Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 000-32891 | ||
Entity Registrant Name | 1ST CONSTITUTION BANCORP | ||
Entity Incorporation, State or Country Code | NJ | ||
Entity Tax Identification Number | 22-3665653 | ||
Entity Address, Address Line One | 2650 Route 130 | ||
Entity Address, Address Line Two | P.O. Box 634 | ||
Entity Address, City or Town | Cranbury | ||
Entity Address, State or Province | NJ | ||
Entity Address, Postal Zip Code | 08512 | ||
City Area Code | (609) | ||
Local Phone Number | 655-4500 | ||
Title of 12(b) Security | Common stock, no par value | ||
Trading Symbol | FCCY | ||
Security Exchange Name | NASDAQ | ||
Entity Well-Known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 136,654,174 | ||
Entity Common Stock, Shares Outstanding | 10,185,648 | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001141807 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 2,547 | $ 4,983 |
Interest-earning deposits | 12,295 | 11,861 |
Total cash and cash equivalents | 14,842 | 16,844 |
Investment securities: | ||
Available for sale, at fair value | 155,782 | 132,222 |
Held to maturity (fair value of $78,223 and $80,204 at December 31, 2019 and December 31, 2018, respectively) | 76,620 | 79,572 |
Total investment securities | 232,402 | 211,794 |
Loans held for sale | 5,927 | 3,020 |
Loans | 1,216,028 | 883,164 |
Less: allowance for loan losses | (9,271) | (8,402) |
Net loans | 1,206,757 | 874,762 |
Premises and equipment, net | 15,262 | 11,653 |
Right-of-use assets | 17,957 | |
Accrued interest receivable | 4,945 | 3,860 |
Bank-owned life insurance | 36,678 | 28,705 |
Other real estate owned | 571 | 2,515 |
Goodwill and intangible assets | 36,779 | 12,258 |
Other assets | 14,142 | 12,422 |
Total assets | 1,586,262 | 1,177,833 |
Deposits | ||
Non-interest bearing | 287,555 | 212,981 |
Interest bearing | 989,807 | 737,691 |
Total deposits | 1,277,362 | 950,672 |
Short-term borrowings | 92,050 | 71,775 |
Redeemable subordinated debentures | 18,557 | 18,557 |
Accrued interest payable | 1,592 | 1,228 |
Lease liability | 18,617 | |
Accrued expense and other liabilities | 7,506 | 8,516 |
Total liabilities | 1,415,684 | 1,050,748 |
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; 10,224,974 and 8,639,276 shares issued and 10,191,676 and 8,605,978 shares outstanding as of December 31, 2019 and December 31, 2018, respectively | 109,964 | 79,536 |
Retained earnings | 60,791 | 49,750 |
Treasury stock, 33,298 shares at December 31, 2019 and December 31, 2018 | (368) | (368) |
Accumulated other comprehensive income (loss) | 191 | (1,833) |
Total shareholders' equity | 170,578 | 127,085 |
Total liabilities and shareholders' equity | $ 1,586,262 | $ 1,177,833 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value | $ 78,223 | $ 80,204 |
Preferred stock, par value (in Dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in Shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in Shares) | 0 | 0 |
Common stock, par value (in Dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in Shares) | 30,000,000 | 30,000,000 |
Common stock, shares issued (in Shares) | 10,224,974 | 8,639,276 |
Common stock, shares outstanding (in Shares) | 10,191,676 | 8,605,978 |
Treasury stock shares (in Shares) | 33,298 | 33,298 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
INTEREST INCOME | |||
Loans, including fees | $ 53,537 | $ 45,202 | $ 35,967 |
Securities: | |||
Taxable | 4,710 | 4,024 | 3,326 |
Tax-exempt | 1,667 | 1,989 | 2,140 |
Federal funds sold and short-term investments | 176 | 258 | 230 |
Total interest income | 60,090 | 51,473 | 41,663 |
INTEREST EXPENSE | |||
Deposits | 11,094 | 6,511 | 4,550 |
Borrowings | 912 | 836 | 429 |
Redeemable subordinated debentures | 748 | 694 | 519 |
Total interest expense | 12,754 | 8,041 | 5,498 |
Net interest income | 47,336 | 43,432 | 36,165 |
PROVISION FOR LOAN LOSSES | 1,350 | 900 | 600 |
Net interest income after provision for loan losses | 45,986 | 42,532 | 35,565 |
NON-INTEREST INCOME | |||
Service charges on deposit accounts | 663 | 638 | 596 |
Gain on sales of loans, net | 4,885 | 4,475 | 5,149 |
Income on bank-owned life insurance | 623 | 575 | 522 |
Gain from bargain purchase | 0 | 230 | 0 |
Gain on sales/calls of securities | 30 | 12 | 129 |
Other income | 2,036 | 1,988 | 1,844 |
Total non-interest income | 8,237 | 7,918 | 8,240 |
NON-INTEREST EXPENSES | |||
Salaries and employee benefits | 21,304 | 19,853 | 18,804 |
Occupancy expense | 4,100 | 3,623 | 3,169 |
Data processing expenses | 1,507 | 1,332 | 1,314 |
FDIC insurance expense | 154 | 486 | 360 |
Other real estate owned expenses | 171 | 158 | 42 |
Merger-related expenses | 1,730 | 2,141 | 265 |
Other operating expenses | 6,583 | 6,492 | 7,052 |
Total non-interest expenses | 35,549 | 34,085 | 31,006 |
Income before income taxes | 18,674 | 16,365 | 12,799 |
INCOME TAXES | 5,040 | 4,317 | 5,871 |
Net Income | $ 13,634 | $ 12,048 | $ 6,928 |
EARNINGS PER COMMON SHARE | |||
Basic (in Dollars per share) | $ 1.54 | $ 1.45 | $ 0.86 |
Diluted (in Dollars per share) | $ 1.53 | $ 1.40 | $ 0.83 |
WEIGHTED AVERAGE SHARES OUTSTANDING | |||
Basic (in Shares) | 8,875,237 | 8,320,718 | 8,049,981 |
Diluted (in Shares) | 8,933,471 | 8,593,509 | 8,312,784 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 13,634 | $ 12,048 | $ 6,928 | |
Unrealized gains (losses) on securities available for sale | ||||
Unrealized gains (losses) on securities available for sale | 2,651 | (1,624) | (14) | |
Tax effect | (646) | 388 | 40 | |
Net of tax amount | 2,005 | (1,236) | 26 | |
Reclassification adjustment for realized gains on securities available for sale | ||||
Reclassification adjustment for realized gains on securities available for sale | [1] | (30) | (12) | (93) |
Tax effect | [2] | 7 | 3 | 38 |
Net of tax amount | (23) | (9) | (55) | |
Reclassification adjustment for unrealized impairment loss on held to maturity security | ||||
Reclassification adjustment for unrealized impairment loss on held to maturity security | [3] | 9 | 0 | 0 |
Tax effect | (1) | 0 | 0 | |
Net of tax amount | 8 | 0 | 0 | |
Pension liability | ||||
Pension liability | 222 | 269 | 62 | |
Tax effect | (66) | (77) | (24) | |
Net of tax amount | 156 | 192 | 38 | |
Reclassification adjustment for actuarial gains for unfunded pension liability | ||||
Reclassification adjustment for actuarial gains for unfunded pension liability | [4] | (176) | (62) | (60) |
Tax effect | [2] | 54 | 18 | 24 |
Net of tax amount | (122) | (44) | (36) | |
Total other comprehensive income (loss) | 2,024 | (1,097) | (27) | |
Comprehensive income | $ 15,658 | $ 10,951 | $ 6,901 | |
[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 investment securities held to maturity on the consolidated balance sheet | |||
[4] | 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 (Loss) Income [Member] |
Balance, beginning of period at Dec. 31, 2016 | $ 104,801 | $ 71,695 | $ 34,074 | $ (368) | $ (600) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 6,928 | 6,928 | |||
Exercise of stock options and issuance of restricted shares | 247 | 247 | |||
Share-based compensation | 993 | 993 | |||
Cash dividends | (1,289) | (1,289) | |||
Other comprehensive income (loss) | (27) | (27) | |||
Reclassifications of certain deferred tax effects | 0 | 109 | (109) | ||
Balance, end of period at Dec. 31, 2017 | 111,653 | 72,935 | 39,822 | (368) | (736) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 12,048 | 12,048 | |||
Exercise of stock options and issuance of restricted shares | 88 | 88 | |||
Share-based compensation | 1,019 | 1,019 | |||
Exercise of stock warrants | 0 | ||||
Issuance of common stock | 5,494 | 5,494 | |||
Cash dividends | (2,120) | (2,120) | |||
Other comprehensive income (loss) | (1,097) | (1,097) | |||
Balance, end of period at Dec. 31, 2018 | 127,085 | 79,536 | 49,750 | (368) | (1,833) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 13,634 | 13,634 | |||
Exercise of stock options and issuance of restricted shares | 149 | 149 | |||
Share-based compensation | 1,104 | 1,104 | |||
Issuance of common stock | 29,175 | 29,175 | |||
Cash dividends | (2,593) | (2,593) | |||
Other comprehensive income (loss) | 2,024 | 2,024 | |||
Balance, end of period at Dec. 31, 2019 | $ 170,578 | $ 109,964 | $ 60,791 | $ (368) | $ 191 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock issued during period for exercise of warrants (in shares) | 198,378 | ||
Stock issued during period (in shares) | 1,509,275 | 249,785 | |
Dividends on common stock (in Dollars per share) | $ 0.30 | $ 0.255 | $ 0.16 |
Share-based Payment Arrangement, Option [Member] | |||
Stock issued during period for share-based compensation awards (in shares) | 24,277 | 12,762 | 31,640 |
Restricted Stock [Member] | |||
Stock issued during period for share-based compensation awards (in shares) | 53,931 | 62,150 | 60,613 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Operating Activities: | |||
Net Income | $ 13,634 | $ 12,048 | $ 6,928 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Provision for loan losses | 1,350 | 900 | 600 |
Depreciation and amortization | 1,444 | 1,389 | 1,380 |
Net amortization of premiums and discounts on securities | 675 | 556 | 879 |
SBA loan discount accretion | (391) | (323) | (247) |
Gain on bargain purchase | 0 | (230) | 0 |
Gain on sales/calls of securities available for sale | (30) | (12) | (93) |
Gain on sales of securities held to maturity | 0 | 0 | (36) |
Loss (gain) on sales of other real estate owned | 101 | 0 | (5) |
Gains on sales of loans held for sale | (4,885) | (4,475) | (5,149) |
Originations of loans held for sale | (146,808) | (111,109) | (110,831) |
Proceeds from sales of loans held for sale | 148,786 | 116,818 | 126,555 |
Increase in cash surrender value on bank-owned life insurance | (623) | (589) | (522) |
Loss on cash surrender value on bank-owned life insurance | 0 | 14 | 0 |
Share-based compensation expense | 1,104 | 1,019 | 993 |
Deferred tax expense | 604 | 305 | 620 |
Noncash rent and equipment expense | 192 | 0 | 0 |
Re-measurement of deferred tax assets and liabilities | 0 | (28) | 1,712 |
Increase in accrued interest receivable | (307) | (123) | (383) |
Decrease/(increase) decrease in other assets | 511 | (1,589) | (181) |
Increase (decrease) in accrued interest payable | 364 | 424 | (62) |
(Decrease)/increase in accrued expenses and other liabilities | (2,459) | 2,333 | (266) |
Net cash provided by operating activities | 13,262 | 17,328 | 21,892 |
Purchases of securities : | |||
Available for sale | (33,972) | (35,209) | (35,680) |
Held to maturity | (16,188) | (7,723) | (34,592) |
Proceeds from maturities and prepayments of securities: | |||
Available for sale | 39,086 | 17,664 | 25,770 |
Held to maturity | 18,891 | 38,192 | 49,889 |
Proceeds from sales of securities: | |||
Available for sale | 0 | 0 | 7,602 |
Held to maturity | 0 | 0 | 1,034 |
Proceeds from bank-owned life insurance benefits paid | 0 | 893 | 0 |
Net (purchase) redemption of restricted stock | (272) | (2,510) | 2,408 |
Net (increase) in loans | (127,121) | (19,762) | (65,387) |
Capital expenditures | (161) | (648) | (846) |
Forfeitable deposit on other real estate owned | 0 | 175 | 0 |
Capital improvement to other real estate owned | 0 | 0 | (5) |
Proceeds from sales of other real estate owned | 2,448 | 0 | 631 |
Purchase of bank-owned life insurance | (100) | 0 | (2,345) |
Net cash used in investing activities | (109,949) | (9,924) | (51,521) |
FINANCING ACTIVITIES: | |||
Exercise of stock options | 149 | 88 | 247 |
Cash dividends paid to shareholders | (2,593) | (2,120) | (1,690) |
Net (decrease) increase in deposits | 76,854 | (58,557) | 87,490 |
Increase (decrease) in overnight borrowings | 20,275 | 51,275 | (42,550) |
Repayment of long-term borrowing | 0 | 0 | (10,000) |
Net cash provided by (used in) financing activities | 94,685 | (9,314) | 33,497 |
(Decrease) increase in cash and cash equivalents | (2,002) | (1,910) | 3,868 |
Cash and cash equivalents at beginning of year | 16,844 | 18,754 | 14,886 |
Cash and cash equivalents at end of year | 14,842 | 16,844 | 18,754 |
Cash paid during the period for : | |||
Interest | 12,387 | 7,617 | 5,560 |
Income taxes | 6,108 | 3,226 | 3,220 |
Noncash items: | |||
Transfer of loans to other real estate owned | 0 | 1,460 | 455 |
Right-of-use assets | 15,674 | ||
Lease liability | 16,142 | ||
Noncash assets acquired: | |||
Investment securities available for sale | 26,440 | 11,173 | |
Loans | 205,833 | 75,144 | |
Premises and equipment, net | 4,433 | 1,120 | |
Bank-owned life insurance | 7,250 | 3,972 | |
Accrued interest receivable | 778 | 259 | |
Core deposit intangible asset | 1,467 | 80 | |
Other real estate owned | 605 | 1,230 | |
Right-of-use assets | 3,226 | ||
Other assets | 2,518 | 1,601 | |
Value of assets acquired | 252,550 | 94,579 | |
Liabilities assumed: | |||
Deposits | 249,836 | 87,223 | |
Lease liability | 3,226 | ||
Other liabilities | 948 | 636 | |
Value of liabilities assumed | 254,010 | 87,859 | |
Shore Community Bank [Member] | |||
Proceeds from sales of securities: | |||
Net cash received from the Shore Merger | 7,440 | 0 | 0 |
Liabilities assumed: | |||
Goodwill recorded from the Shore Merger | 23,194 | 0 | |
Common stock issued for Acquire Business | 29,175 | 0 | |
New Jersey Community Bank [Member] | |||
Proceeds from sales of securities: | |||
Net cash paid for NJCB Merger | 0 | 996 | $ 0 |
Liabilities assumed: | |||
Common stock issued for Acquire Business | $ 0 | $ 5,494 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies 1 ST Constitution Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended, and was organized under the laws of the State of New Jersey. The Company is the parent to 1 ST Constitution Bank (the “Bank”), a New Jersey state-chartered commercial bank. The Bank provides community banking services to a broad range of customers, including corporations, individuals, partnerships and other community organizations in the central, coastal and northeastern New Jersey areas. The Bank conducts its operations through its main office located in Cranbury, New Jersey and operated, as of December 31, 2019 , 25 additional branch offices in Asbury Park, Cranbury, Fair Haven, Fort Lee, Freehold, Hamilton Square, Hightstown, Hillsborough, Hopewell, Jackson, Jamesburg, Lawrenceville, Little Silver, Long Branch, Manahawkin, Neptune City, Perth Amboy, Plainsboro, Princeton, Rumson, Shrewsbury, Skillman and three offices in Toms River, New Jersey. The Bank also operates two residential mortgage loan production offices in Forked River and Jersey City, New Jersey. The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2019 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. Basis of Financial Statement Presentation: The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for that period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary security impairment, the fair value of other real estate owned, if any, and the valuation of deferred tax assets. Principles of Consolidation: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 1st Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street, LLC and 249 New York Avenue, LLC. 1st Constitution Capital Trust II, a subsidiary of the Company (“Trust II”), 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. While the following footnotes include the collective results of the Company and the Bank, the footnotes primarily reflect the Bank's and its subsidiaries' activities. 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. Concentration of Credit Risk: Financial instruments which potentially subject the Company and its subsidiaries to concentrations of credit risk primarily consist of investment securities and loans. At December 31, 2019 , 49.0% of our investment securities portfolio consisted of U.S. Government and Agency issues and collateralized mortgage obligations collateralized by agency mortgage backed securities. In addition, 28.4% of the portfolio consisted of municipal bonds. The remaining 22.6% of our investment securities consisted of corporate debt and asset-backed issues. The Bank’s lending activity is primarily concentrated in loans collateralized by real estate located primarily in the State of New Jersey. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in that state. Interest Rate Risk: The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to purchase investment securities and to make loans, the majority of which are secured by real estate. The potential for interest-rate risk exists as a result of the Company's generally shorter duration of interest-sensitive assets compared to the generally longer duration of interest-sensitive liabilities. In a changing interest rate environment, assets held by the Bank will re-price faster than liabilities of the Bank, thereby affecting net interest income. For this reason, management regularly monitors the maturity structure and rate adjustment features of the Bank’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. Investment Securities: Investment securities which the Company has the intent and ability to hold until maturity are classified as held to maturity and are recorded at cost, adjusted for amortization of premiums and accretion of discounts. Investment securities that are held for indefinite periods of time, that management intends to use as part of its asset/liability management strategy, or that may be sold in response to changes in interest rates, changes in prepayment risk, increased capital requirements or other similar factors, are classified as available for sale and are carried at fair value. Unrealized gains and losses on available for sale securities are recorded as a separate component of shareholders’ equity. Realized gains and losses, which are computed using the specific identification method, are recognized in earnings on a trade date basis. If the fair value of a security is less than its amortized cost, the security is deemed to be impaired. Management evaluates all securities with unrealized losses quarterly to determine if such impairments are temporary or other-than-temporary in accordance with the Accounting Standards Codification (“ASC”) of the Financial Accounting Standards Board (“FASB”). Temporary impairments on available for sale securities are recognized, on a tax-effected basis, through other comprehensive income (“OCI”) with offsetting adjustments to the carrying value of the security and the balance of related deferred taxes. Temporary impairments of held to maturity securities are not recorded in the consolidated financial statements; however, information concerning the amount and duration of impairments on held to maturity securities are disclosed. Other-than-temporary impairments ("OTTI") on all debt securities that the Company has decided to sell, or will, more likely than not, be required to sell prior to the full recovery of fair value to a level equal to or exceeding amortized cost, are recognized in earnings. If neither of these conditions regarding the likelihood of sale for a debt security apply, the OTTI is bifurcated into credit-related and noncredit-related components. Credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on a debt security fall below its amortized cost. The noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related OTTI in earnings. Noncredit-related OTTI on debt securities are recognized in OCI. Premiums and discounts on all securities are amortized/accreted to maturity by use of the level-yield method considering the impact of principal amortization and prepayments. Premiums on purchased callable debt securities are amortized to the earliest call date. Federal law requires a member institution of the FHLB system to hold restricted stock of its district FHLB according to a predetermined formula. The Bank’s investment in the restricted stock of the FHLB of New York is carried at cost and is included in other assets. The investment in FHLB stock was $4.2 million and $3.9 million at December 31, 2019 and December 31, 2018 , respectively. Management evaluates the FHLB restricted stock for impairment in accordance with U.S. GAAP. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. The determination of whether a decline affects the ultimate recoverability of their cost is influenced by criteria such as (1) the significance of the decline in net assets of the FHLB as compared to the capital stock amount for the FHLB and the length of time this situation has persisted, (2) commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance of the FHLB, and (3) the impact of legislative and regulatory changes on institutions and, accordingly, on the customer base of the FHLB. Management believes no impairment charge is necessary related to the FHLB stock as of December 31, 2019 . Bank-Owned Life Insurance: The Company invests in bank-owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by the Company on a select group of its executives, directors, officers and employees. The Company is the owner and beneficiary of the policies. This pool of insurance, due to the advantages of the Bank, is profitable to the Company. This profitability offsets a portion of current and future benefit costs and is intended to provide a funding source for the payment of future benefits. The Bank’s deposits fund BOLI and the earnings from BOLI are recognized as non-interest income. Loans and Loans Held For Sale: Loans that management intends to hold to maturity are stated at the principal amount outstanding, net of unearned income. Unearned income is recognized over the lives of the respective loans, principally using the effective interest method. Interest income is generally not accrued on loans, including impaired loans, where interest or principal is 90 days or more past due, unless the loans are adequately secured and in the process of collection, or on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations. When it is probable that, based upon current information, the Bank will not collect all amounts due under the contractual terms of the loan, the loan is reported as impaired. Smaller balance homogeneous type loans, such as residential loans and loans to individuals, which are collectively evaluated, are generally excluded from consideration for impairment. Loan impairment is measured based upon the present value of the expected future cash flows discounted at the loan’s effective interest rate or the underlying fair value of collateral for collateral dependent loans. When a loan, including an impaired loan, is placed on non-accrual, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Non-accrual loans are generally not returned to accruing status until principal and interest payments have been brought current and full collectibility is reasonably assured. Cash receipts on non-accrual and impaired loans are applied to principal, unless the loan is deemed fully collectible. Loans held for sale are carried at the lower of aggregated cost or fair value. The fair value 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. Realized gains and losses on loans held for sale are recognized at settlement date and are determined based on the cost, including deferred net loan origination fees and the costs of the specific loans sold. Residential mortgage loans are sold with servicing released. The Bank accounts for its transfers and servicing of financial assets in accordance with ASC Topic 860, “Transfers and Servicing” ("ASC Topic 860"). The Bank originates residential mortgages under a definitive plan to sell those loans with servicing generally released. Residential mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Bank also originates commercial loans, of which a portion are guaranteed by the Small Business Administration ("SBA"). The guaranteed portion of the loans is generally sold into the secondary market. Gains and losses on sales are also accounted for in accordance with ASC Topic 860. The Bank enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding “rate lock commitments.” Rate lock commitments on residential mortgage loans that are intended to be sold are considered to be derivatives. Time elapsing between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 120 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is generally not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The fair value of rate lock commitments and best efforts commitments is not readily ascertainable with precision because rate lock commitments and best efforts commitments are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments 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 while taking into consideration the probability that the rate lock commitments will close. Due to high correlation between rate lock commitments and best efforts commitments, no gain or loss occurs on the rate lock commitments. The estimated fair value of rate lock commitments was $159,000 and $79,000 at December 31, 2019 and 2018 , respectively. ASC Topic 460, "Guarantees," requires a guarantor entity, at the inception of a guarantee covered by the measurement provisions of the interpretation, to record a liability for the fair value of the obligation undertaken in issuing the guarantee. Standby letters of credit are conditional commitments issued by the Bank to guarantee the financial performance of a customer to a third party. Those guarantees are primarily issued to support contracts entered into by customers. Most guarantees extend for one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank defines the fair value of these letters of credit as the fees paid by the customer or similar fees collected on similar instruments. The Bank amortizes the fees collected over the life of the instrument. The Bank generally obtains collateral, such as real estate or liens on customer assets, for these types of commitments. The Bank’s potential liability would be reduced by any proceeds obtained in liquidation of the collateral. The Bank had standby letters of credit for customers aggregating $4,300 thousand and $766 thousand at December 31, 2019 and 2018 , respectively. These letters of credit are primarily related to real estate lending and the approximate value of underlying collateral upon liquidation is expected to be sufficient to cover this maximum potential exposure at December 31, 2019 . The amount of the liability related to guarantees under issued standby letters of credit was not material as of December 31, 2019 and 2018 . Allowance for Loan Losses: The allowance for loan losses is maintained at a level sufficient to absorb estimated credit losses in the loan portfolio as of the date of the financial statements. The allowance for loan losses is a valuation reserve available for losses incurred or inherent in the loan portfolio and other extensions of credit. The determination of the adequacy of the allowance for loan losses is a critical accounting policy of the Bank. All, or part, of the principal balance of commercial and commercial real estate loans and construction loans are charged off against the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of bankruptcy, or if there is an amount deemed uncollectible . Because all identified losses are charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. Loans are placed in a nonaccrual status when the ultimate collectability of principal or interest in whole, or in part, is in doubt. Past-due loans contractually past-due 90 days or more for either principal or interest are also placed in nonaccrual status unless they are both well secured and in the process of collection. Impaired loans are evaluated individually. Purchased Credit-Impaired (“PCI”) loans are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30, "Receivables, Loans and Debt Securities Acquired with Deteriorated Credit Quality" and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and result in an increase in yield on a prospective basis. The following is our charge-off policy for our loan segments: Commercial, Commercial Real Estate and Construction Loans are generally fully or partially charged down to the fair value of collateral securing the asset when: • Management judges the loan to be uncollectible; • Repayment is deemed to be protracted beyond reasonable time frames; • The loan has been classified as a loss by either internal loan review process or external examiners; • The customer has filed bankruptcy and the loss becomes evident owing to a lack of assets; or • The loan is significantly past due unless both well secured and in the process of collection. Consumer Consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible . Leases: The Company leases real property for its branch offices and general office space. Generally, the leases include one or more options to extend the lease term. In addition, the Company also leases office equipment, consisting of copiers, printers and two automobiles. None of the equipment leases include extensions and generally have three to five year terms. The Company accounts for the leases in accordance with ASC Topic 842 “Leases.” The new standard requires a lessee to record a right-of-use asset ("ROU") and a lease liability on the balance sheet for all leases with terms longer than 12 months. The Company adopted this ASU effective January 1, 2019 and recognized a lease liability and a ROU on its balance sheet based on the present value of the remaining minimum lease payments. The lease expense is recognized based on the terms of the leases. The new guidance includes a number of optional transition-related practical expedients. The Company elected to apply the practical expedients that relate to: the identification and classification of leases that commenced before January 1, 2019 and the initial direct costs of these leases. Premises and Equipment: Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and using the mandated methods by asset type for income tax purposes. Building, furniture and fixtures, equipment and leasehold improvements are depreciated or amortized over the estimated useful lives of the assets or lease terms, as applicable. Estimated useful lives of buildings are forty years , furniture and fixtures and equipment are three to fifteen years and leasehold improvements are generally three to ten years . Expenditures for maintenance and repairs are charged to expense as incurred. The Bank accounts for impairment of long-lived assets in accordance with ASC Topic 360, “Property, Plant, and Equipment,” which requires recognition and measurement for the impairment of long-lived assets to be held and used or to be disposed of by sale. The Bank had no impaired long-lived assets at December 31, 2019 and 2018 . Income Taxes: There are two components of income tax expense or benefit: current and deferred. Current income tax expense or benefit approximates cash to be paid or refunded for taxes for the applicable period. Deferred tax assets and liabilities are recognized due to differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in the financial statements. Deferred tax assets are subject to management’s judgment based upon available evidence that future realizations are likely. If management determines that the Company may not be able to realize some or all of the net deferred tax asset in the future, a charge to income tax expense may be required to increase the valuation reserve of the net deferred tax asset. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is recognized for the change in deferred tax assets and liabilities. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements in accordance with ASC Topic 740, "Income Taxes," which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has not identified any significant income tax uncertainties through the evaluation of its income tax positions for the years ended December 31, 2019 and 2018 and has not recognized any liabilities for tax uncertainties as of December 31, 2019 and 2018 . Our policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense; such amounts were not significant during the years ended December 31, 2019 and 2018 . The tax years subject to examination by the taxing authorities are, for federal and state purposes, the years ended December 31, 2019 , 2018 , 2017 and 2016 . On December 22, 2017, the 2017 Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. The Tax Act contained several key tax provisions including the reduction in the maximum corporate federal tax rate to 21% from 35% effective January 1, 2018. As a result, the Company was required to re-measure, through income tax expense, its deferred tax assets and liabilities using the enacted rate at which it expects them to be recovered or settled. In December 2017, the U.S. Securities and Exchange Commission ("SEC") also issued Staff Accounting Bulletin No. 118, "Income Tax Accounting Implications of the Tax Cuts and Jobs Act" ("SAB 118"), which allows companies to record provisional amounts during a measurement period not to extend beyond one year of the enactment date. Because the Tax Act was passed late in December 2017 and ongoing analysis and interpretation of the other key tax provisions was expected over the next 12 months, the Company considered the deferred tax re-measurements and other items to be provisional in nature. In 2018, the Company completed its analysis within the measurement period in accordance with SAB 118. See Note 13 - Income Taxes - for additional information. Other Real Estate Owned ("OREO"): OREO obtained through loan foreclosures or the receipt of deeds-in-lieu of foreclosure is recorded at the fair value of the related property, as determined by current appraisals less estimated costs to sell at the initial transfer from the loan portfolio. Write-downs on these properties, which occur after the initial transfer from the loan portfolio, are recorded as operating expenses. Costs of holding such properties are charged to expense in the current period. Gains, to the extent realized, and losses on the disposition of these properties are reflected in current operations. Goodwill and Other Intangible Assets: Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable net assets acquired in accordance with the acquisition method of accounting. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or more often if events or circumstances indicated that there may be impairment, in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” Goodwill is tested for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. Core deposit intangibles are a measure of the value of non-maturity checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles are amortized over their estimated lives (ranging from five to ten years ) and identifiable intangible assets are evaluated for impairment if events and circumstances indicate a possible impairment. Any impairment loss related to goodwill and other intangible assets is reflected as other non-interest expense in the statement of income in the period in which the impairment was determined. No assurance can be given that future impairment tests will not result in a charge to earnings. See Note 9 – "Goodwill and Intangible Assets" - for additional information. Share-Based Compensation: The Company recognizes compensation expense for stock awards and options in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The expense of stock-based compensation is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is usually the vesting period. The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each stock option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience and may not necessarily equate to its market value when fully vested. See Note 16 – "Share-Based Compensation " - for additional information. Benefit Plans: The Company provides certain retirement savings benefits to employees under a 401(k) plan. The Company’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. In accordance with ASC Topic 715, “Compensation – Retirement Benefits,” the Company recognizes the unfunded status of these postretirement plans as a liability in its consolidated balance sheets and recognizes changes in that unfunded status in the year in which the changes occur through other comprehensive income. Cash and Cash Equivalents: Cash and cash equivalents includes cash on hand, interest and non-interest bearing amounts due from banks, federal funds sold and short-term investments with original maturities less than 90 days. Generally, federal funds are sold and short-term investments are made for a one or two-day period. Advertising Costs: It is the Company’s policy to expense advertising costs in the period in which they are incurred. Earnings Per Common Share: Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings 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 years ended December 31, 2019 , 2018 and 2017 , 27,930 , 19,350 and 8,900 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 years ended December 31, 2019 , 2018 and 2017 : (In thousands, except per share data) 2019 2018 2017 Net income $ 13,634 $ 12,048 $ 6,928 Basic weighted average shares outstanding 8,875,237 8,320,718 8,049,981 Plus: common stock equivalents 58,234 272,791 262,803 Diluted weighted average shares outstanding 8,933,471 8,593,509 8,312,784 Earnings per share: Basic $ 1.54 $ 1.45 $ 0.86 Diluted 1.53 1.40 0.83 Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, other-than-temporary non-credit related security impairments, and changes in the funded status of benefit plans. Variable Interest Entities: Management has determined that Trust II qualifies as a variable interest entity under ASC Topic 810, “Consolidation.” Trust II issued mandatorily redeemable preferred stock to investors, loaned the proceeds to the Company and holds, as its sole asset, subordinated debentures issued by the Company. As a qualified variable interest entity, Trust II’s balance sheet and statement of operations have never been consolidated with those of the Company because the Company is not the primary beneficiary. In March 2005, the Federal Reserve Board ("FRB") adopted a final rule that would continue to allow the inclusion of trust preferred securities in Tier 1 capital, but with stricter quantitative limits. Under the final rule, after a five-year transition period, the aggregate amount of trust preferred securities and certain other capital elements would be limited to 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit could be included in Tier 2 capital, subject to restrictions. Based on the final rule, the Company has included all of its $18.0 mill |
Acquisition of Shore Community
