Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 02, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | SELECT BANCORP, INC. | |
Entity Central Index Key | 0001263762 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Trading Symbol | SLCT | |
Entity Common Stock, Shares Outstanding | 19,326,485 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
ASSETS | |||
Cash and due from banks | $ 15,586 | $ 17,059 | |
Interest-earning deposits in other banks | 44,894 | 121,303 | |
Certificates of deposit | 1,000 | 1,000 | |
Federal funds sold | 9,809 | 0 | |
Investment securities available for sale, at fair value | 86,727 | 51,533 | |
Loans held for sale | 354 | 580 | |
Loans | 991,801 | 986,040 | |
Allowance for loan losses | (8,510) | (8,669) | |
NET LOANS | 983,291 | 977,371 | |
Accrued interest receivable | 4,120 | 3,889 | |
Stock in Federal Home Loan Bank of Atlanta ("FHLB"), at cost | 3,342 | 3,283 | |
Other non-marketable securities | 738 | 762 | |
Foreclosed real estate | 1,046 | 1,088 | |
Premises and equipment, net | 17,715 | 17,920 | |
Right of use lease asset | 8,750 | 0 | |
Bank owned life insurance | 29,282 | 29,117 | |
Goodwill | 24,579 | 24,579 | |
Core deposit intangible ("CDI") | 1,866 | 2,085 | |
Assets held for sale | 668 | 668 | |
Other assets | 8,310 | 6,288 | |
TOTAL ASSETS | 1,242,077 | 1,258,525 | |
Deposits: | |||
Demand | 240,262 | 247,007 | |
Savings | 48,080 | 51,811 | |
Money market and NOW | 262,169 | 254,482 | |
Time | 400,455 | 427,127 | |
TOTAL DEPOSITS | 950,966 | 980,427 | |
Short-term debt | 7,000 | 7,000 | |
Long-term debt | 57,372 | 57,372 | |
Lease liability | 8,842 | 0 | |
Accrued interest payable | 519 | 667 | |
Accrued expenses and other liabilities | 3,927 | 3,448 | |
TOTAL LIABILITIES | 1,028,626 | 1,048,914 | |
Shareholders' Equity: | |||
Preferred stock, no par value, 5,000,000 shares authorized; 0 shares issued and outstanding at March 31, 2019 and December 31, 2018 | 0 | 0 | |
Common stock, $1.00 par value, 25,000,000 shares authorized; 19,326,485 and 19,311,505 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively | 19,326 | 19,312 | |
Additional paid-in capital | 150,877 | 150,718 | |
Retained earnings | 42,947 | 39,640 | |
Common stock issued to deferred compensation trust, at cost; 306,195 and 303,239 shares outstanding at March 31, 2019 and December 31, 2018, respectively | (2,652) | (2,615) | |
Directors' Deferred Compensation Plan Rabbi Trust | 2,652 | 2,615 | |
Accumulated other comprehensive income (loss) | 301 | (59) | |
TOTAL SHAREHOLDERS' EQUITY | 213,451 | 209,611 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,242,077 | $ 1,258,525 | |
[1] | Derived from audited consolidated financial statements. |
CONSOLIDATED BALANCE SHEETS _Pa
CONSOLIDATED BALANCE SHEETS [Parenthetical] - $ / shares | Mar. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 19,326,485 | 19,311,505 |
Common stock, shares outstanding | 19,326,485 | 19,311,505 |
Deferred Compensation, Share-based Payments [Member] | ||
Common stock, shares outstanding | 306,195 | 303,239 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
INTEREST INCOME | ||
Loans | $ 13,042 | $ 13,157 |
Federal funds sold and interest-earning deposits in other banks | 543 | 211 |
Investments | 465 | 354 |
TOTAL INTEREST INCOME | 14,050 | 13,722 |
INTEREST EXPENSE | ||
Money market, NOW and savings deposits | 356 | 314 |
Time deposits | 1,753 | 1,354 |
Short-term debt | 26 | 129 |
Long-term debt | 458 | 221 |
TOTAL INTEREST EXPENSE | 2,593 | 2,018 |
NET INTEREST INCOME | 11,457 | 11,704 |
PROVISION FOR LOAN LOSSES | 112 | 141 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,345 | 11,563 |
NON-INTEREST INCOME | ||
Fees on the sale of mortgages | 157 | 26 |
Service charges on deposit accounts | 266 | 276 |
Other fees and income | 774 | 863 |
TOTAL NON-INTEREST INCOME | 1,197 | 1,165 |
NON-INTEREST EXPENSE | ||
Personnel | 4,971 | 4,741 |
Occupancy and equipment | 727 | 888 |
Deposit insurance | 105 | 165 |
Professional fees | 382 | 270 |
CDI amortization | 219 | 275 |
Merger/acquisition related expenses | 0 | 1,826 |
Information systems | 789 | 1,002 |
Foreclosure-related expenses | 30 | 12 |
Other | 1,081 | 1,105 |
TOTAL NON-INTEREST EXPENSE | 8,304 | 10,284 |
INCOME BEFORE INCOME TAX | 4,238 | 2,444 |
INCOME TAXES | 931 | 547 |
NET INCOME | $ 3,307 | $ 1,897 |
NET INCOME PER COMMON SHARE | ||
Basic | $ 0.17 | $ 0.14 |
Diluted | $ 0.17 | $ 0.13 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING | ||
Basic | 19,315,686 | 14,011,707 |
Diluted | 19,365,354 | 14,081,776 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Net income | $ 3,307 | $ 1,897 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on investment securities available for sale | 467 | (536) |
Tax effect | (107) | 126 |
Other Comprehensive Income (Loss), Reclassification Adjustment for Sale of Securities Included in Net Income, Net of Tax | 360 | (410) |
Total comprehensive income | $ 3,667 | $ 1,487 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional paid-in Capital [Member] | Retained Earnings [Member] | Common Stock Issued to Deferred Compensation Trust [Member] | Deferred Comp Plan [Member] | Accumulated Other Comprehensive Income [Member] |
Balance at Dec. 31, 2017 | $ 136,115 | $ 0 | $ 14,009 | $ 95,850 | $ 25,858 | $ (2,518) | $ 2,518 | $ 398 |
Balance (in shares) at Dec. 31, 2017 | 0 | 14,009,137 | ||||||
Net income | 1,897 | $ 0 | $ 0 | 0 | 1,897 | 0 | 0 | 0 |
Other comprehensive income (loss) | (410) | 0 | 0 | 0 | 0 | 0 | 0 | (410) |
Stock option exercises | 26 | $ 0 | $ 5 | 21 | 0 | 0 | 0 | 0 |
