Number of shares outstanding, end of period (in shares) | shares | 149,613 |
Number of shares exercisable, end of period (in shares) | shares | 129,893 |
Weighted Average Exercise Price (in dollars per share) | |
Weighted average exercise price outstanding, beginning of period (in dollars per share) | $ / shares | $ 7.86 |
Weighted average exercise price granted (in dollars per share) | $ / shares | 18.30 |
Weighted average exercise price exercised (in dollars per share) | $ / shares | 6.69 |
Weighted average exercise price outstanding, end of period (in dollars per share) | $ / shares | 8.61 |
Weighted average exercise price exercisable, end of period (in dollars per share) | $ / shares | $ 7.44 |
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 7 months 6 days |
Weighted average remaining contractual term exercisable (in years), end of period | 4 years |
Aggregate intrinsic value outstanding, end of period | $ | $ 1,966 |
Aggregate intrinsic value exercisable, end of period | $ | $ 1,854 |
Share-Based Compensation (Fair
Share-Based Compensation (Fair Value and Weighted Average Assumptions) (Details) | 3 Months Ended |
Mar. 31, 2018$ / 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) | $ 5.93 |
Risk-free rate of return (percentage) | 2.46% |
Expected option life in years | 7 years |
Expected volatility (percentage) | 31.35% |
Expected dividends (percentage) | 1.18% |
Share-Based Compensation (Sch49
Share-Based Compensation (Schedule of Restricted Shares Activity) (Details) | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares | |
Non-vested at beginning of period (in shares) | shares | 150,745 |
Granted (in shares) | shares | 26,400 |
Vested (in shares) | shares | (29,390) |
Non-vested at end of period (in shares) | shares | 147,755 |
Average Grant Date Fair Value (in dollars per share) | |
Non-vested at beginning of period (in dollars per share) | $ / shares | $ 11.87 |
Granted (in dollars per share) | $ / shares | 18.30 |
Vested (in dollars per share) | $ / shares | 12.67 |
Non-vested at end of period (in dollars per share) | $ / shares | $ 12.86 |
Benefit Plans (Narrative) (Deta
Benefit Plans (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Period of service | 6 months | |
Cash surrender value of life insurance | $ 24.3 | $ 25.1 |
Benefit Plans (Schedule of Comp
Benefit Plans (Schedule of Components of Net Periodic Benefit Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 35 | $ 33 |
Interest cost | 28 | 45 |
Actuarial gain recognized | (15) | (19) |
Net periodic benefit cost | $ 48 | $ 59 |
Other Comprehensive Income (L52
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Components of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | $ (2,332) | $ (961) |
Other Comprehensive Income (Loss), Tax | 552 | 225 |
Other Comprehensive Income (Loss), Net of Tax | (1,780) | (736) |
Unrealized net holding gains (losses) on available for sale securities [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | (1,927) | (571) |
Other Comprehensive Income (Loss), Tax | 460 | 137 |
Other Comprehensive Income (Loss), Net of Tax | (1,467) | (434) |
Unrealized impairment (loss) on held to maturity security [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | (501) | (501) |
Other Comprehensive Income (Loss), Tax | 119 | 119 |
Other Comprehensive Income (Loss), Net of Tax | (382) | (382) |
Gains on unfunded pension liability [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Income (Loss), before Tax | 96 | 111 |
Other Comprehensive Income (Loss), Tax | (27) | (31) |
Other Comprehensive Income (Loss), Net of Tax | $ 69 | $ 80 |
Other Comprehensive Income (L53
Other Comprehensive Income (Loss) and Accumulated Other Comprehensive Income (Loss) (Changes in the Components of AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | $ 111,653 | $ 104,801 |
Total other comprehensive (loss) income | (1,044) | 51 |
Ending balance | 113,234 | 106,635 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | (736) | (600) |
Other comprehensive income/(loss) before reclassifications | (1,029) | 112 |
Total other comprehensive (loss) income | (1,044) | 51 |
Ending balance | (1,780) | (549) |
Unrealized Holding Gains (Losses) on Available for Sale Securities [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | (434) | (334) |