Acquisition of Shore Community Bank | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition of Shore Community Bank | Acquisition of Shore Community Bank On November 8, 2019, the Company completed its acquisition of 100 percent of the shares of common stock of Shore Community Bank ("Shore"), which merged with and into the Bank. The shareholders of Shore received total consideration of $54.3 million , which was comprised of 1,509,275 shares of common stock of the Company with a market value of $29.2 million and cash of $25.1 million , of which $925,000 was cash paid in exchange for unexercised outstanding stock options. The merger was accounted for under the acquisition method of accounting, and accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at preliminary estimated fair values as of the Shore merger date. The excess of the fair value of the consideration paid over the preliminary net fair value of Shore's assets and liabilities resulted in the recognition of goodwill of $23.2 million . Shore’s results of operations have been included in the Company’s Consolidated Statements of Income since November 8, 2019. The assets acquired and liabilities assumed in the merger were recorded at their estimated fair values based on management’s best estimates, using information available at the date of the merger, including the use of third party valuation specialists. The fair values are preliminary estimates and subject to adjustment for up to one year after the closing date of the merger. The following table summarizes the estimated fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 29,175 Cash payment 24,233 Cash payment for unexercised outstanding stock options 925 Total consideration paid $ 54,333 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 32,599 Investment securities available for sale 26,440 Loans 205,833 Premises and equipment, net 4,433 Core deposit intangible asset 1,467 Bank-owned life insurance 7,250 Right-of-use assets 3,226 Accrued interest receivable 778 Other real estate owned 605 Other assets 2,518 Deposits (249,836 ) Lease liability (3,226 ) Other liabilities (948 ) Total identifiable assets and liabilities, net $ 31,139 Goodwill recorded from Shore merger $ 23,194 Accounting Standards Codification (“ASC”) Topic 805-10 provides that if the initial accounting for a business combination is incomplete by the end of the reporting period in which the combination occurs, the acquirer shall report, in its financial statements, provisional amounts for the items for which the accounting is incomplete. During the measurement period, the acquirer shall retrospectively adjust the provisional amounts recognized at the acquisition date and may recognize additional assets or liabilities to reflect new information obtained from facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. The measurement period may not exceed one year from the acquisition date. Investments were recorded 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 obtained 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. Loans acquired in the Shore merger were recorded at fair value and subsequently accounted for in accordance with ASC Topic 310. The fair values of loans acquired were estimated, utilizing cash flow projections based on the remaining maturity and repricing terms. Cash flows were adjusted for estimated future credit losses of approximately $3.6 million and estimated prepayments. Projected cash flows were then discounted to present value, utilizing a risk-adjusted market rate for similar loans that management determined market participants would likely use. At the Shore merger date, the Company recorded $201.3 million of loans without evidence of credit quality deterioration and $4.6 million of loans with evidence of credit quality deterioration. The following table summarizes the composition of the loans acquired and recorded at fair value: At November 8, 2019 (Dollars in thousands) Loans acquired with no credit quality deterioration Loans acquired with credit quality deterioration Total Commercial Construction $ 9,733 $ — $ 9,733 Commercial real estate 135,482 4,071 139,553 Commercial business 12,027 — 12,027 Residential real estate 36,849 500 37,349 Consumer 7,171 — 7,171 Total loans $ 201,262 $ 4,571 $ 205,833 The following is a summary of the loans acquired with evidence of deteriorated credit quality in the Shore merger as of the date of the closing of the merger: (Dollars in thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 7,584 Contractual cash flows not expected to be collected (non-accretable difference) 2,355 Expected cash flows at acquisition 5,229 Interest component of expected cash flows (accretable difference) 658 Fair value of acquired loans $ 4,571 Bank-owned life insurance was recorded at the cash surrender value of the insurance policies, which approximates the redemption value of the policies. The Company recorded a core deposit intangible asset related to a value ascribed to demand, interest checking, money market and savings account, referred to as core deposits, acquired as part of the acquisition. The value assigned to the acquired core deposits represents the future economic benefit of the potential cost savings from acquiring the core deposits, net of operating expenses and including ancillary fee income, compared to the cost of obtaining alternative funds from available market sources. Management used estimates including the expected attrition rates of depository accounts, future interest rate levels, and the cost of servicing various depository products. The core deposit intangible asset totaled $1.5 million and is being amortized over its estimated useful life of approximately 10 years , using an accelerated method. The following table presents the projected amortization of the core deposit intangible asset for each period: (Dollars in thousands) Amount Year 2019 $ 44 2020 262 2021 236 2022 209 2023 182 Thereafter 534 Total $ 1,467 The fair values of deposit liabilities with no stated maturities, such as checking, money market and savings accounts, were assumed to equal the carrying value amounts since these deposits are payable on demand. The fair values of certificates of deposit represent the present value of contractual cash flows discounted at market rates for similar certificates of deposit. Direct costs related to the Shore merger were expensed as incurred. For the year ended December 31, 2019, the Company incurred $1.7 million of expenses for termination of contracts, legal and financial advisory fees, severance and other integration related expenses, which have been separately stated as merger-related expenses in the Company’s Consolidated Statements of Income. Supplemental Pro Forma Financial Information The following table presents financial information regarding the former Shore operations included in the Company’s Consolidated Statements of Income from the date of the Shore Merger (November 8, 2019) through December 31, 2019 under the column “Actual from Acquisition Date to December 31, 2019.” In addition, the table presents unaudited condensed pro forma financial information assuming that the Shore Merger had been completed as of January 1, 2019 and January 1, 2018, respectively. In the table, merger-related expenses of $4.2 million of both the Bank and Shore were excluded from the pro forma non-interest expenses for the year ended December 31, 2019. There were no merger-related expenses incurred in 2018. Income taxes were also adjusted to exclude income tax benefits of $394,000 related to the merger expenses for the year ended December 31, 2019. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the Shore Merger occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma financial information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Shore’s operations. The pro forma financial information reflects adjustments related to certain merger expenses and the related income tax effects. (Dollars in thousands) Actual from Acquisition Date to 12/31/2019 Pro Forma for the Twelve Months Ended 12/31/2019 Pro Forma for the Twelve Months Ended 12/31/2018 Net interest income $ 1,428 $ 54,774 $ 53,115 Non-interest income 23 8,714 8,851 Non-interest expenses 516 39,265 40,032 Income taxes 252 5,445 5,884 Net income 682 18,778 16,050 Acquisition of New Jersey Community Bank On April 11, 2018, the Company completed the merger of New Jersey Community Bank (“NJCB”) with and into the Bank (the “NJCB Merger”). The shareholders of NJCB received total consideration of $8.6 million , which was comprised of 249,785 shares of common stock of the Company with a market value of $5.5 million and cash consideration of $3.1 million , of which $401,000 was placed in escrow to cover costs and expenses, including settlement costs, if any, resulting from a certain litigation matter. In June 2019, the Company reached a settlement in the litigation matter. The escrow balance of approximately $393,000 , net of costs and expenses, was paid out to the former NJCB shareholders in the third quarter of 2019. The NJCB Merger was accounted for under the acquisition method of accounting, and, accordingly, assets acquired, liabilities assumed and consideration exchanged were recorded at preliminary estimated fair values as of the acquisition date. NJCB’s results of operations have been included in the Company’s Consolidated Statements of Income since April 11, 2018. The assets acquired and liabilities assumed in the NJCB Merger were recorded at their fair values based on management’s best estimates, using information available at the date of the NJCB Merger, including the use of third-party valuation specialists. The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 5,494 Cash payment 2,668 Cash held in escrow 401 Total consideration paid $ 8,563 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 2,073 Investment securities available for sale 11,173 Loans 75,144 Premises and equipment, net 1,120 Core deposit intangible asset 80 Bank-owned life insurance 3,972 Accrued interest receivable 259 Other real estate owned 1,230 Other assets 1,601 Deposits (87,223 ) Other liabilities (636 ) Total identifiable assets and liabilities, net $ 8,793 Gain from bargain purchase $ 230 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities A summary of amortized cost and fair value of investment securities available for sale as of December 31, 2019 and 2018 follows: 2019 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) $ 774 $ — $ (10 ) $ 764 Residential collateralized mortgage obligations - GSE 53,223 194 (242 ) 53,175 Residential mortgage backed securities - GSE 18,100 292 (5 ) 18,387 Obligations of state and political subdivisions 33,177 342 — 33,519 Trust preferred debt securities – single issuer 1,492 — (50 ) 1,442 Corporate debt securities 23,224 139 (84 ) 23,279 Other debt securities 25,378 80 (242 ) 25,216 $ 155,368 $ 1,047 $ (633 ) $ 155,782 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) $ 2,993 $ — $ (41 ) $ 2,952 Residential collateralized mortgage obligations - GSE 48,789 70 (676 ) 48,183 Residential mortgage backed securities - GSE 13,945 37 (100 ) 13,882 Obligations of state and political subdivisions 23,506 85 (249 ) 23,342 Trust preferred debt securities – single issuer 1,490 — (161 ) 1,329 Corporate debt securities 28,323 — (1,037 ) 27,286 Other debt securities 15,383 11 (146 ) 15,248 $ 134,429 $ 203 $ (2,410 ) $ 132,222 A summary of amortized cost, carrying value and fair value of investment securities held to maturity as of December 31, 2019 and 2018 follows: 2019 (In thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 5,117 $ — $ 5,117 $ 76 $ (35 ) $ 5,158 Residential mortgage backed securities - GSE 36,528 — 36,528 481 (54 ) 36,955 Obligations of state and political subdivisions 32,533 — 32,533 690 (25 ) 33,198 Trust preferred debt securities - pooled 657 (492 ) 165 479 — 644 Other debt securities 2,277 — 2,277 — (9 ) 2,268 $ 77,112 $ (492 ) $ 76,620 $ 1,726 $ (123 ) $ 78,223 2018 (In thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 6,701 $ — $ 6,701 $ 30 $ (143 ) $ 6,588 Residential mortgage backed securities - GSE 31,343 — 31,343 84 (346 ) 31,081 Obligations of state and political subdivisions 38,494 — 38,494 634 (118 ) 39,010 Trust preferred debt securities - pooled 657 (501 ) 156 569 — 725 Other debt securities 2,878 — 2,878 — (78 ) 2,800 $ 80,073 $ (501 ) $ 79,572 $ 1,317 $ (685 ) $ 80,204 At December 31, 2019 and December 31, 2018 , $92.2 million and $80.4 million of investment securities, respectively, were pledged to secure public funds, collateralize borrowings from the FHLB and for other purposes required or permitted by law. During 2019 and 2018, the Company received proceeds from the calls of securities with a book value of $4.4 million and $1.4 million , respectively, and resulted in gains of $30,000 and $12,000 for the years ended December 31, 2019 and 2018 , respectively. During 2017, the Company sold securities with a book value of $8.5 million for a net gain of $129,000 . Included in the sales were $1.0 million of securities that were in the held to maturity portfolio and that resulted in a gain of $36,000 for year ended December 31, 2017. All held to maturity securities sold were mortgage backed securities with a remaining book value of less than 15% of the original principal balance at the time of purchase and, as allowed in ASC 320-10-25-14, were treated as held to maturity. The following is a summary of the proceeds from the sales of investment securities and the associated gross gains, gross losses, and net tax expense for the years ended December 31, 2019 , 2018 , and 2017. 2019 2018 2017 (In thousands) Available for Sale Held to Maturity Available for Sale Held to Maturity Available for Sale Held to Maturity Proceeds $ — $ — $ — $ — $ 7,602 $ 1,034 Gross gains — — — — 120 36 Gross losses — — — — (27 ) — Net tax expense — — — — 38 12 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 December 31, 2019 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 10,690 $ 10,662 2.66 % Due after one year through five years 26,621 26,824 2.75 Due after five years through ten years 34,136 34,193 2.55 Due after ten years 83,921 84,103 2.75 Total $ 155,368 $ 155,782 2.70 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 6,594 $ 6,664 3.88 % Due after one year through five years 13,573 13,803 3.67 Due after five years through ten years 18,410 18,766 3.15 Due after ten years 38,043 38,990 3.11 Total $ 76,620 $ 78,223 3.28 % The following table presents gross unrealized losses on the Company's investment securities and the fair value of the related securities and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018 . 2019 Less than 12 months 12 months or longer Total (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”) 1 $ 764 $ (10 ) $ — $ — $ 764 $ (10 ) Residential collateralized mortgage obligations - GSE 39 18,328 (138 ) 13,300 (139 ) 31,628 (277 ) Residential mortgage backed securities - GSE 13 5,505 (59 ) — — 5,505 (59 ) Obligations of state and political subdivisions 4 2,311 (25 ) 527 — 2,838 (25 ) Trust preferred debt securities -single issuer 2 — — 1,442 (50 ) 1,442 (50 ) Corporate debt securities 4 2,994 (5 ) 7,954 (79 ) 10,948 (84 ) Other debt securities 12 13,692 (151 ) 5,598 (100 ) 19,290 (251 ) Total temporarily impaired securities 75 $ 43,594 $ (388 ) $ 28,821 $ (368 ) $ 72,415 $ (756 ) 2018 Less than 12 months 12 months or longer Total (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”) 2 $ 994 $ (1 ) $ 1,958 $ (40 ) $ 2,952 $ (41 ) Residential collateralized mortgage obligations - GSE 34 20,756 (138 ) 22,106 (682 ) 42,862 (819 ) Residential mortgage backed securities - GSE 68 18,393 (141 ) 19,402 (305 ) 37,795 (446 ) Obligations of state and political subdivisions 67 12,785 (154 ) 11,638 (213 ) 24,423 (367 ) Trust preferred debt securities -single issuer 2 — — 1,329 (162 ) 1,329 (162 ) Corporate debt securities 10 8,912 (632 ) 18,374 (405 ) 27,286 (1,037 ) Other debt securities 9 10,943 (93 ) 4,613 (130 ) 15,556 (223 ) Total temporarily impaired securities 192 $ 72,783 $ (1,159 ) $ 79,420 $ (1,937 ) $ 152,203 $ (3,095 ) U.S. Treasury securities and obligations of U.S. Government sponsored corporations and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. 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 residential mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuer, 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 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. Trust preferred debt securities – single issuer : The investments in these securities are comprised of two corporate trust preferred securities issued by one large financial institutions that both 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. The issuer continues to maintain an investment grade credit rating and has not defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate spreads and the lack of an active trading market for these securities and, to a lesser degree, market concerns about the issuers’ 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 an increase in market interest rates, which includes the yield required by the market participant for the issuer's credit risk. None of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes 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. Other debt securities . The unrealized losses on investments in other debt securities were caused by an increase in market interest rates, which includes the yield required by the market participant for the issuer's credit risk. None of the issuers have defaulted on interest payments. The decline in fair value is attributable to changes 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. 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 financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment charge 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 to be 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. Due to recovery of the cash flows underlying the security, the Company began to accrete the $501,000 of impairment charge in the other comprehensive income component in 2019. Total accretion of $9,000 was recognized in 2019 as an increase in the carrying amount of the security. On a quarterly basis, management evaluates this security to determine if any additional other-than-temporary impairment is required. As of December 31, 2019 , management concluded that no additional other-than-temporary impairment had occurred. The Company regularly reviews the composition of the investment securities portfolio, taking into account market risks, the current and expected interest rate environment, liquidity needs and its overall interest rate risk profile and strategic goals. |
Loans and Loans Held for Sale
Loans and Loans Held for Sale | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans and Loans Held for Sale | Loans and Loans Held for Sale The following table presents loans outstanding, by class of loan, as of December 31, (In thousands) 2019 2018 Commercial real estate $ 567,655 $ 388,431 Mortgage warehouse lines 236,672 154,183 Construction 148,939 149,387 Commercial business 139,271 120,590 Residential real estate 90,259 47,263 Loans to individuals 32,604 22,962 Other loans 137 181 Gross Loans 1,215,537 882,997 Deferred loan costs, net 491 167 Total $ 1,216,028 $ 883,164 The Company's lending focus and business is concentrated primarily in New Jersey, particularly northern and central New Jersey and the New York City metropolitan area. A significant portion of the total loan portfolio is secured by real estate or other collateral located in these areas. The Company is a participant in the Small Business Administration ("SBA") Preferred Lender Program and originates loans under the program that are later sold. The Company also sells residential mortgage loans in the secondary market on a non-recourse basis, generally with the related loan servicing rights released to purchasers. Loans held for sale at December 31, 2019 and 2018 included $5.7 million and $2.1 million , respectively, in residential mortgage loans that the Company intends to sell under best efforts forward sales commitments providing for delivery to purchasers generally within a two month period. The estimated fair value of the derivatives of interest-rate lock commitments was $159,000 at December 31, 2019 and $79,000 at December 31, 2018 . The following table presents loans held for sale, by type of loan, as of December 31, 2019 and 2018. (In thousands) 2019 2018 Residential real estate $ 5,702 $ 2,145 SBA 225 875 $ 5,927 $ 3,020 Loans sold to others and serviced by the Company are not included in the accompanying Consolidated Balance Sheets. The total amount of such loans serviced, but owned by outside investors, amounted to approximately $66.5 million and $71.7 million at December 31, 2019 and 2018 , respectively. At December 31, 2019 and 2018 , the carrying value, of servicing assets was $930,000 and $ 991,000 , respectively. The fair value of SBA servicing assets was determined using a discount rate of 10.75% on the servicing asset and constant prepayment speeds averaging 14.93% . The table below summarizes the changes in the related servicing assets for the years ended December 31, 2019 and 2018 . (In thousands) 2019 2018 Balance, beginning of year $ 991 $ 726 Servicing assets capitalized 259 517 Amortization expense (320 ) (252 ) Balance, end of year $ 930 $ 991 In addition, the Company had discounts of $946,000 and $1.1 million related to the retained portion of the unsold SBA loans at December 31, 2019 and 2018 , respectively. |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Credit Quality Disclosures | Allowance for Loan Losses and Credit Quality Disclosures 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 primary inherent risks are deteriorating credit quality, a decline in the economy and a decline in New Jersey and New York City metropolitan area 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 December 31, 2019 and 2018 : 2019 (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 Nonaccrual Loans Commercial real estate $ 238 $ 1,927 $ 3,882 $ 6,047 $ 561,608 $ 567,655 $ — $ 2,596 Mortgage warehouse lines — — — — 236,672 236,672 — — Construction — — — — 148,939 148,939 — — Commercial business 381 — 330 711 138,560 139,271 — 501 Residential real estate 2,459 271 677 3,407 86,852 90,259 — 708 Loans to individuals 296 — 311 607 31,997 32,604 — 692 Other loans — — — — 137 137 — — $ 3,374 $ 2,198 $ 5,200 $ 10,772 $ 1,204,765 1,215,537 $ — $ 4,497 Deferred loan costs, net 491 Total $ 1,216,028 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 Nonaccrual Loans Commercial real estate $ — $ 499 $ 1,201 $ 1,700 $ 386,731 $ 388,431 $ — $ 1,439 Mortgage warehouse lines — — — — 154,183 154,183 — — Construction — — — — 149,387 149,387 — — Commercial business 280 — 466 746 119,844 120,590 — 3,532 Residential real estate 588 — 1,156 1,744 45,519 47,263 — 1,156 Loans to individuals 16 237 263 516 22,446 22,962 55 398 Other loans — — — — 181 181 — — $ 884 $ 736 $ 3,086 $ 4,706 $ 878,291 882,997 $ 55 $ 6,525 Deferred loan costs, net 167 Total $ 883,164 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 December 31, 2019 and 2018 , there were $5.4 million and $865,000 of PCI loans, respectively, that were not classified as non-performing loans due to the accretion of income based on their original contract terms. Additional income before taxes amounting to $318,000 , $155,000 and $514,000 would have been recognized in 2019 , 2018 and 2017, respectively, if interest on all loans had been recorded based upon their original contract terms. Management reviews the adequacy of the allowance for loan losses on at least a quarterly basis to ensure that the provision for loan losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is adequate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the adequacy of the allowance for loan losses consists of several key elements and is consistent with U.S. GAAP and interagency supervisory guidance. The allowance for loan losses methodology consists of two major components. The first component is an estimation of losses associated with individually identified impaired loans, which follows ASC Topic 310. The second major component estimates losses under ASC Topic 450, which provides guidance for estimating losses on groups of loans with similar risk characteristics. The Company’s methodology results in an allowance for loan losses which includes a specific reserve for impaired loans, an allocated reserve and an unallocated portion. When analyzing groups of loans under ASC Topic 450, the Company follows the Interagency Policy Statement on the Allowance for Loan and Lease Losses. The methodology considers the Company’s historical loss experience adjusted for changes in trends, conditions, and other relevant factors that affect repayment of the loans as of the evaluation date. These adjustment factors, known as qualitative factors, include: • Delinquencies and non-accruals; • Portfolio quality; • Concentration of credit; • Trends in volume and type of loans; • Quality of collateral; • Policy and procedures; • Experience, ability and depth of management; • Economic trends – national and local; and • External factors – competition, legal and regulatory. The methodology includes the segregation of the loan portfolio into loan classes with a further segregation into risk rating categories, such as special mention, substandard, doubtful, and loss. This allows for an allocation of the allowance for loan losses by loan type; however, the allowance is available to absorb any loan loss without restriction. Larger balance, non-homogeneous loans representing significant individual credit exposures are evaluated individually through the internal loan review process. It is this process that produces the watch list for loans that have indications of credit weakness. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated. Based on these reviews, an estimate of probable losses for the individual larger-balance loans are determined, whenever possible, and used to establish specific loan loss reserves. In general, for non-homogeneous loans not individually assessed and for homogeneous groups, such as residential mortgages and consumer credits, the loans are collectively evaluated based on delinquency status, loan type, and historical losses. These loan groups are then internally risk rated. The watch list includes loans that are assigned a rating of special mention, substandard, doubtful and loss. Loans assigned a rating of special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as doubtful have all the weaknesses inherent in loans classified as substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans rated as doubtful in whole, or in part, are placed in non-accrual status. Loans classified as a loss are considered uncollectible and are charged off against the allowance for loan losses. The specific allowance for impaired loans is established for specific loans that have been identified by management as being impaired. These loans are considered to be impaired primarily because the loans have not performed according to payment terms and there is reason to believe that repayment of the loan principal in whole, or in part, is unlikely. The specific portion of the allowance is the total amount of potential unconfirmed losses for these individual impaired loans. To assist in determining the fair value of loan collateral, the Company often utilizes independent third party qualified appraisal firms which, in turn, employ their own criteria and assumptions that may include occupancy rates, rental rates and property expenses, among others. The second category of reserves consists of the allocated portion of the allowance. The allocated portion of the allowance is determined by taking pools of loans outstanding that have similar characteristics and applying historical loss experience for each pool. This estimate represents the potential unconfirmed losses within the portfolio. Individual loan pools are created for commercial business loans and commercial real estate loans, construction loans, warehouse lines of credit and various types of loans to individuals. The historical loss estimation for each loan pool is then adjusted for qualitative factors such as economic trends, concentrations of credit, trends in the volume of loans, portfolio quality, delinquencies and non-accrual trends. These factors are evaluated for each class of the loan portfolio and may have positive or negative effects on the allocated allowance for the loan portfolio segment. The aggregate amount resulting from the application of these qualitative factors determines the overall risk for the portfolio and results in an allocated allowance for each of the loan segments. The Company also maintains an unallocated allowance. The unallocated allowance is used to cover any factors or conditions which may cause a potential loan loss but are not specifically identifiable. It is prudent to maintain an unallocated portion of the allowance because no matter how detailed an analysis of potential loan losses is performed, these estimates, by definition, lack precision. Management must make estimates using assumptions and information that is often subjective and changing rapidly. The following discusses the risk characteristics of each of our loan portfolios. Commercial Business The Company offers a variety of commercial loan services, including term loans, lines of credit and loans secured by equipment and receivables. A broad range of short-to-medium term commercial loans, both secured and unsecured, are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition and development of real estate and improvements) and the purchase of equipment and machinery. Commercial business loans are granted based on the borrower's ability to generate cash flow to support its debt obligations and other cash related expenses. A borrower's ability to repay commercial business loans is substantially dependent on the success of the business itself and on the quality of its management. As a general practice, the Company takes as collateral a security interest in any available real estate, equipment, inventory, receivables or other personal property of its borrowers, although the Company occasionally makes commercial business loans on an unsecured basis. Generally, the Company requires personal guarantees of its commercial business loans to offset the risks associated with such loans. Much of the Company's lending is in northern and central New Jersey and New York City metropolitan area. As a result of this geographic concentration, a significant broad-based deterioration in economic conditions in New Jersey and the New York City metropolitan area could have a material adverse impact on the Company's loan portfolio. A prolonged decline in economic conditions in our market area could restrict borrowers' ability to pay outstanding principal and interest on loans when due. The value of assets pledged as collateral may decline and the proceeds from the sale or liquidation of these assets may not be sufficient to repay the loan. Commercial Real Estate Commercial real estate loans are made to businesses to expand their facilities and operations and to real estate operators to finance the acquisition of income producing properties. The Company's loan policy requires that borrowers have sufficient cash flow to meet the debt service requirements and the value of the property meets the loan-to-value criteria set in the loan policy. The Company monitors loan concentrations by borrower, by type of property and by location and other criteria. The Company's commercial real estate portfolio is largely secured by real estate collateral located in the State of New Jersey and the New York City metropolitan area. Conditions in the real estate markets in which the collateral for the Company's loans are located strongly influence the level of the Company's non-performing loans. A decline in the New Jersey and the New York City metropolitan area real estate market could adversely affect the Company's loan portfolio. Decreases in local real estate values would adversely affect the value of property used as collateral for the Company's loans. Adverse changes in the economy also may have a negative effect on the ability of our borrowers to make timely repayments of their loans. Construction Financing Construction financing is provided to businesses to expand their facilities and operations and to real estate developers for the acquisition, development and construction of residential and commercial properties. First mortgage construction loans are made to developers and builders primarily for single family homes and multi-family buildings that are presold or are to be sold or leased on a speculative basis. The Company lends to builders and developers with established relationships, successful operating histories and sound financial resources. Management has established underwriting and monitoring criteria to minimize the inherent risks of real estate construction lending. The risks associated with speculative construction lending include the borrower's inability to complete the construction process on time and within budget, the sale or rental of the project within projected absorption periods and the economic risks associated with real estate collateral. Such loans may include financing the development and/or construction of residential subdivisions. This activity may involve financing land purchases and infrastructure development (i.e., roads, utilities, etc.) as well as construction of residences or multi-family dwellings for subsequent sale by the developer/builder. Because the sale or rental of developed properties is integral to the success of developer business, loan repayment may be especially subject to the volatility of real estate market values. Mortgage Warehouse Lines of Credit The Company’s Mortgage Warehouse Funding Group provides revolving lines of credit that are available to licensed mortgage banking companies. The warehouse line of credit is used by the mortgage banker to originate one-to-four family residential mortgage loans that are pre-sold into the secondary mortgage market, which includes state and national banks, national mortgage banking firms, insurance companies and government-sponsored enterprises, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and others. On average, an advance under the warehouse line of credit remains outstanding for a period of less than 30 days, with repayment coming directly from the sale of the loan into the secondary mortgage market. Interest and a transaction fee are collected by the Company at the time of repayment. As a separate segment of the total portfolio, the warehouse loan portfolio is individually analyzed as a whole for allowance for loan losses purposes. Warehouse lines of credit are subject to the same inherent risks as other commercial lending, but the overall degree of risk differs. While the Company’s loss experience with this type of lending has been non-existent since the product was introduced in 2008, there are other risks unique to this lending that still must be considered in assessing the adequacy of the allowance for loan losses. These unique risks may include, but are not limited to, (i) credit risks relating to the mortgage bankers that borrow from us, (ii) the risk of intentional misrepresentation or fraud by any of such mortgage bankers, (iii) changes in the market value of mortgage loans originated by the mortgage banker, the sale of which is the expected source of repayment of the borrowings under a warehouse line of credit, due to changes in interest rates during the time in warehouse or (iv) unsalable or impaired mortgage loans so originated, which could lead to decreased collateral value and the failure of a purchaser of the mortgage loan to purchase the loan from the mortgage banker. Consumer The Company’s consumer loan portfolio segment is comprised of residential real estate loans, loans to individuals and other loans. Individual loan pools are created for the various types of loans to individuals. The principal risk is the borrower becomes unemployed or has a significant reduction in income. In general, for homogeneous groups such as residential mortgages and consumer credits, the loans are collectively evaluated based on delinquency status, loan type and historical losses. These loan groups are then internally risk rated. The Company considers the following credit quality indicators in assessing the risk in the loan portfolio: • Consumer credit scores; • Internal credit risk grades; • Loan-to-value ratios; • Collateral; and • Collection experience. Internal Risk Rating of 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 which 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 sound 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 December 31, 2019 and 2018 : Commercial Credit Exposure by Internally Assigned Grade 2019 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 147,132 $ 135,804 $ 538,104 $ 235,808 $ 87,512 Special Mention — 1,990 9,994 864 922 Substandard 1,807 1,477 19,557 — 1,825 Doubtful — — — — — Total $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 Consumer Credit Exposure by Payment Activity 2019 (In thousands) Loans to Individuals Other Loans Performing $ 31,912 $ 137 Nonperforming 692 — Total $ 32,604 $ 137 Commercial Credit Exposure by Internally Assigned Grade 2018 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 146,460 $ 104,162 $ 366,424 $ 152,378 $ 45,825 Special Mention 2,927 12,703 13,317 1,805 103 Substandard — 3,487 8,690 — 1,335 Doubtful — 238 — — — Total $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 Consumer Credit Exposure by Payment Activity 2018 (In thousands) Loans to Individuals Other Loans Performing $ 22,564 $ 181 Nonperforming 398 — Total $ 22,962 $ 181 Impaired Loans Disclosures 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 contract, 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 as of and for the years ended December 31, 2019 , 2018 and 2017, respectively. 2019 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Costs, Net Total Allowance for loan losses: Beginning balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Provision (credit) charged to operations (343 ) (76 ) 1,178 352 (19 ) 38 43 177 1,350 Loans charged off — (370 ) (93 ) — — (7 ) (43 ) — (513 ) Recoveries of loans charged off — 26 — — — 6 — — 32 Ending balance $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Individually evaluated for impairment $ 8 $ 7 $ 50 $ — $ — $ — $ — $ — $ 65 Loans acquired with deteriorated credit quality — 3 1 — — — — — — 4 Collectively evaluated 1,381 1,399 4,473 1,083 412 185 — 269 9,202 Ending balance $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Loans receivables: Individually evaluated for impairment $ 1,807 $ 1,251 $ 6,171 $ — $ 708 $ 692 $ — $ — $ — $ 10,629 Loans acquired with deteriorated credit quality — 334 5,419 — 504 — — — — 6,257 Collectively evaluated for impairment 147,132 137,686 556,065 236,672 89,047 31,912 137 — 491 1,199,142 Total $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 $ 32,604 $ 137 $ — $ 491 $ 1,216,028 2018 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Costs, Net Total Allowance for loan losses: Beginning balance $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 (Credit) provision charged to operations 29 158 920 (121 ) 39 49 17 (191 ) 900 Loans charged off — (62 ) (491 ) — — (16 ) (17 ) — (586 ) Recoveries of loans charged off — 13 61 — — 1 — — 75 Ending balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Individually evaluated for impairment $ — $ 380 $ 71 $ — $ — $ — $ — $ — $ 451 Loans acquired with deteriorated credit quality — — 2 — — — — — — 2 Collectively evaluated for impairment 1,732 1,449 3,366 731 431 148 — 92 7,949 Ending balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Loans receivable: Individually evaluated for impairment $ 103 $ 3,775 $ 5,093 $ — $ 1,156 $ 398 $ — $ — $ — $ 10,525 Loans acquired with deteriorated credit quality — 319 1,419 — — — — — — 1,738 Collectively evaluated for impairment 149,284 116,496 381,919 154,183 46,107 22,564 181 — 167 870,901 Total $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 $ 22,962 $ 181 $ — $ 167 $ 883,164 2017 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Fees Total Allowance for loan losses: Beginning balance $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ 7,494 (Credit) provision charged to operations 499 2 358 (121 ) 126 (2 ) (13 ) (249 ) 600 Loans charged off — (61 ) — — (101 ) — — — (162 ) Recoveries of loans charged off — 47 17 — — 4 13 — 81 Ending balance $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Individually evaluated for impairment $ — $ 592 $ 92 $ — $ — $ — $ — $ — $ 684 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 — 550 778,201 Total $ 136,412 $ 92,906 $ 308,924 $ 189,412 $ 40,494 $ 21,025 $ 183 $ — $ 550 $ 789,906 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. The following tables summarize information regarding impaired loans receivable by loan class as of and for the years ended December 31, 2019 , 2018 and 2017, respectively. 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Year to Date 2019 Average Recorded Investment Year to Date 2019 Interest Income Recognized With no related allowance: Commercial: Construction $ — $ — $ — $ 35 $ — Commercial business 680 1,971 — 916 10 Commercial real estate 7,141 8,204 — 2,855 134 Mortgage warehouse lines — — — — — 7,821 10,175 — 3,806 144 Consumer: Residential real estate 1,212 1,465 — 1,334 6 Loans to individuals 692 802 — 695 — Other — — — — — 1,904 2,267 — 2,029 6 With no related allowance 9,725 12,442 — 5,835 150 With an allowance: Commercial: Construction 1,807 1,807 8 602 56 Commercial business 905 993 10 977 88 Commercial real estate 4,449 5,757 51 4,621 216 Mortgage warehouse lines — — — — — 7,161 8,557 69 6,200 360 Consumer: Residential real estate — — — — — Loans to individuals — — — — — Other — — — 1 — — — — 1 — With an allowance 7,161 8,557 69 6,201 360 Total: Construction 1,807 1,807 8 637 56 Commercial business 1,585 2,964 10 1,893 98 Commercial real estate 11,590 13,961 51 7,476 350 Mortgage warehouse lines — — — — — Residential real estate 1,212 1,465 — 1,334 6 Loans to individuals 692 802 — 696 — Other — — — — — $ 16,886 $ 20,999 $ 69 $ 12,036 $ 510 December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Year to Date 2018 Average Recorded Investment Year to Date 2018 Interest Income Recognized With no related allowance: Commercial: Construction $ 103 $ 103 $ — $ 115 $ 7 Commercial business 992 1,332 — 1,112 112 Commercial real estate 2,304 2,629 — 2,757 48 Mortgage warehouse lines — — — — — 3,399 4,064 — 3,984 167 Consumer: Residential real estate 1,156 1,241 — 846 — Loans to individuals 398 478 — 410 — Other — — — — — 1,554 1,719 — 1,256 — With no related allowance 4,953 5,783 — 5,240 167 With an allowance: Commercial: Construction — — — — — Commercial business 3,102 3,217 380 3,326 44 Commercial real estate 4,208 4,208 73 4,336 252 Mortgage warehouse lines — — — — — 7,310 7,425 453 7,662 296 Consumer: Residential real estate — — — — — Loans to individuals — — — — — Other — — — — — — — — — — With an allowance 7,310 7,425 453 7,662 296 Total: Construction 103 103 — 115 7 Commercial business 4,094 4,549 380 4,438 156 Commercial real estate 6,512 6,837 73 7,093 300 Mortgage warehouse lines — — — — — Residential real estate 1,156 1,241 — 846 — Loans to individuals 398 478 — 410 — Other — — — — — $ 12,263 $ 13,208 $ 453 $ 12,902 $ 463 (Dollars in thousands) Year to Date 2017 Average Recorded Investment Year to Date 2017 Interest Income Recognized With no related allowance: Commercial: Construction $ 209 $ 12 Commercial business 828 153 Commercial real estate 2,772 128 Mortgage warehouse lines — — 3,809 293 Consumer: Residential real estate 142 — Loans to individuals 342 — Other — — 484 — With no related allowance 4,435 293 With an allowance: Commercial: Construction 86 — Commercial business 2,864 84 Commercial real estate 3,005 188 Mortgage warehouse lines — — 5,955 272 Consumer: Residential real estate 75 — Loans to individuals — — Other — — 75 — With an allowance 6,030 272 Total: Construction 295 12 Commercial business 3,692 237 Commercial real estate 5,777 316 Mortgage warehouse lines — — Residential real estate 217 — Loans to individuals 342 — Other — — $ 10,323 $ 565 Purchased Credit-Impaired Loans Purchased Credit-Impaired Loans ("PCI") are loans acquired at a discount that is due in part to credit quality. On November 8, 2019, as part of the Shore merger, the Company acquired purchased credit-impaired loans with loan balances totaling $6.3 million and fair values totaling $4.6 million . On April 11, 2018, as part of the NJCB merger, the Company acquired purchased credit-impaired loans with loan balances totaling $1.1 million and fair values totaling $881,000 . The following table presents additional information regarding PCI loans at December 31, 2019 and 2018 : (In thousands) 2019 2018 Outstanding balance $ 8,038 $ 2,007 Carrying amount 6,257 1,738 In 2019, $4,000 in loan loss provision was recorded for PCI loans. In 2018 and 2017, no loan loss provision was recorded for PCI loans. The following table presents changes in accretable discount for PCI loans for the years ended December 31, 2019 , 2018 and 2017 : (In thousands) 2019 2018 2017 Balance at beginning of year $ 164 $ 126 $ 30 Acquisition of impaired loans 658 168 — Transfer from non-accretable to accretable — — 161 Accretion of discount (165 ) (130 ) (65 ) Balance at end of year $ 657 $ 164 126 Non-accretable difference at end of year $ 1,175 $ 122 $ 26 The following table presents the years for the scheduled remaining accretable discount that will accrete to income based on the Company’s most recent estimates of cash flows for PCI loans: (In thousands) Years ending December 31, 2020 $ 365 2021 223 2022 69 Thereafter — Total $ 657 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 process of foreclosure: December 31, (Dollars in thousands) 2019 2018 Number of loans Recorded Investment Number of loans Recorded Investment 2 $ 382 4 $ 821 In the normal course of business, the Company 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 payment stream with the borrower’s cash flow. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties Activity related to loans to directors, executive officers and their affiliated interests during the years ended December 31, 2019 2018 and 2017 is as follows: (In thousands) 2019 2018 2017 Balance, beginning of year $ 5,805 $ 2,719 $ 1,357 Loans granted 3,199 3,365 1,603 Repayments of loans (2,668 ) (279 ) (241 ) Balance, end of year $ 6,336 $ 5,805 $ 2,719 Related party deposits were $12.7 million , $12.0 million and $10.7 million at December 31, 2019 , 2018 and 2017, respectively. Rent of approximately $128,000 , $126,000 and $122,000 , was paid in 2019, 2018 and 2017, respectively, to an entity affiliated with a director of the Company for the lease of one of the Company's offices. The Company has had and intends to have business transactions in the ordinary course of business with directors, officers and affiliated interests on comparable terms as those prevailing from time to time for other non-affiliated customers of the Company. For these transactions, related expenses are not significant to the operations of the Company. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Premises and equipment consist of the following at December 31, (Dollars in thousands) Estimated Useful Lives 2019 2018 Land $ 2,536 $ 1,798 Building 40 years 10,666 8,340 Leasehold improvements 3 - 10 years 7,721 7,577 Furniture, fixtures and equipment 3 - 15 years 6,401 5,520 Projects in progress 529 24 27,853 23,259 Less: Accumulated depreciation 12,591 11,606 Total $ 15,262 $ 11,653 Depreciation expense was $985,000 , $820,000 and $814,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. |