Stock option exercises (in shares) | 0 | 4,780 | ||||||
Stock based compensation | 45 | $ 0 | $ 0 | 45 | 0 | 0 | 0 | 0 |
Directors' equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | 41 | (41) | 0 |
Balance at Mar. 31, 2018 | 137,673 | $ 0 | $ 14,014 | 95,916 | 27,755 | (2,477) | 2,477 | (12) |
Balance (in shares) at Mar. 31, 2018 | 0 | 14,013,917 | ||||||
Balance at Dec. 31, 2018 | 209,611 | $ 0 | $ 19,312 | 150,718 | 39,640 | (2,615) | 2,615 | (59) |
Balance (in shares) at Dec. 31, 2018 | 0 | 19,311,505 | ||||||
Net income | 3,307 | $ 0 | $ 0 | 0 | 3,307 | 0 | 0 | 0 |
Other comprehensive income (loss) | 360 | 0 | 0 | 0 | 0 | 0 | 0 | 360 |
Stock option exercises | 114 | $ 0 | $ 14 | 100 | 0 | 0 | 0 | 0 |
Stock option exercises (in shares) | 0 | 14,980 | ||||||
Stock based compensation | 59 | $ 0 | $ 0 | 59 | 0 | 0 | 0 | 0 |
Directors' equity incentive plan, net | 0 | 0 | 0 | 0 | 0 | 37 | (37) | 0 |
Balance at Mar. 31, 2019 | $ 213,451 | $ 0 | $ 19,326 | $ 150,877 | $ 42,947 | $ (2,652) | $ 2,652 | $ 301 |
Balance (in shares) at Mar. 31, 2019 | 0 | 19,326,485 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 3,307 | $ 1,897 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for loan losses | 112 | 141 |
Depreciation and amortization of premises and equipment | 622 | 444 |
Amortization and accretion of investment securities | 142 | 170 |
Amortization of deferred loan fees and costs | (217) | (155) |
Amortization of core deposit intangible | 219 | 275 |
Stock-based compensation | 59 | 45 |
Accretion on acquired loans | (200) | (938) |
Amortization of acquisition premium on time deposits | 0 | (80) |
Net accretion of acquisition discount on borrowings | 0 | (5) |
Increase in cash surrender value of bank owned life insurance | (165) | (169) |
Proceeds from loans held for sale | 6,667 | (2,365) |
Originations of loans held for sale | (6,284) | 1,995 |
Loss (gain) on sales of loans held for sale | (157) | 26 |
Net loss on sale and write-downs of foreclosed real estate | 3 | 11 |
Loss on sale of premises and equipment | 0 | 49 |
Write-down on assets held for sale | 0 | 50 |
Change in assets and liabilities: | ||
Net change in accrued interest receivable | (231) | 234 |
Net change in other assets | (2,016) | 2,068 |
Net change in accrued expenses and other liabilities | 481 | (11,473) |
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES | 2,342 | (7,780) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of FHLB stock | (59) | (1,184) |
Redemption of non-marketable security | 24 | 114 |
Purchase of investment securities available for sale | (37,948) | 0 |
Maturities of investment securities available for sale | 0 | 100 |
Mortgage-backed securities pay-downs | 3,079 | 3,642 |
Net change in loans outstanding | (5,641) | 5,085 |
Proceeds from sale of foreclosed real estate | 65 | 62 |
Net purchases of premises and equipment | (417) | (408) |
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | (40,897) | 7,411 |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net change in deposits | (29,461) | 14,517 |
Proceeds from short-term debt | 0 | 3,899 |
Proceeds from long-term debt | 0 | 20,000 |
Repayments of lease liability | (171) | 0 |
Proceeds from issuance of common stock | 114 | 26 |
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES | (29,518) | 38,442 |
NET CHANGE IN CASH AND CASH EQUIVALENTS | (68,073) | 38,073 |
CASH AND CASH EQUIVALENTS, BEGINNING | 139,362 | 62,695 |
CASH AND CASH EQUIVALENTS, ENDING | 71,289 | 100,768 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid during the period for: Interest | 2,741 | 1,946 |
Cash paid during the period for: Taxes | 0 | 0 |
Non-cash transactions: | ||
Unrealized gains (losses) on investment securities available for sale, net of tax | 360 | (410) |
Transfers from loans to foreclosed real estate | $ 26 | $ 340 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | NOTE A - BASIS OF PRESENTATION Select Bancorp, Inc. (the “Company”) is a bank holding company whose principal business activity consists of ownership of Select Bank & Trust Company (referred to as the “Bank”). In 2004, the Company formed New Century Statutory Trust I, which issued trust preferred securities to provide additional capital for general corporate purposes, including the current and future expansion of the Company. New Century Statutory Trust I is not a consolidated subsidiary of the Company. On July 25, 2014, the Company changed its name from New Century Bancorp, Inc. to Select Bancorp, Inc. following its acquisition by merger of Select Bancorp, Inc., Greenville, NC (which we refer to herein as “Legacy Select”). The Company is subject to the rules and regulations of the Board of Governors of the Federal Reserve System and the North Carolina Commissioner of Banks. The Bank was originally incorporated as New Century Bank on May 19, 2000 and began banking operations on May 24, 2000. On July 25, 2014, the Company acquired Select Bank & Trust Company, Greenville, North Carolina, and changed the Bank’s legal name to Select Bank & Trust Company. On December 15, 2017, the Company acquired Premara Financial, Inc. (“Premara”) and its subsidiary Carolina Premier Bank (“Carolina Premier”) through the merger of Premara with and into the Company, followed immediately by the merger of Carolina Premier with and into the Bank. The Bank continues as the only banking subsidiary of the Company with its headquarters and operations center located in Dunn, NC. The Bank is engaged in general commercial and retail banking in central and eastern North Carolina, as well as in Charlotte, North