Other comprehensive income/(loss) before reclassifications | (1,029) | 112 |
Amounts reclassified from accumulated other comprehensive income | (4) | (49) |
Total other comprehensive (loss) income | (1,033) | 63 |
Ending balance | (1,467) | (271) |
Unrealized Impairment Loss on Held to Maturity Security [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | (382) | (331) |
Other comprehensive income/(loss) before reclassifications | 0 | 0 |
Total other comprehensive (loss) income | 0 | 0 |
Ending balance | (382) | (331) |
Unfunded Pension Liability [Member] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Roll Forward] | ||
Beginning balance | 80 | 65 |
Other comprehensive income/(loss) before reclassifications | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income | (11) | (12) |
Total other comprehensive (loss) income | (11) | (12) |
Ending balance | $ 69 | $ 53 |
Fair Value Disclosures (Financi
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 112,495 | $ 105,458 |
Assets, fair value disclosure | 112,554 | 105,593 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 16,462 | 16,080 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 96,092 | 89,513 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, fair value disclosure | 0 | 0 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“GSE”) and agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 1,942 | 1,967 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“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 entities (“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 | 1,942 | 1,967 |
U. S. Treasury securities and obligations of U.S. Government sponsored entities (“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 | 25,243 | 27,325 |
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 | 25,243 | 27,325 |
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 | 13,137 | 14,288 |
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 | 13,137 | 14,288 |
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 | 18,941 | 19,720 |
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 | 18,941 | 19,720 |
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 | 2,338 | 2,349 |
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 | 0 | 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 | 2,338 | 2,349 |
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 | 27,382 | 27,683 |
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 | 16,462 | 16,080 |
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 | 10,920 | 11,603 |
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 | 23,512 | 12,126 |
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 | 23,512 | 12,126 |
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 |
Interest rate lock derivative [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 59 | 135 |
Interest rate lock derivative [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 0 | 0 |
Interest rate lock derivative [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | 59 | 135 |
Interest rate lock derivative [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset | $ 0 | $ 0 |
Fair Value Disclosures (Finan55
Fair Value Disclosures (Financial Assets and Liabilities at Fair Value Measured on Non-recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 8,657 | $ 8,313 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 8,657 | $ 8,313 |
Fair Value Disclosures (Narrati
Fair Value Disclosures (Narrative) (Details) $ in Thousands | Mar. 31, 2018USD ($)loan | Dec. 31, 2017USD ($)loan |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, recorded investment | $ 12,182 | $ 11,705 |
Impaired loans, related allowance | $ 596 | $ 684 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans | loan | 13 | 14 |
Impaired loans, recorded investment | $ 9,300 | $ 9,000 |
Impaired loans, related allowance | $ 596 | $ 684 |
Fair Value Disclosures (Fair Va
Fair Value Disclosures (Fair Value Qualitative Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value Qualitative Information [Line Items] | ||
Impaired loans | $ 8,657 | $ 8,313 |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 1.70% | 0.50% |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 100.00% | 100.00% |
Impaired Loans [Member] | Weighted Average [Member] | ||
Fair Value Qualitative Information [Line Items] | ||