Other Real Estate Owned ("OREO"
Other Real Estate Owned ("OREO") | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Other Real Estate Owned (OREO) | Other Real Estate Owned (“OREO”) The following table presents the activity in other real estate owned for the years ended December 31, (In thousands) 2019 2018 2017 Balance, beginning of year $ 2,515 $ — $ 166 Other real estate owned properties added — 1,460 455 Other real estate owned property acquired in NJCB merger — 1,230 — Other real estate owned property acquired in Shore merger 605 Sales during the year (2,549 ) — (626 ) Increase in carrying amount of other real estate owned — — 5 Forfeitable deposit on other real estate owned — (175 ) — Balance, end of year $ 571 $ 2,515 $ — The Company recorded (losses) and gains on sale of other real estate owned of $(101,000) , $0 and $5,000 for the years ended December 31, 2019 , 2018 and 2017, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The table below presents goodwill and intangible assets at December 31, (In thousands) 2019 2018 Beginning balance $ 12,258 $ 12,496 Additions: Goodwill 23,194 — Core deposits intangible 1,467 80 Amortization expense (140 ) (318 ) Total $ 36,779 $ 12,258 Amortization expense of intangible assets was $140,000 , $318,000 and $384,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Scheduled amortization of the core deposits intangible is as follows: (In thousands) Year Amount 2020 $ 390 2021 314 2022 263 2023 213 2024 164 After five years 388 $ 1,732 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table presents the details of total deposits at December 31, % of Total % of Total (Dollars in thousands) 2019 Deposits 2018 Deposits Non-interest bearing $ 287,555 22.51 % $ 212,981 22.40 % Interest bearing 393,392 30.80 323,503 34.03 Savings 259,033 20.28 189,612 19.95 Certificates of deposit 337,382 26.41 224,576 23.62 $ 1,277,362 100.00 % $ 950,672 100.00 % At December 31, 2019 , certificates of deposit have contractual maturities as follows: (In thousands) Year Amount 2020 $ 251,852 2021 59,950 2022 19,658 2023 3,781 2024 2,141 $ 337,382 Certificates of deposit greater than $250,000 were $48.6 million and $38.0 million at December 31, 2019 and December 31, 2018, respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings At December 31, 2019 the Company had overnight borrowings totaling $92.1 million with an average interest rate of 1.81% . Overnight borrowings at December 31, 2018 totaled $71.8 million with a weighted average interest rate of 2.6% . These borrowings are primarily used to fund asset growth not supported by deposit generation. At December 31, 2019 , unused short-term or overnight borrowing potential totaled $160.7 million from the FHLB and unused fed funds borrowing commitments totaled $25.0 million from correspondent banks. |
Redeemable Subordinated Debentu
Redeemable Subordinated Debentures | 12 Months Ended |
Dec. 31, 2019 | |
Subordinated Borrowings [Abstract] | |
Redeemable Subordinated Debentures | Redeemable Subordinated Debentures On May 30, 2006, the Company established 1 ST Constitution Capital Trust II (“Trust II”), a Delaware business trust and wholly-owned subsidiary of the Company, for the sole purpose of issuing $18.0 million of trust preferred securities (the “Capital Securities”). Trust II utilized the $18.0 million in proceeds, along with $557,000 invested in Trust II by the Company, to purchase $18,557,000 of floating rate junior subordinated debentures issued by the Company and due to mature on June 15, 2036. The subordinated debentures carry a floating interest rate based on the three-month LIBOR plus 165 basis points ( 3.5400% at December 31, 2019 ). The Capital Securities were issued in connection with a pooled offering involving approximately 50 other financial institution holding companies. All of the Capital Securities were sold to a single pooling vehicle. The floating rate junior subordinated debentures are the only asset of Trust II and have terms that mirrored the Capital Securities. These debentures are redeemable in whole or in part prior to maturity. Trust II is obligated to distribute all proceeds of a redemption of these debentures, |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income tax expense are summarized as follows for the years ended December 31, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Federal: Current $ 2,826 $ 2,479 $ 2,791 Deferred 418 209 496 Remeasurement of deferred tax assets and liabilities — (28 ) 1,712 3,244 2,660 4,999 State: Current 1,610 1,561 748 Deferred 186 96 124 1,796 1,657 872 $ 5,040 $ 4,317 $ 5,871 A comparison of income tax expense at the Federal statutory rate of 21% in 2019 and 2018 and 34% in 2017 to the Company’s provision for income taxes is as follows: (In thousands) 2019 2018 2017 Federal income tax $ 3,922 $ 3,437 $ 4,352 Add (deduct) effect of: State income taxes net of federal income tax effect 1,419 1,309 575 Tax-exempt interest income (348 ) (416 ) (728 ) Bank-owned life insurance (131 ) (110 ) (177 ) Executive compensation 120 96 139 Remeasurement of federal deferred tax assets and liabilities — (28 ) 1,712 Other items, net 58 29 (2 ) Provision for income taxes $ 5,040 $ 4,317 $ 5,871 The tax effects of existing temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows at December 31, 2019 and 2018: (In thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,606 $ 2,362 Unrealized loss on securities available for sale — 528 Supplemental executive retirement plan liability 1,343 1,294 Other than temporary impairment loss 118 119 Depreciation 752 612 Non-accrual interest 318 200 Acquisition accounting adjustments 1,121 647 Lease liability 5,233 — Federal net operating loss carryover, net 830 871 Other 103 72 Total gross deferred tax assets $ 12,424 $ 6,705 Deferred tax liabilities: Deferred costs 631 564 Pension liability 102 90 Right-of-use assets 5,048 — Unrealized gain on securities available for sale 111 — Total gross deferred tax liabilities $ 5,892 $ 654 Net deferred tax assets $ 6,532 $ 6,051 Based upon the current facts, management has determined that it is more likely than not that there will be sufficient taxable income in future years to realize the deferred tax assets. However, there can be no assurances about the level of future earnings. The Company is subject to U.S. Federal income tax as well as income tax of the State of New Jersey and other states. The tax years of 2016, 2017, 2018 and 2019 remain open to federal examination. The tax years of 2015, 2016, 2017, 2018 and 2019 remain open for state examination. At December 31, 2019, the Company has $5.8 million of federal net operating loss carryforwards which begin to expire in 2034, unless previously used. These net operating loss carryforwards arose from the NJCB Merger. The Company's use of the net operating loss carryforward is limited by statute to a maximum of $197,000 per year. On December 22, 2017, the Tax Actwas signed into law. ASC 740 (Income Taxes) requires the recognition of the effect of changes in tax laws or rates in the period in which the legislation is enacted. The changes in the deferred tax assets and liabilities remeasured at the new 21% federal tax rate are reflected in income tax expense for fiscal year 2017. The Company performed a preliminary analysis in 2017 and expensed an estimated $1.7 million related to the effect of the lower corporate tax rates on the deferred tax assets and liabilities. This was a non-cash charge to income. Upon completion of the 2017 federal tax returns, the provisional remeasurement of federal deferred tax liability was reduced by $28,000 . The measurement period under Staff Accounting Bulletin 118 issued by the SEC is closed as of December 22, 2018 and the accounting for the Tax Act is final. |
Comprehensive Income and Accumu
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) | Comprehensive Income and Accumulated Other Comprehensive Income (Loss) Comprehensive income is the total of net income and all other changes in equity from non-shareholder sources, which are referred to as other comprehensive income. The components of accumulated other comprehensive income (loss) that are included in shareholders' equity and the related tax effects are as follows at December 31, 2019 and 2018: 2019 (In thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gain on securities available for sale $ 414 $ (111 ) $ 303 Unrealized impairment loss on held to maturity security (492 ) 118 (374 ) Gains on unfunded pension liability 364 (102 ) 262 Total other comprehensive income $ 286 $ (95 ) $ 191 2018 Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding loss on securities available for sale $ (2,207 ) $ 528 $ (1,679 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 318 (90 ) 228 Total other comprehensive loss $ (2,390 ) $ 557 $ (1,833 ) Changes in the components of accumulated other comprehensive loss are as follows and are presented net of tax: (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, December 31, 2016 $ (334 ) $ (331 ) $ 65 $ (600 ) Other comprehensive income (loss) before reclassifications 26 — 38 64 Amounts reclassified from accumulated other comprehensive income (loss) (55 ) — (36 ) (91 ) Other comprehensive income (loss) (29 ) — 2 (27 ) Reclassification for certain deferred tax effects (71 ) (51 ) 13 (109 ) Balance, December 31, 2017 (434 ) (382 ) 80 (736 ) Other comprehensive income (loss) before reclassifications (1,236 ) — 192 (1,044 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (44 ) (44 ) Reclassification adjustments for gains realized in income (9 ) — — (9 ) Other comprehensive income (loss) (1,245 ) — 148 (1,097 ) Balance, December 31, 2018 (1,679 ) (382 ) 228 (1,833 ) Other comprehensive income before reclassifications 2,005 — 156 2,161 Amounts reclassified from accumulated other comprehensive income (loss) — 8 (122 ) (114 ) Reclassification adjustments for gains realized in income (23 ) — — (23 ) Other comprehensive income 1,982 8 34 2,024 Balance, December 31, 2019 $ 303 $ (374 ) $ 262 $ 191 |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Retirement Savings Plan: The Bank has a 401(k) Plan (the "Plan") which covers substantially all employees with six months or more of service. The plan permits all eligible employees to make contributions to the Plan up to the IRS salary deferral limit. Under the Plan, the Bank provided a matching contribution of 50% , up to 6% of base compensation. Employer contributions to the Plan amounted to $348,000 , $343,000 and $353,000 in 2019 , 2018 and 2017 , respectively. Bank-Owned Life Insurance: In connection with the benefit plans, the Bank has life insurance policies on the lives of its executives, directors, officers and employees. The Bank is the owner and beneficiary of the policies. The cash surrender values of the policies totaled approximately $36.7 million and $28.7 million as of December 31, 2019 and 2018 , respectively. Included in the total at December 31, 2019 , was $7.2 million of bank-owned life insurance policies acquired in the Shore Merger and at December 31, 2018, was $4.0 million of bank-owned life insurance policies acquired in the NJCB Merger. Supplemental Executive Retirement Plan The Company also provides retirement benefits to certain employees under supplemental executive retirement plans (the "Supplemental Plans"). The Supplemental Plans are unfunded and the Company accrues actuarially determined benefit costs over the estimated service period of the employees participating in the Supplemental Plans. The present value of the benefits accrued under the Supplemental Plans as of December 31, 2019 and 2018 is approximately $4.4 million and $4.3 million , respectively, and is included in other liabilities and accumulated other comprehensive loss in the accompanying consolidated balance sheets. Compensation expense related to the Supplemental Plans of $177,000 , $287,000 and $293,000 is included in the accompanying consolidated statements of income for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table sets forth the changes in benefit obligations of the Company’s Supplemental Plans for the years ended December 31, 2019 and 2018. (In thousands) 2019 2018 Change in Benefit Obligation Beginning January 1 $ 4,285 $ 4,205 Service cost 189 192 Interest cost 164 157 Actuarial gain (222 ) (269 ) Benefits paid — — Ending December 31 $ 4,416 $ 4,285 Amount Recognized in Consolidated Balance Sheets Liability for pension $ 4,780 $ 4,603 Net actuarial gain included in accumulated other comprehensive loss (364 ) (318 ) Net recognized pension liability $ 4,416 $ 4,285 Information for pension plans with an accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 4,416 $ 4,285 Accumulated benefit obligation 4,245 4,120 The following table sets forth the components of net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017. (In thousands) 2019 2018 2017 Service cost $ 189 $ 192 $ 197 Interest cost 164 157 156 Recognized net actuarial gain (176 ) (62 ) (60 ) Net periodic benefit cost $ 177 $ 287 $ 293 The net periodic benefit cost is projected to be a credit of $60,000 to expense and actuarial gains of $364,000 are expected to be removed from accumulated other comprehensive income and recognized as a component of net periodic benefit expense for the year ending December 31, 2020. For each of the years ended December 31, 2019 , 2018 and 2017 , the weighted-average discount rate was 4% and the assumed salary increase was 4% for each of the same years. Management's expectation as of December 31, 2019 for the projected annual benefit payments is represented in the table below. (In thousands) 2020 $ 4,719 2021 — 2022 — 2023 — 2024 — Thereafter — $ 4,719 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Compensation | Share - Based Compensation The Company’s stock-based incentive plans (the “Stock Plans”) authorize the issuance of an aggregate of 885,873 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"), awards of restricted shares of common stock (“Stock Awards”) and restricted stock units ("RSUs"). The purpose of the Stock Plans is to attract and retain personnel for positions of substantial responsibility and to provide additional incentive to certain officers, directors, employees and other persons to promote the success of the Company. Under the Stock Plans, Options have a term of ten years after the date of grant, subject to earlier termination in certain circumstances. Options are granted with an exercise price at the then fair market value of the Company’s common stock. The grant date fair value is calculated using the Black-Scholes option valuation model. As of December 31, 2019 , there were 398,991 shares of common stock available for future grants under the Stock Plans. Share-based compensation expense related to Options was $55,000 , $57,000 and $65,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was approximately $67,000 of unrecognized compensation cost related to unvested Options granted under the Stock Plans that is expected to be recognized over the next four years . Transactions in Options under the Stock Plans during the year ended December 31, 2019 are summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (In thousands) Outstanding at January 1, 2019 139,511 $ 8.70 4.0 $ 1,566 Granted 11,400 19.38 Exercised (24,277 ) 7.37 Forfeited (1,268 ) 17.91 Expired or exchanged (3,215 ) 13.03 Outstanding at December 31, 2019 122,151 $ 9.85 3.9 $ 1,500 Exercisable at December 31, 2019 103,145 $ 8.29 3.1 $ 1,427 The aggregate intrinsic value in the table above represents the total pre-tax intrinsic value (the difference between market value of the Company's common stock on the last trading day of 2019 and the exercise price). The Company's closing stock price on December 31, 2019 was $22.13 . During the year ended December 31, 2019 , the aggregate intrinsic value of Options exercised was $284,000 and the Company received cash totaling $149,000 for Options exercised. The following table summarizes the Options that were outstanding and exercisable at December 31, 2019 : Outstanding Options Exercisable Options Exercise Price Range Number Average Life in Years Average Exercise Price Number Average Life in Years Average Exercise Price $5.54 to $5.63 44,897 1.8 $ 5.61 44,897 1.8 $ 5.61 $6.16 to $7.46 27,827 2.0 7.10 27,827 2.0 7.10 $9.30 to $11.98 21,497 5.0 10.64 19,901 4.9 10.54 $18.30 to 19.38 27,930 8.1 18.81 10,520 7.8 18.67 122,151 3.9 $ 9.85 103,145 3.1 $ 8.29 The fair value of each Option and the significant weighted average assumptions used to calculate the fair value of the Options granted during the years ended December 31, 2019 , 2018 and 2017 are as follows: 2019 2018 2017 Fair value of options granted $ 5.63 $ 5.93 $ 6.05 Risk-free rate of return 2.55 % 2.46 % 2.45 % Expected option life in years 7 7 7 Expected volatility 29.09 % 31.35 % 31.25 % Expected dividends 1.56 % 1.18 % 1.19 % Share-based compensation expense related to Stock Awards was $1.0 million , $962,000 and $928,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was approximately $1.7 million of unrecognized compensation cost related to non-vested stock awards that will be recognized over the next four years . The following table summarizes the activity in unvested Stock Awards for the year ended December 31, 2019 : Number of Shares Weighted Average Grant-Date Fair Value Balance, January 1, 2019 147,533 $ 13.21 Granted 53,931 18.30 Vested (65,320 ) 15.91 Forfeited (1,785 ) 17.31 Balance at December 31, 2019 134,359 $ 13.84 The value of the Stock Awards is based upon the market value of the common stock on the date of grant. The Stock Awards generally vest over a four year service period with compensation expense recognized on a straight-line basis. Share-based compensation expense related to Stock Awards was $1.0 million , $962,000 and $928,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was approximately $1.7 million of unrecognized compensation cost related to non-vested stock awards that will be recognized over the next four years . Share based compensation expense related to RSUs was $67,000 for the year ended December 31, 2019, there was approximately $133,000 of unrecognized compensation expense related to unvested RSUs. No RSUs were granted prior to 2019. In January 2019, the Company granted 10,300 RSUs with a grant date fair value of $19.38 . The RSUs will vest pro-rata over 3 years subject to achievement of certain established performance metrics. The ultimate number of RSUs earned, if any, will depend on the performance achievement measured over each annual period during the period from January 1, 2019 through December 31, 2021. If performance measures are achieved, the RSUs will vest on the date of certification of performance achievement by the Compensation Committee following each annual performance period. Awards of RSUs are settled in cash unless the recipient timely elects for the RSUs to be settled in shares of common stock. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments With Off-Balance Sheet Risk: The consolidated balance sheet does not reflect various commitments relating to financial instruments which are used in the normal course of business. Management does not anticipate that the settlement of those financial instruments will have a material adverse effect on the Company’s financial condition. These instruments include commitments to extend credit and letters of credit. These financial instruments carry various degrees of credit risk, which is defined as the possibility that a loss may occur from the failure of another party to perform according to the terms of the contract. As these off-balance sheet financial instruments have essentially the same credit risk involved in extending loans, the Company generally uses the same credit and collateral policies in making these commitments and conditional obligations as it does for on-balance sheet investments. Additionally, as some commitments and conditional obligations are expected to expire without being drawn or returned, the contractual amounts do not necessarily represent future cash requirements. Commitments to extend credit are legally binding loan commitments with set expiration dates. They are intended to be disbursed, subject to certain conditions, upon request of the borrower. The Company receives a fee for providing a commitment. The Company was committed to advance $36.0 million and $23.1 million for loans that have not closed and $381.0 million and $403.0 million for lines of credit on closed loans as of December 31, 2019 and 2018 , respectively. The Company issues financial standby letters of credit that are within the scope of ASC Topic 460, “Guarantees.” These are irrevocable undertakings by the Company to guarantee payment of a specified financial obligation. Most of the Company’s financial standby letters of credit arise in connection with lending relationships and have terms of one year or less. The maximum potential future payments that the Company could be required to make under these standby letters of credit amounted to $4.3 million at December 31, 2019 and $766,000 at December 31, 2018 . The current amount of the liability as of December 31, 2019 and 2018 for guarantors under standby letters of credit is not material. The Company also enters into best efforts forward sales commitments to sell residential mortgage loans that it has closed (loans held for sale) or that it expects to close (commitments to originate loans held for sale). These commitments are used to reduce the Company’s market price risk during the period from the commitment date to the sale date. The notional amount of the Company’s forward sales commitments was approximately $15.0 million at December 31, 2019 and $4.3 million at December 31, 2018 . The fair value of the loan origination commitments was $159,000 at December 31, 2019 and $79,000 at December 31, 2018 . Litigation: The Company may, in the ordinary course of business, become a party to litigation involving collection matters, contract claims and other legal proceedings relating to the conduct of its business. The Company may also have various commitments and contingent liabilities which are not reflected in the accompanying consolidated balance sheet. Management is not aware of any present legal proceedings or contingent liabilities and commitments that would have a material impact on the Company’s financial condition or results of operations. |
Other Operating Expenses
Other Operating Expenses | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Operating Expenses | Other Operating Expenses The components of other operating expenses for the years ended December 31, 2019 , 2018 and 2017 are as follows: (Dollars in thousands) 2019 2018 2017 Regulatory, professional and other consulting fees $ 1,806 $ 1,713 $ 2,263 Equipment 1,286 1,175 1,008 Telephone 400 391 389 Amortization of intangible assets 140 318 384 Insurance 391 375 373 Supplies 275 294 259 Marketing 302 280 225 Other expenses 1,983 1,946 2,151 $ 6,583 $ 6,492 $ 7,052 |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements The Company and the Bank are subject to various regulatory capital requirements administered by the Federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s and the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of Common Equity Tier 1, Total and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and Tier I capital to average assets (Leverage ratio, as defined). As of December 31, 2019 , the Company and the Bank met all capital adequacy requirements to which they are subject. To be categorized as adequately capitalized, the Company and the Bank must maintain minimum Common Equity Tier 1, Total capital to risk-weighted assets, Tier 1 capital to risk-weighted assets and Tier I leverage capital ratios as set forth in the below table. As of December 31, 2019 , the Bank's capital ratios exceeded the regulatory standards for well-capitalized institutions. Certain bank regulatory limitations exist on the availability of the Bank’s assets for the payment of dividends by the Bank without prior approval of bank regulatory authorities. In July 2013, the Federal Reserve Board and the FDIC approved revisions to their capital adequacy guidelines and prompt corrective action rules that implemented and addressed the revised standards of Basel III and addressed relevant provisions of the Dodd-Frank Act. The Federal Reserve Board’s final rules and the FDIC’s interim final rules (which became final in April 2014 with no substantive changes) apply to all depository institutions, top-tier bank holding companies with total consolidated assets of $500 million or more (which was subsequently increased to $1 billion or more in May 2015) and top-tier savings and loan holding companies (“banking organizations”). Among other things, the rules established a Common Equity Tier 1 minimum capital requirement (4.5% of risk-weighted assets) and increased the minimum Tier 1 capital to risk-based assets requirement (from 4% to 6% of risk-weighted assets). Banking organizations are also required to have a total capital ratio of at least 8% and a Tier 1 leverage ratio of at least 4%. The rules also limited a banking organization’s ability to pay dividends, engage in share repurchases or pay discretionary bonuses if the banking organization does not hold a “capital conservation buffer” consisting of 2.5% of Common Equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based capital requirements. The rules became effective for the Company and the Bank on January 1, 2015. The capital conservation buffer requirement began phasing in on January 1, 2016 at 0.625% of Common Equity Tier 1 capital to risk-weighted assets and increased by that amount each year until fully implemented in January 2019 at 2.5% of Common Equity Tier 1 capital to risk-weighted assets. As of December 31, 2019, the Company and the Bank maintained a capital conservation buffer of at least 2.5%. On September 17, 2019, the federal banking agencies adopted a final rule, effective January 1, 2020, creating a community bank leverage ratio framework for institutions with total consolidated assets of less than $10 billion and that meet other qualifying criteria. The community bank leverage ratio framework provides for a simpler measure of capital adequacy for qualifying institutions. Qualifying institutions that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than 9% will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the federal banking agencies’ capital rules and to have met the “well capitalized” ratio requirements. Management is still reviewing the community bank leverage ratio framework, but does not expect that the Company or the Bank will elect to use the framework. The Bank's actual capital amounts and ratios are presented in the following table: To Be Well Capitalized Under Prompt For Capital Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Common equity Tier 1 $ 150,725 10.99 % $ 61,579 4.50 % $ 88,948 6.50 % Total capital to risk-weighted assets 159,996 11.67 % 109,474 8.00 % 136,843 10.00 % Tier 1 capital to risk-weighted assets 150,725 10.99 % 82,106 6.00 % 109,474 8.00 % Tier 1 leverage capital 150,725 10.54 % 57,222 4.00 % 71,528 5.00 % As of December 31, 2018 Common equity Tier 1 $ 133,548 12.40 % $ 48,471 4.50 % $ 70,013 6.50 % Total capital to risk-weighted assets 141,950 13.18 % 86,170 8.00 % 107,712 10.00 % Tier 1 capital to risk-weighted assets 133,548 12.40 % 64,627 6.00 % 86,170 8.00 % Tier 1 leverage capital 133,548 11.74 % 45,516 4.00 % 56,894 5.00 % The Company's actual capital amounts and ratios are presented in the following table: To Be Well Capitalized Under Prompt For Capital Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Common equity Tier 1 $ 133,046 9.70 % $ 61,604 4.50 % N/A N/A Total capital to risk-weighted assets 160,317 11.69 % 109,519 8.00 % N/A N/A Tier 1 capital to risk-weighted assets 151,046 11.01 % 82,139 6.00 % N/A N/A Tier 1 leverage capital 151,046 10.56 % 57,245 4.00 % N/A N/A As of December 31, 2018 Common equity Tier 1 $ 115,537 10.72 % $ 48,496 4.50 % N/A N/A Total capital to risk-weighted assets 141,939 13.17 % 86,214 8.00 % N/A N/A Tier 1 capital to risk-weighted assets 133,537 12.39 % 64,661 6.00 % N/A N/A Tier 1 leverage capital 133,537 11.73 % 45,538 4.00 % N/A N/A Dividend payments by the Bank to the Company are subject to the New Jersey Banking Act of 1948, as amended (the “Banking Act”) and the Federal Deposit Insurance Act, as amended (the “FDIA”). Under the Banking Act, the Bank may not pay dividends unless, following the dividend payment, the capital stock of the Bank will be unimpaired and (i) the Bank will have a surplus of not less than 50% of its capital stock or, if not, (ii) the payment of such dividend will not reduce the surplus of the Bank. Under the FDIA, the Bank may not pay any dividends if after paying the dividend, it would be undercapitalized under applicable capital requirements. In addition to these explicit limitations, the federal regulatory agencies are authorized to prohibit a banking subsidiary or bank holding company from engaging in an unsafe or unsound banking practice. Depending upon the circumstances, the agencies could take the position that paying a dividend would constitute an unsafe or unsound banking practice. The Bank is also limited in paying dividends if it does not maintain the necessary “capital conservation buffer” as discussed below. It is the policy of the Federal Reserve Board that bank holding companies should pay cash dividends on common stock only out of income available over the immediately preceding year and only if prospective earnings retention is consistent with the organization’s expected future needs and financial condition. The policy provides that bank holding companies should not maintain a level of cash dividend that undermines the bank holding company’s ability to serve as a source of strength to its banking subsidiary. A bank holding company may not pay dividends when it is insolvent. The Company's payment of cash dividends to date were within the guidelines set forth in the Federal Reserve Board's policy. In the event the Company defers payments on the junior subordinated debentures used to fund payments to be made pursuant to the terms of the Capital Securities, the Company would be unable to pay cash dividends on its common stock until the deferred payments are made. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity The Company issued a warrant on December 23, 2008 to the United States Department of the Treasury (the “Treasury”) under the Troubled Asset Relief Program (“TARP”) Capital Purchase Program (the “CPP”). This warrant was sold by the Treasury on November 23, 2011 and exchanged for two new warrants which permit the holders thereof to acquire, on an adjusted basis resulting from declarations of stock and cash dividends to holders of common stock since the issuance of the two warrants, 289,719 shares of common stock of the Company at a price of $6.214 per share. The warrants had an expiration date of December 23, 2018. Certain terms and conditions of the warrants issued to the Treasury were modified or deleted in the two new warrants, including, without limitation, the deletion of the anti-dilution provision upon certain issuances of the Company's common stock at or below a specified price relative to the initial exercise price. However, the two warrants provided for the adjustment of the exercise price and the number of shares of the Company's common stock issuable upon exercise pursuant to customary anti-dilution provisions, such as upon stock splits or distributions of securities or other assets to holders of the Company's common stock. On December 19, 2018, both of the outstanding warrants were exercised and pursuant to the terms and conditions of the two warrants, the Company issued a net of 198,378 shares. No cash was received from the exercise of the warrants. The Board of Governors of the Federal Reserve System has issued a supervisory letter to bank holding companies that contains guidance on when the board of directors of a bank holding company should eliminate or defer or severely limit dividends, including, for example, when net income available for shareholders for the past four quarters, net of dividends paid during that period, is not sufficient to fully fund the dividends. The letter also contains guidance on the redemption of stock by bank holding companies which urges bank holding companies to advise the Federal Reserve of any such redemption or repurchase of common stock for cash or other value which results in the net reduction of a bank holding company’s capital at the beginning of the quarter below the capital outstanding at the end of the quarter. The Company's payment of cash dividends to date were within the guidelines set forth in the Federal Reserve Board's supervisory letter. On January 21, 2016, the Board of Directors of the Company authorized a new common stock repurchase program. Under the new common stock repurchase program, the Company may purchase in open market or privately negotiated transactions up to five ( 5% ) percent of its common shares outstanding on the date of the approval of the stock repurchase program, which limitation will be adjusted for any future stock dividends. This new repurchase program replaced the repurchase program authorized on August 3, 2005. The Company repurchased no shares during the years ended December 31, 2019, 2018 and 2017. |
Fair Value Disclosures
Fair Value Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
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 value or reflective of future values. While management believes that 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 Level 1 and Level 2 inputs. For Level 2 securities, 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 prepayment speeds, credit information and the security’s terms and conditions, among other things. 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. Impaired loans: Loans included in the following table are those which the Company has measured and recognized impairment based generally on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third party appraisals of the properties or discounted expected cash flows. 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 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: December 31, 2019 (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 corporations ("GSE") $ — $ 764 $ — $ 764 Residential collateralized mortgage obligations - GSE — 53,175 — 53,175 Residential mortgage backed securities-GSE — 18,387 — 18,387 Obligations of state and political subdivisions — 33,519 — 33,519 Trust preferred debt securities - single issuer — 1,442 — 1,442 Corporate debt securities 11,151 12,128 — 23,279 Other debt securities — 25,216 — 25,216 Interest rate lock derivative — 159 — 159 Total $ 11,151 $ 144,790 $ — $ 155,941 December 31, 2018 (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 corporations (“GSE”) $ — $ 2,952 $ — $ 2,952 Residential collateralized mortgage obligations - GSE — 48,183 — 48,183 Residential mortgage backed securities – GSE — 13,882 — 13,882 Obligations of state and political subdivisions — 23,342 — 23,342 Trust preferred debt securities - single issuer — 1,329 — 1,329 Corporate debt securities 16,388 10,898 — 27,286 Other debt securities — 15,248 — 15,248 Interest rate lock derivative — 79 — 79 Total $ 16,388 $ 115,913 $ — $ 132,301 Certain financial assets 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). Financial assets measured at fair value on a non-recurring basis at December 31, 2019 and 2018 are as follows: (In thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value December 31, 2019 Impaired loans — — $ 7,092 $ 7,092 Other real estate owned — — 93 93 December 31, 2018 Impaired loans — — $ 6,857 $ 6,857 Other real estate owned — — 1,460 1,460 Impaired loans, measured at fair value and included in the above table, consisted of 12 loans having an aggregate balance of $7.2 million and specific loan loss allowances of $69,000 at December 31, 2019 and 8 loans having an aggregate balance of $7.3 million and specific loan loss allowances of $453,000 at December 31, 2018 . The following table presents additional qualitative information about assets measured at fair value on a non-recurring basis 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) December 31, 2019 Impaired loans $ 7,092 Appraisal of collateral (1) Appraisal adjustments (2) 0.1%-40.4% (12.6%) Other real estate owned 93 Appraisal of collateral (1) Appraisal adjustments (2) 47.0% (47.0%) December 31, 2018 Impaired loans $ 6,857 Appraisal of collateral (1) Appraisal adjustments (2) 0.5%-100% (28.2%) Other real estate owned $ 1,460 Appraisal of collateral (1) Appraisal adjustments (2) 47%-80% (63.5%) (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 the fair value and the carrying value of all of the Company’s financial instruments. For the Company and the Bank, as for 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 are used. Changes in assumptions could significantly affect these estimates. The fair values and the carrying value of financial instruments at December 31, 2019 and 2018 were as follows: 2019 (In thousands) Carrying Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value Cash and cash equivalents $ 14,842 $ 14,842 $ — $ — $ 14,842 Securities available for sale 155,782 11,151 144,631 — 155,782 Securities held to maturity 76,620 — 78,223 — 78,223 Loans held for sale 5,927 — 6,093 — 6,093 Net loans 1,206,757 — — 1,243,088 1,243,088 SBA servicing asset 930 — 1,245 — 1,245 Interest rate lock derivative 159 — 159 — 159 Accrued interest receivable 4,945 — 4,945 — 4,945 FHLB Stock 4,176 — 4,176 — 4,176 Deposits (1,277,362 ) — (1,278,166 ) — (1,278,166 ) Short-term borrowings (92,050 ) — (92,050 ) — (92,050 ) Redeemable subordinated debentures (18,557 ) — (12,837 ) — (12,837 ) Accrued interest payable (1,592 ) — (1,592 ) — (1,592 ) 2018 (In thousands) Carrying Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value Cash and cash equivalents $ 16,844 $ 16,844 $ — $ — $ 16,844 Securities available for sale 132,222 16,388 115,834 — 132,222 Securities held to maturity 79,572 — 80,204 — 80,204 Loans held for sale 3,020 — 3,141 — 3,141 Net loans 874,762 — — 874,742 874,742 SBA servicing asset 991 — 1,490 — 1,490 Interest rate lock derivative 79 — 79 — 79 Accrued interest receivable 3,860 — 3,860 — 3,860 FHLB Stock 3,929 — 3,929 — 3,929 Deposits (950,672 ) — (949,813 ) — (949,813 ) Short-term borrowings (71,775 ) — (71,775 ) — (71,775 ) Redeemable subordinated debentures (18,557 ) — (12,774 ) — (12,774 ) Accrued interest payable (1,228 ) — (1,228 ) — (1,228 ) Loan commitments and standby letters of credit as of December 31, 2019 and 2018 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 12 Months Ended |
Dec. 31, 2019 | |