Carolina and northwest South Carolina. The Bank is subject to the supervision and regulation of the Federal Deposit Insurance Corporation and the North Carolina Commissioner of Banks. All significant inter-company transactions and balances have been eliminated in consolidation. In management’s opinion, the financial information, which is unaudited, reflects all adjustments (consisting solely of normal recurring adjustments) necessary for a fair presentation of the financial information as of and for the three months ended March 31, 2019 and 2018, in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The preparation of consolidated financial statements requires management to make estimates and assumptions that affect reported amounts of assets and liabilities at the date of the financial statements, as well as the amounts of income and expense during the reporting period. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2019. The organization and business of the Company, accounting policies followed by the Company and other relevant information are contained in the notes to the financial statements filed as part of the Company’s 2018 Annual Report on Form 10-K, filed with the Securities and Exchange Commission (“SEC”) on March 15, 2019. This quarterly report should be read in conjunction with the Annual Report. Certain reclassifications of the information in prior periods were made to conform to the March 31, 2019 presentation. Such reclassifications had no effect on shareholders’ equity or net income as previously reported. |
PER SHARE RESULTS
PER SHARE RESULTS | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | NOTE B - PER SHARE RESULTS Basic net income per share is computed based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the dilutive effect of stock options outstanding during the period. At March 31, 2019 and 2018 there were 168,120 and 121,300 anti-dilutive options outstanding, respectively. Three Months Ended March 31, 2019 2018 Weighted average shares used for basic net income per share 19,315,686 14,011,707 Effect of dilutive stock options 49,668 70,069 Weighted average shares used for diluted net income per share 19,365,354 14,081,776 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Recent Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | NOTE C - RECENT ACCOUNTING PRONOUNCEMENTS The following summarizes recent accounting pronouncements and their expected impact on the Company: In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 applies a right-of-use (“ROU”) model that requires a lessee to record, for all leases with a lease term of more than 12 months, an asset representing its right to use the underlying asset and a liability to make lease payments. For leases with a term of 12 months or less, a practical expedient is available whereby a lessee may elect, by class of underlying asset, not to recognize an ROU asset or lease liability. At inception, lessees must classify all leases as either finance or operating based on five criteria. Balance sheet recognition of finance and operating leases is similar, but the pattern of expense recognition in the income statement, as well as the effect on the statement of cash flows, differs depending on the lease classification. For public business entities, the amendments in ASU 2016-02 are effective for interim and annual periods beginning after December 15, 2018. The Company adopted this standard during the first quarter of 2019. The impact was an increase to the Consolidated Balance Sheet for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and expense of the lease liabilities in the Consolidated Statements of Income. Additionally, adding these assets to the balance sheet impacted total risk-weighted assets used to determine the regulatory capital levels. In July 2018, the FASB amended the Leases Topic of the Accounting Standards Codification to make narrow amendments to clarify how to apply certain aspects of the new standard. The amendments are effective for reporting periods beginning after December 15, 2018 . The Company elected to apply ASU 2016-02 as of the beginning of the period of adoption (January 1, 2019) and will not restate comparative periods. Adoption of ASU 2016-02 resulted in the recognition of lease liabilities totaling $9,013,900 and the recognition of right-of-use assets totaling $9,013,900 as of the date of adoption. The adoption of this standard did not impact beginning retained earnings. Total risk-based capital was adversely impacted by 13 basis points due to the increase in risk-weighted assets, see Note J. Lease liabilities and right-of-use assets are reflected in other liabilities and other assets, respectively. The initial balance sheet gross up upon adoption was primarily related to operating leases of certain real estate properties. The Company has no finance leases or material subleases or leasing arrangements for which it is the lessor of property or equipment. The Company has elected to apply the package of practical expedients allowed by the new standard under which the Company need not reassess whether any expired or existing contracts are leases or contain leases, the Company need not reassess the lease classification for any expired or existing lease, and the Company need not reassess initial direct costs for any existing leases. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss ("CECL") model to estimate its lifetime "expected credit loss" and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. Entities will apply the standard's provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company has dedicated staff and resources in place evaluating the Company’s options including evaluating the appropriate model options and collecting and reviewing loan data for use in these models. The Company is still assessing the impact that this new guidance will have on its consolidated financial statements. In August 2018, the FASB amended ASU 2018-13 - Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement topic of the Accounting Standards Codification. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements . The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. The Company does not expect these amendments to have a material effect on its consolidated financial statements. From time to time, the FASB issues exposure drafts for proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | NOTE D - FAIR VALUE MEASUREMENTS Accounting Standards Codification (“ASC”) 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. Fair value estimates are made at a specific moment in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no active market readily exists for a portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value: Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: · Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. · Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market. · Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. The following is a description of valuation methodologies used for assets and liabilities recorded at fair value on a recurring basis. Investment Securities Available-for-Sale (“AFS”) Investment securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter markets and money market funds. Level 2 securities include U.S. government agencies, mortgage-backed securities issued by government sponsored entities, and municipal bonds. There have been no changes in valuation techniques for the three months ended March 31, 2019. Valuation techniques are consistent with techniques used in prior periods. The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable March 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies- GSE’s $ 11,937 $ - $ 11,937 $ - Mortgage-backed securities-GSE’s 56,118 - 56,118 - Corporate bonds 1,638 - 1,638 - Municipal bonds 17,034 - 17,034 - Total investment for sale $ 86,727 $ - $ 86,727 $ - Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2018 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies- GSE’s $ 9,837 $ - $ 9,837 $ - Mortgage-backed securities-GSE’s 22,983 - 22,983 - Corporate bonds 1,722 - 1,722 - Municipal bonds 16,991 - 16,991 - Total investment for sale $ 51,533 $ - $ 51,533 $ - The following is a description of valuation methodologies used for assets recorded at fair value on a non-recurring basis. Impaired Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve in the allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, “Receivables”. The fair value of impaired loans is estimated using one of several methods, including collateral value, market value of similar debt, enterprise value, or liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2019 and December 31, 2018, substantially all of the total impaired loans were evaluated based on the fair value of the collateral. Impaired loans where a specific reserve is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the impaired loan as non-recurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as non-recurring Level 3. The significant unobservable input used in the fair value measurement of the Company’s impaired loans is the discount applied to appraised values to account for expected liquidation and selling costs. At March 31, 2019, the discounts used are weighted between 5% and 50%. There were no transfers between levels from the prior reporting periods and there have been no changes in valuation techniques for the three months ended March 31, 2019. Foreclosed Real Estate Foreclosed real estate are properties recorded at the balance of the loan or an estimated fair value of the real estate collateral less estimated selling costs, whichever is less. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market. Therefore, foreclosed real estate is classified within Level 3 of the hierarchy. The significant unobservable input used in the fair value measurement of the Company’s foreclosed real estate is the discount applied to appraised values to account for expected liquidation and selling costs. At March 31, 2019, the discounts used ranged between 6% and 10%. There have been no changes in valuation techniques for the three months ended March 31, 2019. Assets held for sale During 2015, a branch facility was taken out of service as part of the Company’s branch restructuring plan and reclassified as held for sale. The property is recorded at the remaining book balance of the asset or an estimated fair value less estimated selling costs, whichever is less. Inputs include appraised values on the properties or recent sales activity for similar assets in the property’s market. The significant unobservable input used is the discount applied to appraised values to account for expected liquidation and selling costs ranged between 1% and 25% at March 31, 2019 and December 31, 2018. There have been no changes in the valuation techniques for the three months ended March 31, 2019. Loans held for sale The Company originates fixed and variable rate residential mortgage loans on a service release basis in the secondary market. Loans closed but not yet settled with an investor are carried in our loans held for sale portfolio. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with our customers. Therefore, these loans present very little market risk. The Company usually delivers to, and receives funding from, the investor within 30 to 60 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. Because of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is materially the same as the value of the loan amount at its origination . Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations as a component of mortgage banking income. Gains or losses on sales of loans are recognized when control over these assets are surrendered and are included in mortgage banking income in the consolidated statements of income. The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a non-recurring basis as of March 31, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable March 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,337 $ - $ - $ 6,337 Loans held for sale 354 - 354 - Assets held for sale 668 - - 668 Foreclosed real estate 1,046 - - 1,046 Total $ 8,405 $ - $ 354 $ 8,051 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2018 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 7,257 $ - $ - $ 7,257 Loans held for sale 580 - 580 - Assets held for sale 668 - - 668 Foreclosed real estate 1,088 - - 1,088 Total $ 9,593 $ - $ 580 $ 9,013 The following table presents the carrying values and estimated fair values of the Company's financial instruments at March 31, 2019 and December 31, 2018: March 31, 2019 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 15,586 $ 15,586 $ 15,586 $ - $ - Certificates of deposit 1,000 1,000 1,000 - - Interest-earning deposits in other banks 44,894 44,894 44,894 - - Federal funds sold 9,809 9,809 9,809 - - Investment securities available for sale 86,727 86,727 - 86,727 - Loans held for sale 354 354 354 - Loans, net 983,291 975,395 - - 975,395 Accrued interest receivable 4,120 4,120 - 4,120 - Stock in FHLB 3,342 3,342 - - 3,342 Other non-marketable securities 738 738 - - 738 Financial liabilities: Deposits $ 950,966 $ 952,022 $ - $ 952,022 $ - Short-term debt 7,000 7,000 - 7,000 - Long-term debt 57,372 55,878 - 55,878 - Accrued interest payable 519 519 - 519 - December 31, 2018 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 17,059 $ 17,059 $ 17,059 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 121,303 121,303 121,303 - - Investment securities available for sale 51,533 51,533 - 51,533 - Loans held for sale 580 580 - 580 - Loans, net 977,371 970,330 - - 970,330 Accrued interest receivable 3,889 3,889 - 3,889 - Stock in the FHLB 3,283 3,283 - - 3,283 Other non-marketable securities 762 762 - - 762 Assets held for sale 668 668 - - 668 Financial liabilities: Deposits $ 980,427 $ 979,570 $ - $ 979,570 $ - Short-term debt 7,000 7,000 - 7,000 - Long-term debt 57,372 55,504 - 55,504 - Accrued interest payable 667 667 - 667 - |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | NOTE E - INVESTMENT SECURITIES The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 11,808 $ 151 $ (22 ) $ 11,937 Mortgage-backed securities GSE’s 56,064 167 (113 ) 56,118 Corporate bonds 1,617 21 - 1,638 Municipal bonds 16,846 190 (2 ) 17,034 $ 86,335 $ 529 $ (137 ) $ 86,727 As of March 31, 2019, accumulated other comprehensive income included net unrealized gains totaling $392,000. Deferred tax assets resulting from these net unrealized losses totaled $91,000. The amortized cost and fair value of available for sale (“AFS”) investments, with gross unrealized gains and losses, follow: December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 9,852 $ 36 $ (51 ) $ 9,837 Mortgage-backed securities GSE’s 23,150 62 (229 ) 22,983 Corporate bonds 1,697 25 - 1,722 Municipal bonds 16,910 105 (24 ) 16,991 $ 51,609 $ 228 $ (304 ) $ 51,533 As of December 31, 2018, accumulated other comprehensive income included net unrealized losses totaling $76,000. Deferred tax liabilities resulting from these net unrealized gains totaled $17,000. The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 5,174 $ 15 $ - $ 5,189 After 1 year but within 5 years 34,438 203 (126 ) 34,515 After 5 years but within 10 years 27,940 130 (10 ) 28,060 After 10 years 18,783 181 (1 ) 18,963 $ 86,335 $ 529 $ (137 ) $ 86,727 December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 3,275 $ 13 $ - $ 3,288 After 1 year but within 5 years 32,862 96 (252 ) 32,706 After 5 years but within 10 years 6,551 48 (29 ) 6,570 After 10 years 8,921 71 (23 ) 8,969 $ 51,609 $ 228 $ (304 ) $ 51,533 Securities with a carrying value of $6.1 million and $6.4 million at March 31, 2019 and December 31, 2018, respectively, were pledged to secure public monies on deposit as required by law, customer repurchase agreements, and access to the Federal Reserve Discount Window. None of the unrealized losses relate to the liquidity of the securities or the issuer’s ability to honor redemption obligations. The Company has the intent and ability to hold these securities to recovery. No other than temporary impairments were identified for these investments having unrealized losses for the periods ended March 31, 2019 and December 31, 2018. The Company has not incurred any losses related to securities sales in the first three months of 2019 or during the year ended December 31, 2018. The following tables show the gross unrealized losses and fair value of the Company’s investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018. March 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies- GSEs $ - $ - $ 3,026 $ (22 ) $ 3,026 $ (22 ) Mortgage-backed securities- GSEs 10,044 (13 ) 11,858 (100 ) 21,902 (113 ) Municipal bonds - - 1,301 (2 ) 1,301 (2 ) Total temporarily impaired securities $ 10,044 $ (13 ) $ 16,185 $ (124 ) $ 26,229 $ (137 ) At March 31, 2019, the Company had twenty-two securities with an unrealized loss for more than twelve months of $124,000 which consisted of five U.S. government agencies-GSEs, fourteen mortgage-backed GSEs and three municipal bonds. Three mortgage-backed GSEs had unrealized losses for less than twelve months totaling $13,000 at March 31, 2019. All unrealized losses are attributable to the general trend of interest rates. There were no sales of investment securities during the first quarter of 2019. December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies- GSEs $ 1,224 $ (6 ) $ 4,086 $ (45 ) $ 5,310 $ (51 ) Mortgage-backed securities-GSEs 200 - 16,932 (229 ) 17,132 (229 ) Corporate bonds - - - - - - Municipal bonds 1,007 (2 ) 1,740 (22 ) 2,747 (24 ) Total temporarily impaired securities $ 2,431 $ (8 ) $ 22,758 $ (296 ) $ 25,189 $ (304 ) At December 31, 2018, the Company had twenty-four AFS mortgage-backed GSE’s, four municipals and six U.S Government agencies – GSE’s with an unrealized loss for twelve or more consecutive months totaling $296,000. The Company had six AFS securities with a loss for twelve months or less. Three U.S. government agency GSE’s, two municipals and one mortgage-backed GSE had unrealized losses for less than twelve months totaling $8,000 at December 31, 2018. All unrealized losses are attributable to the general trend of interest rates and the abnormal spreads of all debt instruments to U.S. Treasury securities. There were no sales of investment securities available for sale during 2018. |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE F - LOANS Following is a summary of the composition of the Company’s loan portfolio at March 31, 2019 and December 31, 2018: March 31, December 31, Total Loans: 2019 2018 Percent Percent Amount of total Amount of total (dollars in thousands) Real estate loans: 1-to-4 family residential $ 156,732 15.80 % $ 159,597 16.19 % Commercial real estate 458,488 46.23 % 457,611 46.41 % Multi-family residential 57,230 5.77 % 63,459 6.44 % Construction 181,162 18.26 % 170,404 17.28 % Home equity lines of credit (“HELOC”) 48,760 4.92 % 49,713 5.04 % Total real estate loans 902,372 90.98 % 900,784 91.36 % Other loans: Commercial and industrial 79,729 8.04 % 74,181 7.52 % Loans to individuals 11,338 1.14 % 12,597 1.28 % Overdrafts 92 0.01 % 217 0.02 % Total other loans 91,159 9.19 % 86,995 8.82 % Gross loans 993,531 987,779 Less deferred loan origination fees, net (1,730 ) (0.17 )% (1,739 ) (0.18 )% Total loans 991,801 100.00 % 986,040 100.00 % Allowance for loan losses (8,510 ) (8,669 ) Total loans, net $ 983,291 $ 977,371 For Purchased Credit Impaired, or PCI loans, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of March 31, 2019 and December 31, 2018 were: (dollars in thousands) March 31, 2019 December 31, 2018 Contractually required payments $ 24,366 $ 24,823 Nonaccretable difference 1,842 1,962 Cash flows expected to be collected 22,524 22,861 Accretable yield 3,721 3,593 Carrying value $ 18,803 $ 19,268 Loans are primarily secured by real estate located in eastern and central North Carolina and northwestern South Carolina. Real estate loans can be affected by the condition of the local real estate market and by local economic conditions. At March 31, 2019, the Company had pre-approved but unused lines of credit for customers totaling $176.8 million. In management’s opinion, these commitments, and undisbursed proceeds on loans reflected above, represent no more than normal lending risk to the Company and will be funded from normal sources of liquidity. A floating lien of $138.1 million of loans was pledged to the FHLB to secure borrowings at March 31, 2019. The following tables present an age analysis of past due loans, segregated by class of loans as of March 31, 2019 and December 31, 2018, respectively: March 31, 2019 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Commercial and industrial $ 36 $ 452 $ 1,340 $ 2,652 $ 4,480 $ 75,249 $ 79,729 Construction 31 1,799 70 543 2,443 178,719 181,162 Multi-family residential - - - - - 57,230 57,230 Commercial real estate 254 829 313 1,867 3,263 455,225 458,488 Loans to individuals & overdrafts 12 - - 29 41 11,389 11,430 1-to-4 family residential 594 75 1,423 266 2,358 154,374 156,732 HELOC 13 - - 980 993 47,767 48,760 Deferred loan (fees) cost, net - - - - - - (1,730 ) $ 940 $ 3,155 $ 3,146 $ 6,337 $ 13,578 $ 979,953 $ 991,801 December 31, 2018 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Commercial and industrial $ 27 $ 203 $ 1,665 $ 4,170 $ 6,065 $ 68,116 $ 74,181 Construction - - 69 587 656 169,748 170,404 Multi-family residential - - - - - 63,459 63,459 Commercial real estate 103 483 - 1,074 1,660 455,951 457,611 Loans to individuals & overdrafts 1 24 - - 25 12,789 12,814 1-to-4 family residential 502 505 1,433 386 2,826 156,771 159,597 HELOC - 43 - 1,040 1,083 48,630 49,713 Deferred loan (fees) cost, net - - - - - - (1,739 ) $ 633 $ 1,258 $ 3,167 $ 7,257 $ 12,315 $ 975,464 $ 986,040 Impaired Loans The following tables present information on loans that were considered to be impaired as of March 31, 2019 and December 31, 2018: Three months ended As of March 31, 2019 March 31, 2019 Contractual Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 2,584 $ 2,788 $ - $ 3,853 $ 4 Construction 465 525 - 552 5 Commercial real estate 6,008 7,251 - 5,843 66 Multi-family residential 211 211 - 213 3 Loans to individuals 117 121 - 109 - HELOC 857 1,060 - 957 15 