Impaired loans and Other real estate owned (percentage) | 28.20% | 28.20% |
Fair Value Disclosures (Estimat
Fair Value Disclosures (Estimated Fair Value of Financial Assets and Liabilities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 15,995 | $ 18,754 |
Securities available for sale | 112,495 | 105,458 |
Securities held to maturity | 102,756 | 110,267 |
Securities held to maturity, fair value | 103,351 | 111,865 |
Loans held for sale | 1,919 | 4,254 |
Net loans | 768,364 | 781,893 |
Accrued interest receivable | 3,202 | 3,478 |
Deposits | (891,086) | (922,006) |
Accrued interest payable | (775) | (804) |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 15,995 | 18,754 |
Securities available for sale | 112,495 | 105,458 |
Securities held to maturity | 102,756 | 110,267 |
Loans held for sale | 1,919 | 4,254 |
Net loans | 768,364 | 781,893 |
SBA servicing asset | 766 | 726 |
Interest rate lock derivative | 59 | 135 |
Accrued interest receivable | 3,202 | 3,478 |
FHLB stock | 1,684 | 1,490 |
Deposits | (891,086) | (922,006) |
Borrowings | (29,825) | (20,500) |
Redeemable subordinated debentures, fair value | (18,557) | (18,557) |
Accrued interest payable | (775) | (804) |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 15,995 | 18,754 |
Securities available for sale | 112,495 | 105,458 |
Securities held to maturity, fair value | 103,351 | 111,865 |
Loans held for sale, fair value | 1,991 | 4,539 |
Net loans, fair value | 771,529 | 784,064 |
SBA servicing asset | 1,016 | 1,016 |
Interest rate lock derivative | 59 | 135 |
Accrued interest receivable, fair value | 3,202 | 3,478 |
FHLB stock | 1,684 | 1,490 |
Deposits, fair value | (889,198) | (920,732) |
Borrowings, fair value | (29,825) | (20,500) |
Redeemable subordinated debentures, fair value | (12,317) | (12,326) |
Accrued interest payable, fair value | (775) | (804) |
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 | 15,995 | 18,754 |
Securities available for sale | 16,462 | 16,080 |
Securities held to maturity, fair value | 0 | 0 |
Loans held for sale, fair value | 0 | 0 |
Net loans, fair value | 0 | 0 |
SBA servicing asset | 0 | 0 |
Interest rate lock derivative | 0 | 0 |
Accrued interest receivable, fair value | 0 | 0 |
FHLB stock | 0 | 0 |
Deposits, fair value | 0 | 0 |
Borrowings, fair value | 0 | 0 |
Redeemable subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | 0 | 0 |
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Securities available for sale | 96,033 | 89,378 |
Securities held to maturity, fair value | 103,351 | 111,865 |
Loans held for sale, fair value | 1,991 | 4,539 |
Net loans, fair value | 0 | 0 |
SBA servicing asset | 1,016 | 1,016 |
Interest rate lock derivative | 59 | 135 |
Accrued interest receivable, fair value | 3,202 | 3,478 |
FHLB stock | 1,684 | 1,490 |
Deposits, fair value | (889,198) | (920,732) |
Borrowings, fair value | (29,825) | (20,500) |
Redeemable subordinated debentures, fair value | (12,317) | (12,326) |
Accrued interest payable, fair value | (775) | (804) |
Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity, fair value | 0 | 0 |
Loans held for sale, fair value | 0 | 0 |
Net loans, fair value | 771,529 | 784,064 |
SBA servicing asset | 0 | 0 |
Interest rate lock derivative | 0 | 0 |
Accrued interest receivable, fair value | 0 | 0 |
FHLB stock | 0 | 0 |
Deposits, fair value | 0 | 0 |
Borrowings, fair value | 0 | 0 |
Redeemable subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | $ 0 | $ 0 |
Subsequent Event (Details)
Subsequent Event (Details) $ / shares in Units, $ in Thousands | Apr. 11, 2018USD ($)branch_office$ / sharesshares | Mar. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||
Assets | $ 1,060,410 | $ 1,079,274 | |
Deposits | 891,086 | 922,006 | |
Loans | $ 776,661 | $ 789,906 | |
New Jersey Community Bank [Member] | Subsequent Event [Member] | |||
Business Acquisition [Line Items] | |||
Consideration paid in cash (in dollars per share) | $ / shares | $ 1.60 | ||
Consideration paid in shares (in shares) | shares | 0.1309 | ||
Number of shares issued (in shares) | shares | 249,785 | ||
Equity interest issued | $ 5,500 | ||
Cash payment to acquire business | 3,050 | ||
Consideration transferred, cash paid to escrow | 401 | ||
Assets | 1,100,000 | ||
Deposits | 970,900 | ||
Loans | $ 826,400 | ||
Number of locations | branch_office | 2 |