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 Topic 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income for the years ended December 31, 2019 , 2018 and 2017. Items outside the scope of Topic 606 are noted as such. For the Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Service charges on deposits: Overdraft fees $ 368 $ 343 $ 300 Other 295 295 296 Interchange income 460 405 347 Other income - in scope 412 521 340 (Loss) gain on sale of OREO (101 ) — 5 Income on BOLI (1) 623 575 522 Gains on sales of loans, net (1) 4,885 4,475 5,149 Loan servicing fees (1) 711 656 576 Net gains on sales and calls of securities (1) 30 12 129 Gain from bargain purchase (1) — 230 — Other income (1) 554 406 576 $ 8,237 $ 7,918 $ 8,240 (1) Not within the scope of Topic 606 A description of the Company’s revenue streams accounted for under Topic 606 follows: Service Charges on Deposits: The Company earns fees from its deposit account 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: The Company records a gain or loss from the sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. The Company generally does not finance the sale of OREO to the buyer; however, in determining the gain or loss on the sale, the Company adjusts the transaction price and related gain or loss on sale if a significant financing component is present. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases At December 31, 2019 , the Company had 37 operating leases under which the Company is a lessee. Of the 37 leases, 23 leases were for real property, including leases for 19 of the Company’s branch offices and 4 leases were for general office space including the Company’s headquarters. All of the real property leases include one or more options to extend the lease term. Four of the branch office leases are for the land on which the branch offices are located and the Company owns the leasehold improvements. In addition, the Company had 12 leases for office equipment, which are primarily copiers and printers and two automobile leases. None of these leases include extensions and generally have three to five year terms. The Company does not have any finance leases. For the years ended December 31, 2019 and 2018 , the Company recognized rent and equipment expense associated with these leases as follows: (In thousands) 2019 2018 Operating lease cost: Fixed rent expense and equipment expense $ 2,021 $ 2,055 Short-term lease expense 12 — Net lease cost $ 2,033 $ 2,055 (In thousands) 2019 2018 Lease cost - occupancy expense $ 1,778 $ 1,801 Lease cost - other expense 255 254 Net lease cost $ 2,033 $ 2,055 Rent expense aggregated $2.1 million , $1.8 million and $1.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Following is the cash and non-cash activities that were associated with the leases for the years ended December 31, 2019 and 2018 : For the Year Ended December 31, (In thousands) 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,840 $ 2,055 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities Upon adoption $ 15,674 $ — New or acquired during the year 3,765 — The future payments due under operating leases at December 31, 2019 and 2018 were as follows: At December 31, (In thousands) 2019 2018 Due in less than one year $ 2,070 $ 1,525 Due in one year but less than two years 2,035 1,392 Due in two years but less than three years 2,022 1,245 Due in three years but less than four years 1,984 1,008 Due in four years but less than five years 1,847 798 Thereafter 15,118 2,284 Total future payments $ 25,076 $ 8,252 Less: Implied interest (6,459 ) — Total lease liability $ 18,617 $ 8,252 As of December 31, 2019 , future payments due under operating leases were based on ASC Topic 842 and included, in general, at least one lease renewal option on all real estate leases except on one land lease where all renewal options were included. As of December 31, 2018 , the minimum future payments were disclosed as required by ASC Topic 840 and do not include future rent related to renewal options. As of December 31, 2019 , the weighted-average remaining lease term for all operating leases is 15.2 years . The weighted average discount rate associated with the operating leases as of December 31, 2019 was 3.33% . |
Parent-only Financial Informati
Parent-only Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent-only Financial Information | Parent-only Financial Information The condensed financial statements of 1 ST Constitution Bancorp (parent company only) are presented below: 1 ST CONSTITUTION BANCORP Condensed Statements of Financial Condition (Dollars in Thousands) December 31, 2019 2018 Assets : Cash $ 594 $ 425 Investment securities 557 557 Investment in subsidiary 188,257 145,096 Other assets — — Total Assets $ 189,408 $ 146,078 Liabilities And Shareholders’ Equity Other liabilities $ 273 $ 436 Subordinated debentures 18,557 18,557 Shareholders’ equity 170,578 127,085 Total Liabilities and Shareholders’ Equity $ 189,408 $ 146,078 1 ST CONSTITUTION BANCORP Consolidated Statements of Income and Comprehensive Income (Dollars in Thousands) Year ended December 31, 2019 2018 2017 Income: Interest income $ — $ — $ 16 Dividend income from subsidiary 3,369 2,830 1,826 Total Income 3,369 2,830 1,842 Expense: Interest expense 748 694 535 Total Expense 748 694 535 Income before income taxes and equity in undistributed income of subsidiaries 2,621 2,136 1,307 Income tax benefit (155 ) (146 ) (177 ) Income before equity in undistributed income of subsidiaries 2,776 2,282 1,484 Equity in undistributed income of subsidiaries 10,858 9,766 5,444 Net Income 13,634 12,048 6,928 Equity in other comprehensive income (loss) of subsidiaries 2,024 (1,097 ) (27 ) Comprehensive Income $ 15,658 $ 10,951 $ 6,901 1 ST CONSTITUTION BANCORP Condensed Statements of Cash Flows (Dollars in Thousands) Year Ended December 31, 2019 2018 2017 Operating Activities: Net Income $ 13,634 $ 12,048 $ 6,928 Adjustments: Decrease (increase) in other assets — 2,520 (68 ) Increase (decrease) in other liabilities (163 ) 407 (16 ) Equity in undistributed income of subsidiaries (10,858 ) (9,766 ) (5,444 ) Net cash provided by operating activities 2,613 5,209 1,400 Cash Flows From Investing Activities: Investment in subsidiary — — (130 ) Cash paid for NJCB merger — (3,069 ) Net cash used in investing activities — (3,069 ) (130 ) Cash Flows From Financing Activities: Cash dividend paid (2,593 ) (2,120 ) (1,690 ) Exercise of stock options 149 88 247 Purchase of treasury stock, net — — — Net cash used in financing activities (2,444 ) (2,032 ) (1,443 ) Net increase (decrease) in cash 169 108 (173 ) Cash at beginning of year 425 317 490 Cash at end of year $ 594 $ 425 $ 317 ` |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following table sets forth a condensed summary of the Company’s quarterly results of operations for the years ended December 31, 2019 , 2018 and 2017. In the fourth quarter 2019, the Company completed the acquisition of Shore and the quarterly data for the quarter ended December 31, 2019 includes results of former Shore operations. Selected 2019 Quarterly Data (Dollars in thousands, except per share data) December 31 September 30 June 30 March 31 Interest income $ 16,748 $ 14,874 $ 14,553 $ 13,915 Interest expense 3,589 3,357 3,120 2,688 Net interest income 13,159 11,517 11,433 11,227 Provision for loan losses 300 350 400 300 Net interest income after provision for loan losses 12,859 11,167 11,033 10,927 Non-interest income 1,995 2,206 2,170 1,866 Non-interest expense 10,453 8,436 8,566 8,094 Income before income taxes 4,401 4,937 4,637 4,699 Income taxes 1,157 1,314 1,267 1,302 Net income $ 3,244 $ 3,623 $ 3,370 $ 3,397 Earnings per common share: (1) Basic $ 0.34 $ 0.42 $ 0.39 $ 0.39 Diluted 0.34 0.42 0.39 0.39 Selected 2018 Quarterly Data (Dollars in thousands, except per share data) December 31 September 30 June 30 March 31 Interest income $ 13,754 $ 13,783 $ 12,881 $ 11,055 Interest expense 2,415 2,387 1,863 1,376 Net interest income 11,339 11,396 11,018 9,679 Provision for loan losses 225 225 225 225 Net interest income after provision for loan losses 11,114 11,171 10,793 9,454 Non-interest income 1,836 2,154 2,043 1,885 Non-interest expense 8,295 7,894 10,251 7,645 Income before income taxes 4,655 5,431 2,585 3,694 Income taxes 1,342 1,420 714 841 Net income $ 3,313 $ 4,011 $ 1,871 $ 2,853 Earnings per common share: (1) Basic $ 0.39 $ 0.48 $ 0.22 $ 0.35 Diluted 0.38 0.46 0.22 0.34 Selected 2017 Quarterly Data (Dollars in thousands, except per share data) December 31 September 30 June 30 March 31 Interest income $ 11,227 $ 10,811 $ 10,142 $ 9,483 Interest expense 1,418 1,451 1,340 1,289 Net interest income 9,809 9,360 8,802 8,194 Provision for loan losses 150 150 150 150 Net interest income after provision for loan losses 9,659 9,210 8,652 8,044 Non-interest income 1,930 2,112 1,785 2,413 Non-interest expense 8,064 7,609 7,677 7,656 Income before income taxes 3,525 3,713 2,760 2,801 Income taxes 2,951 1,227 841 852 Net income $ 574 $ 2,486 $ 1,919 $ 1,949 Earnings per common share:(1) Basic $ 0.07 $ 0.31 $ 0.24 $ 0.24 Diluted 0.07 0.30 0.23 0.23 (1) The sum of quarterly income per basic and diluted common share may not equal net income per basic and diluted common share, respectively, for the years ended December 31, 2019, 2018 and 2017 due to differences in the computation of weighted average diluted common shares on a quarterly and annual basis. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation: |
Use of Estimates in the Preparation of Financial Statements | In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and revenues and expenses for that period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, other-than-temporary security impairment, the fair value of other real estate owned, if any, and the valuation of deferred tax assets. |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements of the Company are prepared on the accrual basis and include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly-owned subsidiaries, 1st Constitution Investment Company of New Jersey, Inc., FCB Assets Holdings, Inc., 204 South Newman Street, LLC and 249 New York Avenue, LLC. 1st Constitution Capital Trust II, a subsidiary of the Company (“Trust II”), 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. While the following footnotes include the collective results of the Company and the Bank, the footnotes primarily reflect the Bank's and its subsidiaries' activities. 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. |
Concentration of Credit Risk | Concentration of Credit Risk: Financial instruments which potentially subject the Company and its subsidiaries to concentrations of credit risk primarily consist of investment securities and loans. At December 31, 2019 , 49.0% of our investment securities portfolio consisted of U.S. Government and Agency issues and collateralized mortgage obligations collateralized by agency mortgage backed securities. In addition, 28.4% of the portfolio consisted of municipal bonds. The remaining 22.6% of our investment securities consisted of corporate debt and asset-backed issues. The Bank’s lending activity is primarily concentrated in loans collateralized by real estate located primarily in the State of New Jersey. As a result, credit risk is broadly dependent on the real estate market and general economic conditions in that state. |
Interest Rate Risk | Interest Rate Risk: The Bank is principally engaged in the business of attracting deposits from the general public and using these deposits, together with other funds, to purchase investment securities and to make loans, the majority of which are secured by real estate. The potential for interest-rate risk exists as a result of the Company's generally shorter duration of interest-sensitive assets compared to the generally longer duration of interest-sensitive liabilities. In a changing interest rate environment, assets held by the Bank will re-price faster than liabilities of the Bank, thereby affecting net interest income. For this reason, management regularly monitors the maturity structure and rate adjustment features of the Bank’s assets and liabilities in order to measure its level of interest-rate risk and to plan for future volatility. |
Investment Securities | Investment Securities: Investment securities which the Company has the intent and ability to hold until maturity are classified as held to maturity and are recorded at cost, adjusted for amortization of premiums and accretion of discounts. Investment securities that are held for indefinite periods of time, that management intends to use as part of its asset/liability management strategy, or that may be sold in response to changes in interest rates, changes in prepayment risk, increased capital requirements or other similar factors, are classified as available for sale and are carried at fair value. Unrealized gains and losses on available for sale securities are recorded as a separate component of shareholders’ equity. Realized gains and losses, which are computed using the specific identification method, are recognized in earnings on a trade date basis. If the fair value of a security is less than its amortized cost, the security is deemed to be impaired. Management evaluates all securities with unrealized losses quarterly to determine if such impairments are temporary or other-than-temporary in accordance with the Accounting Standards Codification (“ASC”) of the Financial Accounting Standards Board (“FASB”). Temporary impairments on available for sale securities are recognized, on a tax-effected basis, through other comprehensive income (“OCI”) with offsetting adjustments to the carrying value of the security and the balance of related deferred taxes. Temporary impairments of held to maturity securities are not recorded in the consolidated financial statements; however, information concerning the amount and duration of impairments on held to maturity securities are disclosed. Other-than-temporary impairments ("OTTI") on all debt securities that the Company has decided to sell, or will, more likely than not, be required to sell prior to the full recovery of fair value to a level equal to or exceeding amortized cost, are recognized in earnings. If neither of these conditions regarding the likelihood of sale for a debt security apply, the OTTI is bifurcated into credit-related and noncredit-related components. Credit-related impairment generally represents the amount by which the present value of the cash flows that are expected to be collected on a debt security fall below its amortized cost. The noncredit-related component represents the remaining portion of the impairment not otherwise designated as credit-related. The Company recognizes credit-related OTTI in earnings. Noncredit-related OTTI on debt securities are recognized in OCI. Premiums and discounts on all securities are amortized/accreted to maturity by use of the level-yield method considering the impact of principal amortization and prepayments. Premiums on purchased callable debt securities are amortized to the earliest call date. Federal law requires a member institution of the FHLB system to hold restricted stock of its district FHLB according to a predetermined formula. The Bank’s investment in the restricted stock of the FHLB of New York is carried at cost and is included in other assets. The investment in FHLB stock was $4.2 million and $3.9 million at December 31, 2019 and December 31, 2018 , respectively. U.S. Treasury securities and obligations of U.S. Government sponsored corporations and agencies: The unrealized losses on investments in these securities were caused by increases in market interest rates. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the par value of the investment. 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 residential mortgage backed securities were caused by increases in market interest rates. The contractual cash flows of these securities are guaranteed by the issuer, 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 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. Trust preferred debt securities – single issuer : The investments in these securities are comprised of two corporate trust preferred securities issued by one large financial institutions that both 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. The issuer continues to maintain an investment grade credit rating and has not defaulted on interest payments. The decline in fair value is attributable to the widening of interest rate spreads and the lack of an active trading market for these securities and, to a lesser degree, market concerns about the issuers’ 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 an increase in market interest rates, which includes the yield required by the market participant for the issuer's credit risk. None of the corporate issuers have defaulted on interest payments. The decline in fair value is attributable to changes 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. Other debt securities . The unrealized losses on investments in other debt securities were caused by an increase in market interest rates, which includes the yield required by the market participant for the issuer's credit risk. None of the issuers have defaulted on interest payments. The decline in fair value is attributable to changes 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. 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 financial institution holding companies. During 2009, the Company recognized an other-than-temporary impairment charge 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 to be 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. Due to recovery of the cash flows underlying the security, the Company began to accrete the $501,000 of impairment charge in the other comprehensive income component in 2019. Total accretion of $9,000 was recognized in 2019 as an increase in the carrying amount of the security. On a quarterly basis, management evaluates this security to determine if any additional other-than-temporary impairment is required. As of December 31, 2019 , management concluded that no additional other-than-temporary impairment had occurred. The Company regularly reviews the composition of the investment securities portfolio, taking into account market risks, the current and expected interest rate environment, liquidity needs and its overall interest rate risk profile and strategic goals. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance: The Company invests in bank-owned life insurance (“BOLI”). BOLI involves the purchasing of life insurance by the Company on a select group of its executives, directors, officers and employees. The Company is the owner and beneficiary of the policies. This pool of insurance, due to the advantages of the Bank, is profitable to the Company. This profitability offsets a portion of current and future benefit costs and is intended to provide a funding source for the payment of future benefits. The Bank’s deposits fund BOLI and the earnings from BOLI are recognized as non-interest income. |
Loans and Loans Held For Sale | Loans and Loans Held For Sale: Loans that management intends to hold to maturity are stated at the principal amount outstanding, net of unearned income. Unearned income is recognized over the lives of the respective loans, principally using the effective interest method. Interest income is generally not accrued on loans, including impaired loans, where interest or principal is 90 days or more past due, unless the loans are adequately secured and in the process of collection, or on loans where management has determined that the borrowers may be unable to meet contractual principal and/or interest obligations. When it is probable that, based upon current information, the Bank will not collect all amounts due under the contractual terms of the loan, the loan is reported as impaired. Smaller balance homogeneous type loans, such as residential loans and loans to individuals, which are collectively evaluated, are generally excluded from consideration for impairment. Loan impairment is measured based upon the present value of the expected future cash flows discounted at the loan’s effective interest rate or the underlying fair value of collateral for collateral dependent loans. When a loan, including an impaired loan, is placed on non-accrual, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Non-accrual loans are generally not returned to accruing status until principal and interest payments have been brought current and full collectibility is reasonably assured. Cash receipts on non-accrual and impaired loans are applied to principal, unless the loan is deemed fully collectible. Loans held for sale are carried at the lower of aggregated cost or fair value. The fair value 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. Realized gains and losses on loans held for sale are recognized at settlement date and are determined based on the cost, including deferred net loan origination fees and the costs of the specific loans sold. Residential mortgage loans are sold with servicing released. The Bank accounts for its transfers and servicing of financial assets in accordance with ASC Topic 860, “Transfers and Servicing” ("ASC Topic 860"). The Bank originates residential mortgages under a definitive plan to sell those loans with servicing generally released. Residential mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Bank also originates commercial loans, of which a portion are guaranteed by the Small Business Administration ("SBA"). The guaranteed portion of the loans is generally sold into the secondary market. Gains and losses on sales are also accounted for in accordance with ASC Topic 860. The Bank enters into commitments to originate loans whereby the interest rate on the loan is determined prior to funding “rate lock commitments.” Rate lock commitments on residential mortgage loans that are intended to be sold are considered to be derivatives. Time elapsing between the issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 120 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is generally not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The fair value of rate lock commitments and best efforts commitments is not readily ascertainable with precision because rate lock commitments and best efforts commitments are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments 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 while taking into consideration the probability that the rate lock commitments will close. Due to high correlation between rate lock commitments and best efforts commitments, no gain or loss occurs on the rate lock commitments. The estimated fair value of rate lock commitments was $159,000 and $79,000 at December 31, 2019 and 2018 , respectively. ASC Topic 460, "Guarantees," requires a guarantor entity, at the inception of a guarantee covered by the measurement provisions of the interpretation, to record a liability for the fair value of the obligation undertaken in issuing the guarantee. |
Allowance for Loan Losses | Allowance for Loan Losses: The allowance for loan losses is maintained at a level sufficient to absorb estimated credit losses in the loan portfolio as of the date of the financial statements. The allowance for loan losses is a valuation reserve available for losses incurred or inherent in the loan portfolio and other extensions of credit. The determination of the adequacy of the allowance for loan losses is a critical accounting policy of the Bank. All, or part, of the principal balance of commercial and commercial real estate loans and construction loans are charged off against the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Consumer loans are generally charged off no later than 120 days past due on a contractual basis, or earlier in the event of bankruptcy, or if there is an amount deemed uncollectible . Because all identified losses are charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. Loans are placed in a nonaccrual status when the ultimate collectability of principal or interest in whole, or in part, is in doubt. Past-due loans contractually past-due 90 days or more for either principal or interest are also placed in nonaccrual status unless they are both well secured and in the process of collection. Impaired loans are evaluated individually. Purchased Credit-Impaired (“PCI”) loans are loans acquired at a discount that is due, in part, to credit quality. PCI loans are accounted for in accordance with ASC Subtopic 310-30, "Receivables, Loans and Debt Securities Acquired with Deteriorated Credit Quality" and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses). The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of the loans. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loans and result in an increase in yield on a prospective basis. The following is our charge-off policy for our loan segments: Commercial, Commercial Real Estate and Construction Loans are generally fully or partially charged down to the fair value of collateral securing the asset when: • Management judges the loan to be uncollectible; • Repayment is deemed to be protracted beyond reasonable time frames; • The loan has been classified as a loss by either internal loan review process or external examiners; • The customer has filed bankruptcy and the loss becomes evident owing to a lack of assets; or • The loan is significantly past due unless both well secured and in the process of collection. Consumer Consumer loans are generally charged off no later than 120 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible Management reviews the adequacy of the allowance for loan losses on at least a quarterly basis to ensure that the provision for loan losses has been charged against earnings in an amount necessary to maintain the allowance at a level that is adequate based on management’s assessment of probable estimated losses. The Company’s methodology for assessing the adequacy of the allowance for loan losses consists of several key elements and is consistent with U.S. GAAP and interagency supervisory guidance. The allowance for loan losses methodology consists of two major components. The first component is an estimation of losses associated with individually identified impaired loans, which follows ASC Topic 310. The second major component estimates losses under ASC Topic 450, which provides guidance for estimating losses on groups of loans with similar risk characteristics. The Company’s methodology results in an allowance for loan losses which includes a specific reserve for impaired loans, an allocated reserve and an unallocated portion. When analyzing groups of loans under ASC Topic 450, the Company follows the Interagency Policy Statement on the Allowance for Loan and Lease Losses. The methodology considers the Company’s historical loss experience adjusted for changes in trends, conditions, and other relevant factors that affect repayment of the loans as of the evaluation date. These adjustment factors, known as qualitative factors, include: • Delinquencies and non-accruals; • Portfolio quality; • Concentration of credit; • Trends in volume and type of loans; • Quality of collateral; • Policy and procedures; • Experience, ability and depth of management; • Economic trends – national and local; and • External factors – competition, legal and regulatory. The methodology includes the segregation of the loan portfolio into loan classes with a further segregation into risk rating categories, such as special mention, substandard, doubtful, and loss. This allows for an allocation of the allowance for loan losses by loan type; however, the allowance is available to absorb any loan loss without restriction. Larger balance, non-homogeneous loans representing significant individual credit exposures are evaluated individually through the internal loan review process. It is this process that produces the watch list for loans that have indications of credit weakness. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated. Based on these reviews, an estimate of probable losses for the individual larger-balance loans are determined, whenever possible, and used to establish specific loan loss reserves. In general, for non-homogeneous loans not individually assessed and for homogeneous groups, such as residential mortgages and consumer credits, the loans are collectively evaluated based on delinquency status, loan type, and historical losses. These loan groups are then internally risk rated. The watch list includes loans that are assigned a rating of special mention, substandard, doubtful and loss. Loans assigned a rating of special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified as substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as doubtful have all the weaknesses inherent in loans classified as substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans rated as doubtful in whole, or in part, are placed in non-accrual status. Loans classified as a loss are considered uncollectible and are charged off against the allowance for loan losses. The specific allowance for impaired loans is established for specific loans that have been identified by management as being impaired. These loans are considered to be impaired primarily because the loans have not performed according to payment terms and there is reason to believe that repayment of the loan principal in whole, or in part, is unlikely. The specific portion of the allowance is the total amount of potential unconfirmed losses for these individual impaired loans. To assist in determining the fair value of loan collateral, the Company often utilizes independent third party qualified appraisal firms which, in turn, employ their own criteria and assumptions that may include occupancy rates, rental rates and property expenses, among others. The second category of reserves consists of the allocated portion of the allowance. The allocated portion of the allowance is determined by taking pools of loans outstanding that have similar characteristics and applying historical loss experience for each pool. This estimate represents the potential unconfirmed losses within the portfolio. Individual loan pools are created for commercial business loans and commercial real estate loans, construction loans, warehouse lines of credit and various types of loans to individuals. The historical loss estimation for each loan pool is then adjusted for qualitative factors such as economic trends, concentrations of credit, trends in the volume of loans, portfolio quality, delinquencies and non-accrual trends. These factors are evaluated for each class of the loan portfolio and may have positive or negative effects on the allocated allowance for the loan portfolio segment. The aggregate amount resulting from the application of these qualitative factors determines the overall risk for the portfolio and results in an allocated allowance for each of the loan segments. The Company also maintains an unallocated allowance. The unallocated allowance is used to cover any factors or conditions which may cause a potential loan loss but are not specifically identifiable. It is prudent to maintain an unallocated portion of the allowance because no matter how detailed an analysis of potential loan losses is performed, these estimates, by definition, lack precision. Management must make estimates using assumptions and information that is often subjective and changing rapidly. The following discusses the risk characteristics of each of our loan portfolios. Commercial Business The Company offers a variety of commercial loan services, including term loans, lines of credit and loans secured by equipment and receivables. A broad range of short-to-medium term commercial loans, both secured and unsecured, are made available to businesses for working capital (including inventory and receivables), business expansion (including acquisition and development of real estate and improvements) and the purchase of equipment and machinery. Commercial business loans are granted based on the borrower's ability to generate cash flow to support its debt obligations and other cash related expenses. A borrower's ability to repay commercial business loans is substantially dependent on the success of the business itself and on the quality of its management. As a general practice, the Company takes as collateral a security interest in any available real estate, equipment, inventory, receivables or other personal property of its borrowers, although the Company occasionally makes commercial business loans on an unsecured basis. Generally, the Company requires personal guarantees of its commercial business loans to offset the risks associated with such loans. Much of the Company's lending is in northern and central New Jersey and New York City metropolitan area. As a result of this geographic concentration, a significant broad-based deterioration in economic conditions in New Jersey and the New York City metropolitan area could have a material adverse impact on the Company's loan portfolio. A prolonged decline in economic conditions in our market area could restrict borrowers' ability to pay outstanding principal and interest on loans when due. The value of assets pledged as collateral may decline and the proceeds from the sale or liquidation of these assets may not be sufficient to repay the loan. Commercial Real Estate Commercial real estate loans are made to businesses to expand their facilities and operations and to real estate operators to finance the acquisition of income producing properties. The Company's loan policy requires that borrowers have sufficient cash flow to meet the debt service requirements and the value of the property meets the loan-to-value criteria set in the loan policy. The Company monitors loan concentrations by borrower, by type of property and by location and other criteria. The Company's commercial real estate portfolio is largely secured by real estate collateral located in the State of New Jersey and the New York City metropolitan area. Conditions in the real estate markets in which the collateral for the Company's loans are located strongly influence the level of the Company's non-performing loans. A decline in the New Jersey and the New York City metropolitan area real estate market could adversely affect the Company's loan portfolio. Decreases in local real estate values would adversely affect the value of property used as collateral for the Company's loans. Adverse changes in the economy also may have a negative effect on the ability of our borrowers to make timely repayments of their loans. Construction Financing Construction financing is provided to businesses to expand their facilities and operations and to real estate developers for the acquisition, development and construction of residential and commercial properties. First mortgage construction loans are made to developers and builders primarily for single family homes and multi-family buildings that are presold or are to be sold or leased on a speculative basis. The Company lends to builders and developers with established relationships, successful operating histories and sound financial resources. Management has established underwriting and monitoring criteria to minimize the inherent risks of real estate construction lending. The risks associated with speculative construction lending include the borrower's inability to complete the construction process on time and within budget, the sale or rental of the project within projected absorption periods and the economic risks associated with real estate collateral. Such loans may include financing the development and/or construction of residential subdivisions. This activity may involve financing land purchases and infrastructure development (i.e., roads, utilities, etc.) as well as construction of residences or multi-family dwellings for subsequent sale by the developer/builder. Because the sale or rental of developed properties is integral to the success of developer business, loan repayment may be especially subject to the volatility of real estate market values. Mortgage Warehouse Lines of Credit The Company’s Mortgage Warehouse Funding Group provides revolving lines of credit that are available to licensed mortgage banking companies. The warehouse line of credit is used by the mortgage banker to originate one-to-four family residential mortgage loans that are pre-sold into the secondary mortgage market, which includes state and national banks, national mortgage banking firms, insurance companies and government-sponsored enterprises, including the Federal National Mortgage Association, the Federal Home Loan Mortgage Corporation and others. On average, an advance under the warehouse line of credit remains outstanding for a period of less than 30 days, with repayment coming directly from the sale of the loan into the secondary mortgage market. Interest and a transaction fee are collected by the Company at the time of repayment. As a separate segment of the total portfolio, the warehouse loan portfolio is individually analyzed as a whole for allowance for loan losses purposes. Warehouse lines of credit are subject to the same inherent risks as other commercial lending, but the overall degree of risk differs. While the Company’s loss experience with this type of lending has been non-existent since the product was introduced in 2008, there are other risks unique to this lending that still must be considered in assessing the adequacy of the allowance for loan losses. These unique risks may include, but are not limited to, (i) credit risks relating to the mortgage bankers that borrow from us, (ii) the risk of intentional misrepresentation or fraud by any of such mortgage bankers, (iii) changes in the market value of mortgage loans originated by the mortgage banker, the sale of which is the expected source of repayment of the borrowings under a warehouse line of credit, due to changes in interest rates during the time in warehouse or (iv) unsalable or impaired mortgage loans so originated, which could lead to decreased collateral value and the failure of a purchaser of the mortgage loan to purchase the loan from the mortgage banker. Consumer The Company’s consumer loan portfolio segment is comprised of residential real estate loans, loans to individuals and other loans. Individual loan pools are created for the various types of loans to individuals. The principal risk is the borrower becomes unemployed or has a significant reduction in income. In general, for homogeneous groups such as residential mortgages and consumer credits, the loans are collectively evaluated based on delinquency status, loan type and historical losses. These loan groups are then internally risk rated. The Company considers the following credit quality indicators in assessing the risk in the loan portfolio: • Consumer credit scores; • Internal credit risk grades; • Loan-to-value ratios; • Collateral; and • Collection experience. Internal Risk Rating of 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 which 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 sound 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. |
Leases | Leases: The Company leases real property for its branch offices and general office space. Generally, the leases include one or more options to extend the lease term. In addition, the Company also leases office equipment, consisting of copiers, printers and two automobiles. None of the equipment leases include extensions and generally have three to five year terms. |
Premises and Equipment | Premises and Equipment: Premises and equipment are stated at cost less accumulated depreciation and amortization. Depreciation is computed primarily on the straight-line method over the estimated useful lives of the related assets for financial reporting purposes and using the mandated methods by asset type for income tax purposes. Building, furniture and fixtures, equipment and leasehold improvements are depreciated or amortized over the estimated useful lives of the assets or lease terms, as applicable. Estimated useful lives of buildings are forty years , furniture and fixtures and equipment are three to fifteen years and leasehold improvements are generally three to ten years . Expenditures for maintenance and repairs are charged to expense as incurred. |
Income Taxes | Income Taxes: There are two components of income tax expense or benefit: current and deferred. Current income tax expense or benefit approximates cash to be paid or refunded for taxes for the applicable period. Deferred tax assets and liabilities are recognized due to differences between the basis of assets and liabilities as measured by tax laws and their basis as reported in the financial statements. Deferred tax assets are subject to management’s judgment based upon available evidence that future realizations are likely. If management determines that the Company may not be able to realize some or all of the net deferred tax asset in the future, a charge to income tax expense may be required to increase the valuation reserve of the net deferred tax asset. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. Deferred tax expense or benefit is recognized for the change in deferred tax assets and liabilities. The Company accounts for uncertainty in income taxes recognized in its consolidated financial statements in accordance with ASC Topic 740, "Income Taxes," which prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return, and also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. The Company has not identified any significant income tax uncertainties through the evaluation of its income tax positions for the years ended December 31, 2019 and 2018 and has not recognized any liabilities for tax uncertainties as of December 31, 2019 and 2018 . Our policy is to recognize interest and penalties on unrecognized tax benefits in income tax expense; such amounts were not significant during the years ended December 31, 2019 and 2018 . The tax years subject to examination by the taxing authorities are, for federal and state purposes, the years ended December 31, 2019 , 2018 , 2017 and 2016 . |
Other Real Estate Owned (OREO) | Other Real Estate Owned ("OREO"): OREO obtained through loan foreclosures or the receipt of deeds-in-lieu of foreclosure is recorded at the fair value of the related property, as determined by current appraisals less estimated costs to sell at the initial transfer from the loan portfolio. Write-downs on these properties, which occur after the initial transfer from the loan portfolio, are recorded as operating expenses. Costs of holding such properties are charged to expense in the current period. Gains, to the extent realized, and losses on the disposition of these properties are reflected in current operations. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable net assets acquired in accordance with the acquisition method of accounting. Goodwill is not amortized but is reviewed for potential impairment on an annual basis, or more often if events or circumstances indicated that there may be impairment, in accordance with ASC Topic 350, “Intangibles – Goodwill and Other.” Goodwill is tested for impairment at the reporting unit level and an impairment loss is recorded to the extent that the carrying amount of goodwill exceeds its implied fair value. Core deposit intangibles are a measure of the value of non-maturity checking, money market and savings deposits acquired in business combinations accounted for under the purchase method. Core deposit intangibles are amortized over their estimated lives (ranging from five to ten years |
Share-Based Compensation | Share-Based Compensation: The Company recognizes compensation expense for stock awards and options in accordance with ASC Topic 718, “Compensation – Stock Compensation.” The expense of stock-based compensation is generally measured at fair value at the grant date with compensation expense recognized over the service period, which is usually the vesting period. The Company utilizes the Black-Scholes option-pricing model to estimate the fair value of each stock option on the date of grant. The Black-Scholes model takes into consideration the exercise price and expected life of the options, the current price of the underlying stock and its expected volatility, the expected dividends on the stock and the current risk-free interest rate for the expected life of the option. The Company’s estimate of the fair value of a stock option is based on expectations derived from historical experience |
Benefit Plans | Benefit Plans: The Company provides certain retirement savings benefits to employees under a 401(k) plan. The Company’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. In accordance with ASC Topic 715, “Compensation – Retirement Benefits,” the Company recognizes the unfunded status of these postretirement plans as a liability in its consolidated balance sheets and recognizes changes in that unfunded status in the year in which the changes occur through other comprehensive income. |
Cash and Cash Equivalents | Cash and Cash Equivalents: Cash and cash equivalents includes cash on hand, interest and non-interest bearing amounts due from banks, federal funds sold and short-term investments with original maturities less than 90 days. Generally, federal funds are sold and short-term investments are made for a one or two-day period. |
Advertising Costs | Advertising Costs: It is the Company’s policy to expense advertising costs in the period in which they are incurred. |
Earnings Per Common Share | Earnings Per Common Share: Basic earnings per common share is calculated by dividing net income by the weighted average number of common shares outstanding during each period. Diluted earnings 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. |
Comprehensive Income | Comprehensive Income: Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale, other-than-temporary non-credit related security impairments, and changes in the funded status of benefit plans. |
Variable Interest Entities | Variable Interest Entities: Management has determined that Trust II qualifies as a variable interest entity under ASC Topic 810, “Consolidation.” Trust II issued mandatorily redeemable preferred stock to investors, loaned the proceeds to the Company and holds, as its sole asset, subordinated debentures issued by the Company. As a qualified variable interest entity, Trust II’s balance sheet and statement of operations have never been consolidated with those of the Company because the Company is not the primary beneficiary. In March 2005, the Federal Reserve Board ("FRB") adopted a final rule that would continue to allow the inclusion of trust preferred securities in Tier 1 capital, but with stricter quantitative limits. Under the final rule, after a five-year transition period, the aggregate amount of trust preferred securities and certain other capital elements would be limited to 25% of Tier 1 capital elements, net of goodwill. The amount of trust preferred securities and certain other elements in excess of the limit could be included in Tier 2 capital, subject to restrictions. Based on the final rule, the Company has included all of its $18.0 million in trust preferred securities in Tier 1 capital at December 31, 2019 and 2018 . |
Segment Information | Segment Information: U.S. GAAP establishes standards for public business enterprises to report information about operating segments in their annual financial statements and requires that those enterprises report selected information about operating segments in subsequent interim financial reports issued to shareholders. It also established standards for related disclosure about products and services, geographic areas and major customers. Operating segments are components of an enterprise, which are evaluated regularly by the chief operating decision-maker in deciding how to allocate and assess resources and performance. The Company’s chief operating decision-maker is the President and Chief Executive Officer. The Company has applied the aggregation criteria for its operating segments to create one reportable segment, “Community Banking.” The Company’s Community Banking segment consists of construction, commercial, retail and mortgage banking operations. The Community Banking segment is managed as a single strategic unit, which generates revenue from a variety of products and services provided by the Company. Construction, commercial, retail and mortgage lending is dependent upon the ability of the Company to fund itself with retail deposits and other borrowings and to manage interest rate, liquidity and credit risk as a single unit. |
Reclassifications | Reclassifications: Certain reclassifications have been made to the prior period amounts to conform with the current period presentation. Such reclassification had no impact on net income or total shareholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2019-11 - Financial Instruments - Credit Losses: Codification Improvements (Topic 326) In November 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2019-11, “Financial Instruments - Credit Losses: Codification Improvements (Topic 326).” ASU 2019-11 clarifies and addresses specific issues about certain aspects of the amendments in ASU 2016-13. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2022, 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. See the discussions regarding the adoptions of ASU 2016-13 below. ASU 2019-10 - Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842) In November 2019, the FASB issued ASU No. 2019-10, “Financial Instruments - Credit Losses (Topic 326), Derivatives and Hedging (Topic 815), and Leases (Topic 842). ASU 2019-10 provides that the FASB’s recently developed philosophy regarding the implementation of effective dates applies to ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), ASU 2017-12, Derivatives and Hedging (Topic 815), and ASU 2016-02, Leases (Topic 842). See the discussions regarding the adoptions of ASU 2016-13 and ASU 2016-02 below. ASU 2019-01 - Leases: Codification Improvements (Topic 842) In March 2019, the FASB issued ASU No. 2019-01, “Leases: Codification Improvements (Topic 842).” ASU 2019-01 aligns the new leases guidance with existing guidance for fair value of the underlying asset by lessors that are not manufacturers or dealers, and clarifies an exemption for lessors and lessees from a certain interim disclosure requirement associated with adopting the FASB’s new lease accounting standard. Although this guidance is effective for years beginning after December 15, 2019, the Company adopted this guidance along with the adoption of ASU 2018-11, “Leases- Targeted Improvements,” and ASU 2016-02, “Leases.” The adoption of this guidance had a material impact on the Company’s consolidated financial statements. See the discussions regarding the adoption of ASU 2016-02 below. ASU 2018-15 - Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) In August 2018, the FASB issued ASU 2018-15, “Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement,” to help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement (hosting arrangement) by providing guidance for determining when the arrangement includes a software license. The amendments in this Update align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal use software license). The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this Update. The amendments in this ASU also require the entity (customer) to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement. The term of the hosting arrangement includes the non-cancellable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the customer is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the customer is reasonably certain not to exercise the termination option, and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor. The entity also is required to apply the existing impairment guidance in Subtopic 350-40 to the capitalized implementation costs as if the costs were long-lived assets. The amendments in this ASU also require the entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement and classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. The entity is also required to present the capitalized implementation costs in the consolidated balance sheets in the same line item that a prepayment for the fees of the associated hosting arrangement would be presented. The adoption of this guidance in 2020 is not expected to have a material impact on the Company's consolidated financial statements. ASU 2018-14 - Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20) In August 2018, the FASB issued ASU 2018-14 - “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20),” which consists of amendments to the disclosure framework project to improve the effectiveness of disclosures in the notes to the financial statements. The amendments in this Update modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The following disclosure requirements are removed from Subtopic 715-20: 1. The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year; 2. The amount and timing of plan assets expected to be returned to the employer; 3. The disclosures related to the June 2001 amendments to the Japanese Welfare Pension Insurance Law; 4. Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan; 5. For nonpublic entities, the reconciliation of the opening balances to the closing balances of plan assets measured on a recurring basis in Level 3 of the fair value hierarchy. However, nonpublic entities will be required to disclose separately the amounts of transfers into and out of Level 3 of the fair value hierarchy and purchases of Level 3 plan assets; and 6. For public entities, the effects of a one-percentage point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. The following disclosure requirements are added to Subtopic 715-20: 1. The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates; and 2. An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments in this ASU also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: 1. The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets; and 2. The accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures and add disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of the FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements by applying concepts in the Concepts Statement. For the Company, the provisions of this ASU are effective for fiscal years ending after December 15, 2020. The adoption of this guidance in 2020 is not expected to have a material impact on the Company's consolidated financial statements. ASU 2018-13 - Fair Value Measurement (Topic 820) In August 2018, the FASB issued ASU 2018-13, “Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement,” which modifies the disclosure requirements on fair value measurements. The following disclosure requirements that are applicable to public entities were removed from Topic 820: 1. The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy; 2. The policy for timing of transfers between levels; and 3. The valuation process for Level 3 fair value measurements. The following disclosure requirements were modified in Topic 820: 1. In lieu of a roll-forward for Level 3 fair value measurements, a nonpublic entity is required to disclose transfers into and out of Level 3 of the fair value hierarchy, in addition to purchases and issues of Level 3 assets and liabilities; 2. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly; and 3. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements applicable to public companies were added to Topic 820: 1. The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period; and 2. The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. In addition, the amendments eliminate “at a minimum” from the phrase “an entity shall disclose at a minimum” to promote the appropriate exercise of discretion by entities when considering fair value measurement disclosures and to clarify that materiality is an appropriate consideration of entities and their auditors when evaluating disclosure requirements. For the Company, the provisions of this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance effective January 1, 2019 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-11 - Leases - Targeted Improvements (Topic 842) In July 2018, the FASB issued ASU 2018-11, “Leases-Targeted Improvements,” which provides an additional (and optional) transition method for a cumulative effect adjustment. The additional transition method allows entities to initially apply the new lease standard at the adoption date (January 1, 2019 for calendar-year-end public business entities) and recognizes a cumulative- effect adjustment to the opening balance of retained earnings in the period of adoption. This additional transition method changes only when an entity is required to initially apply the transition requirements of the new leases standard; it does not change how those requirements apply. An entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new lease standard will continue to be in accordance with the original U.S. GAAP (Topic 840, Leases). For the Company, the provisions of this ASU were effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The Company adopted this guidance effective January 1, 2019 along with the adoption of ASU 2016-02, “Leases.” The adoption of this guidance had a material impact on the Company's financial statements. See the discussion regarding the adoption of ASU 2016-02 below. ASU 2018-07 - Compensation - Stock Compensation (Topic 718) In June 2018, the FASB issued ASU 2018-07, “Compensation-Stock Compensation,” which expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from non-employees. The amendments specify that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendment also clarifies that Topic 718 does not apply to share-based payments used to effectively provide (1) financing to the issuer, or (2) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under Topic 606, “Revenue from Contracts with Customers.” For the Company, the provisions of this ASU were effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance in 2019 did not have a material impact on the Company’s consolidated financial statements. ASU 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 were effective for fiscal years beginning after December 15, 2018, including interim periods within those years. The adoption of this guidance in 2019 did not 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, 2022, 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 has completed the initial analysis of its financial assets and will continue to build and validate the CECL models in 2020 to evaluate the impact of the 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. The Company adopted Topic 842 in the first quarter of 2019 utilizing the optional transition method as provided by ASU 2018-11. Under the optional transition method, only the most recent period presented will reflect the adoption with a cumulative-effect adjustment to the opening balance of retained earnings and the comparative prior periods will be presented under the previous guidance of Topic 840. The new guidance includes a number of optional transition-related practical expedients. The Company elected to apply the practical expedients that relate to: the identification and classification of leases that commenced before January 1, 2019 and the initial direct costs of these leases. The election of these practical expedients allows the Company to continue to account for these leases that commenced before January 1, 2019 in accordance with previous GAAP. All of the Company’s leases that commenced before January 1, 2019 were operating leases and the lease expense will continue to be recognized based on the terms of the leases, except that a right-of-use asset and a lease liability will be recognized for each operating lease at each reporting date based on the present value of the remaining minimum lease payments. The Company has 16 leases for real property, which includes leases for 13 of its branch offices and leases for three offices that are used for general office space. All of the real property leases include one or more options to extend the lease term. Two of the leases for branch offices are a lease for the land under the building and the Company owns the leasehold improvements. The Company also has 13 leases for office equipment, which are primarily copier/printers. For purposes of adopting Topic 842, the Company assumed in general that it would exercise the next lease extension for each real estate lease so that it would have the use of the property for at least a 5 to 10 year future period. With respect to one lease for land, the Company assumed that it would exercise all extensions covering a 25 year period because of the significance of the leasehold improvements. None of the equipment leases include extensions and generally have three to five year terms. Due to the significance of the leases for real estate and the assumption regarding the exercise of the extensions for one land lease, the adoption of Topic 842 results in the recognition of a significant lease liability and ROU asset. Upon adoption on January 1, 2019, the Company recognized a lease liability of approximately $16.2 million and a ROU asset of $15.7 million . If the increase in assets due to the recognized ROU asset had been included in assets at December 31, 2018, the Company’s regulatory capital ratios for CET 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital, and leverage capital ratios would have been 10.57% , 12.22% , 12.98% , and 11.73% , respectively. |
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 value or reflective of future values. While management believes that 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 Level 1 and Level 2 inputs. For Level 2 securities, 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 prepayment speeds, credit information and the security’s terms and conditions, among other things. 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. Impaired loans: Loans included in the following table are those which the Company has measured and recognized impairment based generally on the fair value of the loan’s collateral. Fair value is generally determined based upon independent third party appraisals of the properties or discounted expected cash flows. 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [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 years ended December 31, 2019 , 2018 and 2017 : (In thousands, except per share data) 2019 2018 2017 Net income $ 13,634 $ 12,048 $ 6,928 Basic weighted average shares outstanding 8,875,237 8,320,718 8,049,981 Plus: common stock equivalents 58,234 272,791 262,803 Diluted weighted average shares outstanding 8,933,471 8,593,509 8,312,784 Earnings per share: Basic $ 1.54 $ 1.45 $ 0.86 Diluted 1.53 1.40 0.83 |
Acquisition of Shore Communit_2
Acquisition of Shore Community Bank (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the composition of the loans acquired and recorded at fair value: At November 8, 2019 (Dollars in thousands) Loans acquired with no credit quality deterioration Loans acquired with credit quality deterioration Total Commercial Construction $ 9,733 $ — $ 9,733 Commercial real estate 135,482 4,071 139,553 Commercial business 12,027 — 12,027 Residential real estate 36,849 500 37,349 Consumer 7,171 — 7,171 Total loans $ 201,262 $ 4,571 $ 205,833 The following is a summary of the loans acquired with evidence of deteriorated credit quality in the Shore merger as of the date of the closing of the merger: (Dollars in thousands) Acquired Credit Impaired Loans Contractually required principal and interest at acquisition $ 7,584 Contractual cash flows not expected to be collected (non-accretable difference) 2,355 Expected cash flows at acquisition 5,229 Interest component of expected cash flows (accretable difference) 658 Fair value of acquired loans $ 4,571 The following table summarizes the estimated fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 29,175 Cash payment 24,233 Cash payment for unexercised outstanding stock options 925 Total consideration paid $ 54,333 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 32,599 Investment securities available for sale 26,440 Loans 205,833 Premises and equipment, net 4,433 Core deposit intangible asset 1,467 Bank-owned life insurance 7,250 Right-of-use assets 3,226 Accrued interest receivable 778 Other real estate owned 605 Other assets 2,518 Deposits (249,836 ) Lease liability (3,226 ) Other liabilities (948 ) Total identifiable assets and liabilities, net $ 31,139 Goodwill recorded from Shore merger $ 23,194 The following table summarizes the fair value of the acquired assets and liabilities assumed: (Dollars in thousands) Amount Consideration paid: Company stock issued $ 5,494 Cash payment 2,668 Cash held in escrow 401 Total consideration paid $ 8,563 Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: Cash and cash equivalents $ 2,073 Investment securities available for sale 11,173 Loans 75,144 Premises and equipment, net 1,120 Core deposit intangible asset 80 Bank-owned life insurance 3,972 Accrued interest receivable 259 Other real estate owned 1,230 Other assets 1,601 Deposits (87,223 ) Other liabilities (636 ) Total identifiable assets and liabilities, net $ 8,793 Gain from bargain purchase $ 230 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table presents the projected amortization of the core deposit intangible asset for each period: (Dollars in thousands) Amount Year 2019 $ 44 2020 262 2021 236 2022 209 2023 182 Thereafter 534 Total $ 1,467 |
Business Acquisition, Pro Forma Information | The following table presents financial information regarding the former Shore operations included in the Company’s Consolidated Statements of Income from the date of the Shore Merger (November 8, 2019) through December 31, 2019 under the column “Actual from Acquisition Date to December 31, 2019.” In addition, the table presents unaudited condensed pro forma financial information assuming that the Shore Merger had been completed as of January 1, 2019 and January 1, 2018, respectively. In the table, merger-related expenses of $4.2 million of both the Bank and Shore were excluded from the pro forma non-interest expenses for the year ended December 31, 2019. There were no merger-related expenses incurred in 2018. Income taxes were also adjusted to exclude income tax benefits of $394,000 related to the merger expenses for the year ended December 31, 2019. The table has been prepared for comparative purposes only and is not necessarily indicative of the actual results that would have been attained had the Shore Merger occurred as of the beginning of the periods presented, nor is it indicative of future results. Furthermore, the unaudited pro forma financial information does not reflect management’s estimate of any revenue-enhancing opportunities nor anticipated cost savings that may have occurred as a result of the integration and consolidation of Shore’s operations. The pro forma financial information reflects adjustments related to certain merger expenses and the related income tax effects. (Dollars in thousands) Actual from Acquisition Date to 12/31/2019 Pro Forma for the Twelve Months Ended 12/31/2019 Pro Forma for the Twelve Months Ended 12/31/2018 Net interest income $ 1,428 $ 54,774 $ 53,115 Non-interest income 23 8,714 8,851 Non-interest expenses 516 39,265 40,032 Income taxes 252 5,445 5,884 Net income 682 18,778 16,050 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities | A summary of amortized cost and fair value of investment securities available for sale as of December 31, 2019 and 2018 follows: 2019 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) $ 774 $ — $ (10 ) $ 764 Residential collateralized mortgage obligations - GSE 53,223 194 (242 ) 53,175 Residential mortgage backed securities - GSE 18,100 292 (5 ) 18,387 Obligations of state and political subdivisions 33,177 342 — 33,519 Trust preferred debt securities – single issuer 1,492 — (50 ) 1,442 Corporate debt securities 23,224 139 (84 ) 23,279 Other debt securities 25,378 80 (242 ) 25,216 $ 155,368 $ 1,047 $ (633 ) $ 155,782 2018 Gross Gross Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value U.S. Treasury securities and obligations of U.S. Government sponsored corporations (“GSE”) $ 2,993 $ — $ (41 ) $ 2,952 Residential collateralized mortgage obligations - GSE 48,789 70 (676 ) 48,183 Residential mortgage backed securities - GSE 13,945 37 (100 ) 13,882 Obligations of state and political subdivisions 23,506 85 (249 ) 23,342 Trust preferred debt securities – single issuer 1,490 — (161 ) 1,329 Corporate debt securities 28,323 — (1,037 ) 27,286 Other debt securities 15,383 11 (146 ) 15,248 $ 134,429 $ 203 $ (2,410 ) $ 132,222 |
Held-to-maturity Securities | A summary of amortized cost, carrying value and fair value of investment securities held to maturity as of December 31, 2019 and 2018 follows: 2019 (In thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 5,117 $ — $ 5,117 $ 76 $ (35 ) $ 5,158 Residential mortgage backed securities - GSE 36,528 — 36,528 481 (54 ) 36,955 Obligations of state and political subdivisions 32,533 — 32,533 690 (25 ) 33,198 Trust preferred debt securities - pooled 657 (492 ) 165 479 — 644 Other debt securities 2,277 — 2,277 — (9 ) 2,268 $ 77,112 $ (492 ) $ 76,620 $ 1,726 $ (123 ) $ 78,223 2018 (In thousands) Amortized Cost Other-Than- Temporary Impairment Recognized In Accumulated Other Comprehensive Loss Carrying Value Gross Unrealized Gains Gross Unrealized Losses Fair Value Residential collateralized mortgage obligations - GSE $ 6,701 $ — $ 6,701 $ 30 $ (143 ) $ 6,588 Residential mortgage backed securities - GSE 31,343 — 31,343 84 (346 ) 31,081 Obligations of state and political subdivisions 38,494 — 38,494 634 (118 ) 39,010 Trust preferred debt securities - pooled 657 (501 ) 156 569 — 725 Other debt securities 2,878 — 2,878 — (78 ) 2,800 $ 80,073 $ (501 ) $ 79,572 $ 1,317 $ (685 ) $ 80,204 |
Gain (Loss) on Investments | The following is a summary of the proceeds from the sales of investment securities and the associated gross gains, gross losses, and net tax expense for the years ended December 31, 2019 , 2018 , and 2017. 2019 2018 2017 (In thousands) Available for Sale Held to Maturity Available for Sale Held to Maturity Available for Sale Held to Maturity Proceeds $ — $ — $ — $ — $ 7,602 $ 1,034 Gross gains — — — — 120 36 Gross losses — — — — (27 ) — Net tax expense — — — — 38 12 |
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 December 31, 2019 . Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. (Dollars in thousands) Amortized Cost Fair Value Yield Available for sale Due in one year or less $ 10,690 $ 10,662 2.66 % Due after one year through five years 26,621 26,824 2.75 Due after five years through ten years 34,136 34,193 2.55 Due after ten years 83,921 84,103 2.75 Total $ 155,368 $ 155,782 2.70 % Carrying Value Fair Value Yield Held to maturity Due in one year or less $ 6,594 $ 6,664 3.88 % Due after one year through five years 13,573 13,803 3.67 Due after five years through ten years 18,410 18,766 3.15 Due after ten years 38,043 38,990 3.11 Total $ 76,620 $ 78,223 3.28 % |
Investment Securities, Continuous Unrealized Loss Position, Fair Value | The following table presents gross unrealized losses on the Company's investment securities and the fair value of the related securities and length of time that the individual securities have been in a continuous unrealized loss position at December 31, 2019 and 2018 . 2019 Less than 12 months 12 months or longer Total (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”) 1 $ 764 $ (10 ) $ — $ — $ 764 $ (10 ) Residential collateralized mortgage obligations - GSE 39 18,328 (138 ) 13,300 (139 ) 31,628 (277 ) Residential mortgage backed securities - GSE 13 5,505 (59 ) — — 5,505 (59 ) Obligations of state and political subdivisions 4 2,311 (25 ) 527 — 2,838 (25 ) Trust preferred debt securities -single issuer 2 — — 1,442 (50 ) 1,442 (50 ) Corporate debt securities 4 2,994 (5 ) 7,954 (79 ) 10,948 (84 ) Other debt securities 12 13,692 (151 ) 5,598 (100 ) 19,290 (251 ) Total temporarily impaired securities 75 $ 43,594 $ (388 ) $ 28,821 $ (368 ) $ 72,415 $ (756 ) 2018 Less than 12 months 12 months or longer Total (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”) 2 $ 994 $ (1 ) $ 1,958 $ (40 ) $ 2,952 $ (41 ) Residential collateralized mortgage obligations - GSE 34 20,756 (138 ) 22,106 (682 ) 42,862 (819 ) Residential mortgage backed securities - GSE 68 18,393 (141 ) 19,402 (305 ) 37,795 (446 ) Obligations of state and political subdivisions 67 12,785 (154 ) 11,638 (213 ) 24,423 (367 ) Trust preferred debt securities -single issuer 2 — — 1,329 (162 ) 1,329 (162 ) Corporate debt securities 10 8,912 (632 ) 18,374 (405 ) 27,286 (1,037 ) Other debt securities 9 10,943 (93 ) 4,613 (130 ) 15,556 (223 ) Total temporarily impaired securities 192 $ 72,783 $ (1,159 ) $ 79,420 $ (1,937 ) $ 152,203 $ (3,095 ) |
Loans and Loans Held for Sale (
Loans and Loans Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table presents loans held for sale, by type of loan, as of December 31, 2019 and 2018. (In thousands) 2019 2018 Residential real estate $ 5,702 $ 2,145 SBA 225 875 $ 5,927 $ 3,020 The following table presents loans outstanding, by class of loan, as of December 31, (In thousands) 2019 2018 Commercial real estate $ 567,655 $ 388,431 Mortgage warehouse lines 236,672 154,183 Construction 148,939 149,387 Commercial business 139,271 120,590 Residential real estate 90,259 47,263 Loans to individuals 32,604 22,962 Other loans 137 181 Gross Loans 1,215,537 882,997 Deferred loan costs, net 491 167 Total $ 1,216,028 $ 883,164 |
Servicing Asset at Amortized Cost | The table below summarizes the changes in the related servicing assets for the years ended December 31, 2019 and 2018 . (In thousands) 2019 2018 Balance, beginning of year $ 991 $ 726 Servicing assets capitalized 259 517 Amortization expense (320 ) (252 ) Balance, end of year $ 930 $ 991 |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Credit Quality Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Past Due Financing Receivables | The following table provides an aging of the loan portfolio by loan class at December 31, 2019 and 2018 : 2019 (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 Nonaccrual Loans Commercial real estate $ 238 $ 1,927 $ 3,882 $ 6,047 $ 561,608 $ 567,655 $ — $ 2,596 Mortgage warehouse lines — — — — 236,672 236,672 — — Construction — — — — 148,939 148,939 — — Commercial business 381 — 330 711 138,560 139,271 — 501 Residential real estate 2,459 271 677 3,407 86,852 90,259 — 708 Loans to individuals 296 — 311 607 31,997 32,604 — 692 Other loans — — — — 137 137 — — $ 3,374 $ 2,198 $ 5,200 $ 10,772 $ 1,204,765 1,215,537 $ — $ 4,497 Deferred loan costs, net 491 Total $ 1,216,028 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 Nonaccrual Loans Commercial real estate $ — $ 499 $ 1,201 $ 1,700 $ 386,731 $ 388,431 $ — $ 1,439 Mortgage warehouse lines — — — — 154,183 154,183 — — Construction — — — — 149,387 149,387 — — Commercial business 280 — 466 746 119,844 120,590 — 3,532 Residential real estate 588 — 1,156 1,744 45,519 47,263 — 1,156 Loans to individuals 16 237 263 516 22,446 22,962 55 398 Other loans — — — — 181 181 — — $ 884 $ 736 $ 3,086 $ 4,706 $ 878,291 882,997 $ 55 $ 6,525 Deferred loan costs, net 167 Total $ 883,164 |
Financing Receivable Credit Quality Indicators | The following table provides a breakdown of the loan portfolio by credit quality indicator at December 31, 2019 and 2018 : Commercial Credit Exposure by Internally Assigned Grade 2019 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 147,132 $ 135,804 $ 538,104 $ 235,808 $ 87,512 Special Mention — 1,990 9,994 864 922 Substandard 1,807 1,477 19,557 — 1,825 Doubtful — — — — — Total $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 Consumer Credit Exposure by Payment Activity 2019 (In thousands) Loans to Individuals Other Loans Performing $ 31,912 $ 137 Nonperforming 692 — Total $ 32,604 $ 137 Commercial Credit Exposure by Internally Assigned Grade 2018 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Pass $ 146,460 $ 104,162 $ 366,424 $ 152,378 $ 45,825 Special Mention 2,927 12,703 13,317 1,805 103 Substandard — 3,487 8,690 — 1,335 Doubtful — 238 — — — Total $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 Consumer Credit Exposure by Payment Activity 2018 (In thousands) Loans to Individuals Other Loans Performing $ 22,564 $ 181 Nonperforming 398 — Total $ 22,962 $ 181 |
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 as of and for the years ended December 31, 2019 , 2018 and 2017, respectively. 2019 (Dollars in thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Costs, Net Total Allowance for loan losses: Beginning balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Provision (credit) charged to operations (343 ) (76 ) 1,178 352 (19 ) 38 43 177 1,350 Loans charged off — (370 ) (93 ) — — (7 ) (43 ) — (513 ) Recoveries of loans charged off — 26 — — — 6 — — 32 Ending balance $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Individually evaluated for impairment $ 8 $ 7 $ 50 $ — $ — $ — $ — $ — $ 65 Loans acquired with deteriorated credit quality — 3 1 — — — — — — 4 Collectively evaluated 1,381 1,399 4,473 1,083 412 185 — 269 9,202 Ending balance $ 1,389 $ 1,409 $ 4,524 $ 1,083 $ 412 $ 185 $ — $ 269 $ 9,271 Loans receivables: Individually evaluated for impairment $ 1,807 $ 1,251 $ 6,171 $ — $ 708 $ 692 $ — $ — $ — $ 10,629 Loans acquired with deteriorated credit quality — 334 5,419 — 504 — — — — 6,257 Collectively evaluated for impairment 147,132 137,686 556,065 236,672 89,047 31,912 137 — 491 1,199,142 Total $ 148,939 $ 139,271 $ 567,655 $ 236,672 $ 90,259 $ 32,604 $ 137 $ — $ 491 $ 1,216,028 2018 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Loan Costs, Net Total Allowance for loan losses: Beginning balance $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 (Credit) provision charged to operations 29 158 920 (121 ) 39 49 17 (191 ) 900 Loans charged off — (62 ) (491 ) — — (16 ) (17 ) — (586 ) Recoveries of loans charged off — 13 61 — — 1 — — 75 Ending balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Individually evaluated for impairment $ — $ 380 $ 71 $ — $ — $ — $ — $ — $ 451 Loans acquired with deteriorated credit quality — — 2 — — — — — — 2 Collectively evaluated for impairment 1,732 1,449 3,366 731 431 148 — 92 7,949 Ending balance $ 1,732 $ 1,829 $ 3,439 $ 731 $ 431 $ 148 $ — $ 92 $ 8,402 Loans receivable: Individually evaluated for impairment $ 103 $ 3,775 $ 5,093 $ — $ 1,156 $ 398 $ — $ — $ — $ 10,525 Loans acquired with deteriorated credit quality — 319 1,419 — — — — — — 1,738 Collectively evaluated for impairment 149,284 116,496 381,919 154,183 46,107 22,564 181 — 167 870,901 Total $ 149,387 $ 120,590 $ 388,431 $ 154,183 $ 47,263 $ 22,962 $ 181 $ — $ 167 $ 883,164 2017 (In thousands) Construction Commercial Business Commercial Real Estate Mortgage Warehouse Lines Residential Real Estate Loans to Individuals Other Unallocated Deferred Fees Total Allowance for loan losses: Beginning balance $ 1,204 $ 1,732 $ 2,574 $ 973 $ 367 $ 112 $ — $ 532 $ 7,494 (Credit) provision charged to operations 499 2 358 (121 ) 126 (2 ) (13 ) (249 ) 600 Loans charged off — (61 ) — — (101 ) — — — (162 ) Recoveries of loans charged off — 47 17 — — 4 13 — 81 Ending balance $ 1,703 $ 1,720 $ 2,949 $ 852 $ 392 $ 114 $ — $ 283 $ 8,013 Individually evaluated for impairment $ — $ 592 $ 92 $ — $ — $ — $ — $ — $ 684 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 — 550 778,201 Total $ 136,412 $ 92,906 $ 308,924 $ 189,412 $ 40,494 $ 21,025 $ 183 $ — $ 550 $ 789,906 |
Impaired Financing Receivables | The following table presents additional information regarding PCI loans at December 31, 2019 and 2018 : (In thousands) 2019 2018 Outstanding balance $ 8,038 $ 2,007 Carrying amount 6,257 1,738 The following tables summarize information regarding impaired loans receivable by loan class as of and for the years ended December 31, 2019 , 2018 and 2017, respectively. 2019 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Year to Date 2019 Average Recorded Investment Year to Date 2019 Interest Income Recognized With no related allowance: Commercial: Construction $ — $ — $ — $ 35 $ — Commercial business 680 1,971 — 916 10 Commercial real estate 7,141 8,204 — 2,855 134 Mortgage warehouse lines — — — — — 7,821 10,175 — 3,806 144 Consumer: Residential real estate 1,212 1,465 — 1,334 6 Loans to individuals 692 802 — 695 — Other — — — — — 1,904 2,267 — 2,029 6 With no related allowance 9,725 12,442 — 5,835 150 With an allowance: Commercial: Construction 1,807 1,807 8 602 56 Commercial business 905 993 10 977 88 Commercial real estate 4,449 5,757 51 4,621 216 Mortgage warehouse lines — — — — — 7,161 8,557 69 6,200 360 Consumer: Residential real estate — — — — — Loans to individuals — — — — — Other — — — 1 — — — — 1 — With an allowance 7,161 8,557 69 6,201 360 Total: Construction 1,807 1,807 8 637 56 Commercial business 1,585 2,964 10 1,893 98 Commercial real estate 11,590 13,961 51 7,476 350 Mortgage warehouse lines — — — — — Residential real estate 1,212 1,465 — 1,334 6 Loans to individuals 692 802 — 696 — Other — — — — — $ 16,886 $ 20,999 $ 69 $ 12,036 $ 510 December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Year to Date 2018 Average Recorded Investment Year to Date 2018 Interest Income Recognized With no related allowance: Commercial: Construction $ 103 $ 103 $ — $ 115 $ 7 Commercial business 992 1,332 — 1,112 112 Commercial real estate 2,304 2,629 — 2,757 48 Mortgage warehouse lines — — — — — 3,399 4,064 — 3,984 167 Consumer: Residential real estate 1,156 1,241 — 846 — Loans to individuals 398 478 — 410 — Other — — — — — 1,554 1,719 — 1,256 — With no related allowance 4,953 5,783 — 5,240 167 With an allowance: Commercial: Construction — — — — — Commercial business 3,102 3,217 380 3,326 44 Commercial real estate 4,208 4,208 73 4,336 252 Mortgage warehouse lines — — — — — 7,310 7,425 453 7,662 296 Consumer: Residential real estate — — — — — Loans to individuals — — — — — Other — — — — — — — — — — With an allowance 7,310 7,425 453 7,662 296 Total: Construction 103 103 — 115 7 Commercial business 4,094 4,549 380 4,438 156 Commercial real estate 6,512 6,837 73 7,093 300 Mortgage warehouse lines — — — — — Residential real estate 1,156 1,241 — 846 — Loans to individuals 398 478 — 410 — Other — — — — — $ 12,263 $ 13,208 $ 453 $ 12,902 $ 463 (Dollars in thousands) Year to Date 2017 Average Recorded Investment Year to Date 2017 Interest Income Recognized With no related allowance: Commercial: Construction $ 209 $ 12 Commercial business 828 153 Commercial real estate 2,772 128 Mortgage warehouse lines — — 3,809 293 Consumer: Residential real estate 142 — Loans to individuals 342 — Other — — 484 — With no related allowance 4,435 293 With an allowance: Commercial: Construction 86 — Commercial business 2,864 84 Commercial real estate 3,005 188 Mortgage warehouse lines — — 5,955 272 Consumer: Residential real estate 75 — Loans to individuals — — Other — — 75 — With an allowance 6,030 272 Total: Construction 295 12 Commercial business 3,692 237 Commercial real estate 5,777 316 Mortgage warehouse lines — — Residential real estate 217 — Loans to individuals 342 — Other — — $ 10,323 $ 565 |
Credit Impaired Loans Purchased, Change In Amortizable Yield | The following table presents changes in accretable discount for PCI loans for the years ended December 31, 2019 , 2018 and 2017 : (In thousands) 2019 2018 2017 Balance at beginning of year $ 164 $ 126 $ 30 Acquisition of impaired loans 658 168 — Transfer from non-accretable to accretable — — 161 Accretion of discount (165 ) (130 ) (65 ) Balance at end of year $ 657 $ 164 126 Non-accretable difference at end of year $ 1,175 $ 122 $ 26 |
Remaining Estimated Accretable Discount | The following table presents the years for the scheduled remaining accretable discount that will accrete to income based on the Company’s most recent estimates of cash flows for PCI loans: (In thousands) Years ending December 31, 2020 $ 365 2021 223 2022 69 Thereafter — Total $ 657 |
Troubled Debt Restructurings on Financing Receivables | The following table is a breakdown of troubled debt restructurings, all of which are classified as impaired, which occurred during the years ended December 31, 2019 and 2018 : 2019 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial business 3 $ 597 $ 595 Construction 1 $ 1,807 $ 1,807 2018 (Dollars in thousands) Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Troubled Debt Restructurings: Commercial business 1 $ 135 $ 132 Commercial real estate 2 $ 1,001 $ 991 The following table summarizes the recorded investment in consumer mortgage loans secured by residential real estate in process of foreclosure: December 31, (Dollars in thousands) 2019 2018 Number of loans Recorded Investment Number of loans Recorded Investment 2 $ 382 4 $ 821 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Activity related to loans to directors, executive officers and their affiliated interests during the years ended December 31, 2019 2018 and 2017 is as follows: (In thousands) 2019 2018 2017 Balance, beginning of year $ 5,805 $ 2,719 $ 1,357 Loans granted 3,199 3,365 1,603 Repayments of loans (2,668 ) (279 ) (241 ) Balance, end of year $ 6,336 $ 5,805 $ 2,719 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment consist of the following at December 31, (Dollars in thousands) Estimated Useful Lives 2019 2018 Land $ 2,536 $ 1,798 Building 40 years 10,666 8,340 Leasehold improvements 3 - 10 years 7,721 7,577 Furniture, fixtures and equipment 3 - 15 years 6,401 5,520 Projects in progress 529 24 27,853 23,259 Less: Accumulated depreciation 12,591 11,606 Total $ 15,262 $ 11,653 |
Other Real Estate Owned ("ORE_2
Other Real Estate Owned ("OREO") (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate [Abstract] | |
Other Real Estate, Roll Forward | The following table presents the activity in other real estate owned for the years ended December 31, (In thousands) 2019 2018 2017 Balance, beginning of year $ 2,515 $ — $ 166 Other real estate owned properties added — 1,460 455 Other real estate owned property acquired in NJCB merger — 1,230 — Other real estate owned property acquired in Shore merger 605 Sales during the year (2,549 ) — (626 ) Increase in carrying amount of other real estate owned — — 5 Forfeitable deposit on other real estate owned — (175 ) — Balance, end of year $ 571 $ 2,515 $ — |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The table below presents goodwill and intangible assets at December 31, (In thousands) 2019 2018 Beginning balance $ 12,258 $ 12,496 Additions: Goodwill 23,194 — Core deposits intangible 1,467 80 Amortization expense (140 ) (318 ) Total $ 36,779 $ 12,258 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Scheduled amortization of the core deposits intangible is as follows: (In thousands) Year Amount 2020 $ 390 2021 314 2022 263 2023 213 2024 164 After five years 388 $ 1,732 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Deposit Liabilities | The following table presents the details of total deposits at December 31, % of Total % of Total (Dollars in thousands) 2019 Deposits 2018 Deposits Non-interest bearing $ 287,555 22.51 % $ 212,981 22.40 % Interest bearing 393,392 30.80 323,503 34.03 Savings 259,033 20.28 189,612 19.95 Certificates of deposit 337,382 26.41 224,576 23.62 $ 1,277,362 100.00 % $ 950,672 100.00 % |
Scheduled Maturities of Time Deposits | At December 31, 2019 , certificates of deposit have contractual maturities as follows: (In thousands) Year Amount 2020 $ 251,852 2021 59,950 2022 19,658 2023 3,781 2024 2,141 $ 337,382 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The components of income tax expense are summarized as follows for the years ended December 31, 2019, 2018 and 2017: (In thousands) 2019 2018 2017 Federal: Current $ 2,826 $ 2,479 $ 2,791 Deferred 418 209 496 Remeasurement of deferred tax assets and liabilities — (28 ) 1,712 3,244 2,660 4,999 State: Current 1,610 1,561 748 Deferred 186 96 124 1,796 1,657 872 $ 5,040 $ 4,317 $ 5,871 |
Schedule of Effective Income Tax Rate Reconciliation | A comparison of income tax expense at the Federal statutory rate of 21% in 2019 and 2018 and 34% in 2017 to the Company’s provision for income taxes is as follows: (In thousands) 2019 2018 2017 Federal income tax $ 3,922 $ 3,437 $ 4,352 Add (deduct) effect of: State income taxes net of federal income tax effect 1,419 1,309 575 Tax-exempt interest income (348 ) (416 ) (728 ) Bank-owned life insurance (131 ) (110 ) (177 ) Executive compensation 120 96 139 Remeasurement of federal deferred tax assets and liabilities — (28 ) 1,712 Other items, net 58 29 (2 ) Provision for income taxes $ 5,040 $ 4,317 $ 5,871 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of existing temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are as follows at December 31, 2019 and 2018: (In thousands) 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,606 $ 2,362 Unrealized loss on securities available for sale — 528 Supplemental executive retirement plan liability 1,343 1,294 Other than temporary impairment loss 118 119 Depreciation 752 612 Non-accrual interest 318 200 Acquisition accounting adjustments 1,121 647 Lease liability 5,233 — Federal net operating loss carryover, net 830 871 Other 103 72 Total gross deferred tax assets $ 12,424 $ 6,705 Deferred tax liabilities: Deferred costs 631 564 Pension liability 102 90 Right-of-use assets 5,048 — Unrealized gain on securities available for sale 111 — Total gross deferred tax liabilities $ 5,892 $ 654 Net deferred tax assets $ 6,532 $ 6,051 |
Comprehensive Income and Accu_2
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss) that are included in shareholders' equity and the related tax effects are as follows at December 31, 2019 and 2018: 2019 (In thousands) Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding gain on securities available for sale $ 414 $ (111 ) $ 303 Unrealized impairment loss on held to maturity security (492 ) 118 (374 ) Gains on unfunded pension liability 364 (102 ) 262 Total other comprehensive income $ 286 $ (95 ) $ 191 2018 Before-Tax Amount Income Tax Effect Net-of-Tax Amount Net unrealized holding loss on securities available for sale $ (2,207 ) $ 528 $ (1,679 ) Unrealized impairment loss on held to maturity security (501 ) 119 (382 ) Gains on unfunded pension liability 318 (90 ) 228 Total other comprehensive loss $ (2,390 ) $ 557 $ (1,833 ) Changes in the components of accumulated other comprehensive loss are as follows and are presented net of tax: (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, December 31, 2016 $ (334 ) $ (331 ) $ 65 $ (600 ) Other comprehensive income (loss) before reclassifications 26 — 38 64 Amounts reclassified from accumulated other comprehensive income (loss) (55 ) — (36 ) (91 ) Other comprehensive income (loss) (29 ) — 2 (27 ) Reclassification for certain deferred tax effects (71 ) (51 ) 13 (109 ) Balance, December 31, 2017 (434 ) (382 ) 80 (736 ) Other comprehensive income (loss) before reclassifications (1,236 ) — 192 (1,044 ) Amounts reclassified from accumulated other comprehensive income (loss) — — (44 ) (44 ) Reclassification adjustments for gains realized in income (9 ) — — (9 ) Other comprehensive income (loss) (1,245 ) — 148 (1,097 ) Balance, December 31, 2018 (1,679 ) (382 ) 228 (1,833 ) Other comprehensive income before reclassifications 2,005 — 156 2,161 Amounts reclassified from accumulated other comprehensive income (loss) — 8 (122 ) (114 ) Reclassification adjustments for gains realized in income (23 ) — — (23 ) Other comprehensive income 1,982 8 34 2,024 Balance, December 31, 2019 $ 303 $ (374 ) $ 262 $ 191 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Changes in Projected Benefit Obligations | The following table sets forth the changes in benefit obligations of the Company’s Supplemental Plans for the years ended December 31, 2019 and 2018. (In thousands) 2019 2018 Change in Benefit Obligation Beginning January 1 $ 4,285 $ 4,205 Service cost 189 192 Interest cost 164 157 Actuarial gain (222 ) (269 ) Benefits paid — — Ending December 31 $ 4,416 $ 4,285 Amount Recognized in Consolidated Balance Sheets Liability for pension $ 4,780 $ 4,603 Net actuarial gain included in accumulated other comprehensive loss (364 ) (318 ) Net recognized pension liability $ 4,416 $ 4,285 Information for pension plans with an accumulated benefit obligation in excess of plan assets Projected benefit obligation $ 4,416 $ 4,285 Accumulated benefit obligation 4,245 4,120 |
Schedule of Net Periodic Benefit Cost Not yet Recognized | The following table sets forth the components of net periodic benefit cost for the years ended December 31, 2019, 2018 and 2017. (In thousands) 2019 2018 2017 Service cost $ 189 $ 192 $ 197 Interest cost 164 157 156 Recognized net actuarial gain (176 ) (62 ) (60 ) Net periodic benefit cost $ 177 $ 287 $ 293 |
Schedule of Expected Benefit Payments | Management's expectation as of December 31, 2019 for the projected annual benefit payments is represented in the table below. (In thousands) 2020 $ 4,719 2021 — 2022 — 2023 — 2024 — Thereafter — $ 4,719 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Stock Options, Activity | Transactions in Options under the Stock Plans during the year ended December 31, 2019 are summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value (In thousands) Outstanding at January 1, 2019 139,511 $ 8.70 4.0 $ 1,566 Granted 11,400 19.38 Exercised (24,277 ) 7.37 Forfeited (1,268 ) 17.91 Expired or exchanged (3,215 ) 13.03 Outstanding at December 31, 2019 122,151 $ 9.85 3.9 $ 1,500 Exercisable at December 31, 2019 103,145 $ 8.29 3.1 $ 1,427 |
Schedule of Options Outstanding | The following table summarizes the Options that were outstanding and exercisable at December 31, 2019 : Outstanding Options Exercisable Options Exercise Price Range Number Average Life in Years Average Exercise Price Number Average Life in Years Average Exercise Price $5.54 to $5.63 44,897 1.8 $ 5.61 44,897 1.8 $ 5.61 $6.16 to $7.46 27,827 2.0 7.10 27,827 2.0 7.10 $9.30 to $11.98 21,497 5.0 10.64 19,901 4.9 10.54 $18.30 to 19.38 27,930 8.1 18.81 10,520 7.8 18.67 122,151 3.9 $ 9.85 103,145 3.1 $ 8.29 |
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 during the years ended December 31, 2019 , 2018 and 2017 are as follows: 2019 2018 2017 Fair value of options granted $ 5.63 $ 5.93 $ 6.05 Risk-free rate of return 2.55 % 2.46 % 2.45 % Expected option life in years 7 7 7 Expected volatility 29.09 % 31.35 % 31.25 % Expected dividends 1.56 % 1.18 % 1.19 % |
Schedule of Unvested Restricted Stock Units Activity | The following table summarizes the activity in unvested Stock Awards for the year ended December 31, 2019 : Number of Shares Weighted Average Grant-Date Fair Value Balance, January 1, 2019 147,533 $ 13.21 Granted 53,931 18.30 Vested (65,320 ) 15.91 Forfeited (1,785 ) 17.31 Balance at December 31, 2019 134,359 $ 13.84 |
Other Operating Expenses (Table
Other Operating Expenses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Operating Cost and Expense, by Component | The components of other operating expenses for the years ended December 31, 2019 , 2018 and 2017 are as follows: (Dollars in thousands) 2019 2018 2017 Regulatory, professional and other consulting fees $ 1,806 $ 1,713 $ 2,263 Equipment 1,286 1,175 1,008 Telephone 400 391 389 Amortization of intangible assets 140 318 384 Insurance 391 375 373 Supplies 275 294 259 Marketing 302 280 225 Other expenses 1,983 1,946 2,151 $ 6,583 $ 6,492 $ 7,052 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The Bank's actual capital amounts and ratios are presented in the following table: To Be Well Capitalized Under Prompt For Capital Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Common equity Tier 1 $ 150,725 10.99 % $ 61,579 4.50 % $ 88,948 6.50 % Total capital to risk-weighted assets 159,996 11.67 % 109,474 8.00 % 136,843 10.00 % Tier 1 capital to risk-weighted assets 150,725 10.99 % 82,106 6.00 % 109,474 8.00 % Tier 1 leverage capital 150,725 10.54 % 57,222 4.00 % 71,528 5.00 % As of December 31, 2018 Common equity Tier 1 $ 133,548 12.40 % $ 48,471 4.50 % $ 70,013 6.50 % Total capital to risk-weighted assets 141,950 13.18 % 86,170 8.00 % 107,712 10.00 % Tier 1 capital to risk-weighted assets 133,548 12.40 % 64,627 6.00 % 86,170 8.00 % Tier 1 leverage capital 133,548 11.74 % 45,516 4.00 % 56,894 5.00 % The Company's actual capital amounts and ratios are presented in the following table: To Be Well Capitalized Under Prompt For Capital Corrective Actual Adequacy Purposes Action Provisions (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Common equity Tier 1 $ 133,046 9.70 % $ 61,604 4.50 % N/A N/A Total capital to risk-weighted assets 160,317 11.69 % 109,519 8.00 % N/A N/A Tier 1 capital to risk-weighted assets 151,046 11.01 % 82,139 6.00 % N/A N/A Tier 1 leverage capital 151,046 10.56 % 57,245 4.00 % N/A N/A As of December 31, 2018 Common equity Tier 1 $ 115,537 10.72 % $ 48,496 4.50 % N/A N/A Total capital to risk-weighted assets 141,939 13.17 % 86,214 8.00 % N/A N/A Tier 1 capital to risk-weighted assets 133,537 12.39 % 64,661 6.00 % N/A N/A Tier 1 leverage capital 133,537 11.73 % 45,538 4.00 % N/A N/A |
Fair Value Disclosures (Tables)
Fair Value Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table summarizes financial assets 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: December 31, 2019 (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 corporations ("GSE") $ — $ 764 $ — $ 764 Residential collateralized mortgage obligations - GSE — 53,175 — 53,175 Residential mortgage backed securities-GSE — 18,387 — 18,387 Obligations of state and political subdivisions — 33,519 — 33,519 Trust preferred debt securities - single issuer — 1,442 — 1,442 Corporate debt securities 11,151 12,128 — 23,279 Other debt securities — 25,216 — 25,216 Interest rate lock derivative — 159 — 159 Total $ 11,151 $ 144,790 $ — $ 155,941 December 31, 2018 (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 corporations (“GSE”) $ — $ 2,952 $ — $ 2,952 Residential collateralized mortgage obligations - GSE — 48,183 — 48,183 Residential mortgage backed securities – GSE — 13,882 — 13,882 Obligations of state and political subdivisions — 23,342 — 23,342 Trust preferred debt securities - single issuer — 1,329 — 1,329 Corporate debt securities 16,388 10,898 — 27,286 Other debt securities — 15,248 — 15,248 Interest rate lock derivative — 79 — 79 Total $ 16,388 $ 115,913 $ — $ 132,301 |
Fair Value Measurements, Nonrecurring | Financial assets measured at fair value on a non-recurring basis at December 31, 2019 and 2018 are as follows: (In thousands) Level 1 Inputs Level 2 Inputs Level 3 Inputs Total Fair Value December 31, 2019 Impaired loans — — $ 7,092 $ 7,092 Other real estate owned — — 93 93 December 31, 2018 Impaired loans — — $ 6,857 $ 6,857 Other real estate owned — — 1,460 1,460 |
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 non-recurring basis 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) December 31, 2019 Impaired loans $ 7,092 Appraisal of collateral (1) Appraisal adjustments (2) 0.1%-40.4% (12.6%) Other real estate owned 93 Appraisal of collateral (1) Appraisal adjustments (2) 47.0% (47.0%) December 31, 2018 Impaired loans $ 6,857 Appraisal of collateral (1) Appraisal adjustments (2) 0.5%-100% (28.2%) Other real estate owned $ 1,460 Appraisal of collateral (1) Appraisal adjustments (2) 47%-80% (63.5%) (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. |
Fair Value, by Balance Sheet Grouping | The fair values and the carrying value of financial instruments at December 31, 2019 and 2018 were as follows: 2019 (In thousands) Carrying Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value Cash and cash equivalents $ 14,842 $ 14,842 $ — $ — $ 14,842 Securities available for sale 155,782 11,151 144,631 — 155,782 Securities held to maturity 76,620 — 78,223 — 78,223 Loans held for sale 5,927 — 6,093 — 6,093 Net loans 1,206,757 — — 1,243,088 1,243,088 SBA servicing asset 930 — 1,245 — 1,245 Interest rate lock derivative 159 — 159 — 159 Accrued interest receivable 4,945 — 4,945 — 4,945 FHLB Stock 4,176 — 4,176 — 4,176 Deposits (1,277,362 ) — (1,278,166 ) — (1,278,166 ) Short-term borrowings (92,050 ) — (92,050 ) — (92,050 ) Redeemable subordinated debentures (18,557 ) — (12,837 ) — (12,837 ) Accrued interest payable (1,592 ) — (1,592 ) — (1,592 ) 2018 (In thousands) Carrying Value Level 1 Inputs Level 2 Inputs Level 3 Inputs Fair Value Cash and cash equivalents $ 16,844 $ 16,844 $ — $ — $ 16,844 Securities available for sale 132,222 16,388 115,834 — 132,222 Securities held to maturity 79,572 — 80,204 — 80,204 Loans held for sale 3,020 — 3,141 — 3,141 Net loans 874,762 — — 874,742 874,742 SBA servicing asset 991 — 1,490 — 1,490 Interest rate lock derivative 79 — 79 — 79 Accrued interest receivable 3,860 — 3,860 — 3,860 FHLB Stock 3,929 — 3,929 — 3,929 Deposits (950,672 ) — (949,813 ) — (949,813 ) Short-term borrowings (71,775 ) — (71,775 ) — (71,775 ) Redeemable subordinated debentures (18,557 ) — (12,774 ) — (12,774 ) Accrued interest payable (1,228 ) — (1,228 ) — (1,228 ) |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | All of the Company’s revenue from contracts with customers in the scope of Topic 606 is recognized within non-interest income. The following table presents the Company’s sources of non-interest income for the years ended December 31, 2019 , 2018 and 2017. Items outside the scope of Topic 606 are noted as such. For the Years Ended December 31, (Dollars in thousands) 2019 2018 2017 Service charges on deposits: Overdraft fees $ 368 $ 343 $ 300 Other 295 295 296 Interchange income 460 405 347 Other income - in scope 412 521 340 (Loss) gain on sale of OREO (101 ) — 5 Income on BOLI (1) 623 575 522 Gains on sales of loans, net (1) 4,885 4,475 5,149 Loan servicing fees (1) 711 656 576 Net gains on sales and calls of securities (1) 30 12 129 Gain from bargain purchase (1) — 230 — Other income (1) 554 406 576 $ 8,237 $ 7,918 $ 8,240 (1) Not within the scope of Topic 606 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost | For the years ended December 31, 2019 and 2018 , the Company recognized rent and equipment expense associated with these leases as follows: (In thousands) 2019 2018 Operating lease cost: Fixed rent expense and equipment expense $ 2,021 $ 2,055 Short-term lease expense 12 — Net lease cost $ 2,033 $ 2,055 (In thousands) 2019 2018 Lease cost - occupancy expense $ 1,778 $ 1,801 Lease cost - other expense 255 254 Net lease cost $ 2,033 $ 2,055 Rent expense aggregated $2.1 million , $1.8 million and $1.5 million for the years ended December 31, 2019, 2018 and 2017, respectively. Following is the cash and non-cash activities that were associated with the leases for the years ended December 31, 2019 and 2018 : For the Year Ended December 31, (In thousands) 2019 2018 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,840 $ 2,055 Non-cash investing and financing activities: Additions to ROU assets obtained from: New operating lease liabilities Upon adoption $ 15,674 $ — New or acquired during the year 3,765 — |
Lessee, Operating Lease, Liability, Maturity | The future payments due under operating leases at December 31, 2019 and 2018 were as follows: At December 31, (In thousands) 2019 2018 Due in less than one year $ 2,070 $ 1,525 Due in one year but less than two years 2,035 1,392 Due in two years but less than three years 2,022 1,245 Due in three years but less than four years 1,984 1,008 Due in four years but less than five years 1,847 798 Thereafter 15,118 2,284 Total future payments $ 25,076 $ 8,252 Less: Implied interest (6,459 ) — Total lease liability $ 18,617 $ 8,252 |
Parent-only Financial Informa_2
Parent-only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Statements of Financial Condition | December 31, 2019 2018 Assets : Cash $ 594 $ 425 Investment securities 557 557 Investment in subsidiary 188,257 145,096 Other assets — — Total Assets $ 189,408 $ 146,078 Liabilities And Shareholders’ Equity Other liabilities $ 273 $ 436 Subordinated debentures 18,557 18,557 Shareholders’ equity 170,578 127,085 Total Liabilities and Shareholders’ Equity $ 189,408 $ 146,078 |
Consolidated Statements of Income and Comprehensive Income | Year ended December 31, 2019 2018 2017 Income: Interest income $ — $ — $ 16 Dividend income from subsidiary 3,369 2,830 1,826 Total Income 3,369 2,830 1,842 Expense: Interest expense 748 694 535 Total Expense 748 694 535 Income before income taxes and equity in undistributed income of subsidiaries 2,621 2,136 1,307 Income tax benefit (155 ) (146 ) (177 ) Income before equity in undistributed income of subsidiaries 2,776 2,282 1,484 Equity in undistributed income of subsidiaries 10,858 9,766 5,444 Net Income 13,634 12,048 6,928 Equity in other comprehensive income (loss) of subsidiaries 2,024 (1,097 ) (27 ) Comprehensive Income $ 15,658 $ 10,951 $ 6,901 |
Condensed Statements of Cash Flows | Year Ended December 31, 2019 2018 2017 Operating Activities: Net Income $ 13,634 $ 12,048 $ 6,928 Adjustments: Decrease (increase) in other assets — 2,520 (68 ) Increase (decrease) in other liabilities (163 ) 407 (16 ) Equity in undistributed income of subsidiaries (10,858 ) (9,766 ) (5,444 ) Net cash provided by operating activities 2,613 5,209 1,400 Cash Flows From Investing Activities: Investment in subsidiary — — (130 ) Cash paid for NJCB merger — (3,069 ) Net cash used in investing activities — (3,069 ) (130 ) Cash Flows From Financing Activities: Cash dividend paid (2,593 ) (2,120 ) (1,690 ) Exercise of stock options 149 88 247 Purchase of treasury stock, net — — — Net cash used in financing activities (2,444 ) (2,032 ) (1,443 ) Net increase (decrease) in cash 169 108 (173 ) Cash at beginning of year 425 317 490 Cash at end of year $ 594 $ 425 $ 317 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table sets forth a condensed summary of the Company’s quarterly results of operations for the years ended December 31, 2019 , 2018 and 2017. In the fourth quarter 2019, the Company completed the acquisition of Shore and the quarterly data for the quarter ended December 31, 2019 includes results of former Shore operations. Selected 2019 Quarterly Data (Dollars in thousands, except per share data) December 31 September 30 June 30 March 31 Interest income $ 16,748 $ 14,874 $ 14,553 $ 13,915 Interest expense 3,589 3,357 3,120 2,688 Net interest income 13,159 11,517 11,433 11,227 Provision for loan losses 300 350 400 300 Net interest income after provision for loan losses 12,859 11,167 11,033 10,927 Non-interest income 1,995 2,206 2,170 1,866 Non-interest expense 10,453 8,436 8,566 8,094 Income before income taxes 4,401 4,937 4,637 4,699 Income taxes 1,157 1,314 1,267 1,302 Net income $ 3,244 $ 3,623 $ 3,370 $ 3,397 Earnings per common share: (1) Basic $ 0.34 $ 0.42 $ 0.39 $ 0.39 Diluted 0.34 0.42 0.39 0.39 Selected 2018 Quarterly Data (Dollars in thousands, except per share data) December 31 September 30 June 30 March 31 Interest income $ 13,754 $ 13,783 $ 12,881 $ 11,055 Interest expense 2,415 2,387 1,863 1,376 Net interest income 11,339 11,396 11,018 9,679 Provision for loan losses 225 225 225 225 Net interest income after provision for loan losses 11,114 11,171 10,793 9,454 Non-interest income 1,836 2,154 2,043 1,885 Non-interest expense 8,295 7,894 10,251 7,645 Income before income taxes 4,655 5,431 2,585 3,694 Income taxes 1,342 1,420 714 841 Net income $ 3,313 $ 4,011 $ 1,871 $ 2,853 Earnings per common share: (1) Basic $ 0.39 $ 0.48 $ 0.22 $ 0.35 Diluted 0.38 0.46 0.22 0.34 Selected 2017 Quarterly Data (Dollars in thousands, except per share data) December 31 September 30 June 30 March 31 Interest income $ 11,227 $ 10,811 $ 10,142 $ 9,483 Interest expense 1,418 1,451 1,340 1,289 Net interest income 9,809 9,360 8,802 8,194 Provision for loan losses 150 150 150 150 Net interest income after provision for loan losses 9,659 9,210 8,652 8,044 Non-interest income 1,930 2,112 1,785 2,413 Non-interest expense 8,064 7,609 7,677 7,656 Income before income taxes 3,525 3,713 2,760 2,801 Income taxes 2,951 1,227 841 852 Net income $ 574 $ 2,486 $ 1,919 $ 1,949 Earnings per common share:(1) Basic $ 0.07 $ 0.31 $ 0.24 $ 0.24 Diluted 0.07 0.30 0.23 0.23 (1) The sum of quarterly income per basic and diluted common share may not equal net income per basic and diluted common share, respectively, for the years ended December 31, 2019, 2018 and 2017 due to differences in the computation of weighted average diluted common shares on a quarterly and annual basis. |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)branch_officesegmentleaseshares | Dec. 31, 2018USD ($)leaseshares | Dec. 31, 2017shares | Jan. 01, 2019USD ($) | |
Summary of Significant Accounting Policies [Line Items] | ||||
Number of additional branch offices | branch_office | 25 | |||
Investment in FHLB stock | $ 4,200,000 | $ 3,900,000 | ||
Interest rate lock derivative | 159,000 | 79,000 | ||
Aggregate amount of standby letters of credit | 4,300,000 | 766,000 | ||
Impaired long lived assets | 0 | 0 | ||
Trust preferred securities | $ 232,402,000 | $ 211,794,000 | ||
Number of reportable segments | segment | 1 | |||
Number of leases | lease | 37 | |||
Lease liability | $ 18,617,000 | |||
Right-of-use asset | $ 17,957,000 | |||
Common equity Tier 1, actual ratio | 9.70% | 10.72% | ||
Tier I Capital to Risk Weighted Assets, actual ratio | 11.01% | 12.39% | ||
Total Capital to Risk Weighted Assets, actual ratio | 11.69% | 13.17% | ||
Tier I Leverage Capital, actual ratio | 10.56% | 11.73% | ||
Trust Preferred Securities Subject to Mandatory Redemption [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Trust preferred securities | $ 18,000,000 | $ 18,000,000 | ||
Equity Option [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Antidilutive options not included in the computation of earnings per commons share (in Shares) | shares | 27,930 | 19,350 | 8,900 | |
Minimum [Member] | Core Deposits [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated lives of core deposit intangibles | 5 years | |||
Maximum [Member] | Core Deposits [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated lives of core deposit intangibles | 10 years | |||
Building [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 40 years | |||
Number of leases | lease | 23 | 16 | ||
Building [Member] | Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Term of lease contract | 5 years | |||
Building [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Term of lease contract | 10 years | |||
Land [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of leases | lease | 4 | 2 | ||
Term of lease contract | 25 years | |||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 15 years | |||
Leasehold Improvements [Member] | Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 3 years | |||
Leasehold Improvements [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Estimated useful lives | 10 years | |||
Building, Branch Offices [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of leases | lease | 19 | 13 | ||
Building, General Office Space [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of leases | lease | 4 | 3 | ||
Office Equipment [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of leases | lease | 12 | 13 | ||
Office Equipment [Member] | Minimum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Term of lease contract | 3 years | |||
Office Equipment [Member] | Maximum [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Term of lease contract | 5 years | |||
Residential Portfolio Segment [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Number of residential mortgage loan production offices | branch_office | 2 | |||
Consumer Portfolio Segment [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Days past due when loans are charged off | 120 days | |||
Interest Rate Lock Commitments [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Interest rate lock derivative | $ 159,000 | $ 79,000 | ||
US Government Agencies Debt Securities [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of total portfolio | 49.00% | |||
Municipal Bonds [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of total portfolio | 28.40% | |||
Corporate Debt Issues and Restricted Stock [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Percentage of total portfolio | 22.60% | |||
Accounting Standards Update 2016-02 [Member] | ||||
Summary of Significant Accounting Policies [Line Items] | ||||
Lease liability | $ 16,200,000 | |||
Right-of-use asset | $ 15,700,000 | |||
Common equity Tier 1, actual ratio | 10.57% | |||
Tier I Capital to Risk Weighted Assets, actual ratio | 12.22% | |||
Total Capital to Risk Weighted Assets, actual ratio | 12.98% | |||
Tier I Leverage Capital, actual ratio | 11.73% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||||||||||||||
Net income | $ 3,244 | $ 3,623 | $ 3,370 | $ 3,397 | $ 3,313 | $ 4,011 | $ 1,871 | $ 2,853 | $ 574 | $ 2,486 | $ 1,919 | $ 1,949 | $ 13,634 | $ 12,048 | $ 6,928 |
Basic weighted average shares outstanding (in Shares) | 8,875,237 | 8,320,718 | 8,049,981 | ||||||||||||
Plus: common stock equivalents (in Shares) | 58,234 | 272,791 | 262,803 | ||||||||||||
Diluted weighted average shares outstanding (in Shares) | 8,933,471 | 8,593,509 | 8,312,784 | ||||||||||||
Earnings per share: | |||||||||||||||
Basic (in Dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.48 | $ 0.22 | $ 0.35 | $ 0.07 | $ 0.31 | $ 0.24 | $ 0.24 | $ 1.54 | $ 1.45 | $ 0.86 |
Diluted (in Dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.38 | $ 0.46 | $ 0.22 | $ 0.34 | $ 0.07 | $ 0.30 | $ 0.23 | $ 0.23 | $ 1.53 | $ 1.40 | $ 0.83 |
Acquisition of Shore Communit_3
Acquisition of Shore Community Bank - Narrative (Details) - USD ($) | Nov. 08, 2019 | Apr. 11, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||||||||||
Estimated future credit losses | $ 513,000 | $ 586,000 | $ 162,000 | ||||||||||||||
Acquisition related expenses | $ 10,453,000 | $ 8,436,000 | $ 8,566,000 | $ 8,094,000 | $ 8,295,000 | $ 7,894,000 | $ 10,251,000 | $ 7,645,000 | $ 8,064,000 | $ 7,609,000 | $ 7,677,000 | $ 7,656,000 | 35,549,000 | 34,085,000 | 31,006,000 | ||
Acquisition related expenses | 1,730,000 | 2,141,000 | 265,000 | ||||||||||||||
Income tax benefit | (1,157,000) | (1,314,000) | $ (1,267,000) | $ (1,302,000) | (1,342,000) | $ (1,420,000) | $ (714,000) | $ (841,000) | $ (2,951,000) | $ (1,227,000) | $ (841,000) | $ (852,000) | (5,040,000) | (4,317,000) | (5,871,000) | ||
Shore Community Bank [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Percentage of common shares acquired | 100.00% | ||||||||||||||||
Consideration transfered | $ 54,333,000 | ||||||||||||||||
Number of shares issued (in shares) | 1,509,275 | ||||||||||||||||
Equity interest issued | $ 29,175,000 | 29,175,000 | 0 | 29,175,000 | 0 | ||||||||||||
Net cash paid for NJCB Merger | 25,100,000 | ||||||||||||||||
Consideration transferred, cash paid to escrow | 925,000 | ||||||||||||||||
Goodwill recorded from the Shore Merger | $ 23,194,000 | 23,194,000 | 0 | 23,194,000 | 0 | ||||||||||||
Business acquisition estimated adjustment term | 1 year | ||||||||||||||||
Loans acquired with no credit quality deterioration | $ 205,833,000 | ||||||||||||||||
Core deposit | 1,467,000 | ||||||||||||||||
Acquisition related expenses | 4,200,000 | 0 | |||||||||||||||
Income tax benefit | 394,000 | ||||||||||||||||
New Jersey Community Bank [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Consideration transfered | $ 8,563,000 | ||||||||||||||||
Number of shares issued (in shares) | 249,785 | ||||||||||||||||
Equity interest issued | $ 5,494,000 | $ 0 | $ 5,494,000 | 0 | 5,494,000 | ||||||||||||
Net cash paid for NJCB Merger | 3,100,000 | 0 | $ 996,000 | $ 0 | |||||||||||||
Consideration transferred, cash paid to escrow | 401,000 | ||||||||||||||||
Core deposit | $ 80,000 | ||||||||||||||||
Payments for Legal Settlements | $ 393,000 | ||||||||||||||||
Core Deposits [Member] | Shore Community Bank [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Core deposit | $ 1,500,000 | ||||||||||||||||
Weighted average useful life | 10 years | ||||||||||||||||
Financial Asset Acquired and No Credit Deterioration [Member] | Shore Community Bank [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Loans acquired with no credit quality deterioration | $ 201,262,000 | ||||||||||||||||
Financial Asset Acquired with Credit Deterioration [Member] | Shore Community Bank [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Estimated future credit losses | 3,600,000 | ||||||||||||||||
Loans acquired with no credit quality deterioration | $ 4,571,000 | ||||||||||||||||
Acquisition-related Costs [Member] | Shore Community Bank [Member] | |||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||
Acquisition related expenses | $ 1,700,000 |
Acquisition of Shore Communit_4
Acquisition of Shore Community Bank - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Nov. 08, 2019 | Apr. 11, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |||||
Gain from bargain purchase | $ 0 | $ 230 | $ 0 | ||
Shore Community Bank [Member] | |||||
Consideration paid: | |||||
Company stock issued | $ 29,175 | 29,175 | 0 | ||
Cash payment | 24,233 | ||||
Cash payment for unexercised outstanding stock options | 925 | ||||
Total consideration paid | 54,333 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |||||
Cash and cash equivalents | 32,599 | ||||
Investment securities available for sale | 26,440 | ||||
Loans | 205,833 | ||||
Premises and equipment, net | 4,433 | ||||
Core deposit intangible asset | 1,467 | ||||
Bank-owned life insurance | 7,250 | ||||
Right-of-use assets | 3,226 | ||||
Accrued interest receivable | 778 | ||||
Other real estate owned | 605 | ||||
Other assets | 2,518 | ||||
Deposits | (249,836) | ||||
Lease liability | (3,226) | ||||
Other liabilities | (948) | ||||
Total identifiable assets and liabilities, net | 31,139 | ||||
Goodwill recorded from Shore merger | $ 23,194 | 23,194 | 0 | ||
New Jersey Community Bank [Member] | |||||
Consideration paid: | |||||
Company stock issued | $ 5,494 | $ 0 | $ 5,494 | ||
Cash payment | 2,668 | ||||
Total consideration paid | 8,563 | ||||
Recognized amounts of identifiable assets acquired and liabilities assumed at fair value: | |||||
Cash and cash equivalents | 2,073 | ||||
Investment securities available for sale | 11,173 | ||||
Loans | 75,144 | ||||
Premises and equipment, net | 1,120 | ||||
Core deposit intangible asset | 80 | ||||
Bank-owned life insurance | 3,972 | ||||
Accrued interest receivable | 259 | ||||
Other real estate owned | 1,230 | ||||
Other assets | 1,601 | ||||
Deposits | (87,223) | ||||
Other liabilities | (636) | ||||
Total identifiable assets and liabilities, net | 8,793 | ||||
Gain from bargain purchase | $ 230 |
Acquisition of Shore Communit_5
Acquisition of Shore Community Bank - Summary of Loans Acquired at Fair Value (Details) - Shore Community Bank [Member] $ in Thousands | Nov. 08, 2019USD ($) |
Business Acquisition [Line Items] | |
Acquired loans receivable | $ 205,833 |
Consumer Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 7,171 |
Construction [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 9,733 |
Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 139,553 |
Commercial Business [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 12,027 |
Residential Real Estate [Member] | Residential Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 37,349 |
Financial Asset Acquired and No Credit Deterioration [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 201,262 |
Financial Asset Acquired and No Credit Deterioration [Member] | Consumer Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 7,171 |
Financial Asset Acquired and No Credit Deterioration [Member] | Construction [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 9,733 |
Financial Asset Acquired and No Credit Deterioration [Member] | Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 135,482 |
Financial Asset Acquired and No Credit Deterioration [Member] | Commercial Business [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 12,027 |
Financial Asset Acquired and No Credit Deterioration [Member] | Residential Real Estate [Member] | Residential Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 36,849 |
Financial Asset Acquired with Credit Deterioration [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 4,571 |
Financial Asset Acquired with Credit Deterioration [Member] | Consumer Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Construction [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Real Estate [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 4,071 |
Financial Asset Acquired with Credit Deterioration [Member] | Commercial Business [Member] | Commercial Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | 0 |
Financial Asset Acquired with Credit Deterioration [Member] | Residential Real Estate [Member] | Residential Portfolio Segment [Member] | |
Business Acquisition [Line Items] | |
Acquired loans receivable | $ 500 |
Acquisition of Shore Communit_6
Acquisition of Shore Community Bank - Summary of Loans Acquired with Credit Quality Deterioration (Details) - Shore Community Bank [Member] $ in Thousands | Nov. 08, 2019USD ($) |
Business Acquisition [Line Items] | |
Fair value of acquired loans | $ 205,833 |
Financial Asset Acquired with Credit Deterioration [Member] | |
Business Acquisition [Line Items] | |
Contractually required principal and interest at acquisition | 7,584 |
Contractual cash flows not expected to be collected (non-accretable difference) | 2,355 |
Expected cash flows at acquisition | 5,229 |
Interest component of expected cash flows (accretable difference) | 658 |
Fair value of acquired loans | $ 4,571 |
Acquisition of Shore Communit_7
Acquisition of Shore Community Bank - Projected Amortization Expense of Core Deposits Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Nov. 08, 2019 |
Business Acquisition [Line Items] | ||
2019 | $ 390 | |
2020 | 314 | |
2021 | 263 | |
2022 | 213 | |
2023 | 164 | |
Thereafter | 388 | |
Total | $ 1,732 | |
Core Deposits [Member] | Shore Community Bank [Member] | ||
Business Acquisition [Line Items] | ||
2019 | $ 44 | |
2020 | 262 | |
2021 | 236 | |
2022 | 209 | |
2023 | 182 | |
Thereafter | 534 | |
Total | $ 1,467 |
Acquisition of Shore Communit_8
Acquisition of Shore Community Bank - Pro Forma Information (Details) - Shore Community Bank [Member] - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||
Net interest income | $ 1,428 | ||
Non-interest income | 23 | ||
Non-interest expenses | 516 | ||
Income taxes | 252 | ||
Net income | $ 682 | ||
Pro forma, Net interest income | $ 54,774 | $ 53,115 | |
Pro forma, Non-interest income | 8,714 | 8,851 | |
Pro forma, Non-interest expense | 39,265 | 40,032 | |
Pro forma, Income taxes | 5,445 | 5,884 | |
Pro forma, Net income | $ 18,778 | $ 16,050 |
Investment Securities - Availab
Investment Securities - Available-for-sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | $ 155,368 | $ 134,429 |
Available for sale, gross unrealized gains | 1,047 | 203 |
Available for sale, gross unrealized losses | (633) | (2,410) |
Securities available for sale | 155,782 | 132,222 |
US Treasury securities and obligations of US Government sponsored corporations (GSE) [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 774 | 2,993 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | (10) | (41) |
Securities available for sale | 764 | 2,952 |
Residential collateralized mortgage obligations- GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 53,223 | 48,789 |
Available for sale, gross unrealized gains | 194 | 70 |
Available for sale, gross unrealized losses | (242) | (676) |
Securities available for sale | 53,175 | 48,183 |
Residential mortgage backed securities - GSE [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 18,100 | 13,945 |
Available for sale, gross unrealized gains | 292 | 37 |
Available for sale, gross unrealized losses | (5) | (100) |
Securities available for sale | 18,387 | 13,882 |
Obligations of state and political subdivisions [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 33,177 | 23,506 |
Available for sale, gross unrealized gains | 342 | 85 |
Available for sale, gross unrealized losses | 0 | (249) |
Securities available for sale | 33,519 | 23,342 |
Trust preferred debt securities - single issuer [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 1,492 | 1,490 |
Available for sale, gross unrealized gains | 0 | 0 |
Available for sale, gross unrealized losses | (50) | (161) |
Securities available for sale | 1,442 | 1,329 |
Corporate debt securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 23,224 | 28,323 |
Available for sale, gross unrealized gains | 139 | 0 |
Available for sale, gross unrealized losses | (84) | (1,037) |
Securities available for sale | 23,279 | 27,286 |
Other debt obligations [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale, amortized cost | 25,378 | 15,383 |
Available for sale, gross unrealized gains | 80 | 11 |
Available for sale, gross unrealized losses | (242) | (146) |
Securities available for sale | $ 25,216 | $ 15,248 |
Investment Securities - Held-to
Investment Securities - Held-to-maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, amortized cost | $ 77,112 | $ 80,073 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | (492) | (501) |
Held to maturity, Carrying Value | 76,620 | 79,572 |
Held to maturity, gross unrealized gains | 1,726 | 1,317 |
Held to maturity, gross unrealized losses | (123) | (685) |
Held to maturity, fair value | 78,223 | 80,204 |
Residential collateralized mortgage obligations- GSE [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 5,117 | 6,701 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Held to maturity, Carrying Value | 5,117 | 6,701 |
Held to maturity, gross unrealized gains | 76 | 30 |
Held to maturity, gross unrealized losses | (35) | (143) |
Held to maturity, fair value | 5,158 | 6,588 |
Residential mortgage backed securities - GSE [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 36,528 | 31,343 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Held to maturity, Carrying Value | 36,528 | 31,343 |
Held to maturity, gross unrealized gains | 481 | 84 |
Held to maturity, gross unrealized losses | (54) | (346) |
Held to maturity, fair value | 36,955 | 31,081 |
Obligations of state and political subdivisions [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 32,533 | 38,494 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Held to maturity, Carrying Value | 32,533 | 38,494 |
Held to maturity, gross unrealized gains | 690 | 634 |
Held to maturity, gross unrealized losses | (25) | (118) |
Held to maturity, fair value | 33,198 | 39,010 |
Trust preferred debt securities - pooled [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 657 | 657 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | (492) | (501) |
Held to maturity, Carrying Value | 165 | 156 |
Held to maturity, gross unrealized gains | 479 | 569 |
Held to maturity, gross unrealized losses | 0 | 0 |
Held to maturity, fair value | 644 | 725 |
Other debt obligations [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity, amortized cost | 2,277 | 2,878 |
Held to maturity, other than temporary impairment recognized in accumulated other comprehensive loss | 0 | 0 |
Held to maturity, Carrying Value | 2,277 | 2,878 |
Held to maturity, gross unrealized gains | 0 | 0 |
Held to maturity, gross unrealized losses | (9) | (78) |
Held to maturity, fair value | $ 2,268 | $ 2,800 |
Investment Securities - Summary
Investment Securities - Summary of Investments Sold (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Available for Sale | |||
Available for sale | $ 0 | $ 0 | $ 7,602 |
Gross gains | 0 | 0 | 120 |
Gross losses | 0 | 0 | (27) |
Net tax expense | 0 | 0 | 38 |
Held to Maturity | |||
Held to maturity | 0 | 0 | 1,034 |
Gross gains | 0 | 0 | 36 |
Net tax expense | $ 0 | $ 0 | $ 12 |
Investment Securities - Securit
Investment Securities - Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale | ||
Due in one year or less, Amortized Cost | $ 10,690 | |
Due in one year or less, Fair Value | $ 10,662 | |
Due in one year or less, Percentage Yield | 2.66% | |
Due after one year through five years, Amortized Cost | $ 26,621 | |
Due after one year through five years, Fair Value | $ 26,824 | |
Due after one year through five years, Percentage Yield | 2.75% | |
Due after five years through ten years, Amortized Cost | $ 34,136 | |
Due after five years through ten years, Fair Value | $ 34,193 | |
Due after five years through ten years, Percentage Yield | 2.55% | |
Due after ten years, Amortized Cost | $ 83,921 | |
Due after ten years, Fair Value | $ 84,103 | |
Due after ten years, Percentage Yield | 2.75% | |
Available for sale, amortized cost | $ 155,368 | $ 134,429 |
Total, Fair Value | $ 155,782 | 132,222 |
Total, Percentage Yield | 2.70% | |
Held to maturity | ||
Due in one year or less, Carrying Value | $ 6,594 | |
Due in one year or less, Fair Value | $ 6,664 | |
Due in one year or less, Percentage Yield | 3.88% | |
Due after one year through five years, Carrying Value | $ 13,573 | |
Due after one year through five years, Fair Value | $ 13,803 | |
Due after one year through five years, Percentage Yield | 3.67% | |
Due after five years through ten years, Carrying Value | $ 18,410 | |
Due after five years through ten years, Fair Value | $ 18,766 | |
Due after five years through ten years, Percentage Yield | 3.15% | |
Due after ten years, Carrying Value | $ 38,043 | |
Due after ten years, Fair Value | $ 38,990 | |
Due after ten years, Percentage Yield | 3.11% | |
Held to maturity, Carrying Value | $ 76,620 | 79,572 |
Total, Fair Value | $ 78,223 | $ 80,204 |
Total, Percentage Yield | 3.28% |
Investment Securities - Secur_2
Investment Securities - Securities in a Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security |
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 75 | 192 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 43,594 | $ 72,783 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (388) | (1,159) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 28,821 | 79,420 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (368) | (1,937) |
Securities in a continuous unrealized loss position, fair value | 72,415 | 152,203 |
Securities in a continuous unrealized loss position, unrealized losses | $ (756) | $ (3,095) |
US Treasury securities and obligations of US Government sponsored corporations (GSE) [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 1 | 2 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 764 | $ 994 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (10) | (1) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 1,958 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | (40) |
Securities in a continuous unrealized loss position, fair value | 764 | 2,952 |
Securities in a continuous unrealized loss position, unrealized losses | $ (10) | $ (41) |
Residential collateralized mortgage obligations- GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 39 | 34 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 18,328 | $ 20,756 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (138) | (138) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 13,300 | 22,106 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (139) | (682) |
Securities in a continuous unrealized loss position, fair value | 31,628 | 42,862 |
Securities in a continuous unrealized loss position, unrealized losses | $ (277) | $ (819) |
Residential mortgage backed securities - GSE [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 13 | 68 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 5,505 | $ 18,393 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (59) | (141) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 0 | 19,402 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | (305) |
Securities in a continuous unrealized loss position, fair value | 5,505 | 37,795 |
Securities in a continuous unrealized loss position, unrealized losses | $ (59) | $ (446) |
Obligations of state and political subdivisions [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 4 | 67 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 2,311 | $ 12,785 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (25) | (154) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 527 | 11,638 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | 0 | (213) |
Securities in a continuous unrealized loss position, fair value | 2,838 | 24,423 |
Securities in a continuous unrealized loss position, unrealized losses | $ (25) | $ (367) |
Trust preferred debt securities - single issuer [Member] | ||
Debt and Equity Securities, FV-NI [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 | $ 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 | 1,442 | 1,329 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (50) | (162) |
Securities in a continuous unrealized loss position, fair value | 1,442 | 1,329 |
Securities in a continuous unrealized loss position, unrealized losses | $ (50) | $ (162) |
Corporate debt securities [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 4 | 10 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 2,994 | $ 8,912 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (5) | (632) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 7,954 | 18,374 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (79) | (405) |
Securities in a continuous unrealized loss position, fair value | 10,948 | 27,286 |
Securities in a continuous unrealized loss position, unrealized losses | $ (84) | $ (1,037) |
Other debt obligations [Member] | ||
Debt and Equity Securities, FV-NI [Line Items] | ||
Securities in a continuous unrealized loss position, number | security | 12 | 9 |
Securities in a continuous unrealized loss position, less than 12 months, fair value | $ 13,692 | $ 10,943 |
Securities in a continuous unrealized loss position, less than 12 months, unrealized losses | (151) | (93) |
Securities in a continuous unrealized loss position, 12 months or longer, fair value | 5,598 | 4,613 |
Securities in a continuous unrealized loss position, 12 months or longer, unrealized losses | (100) | (130) |
Securities in a continuous unrealized loss position, fair value | 19,290 | 15,556 |
Securities in a continuous unrealized loss position, unrealized losses | $ (251) | $ (223) |
Investment Securities - Narrati
Investment Securities - Narrative (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019USD ($)securityfinancial_institution | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | Dec. 31, 2009USD ($) | |
Debt Securities, Available-for-sale [Line Items] | ||||
Proceeds from sales of marketable securities | $ 4,400 | $ 1,400 | $ 8,500 | |
Net gain on marketable securities | 30 | 12 | 129 | |
Proceeds from sales of securities held to maturity | 0 | 0 | 1,034 | |
Gains from held to maturity securities | $ 0 | $ 0 | $ 36 | |
Percentage of original principal balance outstanding at the time of purchase (less than 15%) | 15.00% | |||
Number of corporate trust preferred securities | security | 75 | 192 | ||
Other than temporary impairment | $ 865 | |||
Other than temporary impairment loss, portion recognized in earnings | 364 | |||
Other than temporary impairment loss, portion recognized in other comprehensive income (loss) | $ 501 | |||
Accretion recognized as increase in carrying amount of security | $ 9 | |||
Federal Home Loan Bank Borrowings [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Investment securities pledged to collateralize borrowings and municipal deposits | $ 92,200 | $ 80,400 | ||
Trust preferred debt securities - single issuer [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of corporate trust preferred securities | security | 2 | 2 | ||
Number of issuers | financial_institution | 1 | |||
Trust preferred debt securities - pooled [Member] | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of issuers | financial_institution | 2 |
Loans and Loans Held for Sale -
Loans and Loans Held for Sale - Summary of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | $ 1,215,537 | $ 882,997 | |
Deferred loan costs, net | 491 | 167 | $ 550 |
Loans | 1,216,028 | 883,164 | $ 789,906 |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | 567,655 | 388,431 | |
Mortgage warehouse lines [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | 236,672 | 154,183 | |
Construction Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | 148,939 | 149,387 | |
Commercial business [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | 139,271 | 120,590 | |
Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | 90,259 | 47,263 | |
Loans to individuals [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | 32,604 | 22,962 | |
Other [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross Loans | $ 137 | $ 181 |
Loans and Loans Held for Sale_2
Loans and Loans Held for Sale - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Loans held for sale | $ 5,927 | $ 3,020 |
Interest rate lock derivative | 159 | 79 |
Loans sold to others and serviced by Company | 66,500 | 71,700 |
Servicing asset | $ 930 | 991 |
Discount rate | 10.75% | |
Prepayment speed rate | 14.93% | |
Discount on unsold SBA loans | $ 946 | 1,100 |
Interest Rate Lock Commitments [Member] | ||
Derivative [Line Items] | ||
Interest rate lock derivative | 159 | 79 |
Residential Real Estate [Member] | ||
Derivative [Line Items] | ||
Loans held for sale | $ 5,702 | $ 2,145 |
Loans and Loans Held for Sale_3
Loans and Loans Held for Sale - Summary of Loans by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 5,927 | $ 3,020 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 5,702 | 2,145 |
SBA [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 225 | $ 875 |
Loans and Loans Held for Sale_4
Loans and Loans Held for Sale - Changes in Servicing Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Asset at Amortized Cost, Balance [Roll Forward] | ||
Balance, beginning of year | $ 991 | $ 726 |
Servicing assets capitalized | 259 | 517 |
Amortization expense | (320) | (252) |
Balance, end of year | $ 930 | $ 991 |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Credit Quality Disclosures - Aging of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 10,772 | $ 4,706 | |
Current | 1,204,765 | 878,291 | |
Total Loans Receivable | 1,215,537 | 882,997 | |
Deferred loan costs, net | 491 | 167 | $ 550 |
Loans | 1,216,028 | 883,164 | 789,906 |
Recorded Investment 90 Days Accruing | 0 | 55 | |
Non-accrual Loans | 4,497 | 6,525 | |
Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,374 | 884 | |
Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,198 | 736 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 5,200 | 3,086 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 567,655 | 388,431 | |
Mortgage Warehouse Lines [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 236,672 | 154,183 | |
Construction Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 148,939 | 149,387 | |
Commercial Business [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 139,271 | 120,590 | |
Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 90,259 | 47,263 | |
Loans to Individuals [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 32,604 | 22,962 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 6,047 | 1,700 | |
Current | 561,608 | 386,731 | |
Total Loans Receivable | 567,655 | 388,431 | 308,924 |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 2,596 | 1,439 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 238 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 1,927 | 499 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,882 | 1,201 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 236,672 | 154,183 | |
Total Loans Receivable | 236,672 | 154,183 | 189,412 |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 148,939 | 149,387 | |
Total Loans Receivable | 148,939 | 149,387 | 136,412 |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 711 | 746 | |
Current | 138,560 | 119,844 | |
Total Loans Receivable | 139,271 | 120,590 | 92,906 |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 501 | 3,532 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 381 | 280 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 330 | 466 | |
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Loans Receivable | 90,259 | 47,263 | |
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 3,407 | 1,744 | |
Current | 86,852 | 45,519 | |
Total Loans Receivable | 90,259 | 47,263 | 40,494 |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 708 | 1,156 | |
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 2,459 | 588 | |
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 271 | 0 | |
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 677 | 1,156 | |
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 607 | 516 | |
Current | 31,997 | 22,446 | |
Total Loans Receivable | 32,604 | 22,962 | 21,025 |
Recorded Investment 90 Days Accruing | 0 | 55 | |
Non-accrual Loans | 692 | 398 | |
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 296 | 16 | |
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 237 | |
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 311 | 263 | |
Consumer Portfolio Segment [Member] | Other loans [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 137 | 181 | |
Total Loans Receivable | 137 | 181 | $ 183 |
Recorded Investment 90 Days Accruing | 0 | 0 | |
Non-accrual Loans | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Consumer Portfolio Segment [Member] | Other loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Financing Receivable, Past Due [Line Items] | |||
Total Past Due | $ 0 | $ 0 |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Credit Quality Disclosures - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | Dec. 31, 2017USD ($) | Nov. 08, 2019USD ($) | Apr. 11, 2018USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Additional income before taxes if interest on all loans had been recorded based upon original contract terms | $ 318,000 | $ 155,000 | $ 514,000 | ||
Amount of PCI loans | $ 4,000 | $ 0 | $ 0 | ||
Number of troubled debt restructurings that subsequently defaulted | loan | 0 | 0 | |||
Financial Asset Acquired with Credit Deterioration [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Purchased credit-impaired loans | $ 6,257,000 | $ 1,738,000 | |||
Financial Asset Acquired with Credit Deterioration [Member] | Shore Community Bank [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Purchased credit-impaired loans | $ 4,600,000 | ||||
Purchased credit-impaired loans, book value | $ 6,300,000 | ||||
Financial Asset Acquired with Credit Deterioration [Member] | New Jersey Community Bank [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Purchased credit-impaired loans | $ 881,000 | ||||
Purchased credit-impaired loans, book value | $ 1,100,000 | ||||
Financial Asset Acquired with Credit Deterioration [Member] | Performing [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Purchased credit-impaired loans | $ 5,400,000 | $ 865,000 |
Allowance for Loan Losses and_5
Allowance for Loan Losses and Credit Quality Disclosures - Commercial Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | $ 1,215,537 | $ 882,997 | |
Construction Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 148,939 | 149,387 | |
Commercial Business [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 139,271 | 120,590 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 567,655 | 388,431 | |
Mortgage Warehouse Lines [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 236,672 | 154,183 | |
Residential Real Estate [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 90,259 | 47,263 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 148,939 | 149,387 | $ 136,412 |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Pass [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 147,132 | 146,460 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 0 | 2,927 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 1,807 | 0 | |
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 139,271 | 120,590 | 92,906 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Pass [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 135,804 | 104,162 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 1,990 | 12,703 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 1,477 | 3,487 | |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 0 | 238 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 567,655 | 388,431 | 308,924 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 538,104 | 366,424 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 9,994 | 13,317 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 19,557 | 8,690 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 236,672 | 154,183 | $ 189,412 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Pass [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 235,808 | 152,378 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 864 | 1,805 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 0 | 0 | |
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 90,259 | 47,263 | |
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 87,512 | 45,825 | |
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 922 | 103 | |
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 1,825 | 1,335 | |
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | $ 0 | $ 0 |
Allowance for Loan Losses and_6
Allowance for Loan Losses and Credit Quality Disclosures - Consumer Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | $ 1,215,537 | $ 882,997 | |
Loans to Individuals [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 32,604 | 22,962 | |
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 32,604 | 22,962 | $ 21,025 |
Consumer Portfolio Segment [Member] | Other Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 137 | 181 | $ 183 |
Consumer Portfolio Segment [Member] | Performing [Member] | Loans to Individuals [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 31,912 | 22,564 | |
Consumer Portfolio Segment [Member] | Performing [Member] | Other Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 137 | 181 | |
Consumer Portfolio Segment [Member] | Nonperforming [Member] | Loans to Individuals [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | 692 | 398 | |
Consumer Portfolio Segment [Member] | Nonperforming [Member] | Other Loans [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Amount of loans | $ 0 | $ 0 |
Allowance for Loan Losses and_7
Allowance for Loan Losses and Credit Quality Disclosures - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||||||||||||||
Beginning balance | $ 8,402 | $ 8,013 | $ 7,494 | $ 8,402 | $ 8,013 | $ 7,494 | |||||||||
Provision for loan losses | $ 300 | $ 350 | $ 400 | 300 | $ 225 | $ 225 | $ 225 | 225 | $ 150 | $ 150 | $ 150 | 150 | 1,350 | 900 | 600 |
Loans charged off | (513) | (586) | (162) | ||||||||||||
Recoveries of loans charged off | 32 | 75 | 81 | ||||||||||||
Ending balance | 9,271 | 8,402 | 8,013 | 9,271 | 8,402 | 8,013 | |||||||||
Allowance for credit losses: Individually evaluated | 65 | 451 | 684 | 65 | 451 | 684 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 9,202 | 7,949 | 7,329 | 9,202 | 7,949 | 7,329 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 10,629 | 10,525 | 10,841 | 10,629 | 10,525 | 10,841 | |||||||||
Amount of loans | 1,215,537 | 882,997 | 1,215,537 | 882,997 | |||||||||||
Collectively evaluated for impairment | 1,199,142 | 870,901 | 778,201 | 1,199,142 | 870,901 | 778,201 | |||||||||
Deferred loan costs, net | 491 | 167 | 550 | 491 | 167 | 550 | |||||||||
Loans | 1,216,028 | 883,164 | 789,906 | 1,216,028 | 883,164 | 789,906 | |||||||||
Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 2 | 2 | |||||||||||||
Ending balance | 4 | 2 | 4 | 2 | |||||||||||
Loans receivable: | |||||||||||||||
Loans | 6,257 | 1,738 | 864 | 6,257 | 1,738 | 864 | |||||||||
Construction Loans [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 148,939 | 149,387 | 148,939 | 149,387 | |||||||||||
Commercial Business [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 139,271 | 120,590 | 139,271 | 120,590 | |||||||||||
Commercial Real Estate [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 567,655 | 388,431 | 567,655 | 388,431 | |||||||||||
Mortgage Warehouse Lines [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 236,672 | 154,183 | 236,672 | 154,183 | |||||||||||
Residential Real Estate [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 90,259 | 47,263 | 90,259 | 47,263 | |||||||||||
Loans to Individuals [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 32,604 | 22,962 | 32,604 | 22,962 | |||||||||||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 1,732 | 1,703 | 1,204 | 1,732 | 1,703 | 1,204 | |||||||||
Provision for loan losses | (343) | 29 | 499 | ||||||||||||
Loans charged off | 0 | 0 | 0 | ||||||||||||
Recoveries of loans charged off | 0 | 0 | 0 | ||||||||||||
Ending balance | 1,389 | 1,732 | 1,703 | 1,389 | 1,732 | 1,703 | |||||||||
Allowance for credit losses: Individually evaluated | 8 | 0 | 0 | 8 | 0 | 0 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 1,381 | 1,732 | 1,703 | 1,381 | 1,732 | 1,703 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 1,807 | 103 | 232 | 1,807 | 103 | 232 | |||||||||
Amount of loans | 148,939 | 149,387 | 136,412 | 148,939 | 149,387 | 136,412 | |||||||||
Collectively evaluated for impairment | 147,132 | 149,284 | 136,180 | 147,132 | 149,284 | 136,180 | |||||||||
Commercial Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 1,829 | 1,720 | 1,732 | 1,829 | 1,720 | 1,732 | |||||||||
Provision for loan losses | (76) | 158 | 2 | ||||||||||||
Loans charged off | (370) | (62) | (61) | ||||||||||||
Recoveries of loans charged off | 26 | 13 | 47 | ||||||||||||
Ending balance | 1,409 | 1,829 | 1,720 | 1,409 | 1,829 | 1,720 | |||||||||
Allowance for credit losses: Individually evaluated | 7 | 380 | 592 | 7 | 380 | 592 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 1,399 | 1,449 | 1,128 | 1,399 | 1,449 | 1,128 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 1,251 | 3,775 | 4,459 | 1,251 | 3,775 | 4,459 | |||||||||
Amount of loans | 139,271 | 120,590 | 92,906 | 139,271 | 120,590 | 92,906 | |||||||||
Collectively evaluated for impairment | 137,686 | 116,496 | 88,173 | 137,686 | 116,496 | 88,173 | |||||||||
Commercial Portfolio Segment [Member] | Commercial Business [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | |||||||||||||
Ending balance | 3 | 0 | 3 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 334 | 319 | 274 | 334 | 319 | 274 | |||||||||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 3,439 | 2,949 | 2,574 | 3,439 | 2,949 | 2,574 | |||||||||
Provision for loan losses | 1,178 | 920 | 358 | ||||||||||||
Loans charged off | (93) | (491) | 0 | ||||||||||||
Recoveries of loans charged off | 0 | 61 | 17 | ||||||||||||
Ending balance | 4,524 | 3,439 | 2,949 | 4,524 | 3,439 | 2,949 | |||||||||
Allowance for credit losses: Individually evaluated | 50 | 71 | 92 | 50 | 71 | 92 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 4,473 | 3,366 | 2,857 | 4,473 | 3,366 | 2,857 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 6,171 | 5,093 | 5,713 | 6,171 | 5,093 | 5,713 | |||||||||
Amount of loans | 567,655 | 388,431 | 308,924 | 567,655 | 388,431 | 308,924 | |||||||||
Collectively evaluated for impairment | 556,065 | 381,919 | 302,621 | 556,065 | 381,919 | 302,621 | |||||||||
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 2 | 2 | |||||||||||||
Ending balance | 1 | 2 | 1 | 2 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 5,419 | 1,419 | 590 | 5,419 | 1,419 | 590 | |||||||||
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 731 | 852 | 973 | 731 | 852 | 973 | |||||||||
Provision for loan losses | 352 | (121) | (121) | ||||||||||||
Loans charged off | 0 | 0 | 0 | ||||||||||||
Recoveries of loans charged off | 0 | 0 | 0 | ||||||||||||
Ending balance | 1,083 | 731 | 852 | 1,083 | 731 | 852 | |||||||||
Allowance for credit losses: Individually evaluated | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 1,083 | 731 | 852 | 1,083 | 731 | 852 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Amount of loans | 236,672 | 154,183 | 189,412 | 236,672 | 154,183 | 189,412 | |||||||||
Collectively evaluated for impairment | 236,672 | 154,183 | 189,412 | 236,672 | 154,183 | 189,412 | |||||||||
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Commercial Portfolio Segment [Member] | Residential Real Estate [Member] | |||||||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 90,259 | 47,263 | 90,259 | 47,263 | |||||||||||
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 431 | 392 | 367 | 431 | 392 | 367 | |||||||||
Provision for loan losses | (19) | 39 | 126 | ||||||||||||
Loans charged off | 0 | 0 | (101) | ||||||||||||
Recoveries of loans charged off | 0 | 0 | 0 | ||||||||||||
Ending balance | 412 | 431 | 392 | 412 | 431 | 392 | |||||||||
Allowance for credit losses: Individually evaluated | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 412 | 431 | 392 | 412 | 431 | 392 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 708 | 1,156 | 69 | 708 | 1,156 | 69 | |||||||||
Amount of loans | 90,259 | 47,263 | 40,494 | 90,259 | 47,263 | 40,494 | |||||||||
Collectively evaluated for impairment | 89,047 | 46,107 | 40,425 | 89,047 | 46,107 | 40,425 | |||||||||
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 504 | 0 | 0 | 504 | 0 | 0 | |||||||||
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 148 | 114 | 112 | 148 | 114 | 112 | |||||||||
Provision for loan losses | 38 | 49 | (2) | ||||||||||||
Loans charged off | (7) | (16) | 0 | ||||||||||||
Recoveries of loans charged off | 6 | 1 | 4 | ||||||||||||
Ending balance | 185 | 148 | 114 | 185 | 148 | 114 | |||||||||
Allowance for credit losses: Individually evaluated | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 185 | 148 | 114 | 185 | 148 | 114 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 692 | 398 | 368 | 692 | 398 | 368 | |||||||||
Amount of loans | 32,604 | 22,962 | 21,025 | 32,604 | 22,962 | 21,025 | |||||||||
Collectively evaluated for impairment | 31,912 | 22,564 | 20,657 | 31,912 | 22,564 | 20,657 | |||||||||
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Consumer Portfolio Segment [Member] | Other [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Provision for loan losses | 43 | 17 | (13) | ||||||||||||
Loans charged off | (43) | (17) | 0 | ||||||||||||
Recoveries of loans charged off | 0 | 0 | 13 | ||||||||||||
Ending balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance for credit losses: Individually evaluated | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Amount of loans | 137 | 181 | 183 | 137 | 181 | 183 | |||||||||
Collectively evaluated for impairment | 137 | 181 | 183 | 137 | 181 | 183 | |||||||||
Consumer Portfolio Segment [Member] | Other [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Unallocated [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | 92 | $ 283 | $ 532 | 92 | 283 | 532 | |||||||||
Provision for loan losses | 177 | (191) | (249) | ||||||||||||
Loans charged off | 0 | 0 | 0 | ||||||||||||
Recoveries of loans charged off | 0 | 0 | 0 | ||||||||||||
Ending balance | 269 | 92 | 283 | 269 | 92 | 283 | |||||||||
Allowance for credit losses: Individually evaluated | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Allowance for credit losses: Collectively evaluated for impairment | 269 | 92 | 283 | 269 | 92 | 283 | |||||||||
Loans receivable: | |||||||||||||||
Individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Amount of loans | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Collectively evaluated for impairment | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Unallocated [Member] | Financial Asset Acquired with Credit Deterioration [Member] | |||||||||||||||
Allowance for loan losses: | |||||||||||||||
Beginning balance | $ 0 | 0 | |||||||||||||
Ending balance | 0 | 0 | 0 | 0 | |||||||||||
Loans receivable: | |||||||||||||||
Amount of loans | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses and_8
Allowance for Loan Losses and Credit Quality Disclosures - Impaired Loans Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | $ 9,725 | $ 4,953 | |
Impaired loans with no related allowance, unpaid principal balance | 12,442 | 5,783 | |
Impaired loans with no related allowance, average recorded investment | 5,835 | 5,240 | $ 4,435 |
Impaired loans with no related allowance, interest income recognized | 150 | 167 | 293 |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 7,161 | 7,310 | |
Impaired loans with an allowance, unpaid principal balance | 8,557 | 7,425 | |
Impaired loans, related allowance | 69 | 453 | |
Impaired loans with an allowance, average recorded investment | 6,201 | 7,662 | 6,030 |
Impaired loans with an allowance, interest income recognized | 360 | 296 | 272 |
Total: | |||
Impaired loans, recorded investment | 16,886 | 12,263 | |
Outstanding balance | 20,999 | 13,208 | |
Impaired loans, related allowance | 69 | 453 | |
Impaired loans, average recorded investment | 12,036 | 12,902 | 10,323 |
Impaired loans, interest income recognized | 510 | 463 | 565 |
Commercial Portfolio Segment [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 7,821 | 3,399 | |
Impaired loans with no related allowance, unpaid principal balance | 10,175 | 4,064 | |
Impaired loans with no related allowance, average recorded investment | 3,806 | 3,984 | 3,809 |
Impaired loans with no related allowance, interest income recognized | 144 | 167 | 293 |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 7,161 | 7,310 | |
Impaired loans with an allowance, unpaid principal balance | 8,557 | 7,425 | |
Impaired loans, related allowance | 69 | 453 | |
Impaired loans with an allowance, average recorded investment | 6,200 | 7,662 | 5,955 |
Impaired loans with an allowance, interest income recognized | 360 | 296 | 272 |
Total: | |||
Impaired loans, related allowance | 69 | 453 | |
Commercial Portfolio Segment [Member] | Construction [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 0 | 103 | |
Impaired loans with no related allowance, unpaid principal balance | 0 | 103 | |
Impaired loans with no related allowance, average recorded investment | 35 | 115 | 209 |
Impaired loans with no related allowance, interest income recognized | 0 | 7 | 12 |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 1,807 | 0 | |
Impaired loans with an allowance, unpaid principal balance | 1,807 | 0 | |
Impaired loans, related allowance | 8 | 0 | |
Impaired loans with an allowance, average recorded investment | 602 | 0 | 86 |
Impaired loans with an allowance, interest income recognized | 56 | 0 | 0 |
Total: | |||
Impaired loans, recorded investment | 1,807 | 103 | |
Outstanding balance | 1,807 | 103 | |
Impaired loans, related allowance | 8 | 0 | |
Impaired loans, average recorded investment | 637 | 115 | 295 |
Impaired loans, interest income recognized | 56 | 7 | 12 |
Commercial Portfolio Segment [Member] | Commercial Business [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 680 | 992 | |
Impaired loans with no related allowance, unpaid principal balance | 1,971 | 1,332 | |
Impaired loans with no related allowance, average recorded investment | 916 | 1,112 | 828 |
Impaired loans with no related allowance, interest income recognized | 10 | 112 | 153 |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 905 | 3,102 | |
Impaired loans with an allowance, unpaid principal balance | 993 | 3,217 | |
Impaired loans, related allowance | 10 | 380 | |
Impaired loans with an allowance, average recorded investment | 977 | 3,326 | 2,864 |
Impaired loans with an allowance, interest income recognized | 88 | 44 | 84 |
Total: | |||
Impaired loans, recorded investment | 1,585 | 4,094 | |
Outstanding balance | 2,964 | 4,549 | |
Impaired loans, related allowance | 10 | 380 | |
Impaired loans, average recorded investment | 1,893 | 4,438 | 3,692 |
Impaired loans, interest income recognized | 98 | 156 | 237 |
Commercial Portfolio Segment [Member] | Commercial Real Estate [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 7,141 | 2,304 | |
Impaired loans with no related allowance, unpaid principal balance | 8,204 | 2,629 | |
Impaired loans with no related allowance, average recorded investment | 2,855 | 2,757 | 2,772 |
Impaired loans with no related allowance, interest income recognized | 134 | 48 | 128 |
With an allowance: | |||
Impaired loans with an allowance, recorded investment | 4,449 | 4,208 | |
Impaired loans with an allowance, unpaid principal balance | 5,757 | 4,208 | |
Impaired loans, related allowance | 51 | 73 | |
Impaired loans with an allowance, average recorded investment | 4,621 | 4,336 | 3,005 |
Impaired loans with an allowance, interest income recognized | 216 | 252 | 188 |
Total: | |||
Impaired loans, recorded investment | 11,590 | 6,512 | |
Outstanding balance | 13,961 | 6,837 | |
Impaired loans, related allowance | 51 | 73 | |
Impaired loans, average recorded investment | 7,476 | 7,093 | 5,777 |
Impaired loans, interest income recognized | 350 | 300 | 316 |
Commercial Portfolio Segment [Member] | Mortgage Warehouse Lines [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 0 | 0 | |
Impaired loans with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans with no related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans with no related allowance, interest income recognized | 0 | 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 | 0 |
Impaired loans with an allowance, interest income recognized | 0 | 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 | 0 |
Impaired loans, interest income recognized | 0 | 0 | 0 |
Consumer Portfolio Segment [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 1,904 | 1,554 | |
Impaired loans with no related allowance, unpaid principal balance | 2,267 | 1,719 | |
Impaired loans with no related allowance, average recorded investment | 2,029 | 1,256 | 484 |
Impaired loans with no related allowance, interest income recognized | 6 | 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 | 1 | 0 | 75 |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 |
Total: | |||
Impaired loans, related allowance | 0 | 0 | |
Consumer Portfolio Segment [Member] | Residential Real Estate [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 1,212 | 1,156 | |
Impaired loans with no related allowance, unpaid principal balance | 1,465 | 1,241 | |
Impaired loans with no related allowance, average recorded investment | 1,334 | 846 | 142 |
Impaired loans with no related allowance, interest income recognized | 6 | 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 | 75 |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 |
Total: | |||
Impaired loans, recorded investment | 1,212 | 1,156 | |
Outstanding balance | 1,465 | 1,241 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, average recorded investment | 1,334 | 846 | 217 |
Impaired loans, interest income recognized | 6 | 0 | 0 |
Consumer Portfolio Segment [Member] | Loans to Individuals [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 692 | 398 | |
Impaired loans with no related allowance, unpaid principal balance | 802 | 478 | |
Impaired loans with no related allowance, average recorded investment | 695 | 410 | 342 |
Impaired loans with no related allowance, interest income recognized | 0 | 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 | 0 |
Impaired loans with an allowance, interest income recognized | 0 | 0 | 0 |
Total: | |||
Impaired loans, recorded investment | 692 | 398 | |
Outstanding balance | 802 | 478 | |
Impaired loans, related allowance | 0 | 0 | |
Impaired loans, average recorded investment | 696 | 410 | 342 |
Impaired loans, interest income recognized | 0 | 0 | 0 |
Consumer Portfolio Segment [Member] | Other [Member] | |||
With no related allowance: | |||
Impaired loans with no related allowance, recorded investment | 0 | 0 | |
Impaired loans with no related allowance, unpaid principal balance | 0 | 0 | |
Impaired loans with no related allowance, average recorded investment | 0 | 0 | 0 |
Impaired loans with no related allowance, interest income recognized | 0 | 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 | 1 | 0 | 0 |
Impaired loans with an allowance, interest income recognized | 0 | 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 | 0 |
Impaired loans, interest income recognized | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses and_9
Allowance for Loan Losses and Credit Quality Disclosures - Acquired Credit Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | $ 20,999 | $ 13,208 |
Financial Asset Acquired with Credit Deterioration [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Outstanding balance | 8,038 | 2,007 |
Carrying amount | $ 6,257 | $ 1,738 |
Allowance for Loan Losses an_10
Allowance for Loan Losses and Credit Quality Disclosures - Changes in Accretable Discount for Acquired Credit Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | |||
Balance at beginning of year | $ 164 | $ 126 | $ 30 |
Acquisition of impaired loans | 658 | 168 | 0 |
Transfer from non-accretable to accretable | 0 | 0 | 161 |
Accretion of discount | (165) | (130) | (65) |
Balance at end of year | 657 | 164 | 126 |
Non-accretable difference at end of year | $ 1,175 | $ 122 | $ 26 |
Allowance for Loan Losses an_11
Allowance for Loan Losses and Credit Quality Disclosures - Estimate of the Remaining Accretable Discount (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||||
2020 | $ 365 | |||
2021 | 223 | |||
2022 | 69 | |||
Thereafter | 0 | |||
Total | $ 657 | $ 164 | $ 126 | $ 30 |
Allowance for Loan Losses an_12
Allowance for Loan Losses and Credit Quality Disclosures - Consumer Mortgage Loans Secured by Residential Real Estate in Process of Foreclosure (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan | |
Receivables [Abstract] | ||
Number of loans | loan | 2 | 4 |
Recorded Investment | $ | $ 382 | $ 821 |
Allowance for Loan Losses an_13
Allowance for Loan Losses and Credit Quality Disclosures - Troubled Debt Restructurings (Details) - Commercial Portfolio Segment [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Commercial business [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 3 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 597 | $ 135 |
Post-Modification Outstanding Recorded Investment | $ 595 | $ 132 |
Construction [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 1,807 | |
Post-Modification Outstanding Recorded Investment | $ 1,807 | |
Commercial real estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 1,001 | |
Post-Modification Outstanding Recorded Investment | $ 991 |
Related Parties (Details)
Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, beginning of year | $ 5,805 | $ 2,719 | $ 1,357 |
Loans granted | 3,199 | 3,365 | 1,603 |
Repayments of loans | (2,668) | (279) | (241) |
Balance, end of year | 6,336 | 5,805 | 2,719 |
Related Party Transaction [Line Items] | |||
Related party deposits | 12,700 | 12,000 | 10,700 |
Operating cash flows from operating leases | 2,055 | ||
Affiliated Entity [Member] | |||
Related Party Transaction [Line Items] | |||
Operating cash flows from operating leases | $ 128 | $ 126 | $ 122 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 27,853 | $ 23,259 |
Less: Accumulated depreciation | 12,591 | 11,606 |
Premises and Equipment, Net | 15,262 | 11,653 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 2,536 | 1,798 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 40 years | |
Premises and equipment | $ 10,666 | 8,340 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 7,721 | 7,577 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 10 years | |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 6,401 | 5,520 |
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 3 years | |
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated Useful Lives | 15 years | |
Projects in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment | $ 529 | $ 24 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 985 | $ 820 | $ 814 |
Other Real Estate Owned ("ORE_3
Other Real Estate Owned ("OREO") - Activity Related to Other Real Estate Owned (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate [Line Items] | |||
Total other comprehensive income (loss) | $ 2,024 | $ (1,097) | $ (27) |
Real Estate Owned [Roll Forward] | |||
Balance, beginning of year | 2,515 | 0 | 166 |
Other real estate owned properties added | 0 | 1,460 | 455 |
Sales during the year | (2,549) | 0 | (626) |
Increase in carrying amount of other real estate owned | 0 | 0 | 5 |
Forfeitable deposit on other real estate owned | 0 | (175) | 0 |
Balance, end of year | 571 | 2,515 | 0 |
Shore Community Bank [Member] | |||
Real Estate Owned [Roll Forward] | |||
Other real estate owned property acquired in NJCB merger | 605 | ||
New Jersey Community Bank [Member] | |||
Real Estate Owned [Roll Forward] | |||
Other real estate owned property acquired in NJCB merger | $ 0 | $ 1,230 | $ 0 |
Other Real Estate Owned ("ORE_4
Other Real Estate Owned ("OREO") - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Real Estate [Abstract] | |||
(Loss) gain on sale of OREO | $ (101,000) | $ 0 | $ 5,000 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Beginning balance | $ 12,258 | $ 12,496 | |
Goodwill, additions | 23,194 | 0 | |
Core deposits intangible | 1,467 | 80 | |
Amortization expense | (140) | (318) | $ (384) |
Goodwill and intangible assets | $ 36,779 | $ 12,258 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 140 | $ 318 | $ 384 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Scheduled Amortization (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 390 |
2021 | 314 |
2022 | 263 |
2023 | 213 |
2024 | 164 |
After five years | 388 |
Total | $ 1,732 |
Deposits - Schedule of Deposits
Deposits - Schedule of Deposits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deposits, by Type | ||
Non-interest bearing | $ 287,555 | $ 212,981 |
Interest bearing | 393,392 | 323,503 |
Savings | 259,033 | 189,612 |
Certificates of deposit | 337,382 | 224,576 |
Total deposits | $ 1,277,362 | $ 950,672 |
Percentage of Deposits | ||
Percentage of deposits, non-interest bearing | 22.51% | 22.40% |
Percentage of deposits, interest bearing | 30.80% | 34.03% |
Percentage of deposits, savings | 20.28% | 19.95% |
Percentage of deposits, certificates of deposits | 26.41% | 23.62% |
Percentage of deposits | 100.00% | 100.00% |
Deposits - Maturities of Time D
Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 251,852 | |
2021 | 59,950 | |
2022 | 19,658 | |
2023 | 3,781 | |
2024 | 2,141 | |
Time Deposits | $ 337,382 | $ 224,576 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
Certificates of deposit greater than $100,000 | $ 48.6 | $ 38 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances [Line Items] | ||
Short-term borrowings | $ 92,050 | $ 71,775 |
Federal Home Loan Bank [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Balance of borrowings | 160,700 | |
Correspondent Banks [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Balance of borrowings | 25,000 | |
Overnight Funds [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Short-term borrowings | $ 92,100 | $ 71,800 |
Average interest rates | 1.81% | 2.60% |
Redeemable Subordinated Deben_2
Redeemable Subordinated Debentures (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)financial_institution | May 30, 2006USD ($) | |
Subordinated Borrowing [Line Items] | ||
Amount of trust preferred securities | $ 18,000 | |
Amount invested in Trust II | $ 557 | |
Amount of floating rate junior subordinated debentures | $ 18,557 | |
Interest rate at period end | 3.54% | |
Number of financial institution holding companies | financial_institution | 50 | |
London Interbank Offered Rate (LIBOR) [Member] | ||
Subordinated Borrowing [Line Items] | ||
Basis point spread on floating interest rate | 1.65% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Federal: | |||||||||||||||
Current | $ 2,826 | $ 2,479 | $ 2,791 | ||||||||||||
Deferred | 418 | 209 | 496 | ||||||||||||
Remeasurement of deferred tax assets and liabilities | 0 | (28) | 1,712 | ||||||||||||
Federal income tax expense (benefit) | 3,244 | 2,660 | 4,999 | ||||||||||||
State: | |||||||||||||||
Current | 1,610 | 1,561 | 748 | ||||||||||||
Deferred | 186 | 96 | 124 | ||||||||||||
State income tax expense (benefit) | 1,796 | 1,657 | 872 | ||||||||||||
Income tax expense (benefit) | $ 1,157 | $ 1,314 | $ 1,267 | $ 1,302 | $ 1,342 | $ 1,420 | $ 714 | $ 841 | $ 2,951 | $ 1,227 | $ 841 | $ 852 | $ 5,040 | $ 4,317 | $ 5,871 |
Income Taxes - Income Tax Rate
Income Taxes - Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||||||
Federal income tax | $ 3,922 | $ 3,437 | $ 4,352 | ||||||||||||
Add (deduct) effect of: | |||||||||||||||
State income taxes net of federal income tax effect | 1,419 | 1,309 | 575 | ||||||||||||
Tax-exempt interest income | (348) | (416) | (728) | ||||||||||||
Bank-owned life insurance | (131) | (110) | (177) | ||||||||||||
Executive compensation | 120 | 96 | 139 | ||||||||||||
Remeasurement of federal deferred tax assets and liabilities | 0 | (28) | 1,712 | ||||||||||||
Other items, net | 58 | 29 | (2) | ||||||||||||
Income tax expense (benefit) | $ 1,157 | $ 1,314 | $ 1,267 | $ 1,302 | $ 1,342 | $ 1,420 | $ 714 | $ 841 | $ 2,951 | $ 1,227 | $ 841 | $ 852 | $ 5,040 | $ 4,317 | $ 5,871 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,606 | $ 2,362 |
Unrealized loss on securities available for sale | 0 | 528 |
Supplemental executive retirement plan liability | 1,343 | 1,294 |
Other than temporary impairment loss | 118 | 119 |
Depreciation | 752 | 612 |
Non-accrual interest | 318 | 200 |
Acquisition accounting adjustments | 1,121 | 647 |
Lease liability | 5,233 | |
Federal net operating loss carryover, net | 830 | 871 |
Other | 103 | 72 |
Total gross deferred tax assets | 12,424 | 6,705 |
Deferred tax liabilities: | ||
Deferred costs | 631 | 564 |
Pension liability | 102 | 90 |
Right-of-use assets | 5,048 | |
Unrealized gain on securities available for sale | 111 | 0 |
Total gross deferred tax liabilities | 5,892 | 654 |
Net deferred tax assets | $ 6,532 | $ 6,051 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 22, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Annual limitation on operating loss carryforwards | $ 197 | |||
Change in tax rate, provisional income tax expense (benefit) | 0 | $ (28) | $ 1,712 | |
Increase (decrease) in income tax expense due to change in tax rate | $ (28) | |||
Federal [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Net operating loss carryforward | $ 5,800 |
Comprehensive Income and Accu_3
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
AOCI Attributable to Parent [Abstract] | ||
Other comprehensive income (loss), before tax | $ 286 | $ (2,390) |
Other comprehensive income (loss), tax | (95) | 557 |
Other comprehensive income (loss), net of tax | 191 | (1,833) |
Net unrealized holding gain (loss) on securities available for sale [Member] | ||
AOCI Attributable to Parent [Abstract] | ||
Other comprehensive income (loss), before tax | 414 | (2,207) |
Other comprehensive income (loss), tax | (111) | 528 |
Other comprehensive income (loss), net of tax | 303 | (1,679) |
Unrealized impairment loss on held to maturity security [Member] | ||
AOCI Attributable to Parent [Abstract] | ||
Other comprehensive income (loss), before tax | (492) | (501) |
Other comprehensive income (loss), tax | 118 | 119 |
Other comprehensive income (loss), net of tax | (374) | (382) |
Gains on unfunded pension liability [Member] | ||
AOCI Attributable to Parent [Abstract] | ||
Other comprehensive income (loss), before tax | 364 | 318 |
Other comprehensive income (loss), tax | (102) | (90) |
Other comprehensive income (loss), net of tax | $ 262 | $ 228 |
Comprehensive Income and Accu_4
Comprehensive Income and Accumulated Other Comprehensive Income (Loss) - Changes in the Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | $ 127,085 | $ 111,653 | $ 104,801 |
Reclassification adjustments for gains realized in income | (23) | (9) | (55) |
Reclassification for certain deferred tax effects | 0 | ||
Total other comprehensive income (loss) | 2,024 | (1,097) | (27) |
Balance, end of period | 170,578 | 127,085 | 111,653 |
Accumulated Other Comprehensive Income (Loss) [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (1,833) | (736) | (600) |
Other comprehensive income (loss) before reclassifications | 2,161 | (1,044) | 64 |
Amounts reclassified from accumulated other comprehensive income (loss) | (114) | (44) | (91) |
Reclassification adjustments for gains realized in income | (23) | (9) | |
Reclassification for certain deferred tax effects | (109) | ||
Total other comprehensive income (loss) | 2,024 | (1,097) | (27) |
Balance, end of period | 191 | (1,833) | (736) |
Unrealized Holding (Losses) Gains on Available for Sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (1,679) | (434) | (334) |
Other comprehensive income (loss) before reclassifications | 2,005 | (1,236) | 26 |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | (55) |
Reclassification adjustments for gains realized in income | (23) | (9) | |
Reclassification for certain deferred tax effects | (71) | ||
Total other comprehensive income (loss) | 1,982 | (1,245) | (29) |
Balance, end of period | 303 | (1,679) | (434) |
Unrealized Impairment Loss On Held to Maturity Security [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | (382) | (382) | (331) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss) | 8 | 0 | 0 |
Reclassification adjustments for gains realized in income | 0 | 0 | |
Reclassification for certain deferred tax effects | (51) | ||
Total other comprehensive income (loss) | 8 | 0 | 0 |
Balance, end of period | (374) | (382) | (382) |
Unfunded Pension Liability [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance, beginning of period | 228 | 80 | 65 |
Other comprehensive income (loss) before reclassifications | 156 | 192 | 38 |
Amounts reclassified from accumulated other comprehensive income (loss) | (122) | (44) | (36) |
Reclassification adjustments for gains realized in income | 0 | 0 | |
Reclassification for certain deferred tax effects | 13 | ||
Total other comprehensive income (loss) | 34 | 148 | 2 |
Balance, end of period | $ 262 | $ 228 | $ 80 |
Benefit Plans - Narrative (Deta
Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Matching contribution percentage | 50.00% | ||
Maximum contribution as a percentage of base compensation | 6.00% | ||
Employer contributions | $ 348 | $ 343 | $ 353 |
Cash surrender value of policies | 36,700 | 28,700 | |
Net recognized pension liability | 4,416 | 4,285 | 4,205 |
Compensation expense | 177 | $ 287 | $ 293 |
Net periodic benefit cost projected to be recognized in net periodic benefit expense | 60 | ||
Actuarial gains to be recognized as a component of net periodic benefit expense | $ 364 | ||
Discount rate | 4.00% | 4.00% | 4.00% |
Salary scale | 4.00% | 4.00% | 4.00% |
Minimum [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Service period | 6 months | ||
Shore Community Bank [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash surrender value of policies | $ 7,200 | ||
New Jersey Community Bank [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Cash surrender value of policies | $ 4,000 |
Benefit Plans - Changes in Bene
Benefit Plans - Changes in Benefit Obligations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Benefit Obligation | |||||
Beginning January 1 | $ 4,285 | $ 4,205 | |||
Service cost | 189 | 192 | $ 197 | ||
Interest cost | 164 | 157 | 156 | ||
Actuarial gain | (222) | (269) | |||
Benefits paid | 0 | 0 | |||
Ending December 31 | 4,416 | 4,285 | 4,205 | ||
Amount Recognized in Consolidated Balance Sheets | |||||
Liability for pension | $ 4,780 | $ 4,603 | |||
Net actuarial gain included in accumulated other comprehensive loss | (364) | (318) | |||
Net recognized pension liability | 4,285 | 4,285 | 4,205 | 4,416 | 4,285 |
Information for pension plans with an accumulated benefit obligation in excess of plan assets | |||||
Projected benefit obligation | $ 4,285 | $ 4,285 | $ 4,205 | 4,416 | 4,285 |
Accumulated benefit obligation | $ 4,245 | $ 4,120 |
Benefit Plans - Net Periodic Be
Benefit Plans - Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 189 | $ 192 | $ 197 |
Interest cost | 164 | 157 | 156 |
Recognized net actuarial gain | (176) | (62) | (60) |
Net periodic benefit cost | $ 177 | $ 287 | $ 293 |
Benefit Plans - Expected Benefi
Benefit Plans - Expected Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 4,719 |
2021 | 0 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Thereafter | 0 |
Total | $ 4,719 |
Share-Based Compensation - Narr
Share-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares authorized for grant | 885,873 | |||
Shares of common stock available for future grants | 398,991 | |||
Stock based compensation expense | $ 55 | $ 57 | $ 65 | |
Unrecognized compensation cost related to non-vested stock-option based compensation arrangements | $ 67 | |||
Share price (in Dollars per share) | $ 22.13 | |||
Aggregate intrinsic value of stock options exercised | $ 284 | |||
Exercise of stock options | $ 149 | 88 | 247 | |
Share-based Payment Arrangement, Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period that cost is expected to be recognized | 4 years | |||
Share-based Payment Arrangement, Option [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Term of stock options | 10 years | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 1,000 | $ 962 | $ 928 | |
Period that cost is expected to be recognized | 4 years | |||
Vesting period | 4 years | |||
Unrecognized compensation cost | $ 1,700 | |||
Granted (in Shares) | 53,931 | |||
Weighted average grant date fair value, grants in period (in Dollars per share) | $ 18.30 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 67 | |||
Vesting period | 3 years | |||
Unrecognized compensation cost | $ 133 | |||
Granted (in Shares) | 10,300 | |||
Weighted average grant date fair value, grants in period (in Dollars per share) | $ 19.38 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-based Compensation Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding (in Shares) | 139,511 | |
Granted (in Shares) | 11,400 | |
Exercised (in Shares) | (24,277) | |
Forfeited (in Shares) | (1,268) | |
Expired (in Shares) | (3,215) | |
Outstanding (in Shares) | 122,151 | 139,511 |
Number of shares, exercisable at December 31, 2019 | 103,145 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Outstanding, weighted average exercise price (in Dollars per share) | $ 8.70 | |
Granted, weighted average exercise price (in Dollars per share) | 19.38 | |
Exercised, weighted average exercise price (in Dollars per share) | 7.37 | |
Forfeited, weighted average exercise price (in Dollars per share) | 17.91 | |
Expired, weighted average exercise price (in Dollars per share) | 13.03 | |
Outstanding, weighted average exercise price (in Dollars per share) | 9.85 | $ 8.70 |
Exercisable options, average exercise price (in Dollars per share) | $ 8.29 | |
Outstanding, weighted average remaining contractual term | 3 years 10 months 24 days | 4 years |
Weighted average remaining contractual term (years), exercisable at December 31, 2019 | 3 years 1 month 6 days | |
Outstanding, aggregate intrinsic value | $ 1,500 | $ 1,566 |
Aggregate intrinsic value, exercisable at December 31, 2019 | $ 1,427 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Outstanding options (in Shares) | 122,151 | 139,511 |
Outstanding options, average life in years | 3 years 10 months 24 days | 4 years |
Outstanding options, average exercise price (in Dollars per share) | $ 9.85 | $ 8.70 |
Exercisable options (in Shares) | 103,145 | |
Exercisable options, average life in years | 3 years 1 month 6 days | |
Exercisable options, average exercise price (in Dollars per share) | $ 8.29 | |
$5.54 to $5.63 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in Dollars per share) | 5.54 | |
Exercise price range, upper limit (in Dollars per share) | $ 5.63 | |
Outstanding options (in Shares) | 44,897 | |
Outstanding options, average life in years | 1 year 9 months 18 days | |
Outstanding options, average exercise price (in Dollars per share) | $ 5.61 | |
Exercisable options (in Shares) | 44,897 | |
Exercisable options, average life in years | 1 year 9 months 18 days | |
Exercisable options, average exercise price (in Dollars per share) | $ 5.61 | |
$6.16 to $7.46 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in Dollars per share) | 6.16 | |
Exercise price range, upper limit (in Dollars per share) | $ 7.46 | |
Outstanding options (in Shares) | 27,827 | |
Outstanding options, average life in years | 2 years | |
Outstanding options, average exercise price (in Dollars per share) | $ 7.10 | |
Exercisable options (in Shares) | 27,827 | |
Exercisable options, average life in years | 2 years | |
Exercisable options, average exercise price (in Dollars per share) | $ 7.10 | |
$9.30 to $11.98 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in Dollars per share) | 9.30 | |
Exercise price range, upper limit (in Dollars per share) | $ 11.98 | |
Outstanding options (in Shares) | 21,497 | |
Outstanding options, average life in years | 5 years | |
Outstanding options, average exercise price (in Dollars per share) | $ 10.64 | |
Exercisable options (in Shares) | 19,901 | |
Exercisable options, average life in years | 4 years 10 months 24 days | |
Exercisable options, average exercise price (in Dollars per share) | $ 10.54 | |
$18.30 to $19.38 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range, lower limit (in Dollars per share) | 18.30 | |
Exercise price range, upper limit (in Dollars per share) | $ 19.38 | |
Outstanding options (in Shares) | 27,930 | |
Outstanding options, average life in years | 8 years 1 month 6 days | |
Outstanding options, average exercise price (in Dollars per share) | $ 18.81 | |
Exercisable options (in Shares) | 10,520 | |
Exercisable options, average life in years | 7 years 9 months 18 days | |
Exercisable options, average exercise price (in Dollars per share) | $ 18.67 |
Share-Based Compensation - Sign
Share-Based Compensation - Significant Weighted Average Assumptions Used to Calculate Fair Value of Options Granted (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Fair value of options granted (in Dollars per share) | $ 5.63 | $ 5.93 | $ 6.05 |
Risk-free rate of return (percentage) | 2.55% | 2.46% | 2.45% |
Expected option life in years | 7 years | 7 years | 7 years |
Expected volatility (percentage) | 29.09% | 31.35% | 31.25% |
Expected dividends (percentage) | 1.56% | 1.18% | 1.19% |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested (in Shares) | shares | 147,533 |
Granted (in Shares) | shares | 53,931 |
Vested (in Shares) | shares | (65,320) |
Forfeited (in Shares) | shares | (1,785) |
Unvested (in Shares) | shares | 134,359 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |
Unvested, average grant-date fair value (in Dollars per share) | $ / shares | $ 13.21 |
Granted, average grant-date fair value (in Dollars per share) | $ / shares | 18.30 |
Vested, average grant-date fair value (in Dollars per share) | $ / shares | 15.91 |
Forfeited, average grant-date fair value (in Dollars per share) | $ / shares | 17.31 |
Unvested, average grant-date fair value (in Dollars per share) | $ / shares | $ 13.84 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Supply Commitment [Line Items] | ||
Aggregate amount of standby letters of credit | $ 4,300 | $ 766 |
Derivative [Line Items] | ||
Fair value of forward sales commitments and the related loan origination commitments | 159 | 79 |
Loans that have not closed commitments [Member] | ||
Supply Commitment [Line Items] | ||
Amount committed to advance to borrowers | 36,000 | 23,100 |
Lone of credit commitments [Member] | ||
Supply Commitment [Line Items] | ||
Amount committed to advance to borrowers | 381,000 | 403,000 |
Forward sales commitments [Member] | ||
Derivative [Line Items] | ||
Notional amount of forward sales commitments | 15,000 | 4,300 |
Fair value of forward sales commitments and the related loan origination commitments | $ 159 | $ 79 |
Other Operating Expenses (Detai
Other Operating Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |||
Regulatory, professional and other consulting fees | $ 1,806 | $ 1,713 | $ 2,263 |
Equipment | 1,286 | 1,175 | 1,008 |
Telephone | 400 | 391 | 389 |
Amortization of intangible assets | 140 | 318 | 384 |
Insurance | 391 | 375 | 373 |
Supplies | 275 | 294 | 259 |
Marketing | 302 | 280 | 225 |
Other expenses | 1,983 | 1,946 | 2,151 |
Other operating expenses | $ 6,583 | $ 6,492 | $ 7,052 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1, actual amount (in Dollars) | $ 133,046 | $ 115,537 |
Common equity Tier 1, actual ratio | 9.70% | 10.72% |
Common equity Tier 1, amount for capital adequacy purposes (in Dollars) | $ 61,604 | $ 48,496 |
Common equity Tier 1, ratio for capital adequacy purposes | 4.50% | 4.50% |
Total Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 160,317 | $ 141,939 |
Total Capital to Risk Weighted Assets, actual ratio | 11.69% | 13.17% |
Total Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 109,519 | $ 86,214 |
Total Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 8.00% | 8.00% |
Tier I Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 151,046 | $ 133,537 |
Tier I Capital to Risk Weighted Assets, actual ratio | 11.01% | 12.39% |
Tier I Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 82,139 | $ 64,661 |
Tier I Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 6.00% | 6.00% |
Tier I Leverage Capital, actual amount (in Dollars) | $ 151,046 | $ 133,537 |
Tier I Leverage Capital, actual ratio | 10.56% | 11.73% |
Tier I Leverage Capital, amount for capital adequacy purposes (in Dollars) | $ 57,245 | $ 45,538 |
Tier I Leverage Capital, ratio for capital adequacy purposes | 4.00% | 4.00% |
Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Common equity Tier 1, actual amount (in Dollars) | $ 150,725 | $ 133,548 |
Common equity Tier 1, actual ratio | 10.99% | 12.40% |
Common equity Tier 1, amount for capital adequacy purposes (in Dollars) | $ 61,579 | $ 48,471 |
Common equity Tier 1, ratio for capital adequacy purposes | 4.50% | 4.50% |
Common equity Tier 1, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 88,948 | $ 70,013 |
Common equity Tier 1, ratio to be well capitalized under prompt corrective action provisions | 6.50% | 6.50% |
Total Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 159,996 | $ 141,950 |
Total Capital to Risk Weighted Assets, actual ratio | 11.67% | 13.18% |
Total Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 109,474 | $ 86,170 |
Total Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 136,843 | $ 107,712 |
Total Capital to Risk Weighted Assets, ratio to be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Tier I Capital to Risk Weighted Assets, actual amount (in Dollars) | $ 150,725 | $ 133,548 |
Tier I Capital to Risk Weighted Assets, actual ratio | 10.99% | 12.40% |
Tier I Capital to Risk Weighted Assets, amount for capital adequacy purposes (in Dollars) | $ 82,106 | $ 64,627 |
Tier I Capital to Risk Weighted Assets, ratio for capital adequacy purposes | 6.00% | 6.00% |
Tier I Capital to Risk Weighted Assets, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 109,474 | $ 86,170 |
Tier I Capital to Risk Weighted Assets, ratio to be well capitalized under prompt corrective action provisions | 8.00% | 8.00% |
Tier I Leverage Capital, actual amount (in Dollars) | $ 150,725 | $ 133,548 |
Tier I Leverage Capital, actual ratio | 10.54% | 11.74% |
Tier I Leverage Capital, amount for capital adequacy purposes (in Dollars) | $ 57,222 | $ 45,516 |
Tier I Leverage Capital, ratio for capital adequacy purposes | 4.00% | 4.00% |
Tier I Leverage Capital, amount to be well capitalized under prompt corrective action provisions (in Dollars) | $ 71,528 | $ 56,894 |
Tier I Leverage Capital, ratio to be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
Shareholders' Equity (Details)
Shareholders' Equity (Details) - $ / shares | Jan. 21, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 19, 2018 |
Stockholders' Equity Note [Abstract] | |||||
Number or new warrants | 2 | ||||
Shares of stock of the company permitted to acquire upon exchange of warrants (Shares) | 289,719 | 198,378 | |||
Price of common stock upon exchange of warrants (in Dollars per share) | $ 6.214 | ||||
Percentage of common shares outstanding authorized to be repurchased | 5.00% | ||||
Number of shares repurchased (Shares) | 0 | 0 | 0 |
Fair Value Disclosures - Financ
Fair Value Disclosures - Financial Assets and Liabilities at Fair Value Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 155,782 | $ 132,222 |
Interest rate lock derivative | 159 | 79 |
Total | 155,941 | 132,301 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock derivative | 0 | 0 |
Total | 11,151 | 16,388 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock derivative | 159 | 79 |
Total | 144,790 | 115,913 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate lock derivative | 0 | 0 |
Total | 0 | 0 |
US Treasury securities and obligations of US Government sponsored corporations (GSE) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 764 | 2,952 |
US Treasury securities and obligations of US Government sponsored corporations (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 |
US Treasury securities and obligations of US Government sponsored corporations (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 | 764 | 2,952 |
US Treasury securities and obligations of US Government sponsored corporations (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 collateralized mortgage obligations- GSE [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | 53,175 | 48,183 |
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 | 53,175 | 48,183 |
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 | 18,387 | 13,882 |
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 | 18,387 | 13,882 |
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 | 33,519 | 23,342 |
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 | 33,519 | 23,342 |
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 | 1,442 | 1,329 |
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 | 1,442 | 1,329 |
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 | 23,279 | 27,286 |
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 | 11,151 | 16,388 |
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 | 12,128 | 10,898 |
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 | 25,216 | 15,248 |
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 | 25,216 | 15,248 |
Other debt securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale, at fair value | $ 0 | $ 0 |
Fair Value Disclosures - Fina_2
Fair Value Disclosures - Financial Assets and Liabilities at Fair Value Measured on Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 7,092 | $ 6,857 |
Other real estate owned | 93 | 1,460 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 7,092 | 6,857 |
Other real estate owned | $ 93 | $ 1,460 |
Fair Value Disclosures - Narrat
Fair Value Disclosures - Narrative (Details) $ in Thousands | Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($)loan |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, aggregate balance | $ 16,886 | $ 12,263 |
Impaired loans, related allowance | $ 69 | $ 453 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of impaired loans | loan | 12 | 8 |
Impaired loans, aggregate balance | $ 7,200 | $ 7,300 |
Impaired loans, related allowance | $ 69 | $ 453 |
Fair Value Disclosures - Fair V
Fair Value Disclosures - Fair Value Qualitative Information (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired Loans, Fair Value | $ 7,092 | $ 6,857 |
Other real estate owned | $ 93 | $ 1,460 |
Measurement Input, Comparability Adjustment [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Other real estate owned, measurement input | 0.470 | |
Measurement Input, Comparability Adjustment [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Loans and leases, measurement input | 0.001 | 0.005 |
Other real estate owned, measurement input | 0.47 | |
Measurement Input, Comparability Adjustment [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Loans and leases, measurement input | 0.404 | 1 |
Other real estate owned, measurement input | 0.80 | |
Measurement Input, Comparability Adjustment [Member] | Weighted Average [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Loans and leases, measurement input | 0.126 | 0.282 |
Other real estate owned, measurement input | 0.470 | 0.635 |
Fair Value Disclosures - Estima
Fair Value Disclosures - Estimated Fair Value of Financial Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | $ 14,842 | $ 16,844 |
Securities available for sale | 155,782 | 132,222 |
Securities held to maturity | 76,620 | 79,572 |
Securities held to maturity, fair value | 78,223 | 80,204 |
Loans held for sale | 5,927 | 3,020 |
Net loans | 1,206,757 | 874,762 |
Interest rate lock derivative | 159 | 79 |
Accrued interest receivable | 4,945 | 3,860 |
Deposits | (1,277,362) | (950,672) |
Redeemable subordinated debentures | (18,557) | (18,557) |
Accrued interest payable | (1,592) | (1,228) |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate lock derivative | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate lock derivative | 159 | 79 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest rate lock derivative | 0 | 0 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 14,842 | 16,844 |
Securities available for sale | 155,782 | 132,222 |
Securities held to maturity | 76,620 | 79,572 |
Loans held for sale | 5,927 | 3,020 |
Net loans | 1,206,757 | 874,762 |
SBA servicing asset | 930 | 991 |
Interest rate lock derivative | 159 | 79 |
Accrued interest receivable | 4,945 | 3,860 |
FHLB Stock | 4,176 | 3,929 |
Deposits | (1,277,362) | (950,672) |
Short-term borrowings | (92,050) | (71,775) |
Redeemable subordinated debentures | (18,557) | (18,557) |
Accrued interest payable | (1,592) | (1,228) |
Estimate of Fair Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 14,842 | 16,844 |
Securities available for sale | 155,782 | 132,222 |
Securities held to maturity, fair value | 78,223 | 80,204 |
Loans held for sale, fair value | 6,093 | 3,141 |
Net loans, fair value | 1,243,088 | 874,742 |
SBA servicing asset | 1,245 | 1,490 |
Interest rate lock derivative | 159 | 79 |
Accrued Interest Receivable, Fair Value | 4,945 | 3,860 |
FHLB Stock | 4,176 | 3,929 |
Deposits, fair value | (1,278,166) | (949,813) |
Short-term borrowings, fair value | (92,050) | (71,775) |
Redeemable subordinated debentures, fair value | (12,837) | (12,774) |
Accrued interest payable, fair value | (1,592) | (1,228) |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents, fair value | 14,842 | 16,844 |
Securities available for sale | 11,151 | 16,388 |
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 |
Short-term borrowings, fair value | 0 | 0 |
Redeemable subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | 0 | 0 |
Estimate of Fair Value Measurement [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 | 144,631 | 115,834 |
Securities held to maturity, fair value | 78,223 | 80,204 |
Loans held for sale, fair value | 6,093 | 3,141 |
Net loans, fair value | 0 | 0 |
SBA servicing asset | 1,245 | 1,490 |
Interest rate lock derivative | 159 | 79 |
Accrued Interest Receivable, Fair Value | 4,945 | 3,860 |
FHLB Stock | 4,176 | 3,929 |
Deposits, fair value | (1,278,166) | (949,813) |
Short-term borrowings, fair value | (92,050) | (71,775) |
Redeemable subordinated debentures, fair value | (12,837) | (12,774) |
Accrued interest payable, fair value | (1,592) | (1,228) |
Estimate of Fair Value Measurement [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 | 1,243,088 | 874,742 |
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 |
Short-term borrowings, fair value | 0 | 0 |
Redeemable subordinated debentures, fair value | 0 | 0 |
Accrued interest payable, fair value | $ 0 | $ 0 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenue within scope of Topic 606 | $ 663 | $ 638 | $ 596 | ||||||||||||
Income on BOLI | 623 | 575 | 522 | ||||||||||||
Gains on sales of loans, net | 4,885 | 4,475 | 5,149 | ||||||||||||
Loan servicing fees | 711 | 656 | 576 | ||||||||||||
Net gains on sales and calls of securities | 30 | 12 | 129 | ||||||||||||
Goodwill recorded from shore merger | 0 | 230 | 0 | ||||||||||||
Other income | 554 | 406 | 576 | ||||||||||||
Non-interest income | $ 1,995 | $ 2,206 | $ 2,170 | $ 1,866 | $ 1,836 | $ 2,154 | $ 2,043 | $ 1,885 | $ 1,930 | $ 2,112 | $ 1,785 | $ 2,413 | 8,237 | 7,918 | 8,240 |
Service Charges on Deposits, Overdraft fees [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenue within scope of Topic 606 | 368 | 343 | 300 | ||||||||||||
Service Charges On Deposits, Other [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenue within scope of Topic 606 | 295 | 295 | 296 | ||||||||||||
Interchange income [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenue within scope of Topic 606 | 460 | 405 | 347 | ||||||||||||
Other income - in scope [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenue within scope of Topic 606 | 412 | 521 | 340 | ||||||||||||
(Loss) Gain On Sale Of OREO [Member] | |||||||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||||||
Revenue within scope of Topic 606 | $ (101) | $ 0 | $ 5 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)lease | Dec. 31, 2018USD ($)lease | Dec. 31, 2017USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 37 | ||
Operating lease cost | $ | $ 2.1 | ||
Rent expense | $ | $ 1.8 | $ 1.5 | |
Weighted average remaining lease term | 15 years 2 months 12 days | ||
Weighted average discount rate | 3.33% | ||
Building [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 23 | 16 | |
Building [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term of contract | 5 years | ||
Building [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term of contract | 10 years | ||
Building, Branch Offices [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 19 | 13 | |
Building, General Office Space [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 4 | 3 | |
Land [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 4 | 2 | |
Operating lease term of contract | 25 years | ||
Office Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 12 | 13 | |
Office Equipment [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term of contract | 3 years | ||
Office Equipment [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term of contract | 5 years | ||
Automobiles [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Number of operating leases | 2 | ||
Automobiles [Member] | Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term of contract | 3 years | ||
Automobiles [Member] | Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease term of contract | 5 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating lease cost: | ||
Fixed rent expense and equipment expense | $ 2,021 | |
Short-term lease expense | 12 | |
Net lease cost | 2,033 | |
Fixed rent expense and equipment expense | $ 2,055 | |
Occupancy, Net [Member] | ||
Operating lease cost: | ||
Net lease cost | 1,778 | |
Fixed rent expense and equipment expense | 1,801 | |
Other Expense [Member] | ||
Operating lease cost: | ||
Net lease cost | $ 255 | |
Fixed rent expense and equipment expense | $ 254 |
Leases Leases - Summary of Cash
Leases Leases - Summary of Cash and Non-Cash Items (Details) (Details) - USD ($) $ in Thousands | Jan. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 1,840 | ||
Operating cash flows from operating leases | $ 2,055 | ||
Additions to ROU assets obtained from: | |||
New operating lease liabilities | $ 15,674 | $ 3,765 |
Leases - Future Payments Under
Leases - Future Payments Under Operating Leases (Details) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Operating Lease, After Adoption of 842 | ||
Due in less than one year | $ 2,070 | |
Due in one year but less than two years | 2,035 | |
Due in two years but less than three years | 2,022 | |
Due in three years but less than four years | 1,984 | |
Due in four years but less than five years | 1,847 | |
Thereafter | 15,118 | |
Total future payments | 25,076 | |
Less: Implied interest | (6,459) | |
Lease liability | $ 18,617 | |
Operating Leases, Before Adoption 842 | ||
Due in less than one year | $ 1,525 | |
Due in one year but less than two years | 1,392 | |
Due in two years but less than three years | 1,245 | |
Due in three years but less than four years | 1,008 | |
Due in four years but less than five years | 798 | |
Thereafter | 2,284 | |
Total future payments | $ 8,252 |
Parent-only Financial Informa_3
Parent-only Financial Information - Condensed Statements of Financial Condition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||||
Investment securities | $ 155,782 | $ 132,222 | ||
Other assets | 14,142 | 12,422 | ||
Total assets | 1,586,262 | 1,177,833 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Subordinated debentures | 18,557 | 18,557 | ||
Shareholders’ equity | 170,578 | 127,085 | $ 111,653 | $ 104,801 |
Total liabilities and shareholders' equity | 1,586,262 | 1,177,833 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash | 594 | 425 | ||
Investment securities | 557 | 557 | ||
Investment in subsidiary | 188,257 | 145,096 | ||
Other assets | 0 | 0 | ||
Total assets | 189,408 | 146,078 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Other liabilities | 273 | 436 | ||
Subordinated debentures | 18,557 | 18,557 | ||
Shareholders’ equity | 170,578 | 127,085 | ||
Total liabilities and shareholders' equity | $ 189,408 | $ 146,078 |
Parent-only Financial Informa_4
Parent-only Financial Information - Consolidated Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income: | |||||||||||||||
Total interest income | $ 16,748 | $ 14,874 | $ 14,553 | $ 13,915 | $ 13,754 | $ 13,783 | $ 12,881 | $ 11,055 | $ 11,227 | $ 10,811 | $ 10,142 | $ 9,483 | $ 60,090 | $ 51,473 | $ 41,663 |
Expense: | |||||||||||||||
Interest expense | 3,589 | 3,357 | 3,120 | 2,688 | 2,415 | 2,387 | 1,863 | 1,376 | 1,418 | 1,451 | 1,340 | 1,289 | 12,754 | 8,041 | 5,498 |
Total Expense | 3,589 | 3,357 | 3,120 | 2,688 | 2,415 | 2,387 | 1,863 | 1,376 | 1,418 | 1,451 | 1,340 | 1,289 | 12,754 | 8,041 | 5,498 |
Income before income taxes | 4,401 | 4,937 | 4,637 | 4,699 | 4,655 | 5,431 | 2,585 | 3,694 | 3,525 | 3,713 | 2,760 | 2,801 | 18,674 | 16,365 | 12,799 |
Income tax benefit | 1,157 | 1,314 | 1,267 | 1,302 | 1,342 | 1,420 | 714 | 841 | 2,951 | 1,227 | 841 | 852 | 5,040 | 4,317 | 5,871 |
Net Income | $ 3,244 | $ 3,623 | $ 3,370 | $ 3,397 | $ 3,313 | $ 4,011 | $ 1,871 | $ 2,853 | $ 574 | $ 2,486 | $ 1,919 | $ 1,949 | 13,634 | 12,048 | 6,928 |
Comprehensive income | 15,658 | 10,951 | 6,901 | ||||||||||||
Parent Company [Member] | |||||||||||||||
Income: | |||||||||||||||
Interest income | 0 | 0 | 16 | ||||||||||||
Dividend income from subsidiary | 3,369 | 2,830 | 1,826 | ||||||||||||
Total interest income | 3,369 | 2,830 | 1,842 | ||||||||||||
Expense: | |||||||||||||||
Interest expense | 748 | 694 | 535 | ||||||||||||
Total Expense | 748 | 694 | 535 | ||||||||||||
Income before income taxes | 2,621 | 2,136 | 1,307 | ||||||||||||
Income tax benefit | (155) | (146) | (177) | ||||||||||||
Income before equity in undistributed income of subsidiaries | 2,776 | 2,282 | 1,484 | ||||||||||||
Equity in undistributed income of subsidiaries | 10,858 | 9,766 | 5,444 | ||||||||||||
Net Income | 13,634 | 12,048 | 6,928 | ||||||||||||
Equity in other comprehensive income (loss) of subsidiaries | 2,024 | (1,097) | (27) | ||||||||||||
Comprehensive income | $ 15,658 | $ 10,951 | $ 6,901 |
Parent-only Financial Informa_5
Parent-only Financial Information - Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Activities: | |||||||||||||||
Net income | $ 3,244 | $ 3,623 | $ 3,370 | $ 3,397 | $ 3,313 | $ 4,011 | $ 1,871 | $ 2,853 | $ 574 | $ 2,486 | $ 1,919 | $ 1,949 | $ 13,634 | $ 12,048 | $ 6,928 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||
Decrease (increase) in other assets | 511 | (1,589) | (181) | ||||||||||||
Net cash provided by operating activities | 13,262 | 17,328 | 21,892 | ||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||
Net cash used in investing activities | (109,949) | (9,924) | (51,521) | ||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||
Cash dividend paid | (2,593) | (2,120) | (1,690) | ||||||||||||
Exercise of stock options | 149 | 88 | 247 | ||||||||||||
Net cash provided by (used in) financing activities | 94,685 | (9,314) | 33,497 | ||||||||||||
(Decrease) increase in cash and cash equivalents | (2,002) | (1,910) | 3,868 | ||||||||||||
Cash and cash equivalents at beginning of year | 16,844 | 18,754 | 14,886 | 16,844 | 18,754 | 14,886 | |||||||||
Cash and cash equivalents at end of year | 14,842 | 16,844 | 18,754 | 14,842 | 16,844 | 18,754 | |||||||||
Parent Company [Member] | |||||||||||||||
Operating Activities: | |||||||||||||||
Net income | 13,634 | 12,048 | 6,928 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||
Decrease (increase) in other assets | 0 | 2,520 | (68) | ||||||||||||
Increase (decrease) in other liabilities | (163) | 407 | (16) | ||||||||||||
Equity in undistributed income of subsidiaries | (10,858) | (9,766) | (5,444) | ||||||||||||
Net cash provided by operating activities | 2,613 | 5,209 | 1,400 | ||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||
Investment in subsidiary | 0 | 0 | (130) | ||||||||||||
Cash paid for NJCB merger | 0 | (3,069) | |||||||||||||
Net cash used in investing activities | 0 | (3,069) | (130) | ||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||
Cash dividend paid | (2,593) | (2,120) | (1,690) | ||||||||||||
Exercise of stock options | 149 | 88 | 247 | ||||||||||||
Purchase of treasury stock, net | 0 | 0 | 0 | ||||||||||||
Net cash provided by (used in) financing activities | (2,444) | (2,032) | (1,443) | ||||||||||||
(Decrease) increase in cash and cash equivalents | 169 | 108 | (173) | ||||||||||||
Cash and cash equivalents at beginning of year | $ 425 | $ 317 | $ 490 | 425 | 317 | 490 | |||||||||
Cash and cash equivalents at end of year | $ 594 | $ 425 | $ 317 | $ 594 | $ 425 | $ 317 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||
Interest income | $ 16,748 | $ 14,874 | $ 14,553 | $ 13,915 | $ 13,754 | $ 13,783 | $ 12,881 | $ 11,055 | $ 11,227 | $ 10,811 | $ 10,142 | $ 9,483 | $ 60,090 | $ 51,473 | $ 41,663 |
Interest expense | 3,589 | 3,357 | 3,120 | 2,688 | 2,415 | 2,387 | 1,863 | 1,376 | 1,418 | 1,451 | 1,340 | 1,289 | 12,754 | 8,041 | 5,498 |
Net interest income | 13,159 | 11,517 | 11,433 | 11,227 | 11,339 | 11,396 | 11,018 | 9,679 | 9,809 | 9,360 | 8,802 | 8,194 | 47,336 | 43,432 | 36,165 |
Provision for loan losses | 300 | 350 | 400 | 300 | 225 | 225 | 225 | 225 | 150 | 150 | 150 | 150 | 1,350 | 900 | 600 |
Net interest income after provision for loan losses | 12,859 | 11,167 | 11,033 | 10,927 | 11,114 | 11,171 | 10,793 | 9,454 | 9,659 | 9,210 | 8,652 | 8,044 | 45,986 | 42,532 | 35,565 |
Non-interest income | 1,995 | 2,206 | 2,170 | 1,866 | 1,836 | 2,154 | 2,043 | 1,885 | 1,930 | 2,112 | 1,785 | 2,413 | 8,237 | 7,918 | 8,240 |
Non-interest expense | 10,453 | 8,436 | 8,566 | 8,094 | 8,295 | 7,894 | 10,251 | 7,645 | 8,064 | 7,609 | 7,677 | 7,656 | 35,549 | 34,085 | 31,006 |
Income before income taxes | 4,401 | 4,937 | 4,637 | 4,699 | 4,655 | 5,431 | 2,585 | 3,694 | 3,525 | 3,713 | 2,760 | 2,801 | 18,674 | 16,365 | 12,799 |
Income taxes | 1,157 | 1,314 | 1,267 | 1,302 | 1,342 | 1,420 | 714 | 841 | 2,951 | 1,227 | 841 | 852 | 5,040 | 4,317 | 5,871 |
Net Income | $ 3,244 | $ 3,623 | $ 3,370 | $ 3,397 | $ 3,313 | $ 4,011 | $ 1,871 | $ 2,853 | $ 574 | $ 2,486 | $ 1,919 | $ 1,949 | $ 13,634 | $ 12,048 | $ 6,928 |
Earnings per common share: | |||||||||||||||
Basic (in Dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.39 | $ 0.48 | $ 0.22 | $ 0.35 | $ 0.07 | $ 0.31 | $ 0.24 | $ 0.24 | $ 1.54 | $ 1.45 | $ 0.86 |
Diluted (in Dollars per share) | $ 0.34 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.38 | $ 0.46 | $ 0.22 | $ 0.34 | $ 0.07 | $ 0.30 | $ 0.23 | $ 0.23 | $ 1.53 | $ 1.40 | $ 0.83 |