1-to-4 family residential 648 1,196 - 990 16 Subtotal: 10,890 13,152 - 12,517 109 With an allowance recorded: Commercial and industrial 183 239 75 232 6 Construction 78 133 - - - HELOC - - - - - 1-to-4 family residential - - 7 134 7 Subtotal: 261 372 82 366 13 Totals: Commercial 9,451 11,014 75 10,693 84 Consumer 117 121 - 109 - Residential 1,583 2,389 7 2,081 38 Grand Total: $ 11,151 $ 13,524 $ 82 $ 12,883 $ 122 Impaired loans at March 31, 2019 were approximately $11.2 million and were composed of $6.3 million in non-accrual loans and $4.9 million in loans that were still accruing interest. Recorded investment represents the current principal balance of the loan. Approximately $261,000 in impaired loans had specific allowances provided for them while the remaining $10.9 million had no specific allowances recorded at March 31, 2019. Of the $10.9 million with no allowance recorded, $1.1 million of those loans have had partial charge-offs recorded. Three months ended As of December 31, 2018 March 31, 2018 Contractual Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 4,210 $ 4,495 $ - $ 1,806 $ 72 Construction 561 647 - 382 1 Commercial real estate 4,744 6,903 - 4,655 60 Multi-family residential 101 109 - 232 3 Loans to individuals 215 215 - 1 - HELOC 1,040 1,204 - 803 13 1-to-4 family residential 572 732 - 998 48 Subtotal: 11,443 14,305 - 8,877 197 With an allowance recorded: Commercial and industrial 127 325 51 142 1 Construction 27 27 14 13 - HELOC - - - 16 - 1-to-4 family residential 137 555 22 177 5 Subtotal: 291 907 87 348 6 Totals: Commercial 10,007 12,612 65 7,230 137 Consumer 101 109 - 1 - Residential 1,626 2,491 22 1,994 66 Grand Total: $ 11,734 $ 15,212 $ 87 $ 9,225 $ 203 Impaired loans at December 31, 2018 were approximately $11.7 million and were comprised of $7.3 million in non-accrual loans and $4.4 million in loans still in accruing status. Recorded investment represents the current principal balance for the loan. Approximately $291,000 of the $11.7 million in impaired loans at December 31, 2018 had specific allowances aggregating $87,000 while the remaining $11.4 million had no specific allowances recorded. Of the $11.4 million with no allowance recorded, partial charge-offs through December 31, 2018 amounted to $3.5 million. Loans are placed on non-accrual status when it has been determined that all contractual principal and interest will not be received. Any payments received on these loans are applied to principal first and then to interest only after all principal has been collected. In the case of an impaired loan that is still on accrual basis, payments are applied to both principal and interest. Troubled Debt Restructurings The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the first quarter of 2019 and 2018: Three months ended March 31, 2019 Three months ended March 31, 2018 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of loans Investment Investment of loans Investment Investment (dollars in thousands) Extended payment terms: Commercial and industrial 4 $ 1,365 $ 1,275 4 $ 1,046 $ 1,046 Commercial real estate 3 1,283 1,015 - - - 1-to-4 family residential 2 432 409 - - - Loans to individuals 1 1 1 - - - Total 10 $ 3,081 $ 2,700 4 $ 1,046 $ 1,046 The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default during that period together with concessions made by loan class during the twelve month periods ended March 31, 2019 and 2018: Twelve months ended Twelve months ended March 31, 2019 March 31, 2018 Number Recorded Number Recorded of loans investment of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial 8 $ 1,591 3 $ 996 Construction 1 34 1 62 Commercial real estate 3 697 1 899 Loans to Individuals 1 1 - - 1-to-4 family residential 4 128 2 125 Total 17 $ 2,451 7 $ 2,082 At March 31, 2019, the Bank had thirty-nine loans with an aggregate balance of $7.7 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-two loans with a balance totaling $5.2 million were still accruing as of March 31, 2019. The remaining TDRs with balances totaling $2.5 million as of March 31, 2019 were in non-accrual status. At March 31, 2018, the Bank had thirty-nine loans with an aggregate balance of $6.7 million that were considered to be troubled debt restructurings. Of those TDRs, twenty-three loans with a balance totaling $4.8 million were still accruing as of March 31, 2018. The remaining TDRs with balances totaling $1.9 million as of March 31, 2018 were in non-accrual status. The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of March 31, 2019 and December 31, 2018, respectively: Total loans: March 31, 2019 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 990 $ - $ 185 $ - Very good 2,207 142 1,075 - Good 6,203 11,705 53,857 4,965 Acceptable 25,780 24,847 271,454 35,438 Acceptable with care 38,572 141,357 124,997 16,616 Special mention 84 697 1,414 - Substandard 5,893 2,414 5,506 211 Doubtful - - - - Loss - - - - $ 79,729 $ 181,162 $ 458,488 $ 57,230 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 153,077 $ 47,300 Special mention 1,125 76 Substandard 2,530 1,384 $ 156,732 $ 48,760 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 11,309 Non -pass 121 $ 11,430 Total Loans: December 31, 2018 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 1,662 $ - $ 21 $ - Very good 2,266 246 1,120 - Good 5,773 12,106 47,959 5,116 Acceptable 22,332 30,897 263,017 37,832 Acceptable with care 34,626 125,788 139,484 20,296 Special mention 879 711 1,789 - Substandard 6,643 656 4,221 215 Doubtful - - - - Loss - - - - $ 74,181 $ 170,404 $ 457,611 $ 63,459 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 155,117 $ 48,143 Special mention 900 88 Substandard 3,580 1,482 $ 159,597 $ 49,713 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 10,891 Special mention 1,923 $ 12,814 Determining the fair value of PCI loans at acquisition required the Company to estimate cash flows expected to result from those loans and to discount those cash flows at appropriate rates of interest. For such loans, the excess of cash flows expected to be collected at acquisition over the estimated fair value is recognized as interest income over the remaining lives of the loans and is called the accretable yield. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition reflects the impact of estimated credit losses and is called the nonaccretable difference. In accordance with GAAP, there was no carry-over of previously established allowance for credit losses from the acquired company. The following table documents changes to the amount of the accretable yield on PCI loans for the three months ended March 31, 2019 and 2018: 2019 2018 (dollars in thousands) Accretable yield, beginning of period $ 3,593 $ 3,307 Accretion (288 ) (354 ) Reclassification from (to) nonaccretable difference 117 - Other changes, net 299 87 Accretable yield, end of period $ 3,721 $ 3,040 The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month periods ended March 31, 2019 and March 31, 2018, respectively (dollars in thousands): Three months ended March 31, 2019 Commercial 1-to-4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 762 $ 1,385 $ 3,024 $ 1,663 $ 555 $ 206 $ 471 $ 8,066 Provision for (recovery of) loan losses 214 186 356 (461 ) (80 ) (15 ) (63 ) 137 Loans charged-off (251 ) - - - (49 ) (19 ) - (319 ) Recoveries 5 1 15 9 13 5 - 48 Balance, end of period $ 730 $ 1,572 $ 3,395 $ 1,211 $ 439 $ 177 $ 408 $ 7,932 PCI Loans Balance, beginning of period $ 214 $ - $ 385 $ 4 $ - $ - $ - $ 603 Provision for (recovery of) loan losses (168 ) 23 (152 ) 242 2 - 28 (25 ) Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ 46 $ 23 $ 233 $ 246 $ 2 $ - $ 28 $ 578 Total Loans Balance, beginning of period $ 976 $ 1,385 $ 3,409 $ 1,667 $ 555 $ 206 $ 471 $ 8,669 Provision for (recovery of) loan losses 46 209 204 (219 ) (78 ) (15 ) (35 ) 112 Loans charged-off (251 ) - - - (49 ) (19 ) - (319 ) Recoveries 5 1 15 9 13 5 - 48 Balance, end of period $ 776 $ 1,595 $ 3,628 $ 1,457 $ 441 $ 177 $ 436 $ 8,510 Ending Balance: individually evaluated for impairment $ 75 $ - $ - $ 7 $ - $ - $ - $ 82 Ending Balance: collectively evaluated for impairment $ 701 $ 1,595 $ 3,628 $ 1,450 $ 441 $ 177 $ 436 $ 8,428 Loans: Ending Balance: collectively evaluated for impairment non PCI loans $ 75,481 $ 179,872 $ 444,893 $ 148,073 $ 47,853 $ 11,313 $ 56,092 $ 963,577 Ending Balance: collectively evaluated for impairment PCI loans $ 1,481 $ 747 $ 7,587 $ 8,011 $ 50 $ - $ 927 $ 18,803 Ending Balance: individually evaluated for impairment $ 2,767 $ 543 $ 6,008 $ 648 $ 857 $ 117 $ 211 $ 11,151 Ending Balance $ 79,729 $ 181,162 $ 458,488 $ 156,732 $ 48,760 $ 11,430 $ 57,230 $ 993,531 Three months ended March 31, 2018 Commercial 1-to-4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 742 $ 1,955 $ 3,304 $ 1,058 $ 549 $ 305 $ 791 $ 8,704 Provision for (recovery of) loan losses (10 ) (275 ) 282 208 125 (174 ) (94 ) 62 Loans charged-off (9 ) - - - (35 ) (15 ) - (59 ) Recoveries 6 6 4 9 6 9 - 40 Balance, end of period $ 729 $ 1,686 $ 3,590 $ 1,275 $ 645 $ 125 $ 697 $ 8,747 PCI Loans Balance, beginning of period $ 65 $ - $ 66 $ - $ - $ - $ - $ 131 Provision for loan losses 79 - - - - - - 79 Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ 144 $ - $ 66 $ - $ - $ - $ - $ 210 Total Loans Balance, beginning of period $ 807 $ 1,955 $ 3,370 $ 1,058 $ 549 $ 305 $ 791 $ 8,835 Provision for (recovery of) loan losses 69 (275 ) 282 208 125 (174 ) (94 ) 141 Loans charged-off (9 ) - - - (35 ) (15 ) - (59 ) Recoveries 6 6 4 9 6 9 - 40 Balance, end of period $ 873 $ 1,686 $ 3,656 $ 1,275 $ 645 $ 125 $ 697 $ 8,957 Ending Balance: individually evaluated for impairment $ 49 $ 14 $ - $ 13 $ - $ - $ - $ 76 Ending Balance: collectively evaluated for impairment $ 824 $ 1,672 $ 3,657 $ 1,262 $ 645 $ 125 $ 697 $ 8,881 Loans: Ending Balance: collectively evaluated for impairment $ 105,045 $ 169,869 $ 410,783 $ 149,490 $ 51,174 $ 10,754 $ 73,572 $ 970,687 Ending Balance: individually evaluated for impairment $ 2,071 $ 430 $ 4,858 $ 862 $ 595 $ 1 $ 230 $ 9,047 Ending Balance $ 107,116 $ 170,299 $ 415,641 $ 150,352 $ 51,769 $ 10,755 $ 73,802 $ 979,734 |
LOANS HELD FOR SALE
LOANS HELD FOR SALE | 3 Months Ended |
Mar. 31, 2019 | |
Loans Receivable Held-for-sale, Net, Not Part of Disposal Group [Abstract] | |
Loans Held For Sale [Text Block] | NOTE G – LOANS HELD FOR SALE The Company originates fixed and variable rate residential mortgage loans on a service release basis in the secondary market. Loans closed but not yet settled with an investor are carried in loans held for sale portfolio. Virtually all of these loans have commitments to be purchased by investors and the majority of these loans were locked in by price with the investors on the same day or shortly thereafter that the loan was locked in with customers. Therefore, these loans present very little market risk. The Company usually delivers to, and receive funding from, the investor within 30 to 60 days. Commitments to sell these loans to the investor are considered derivative contracts and are sold to investors on a “best efforts” basis. The Company is not obligated to deliver a loan or pay a penalty if a loan is not delivered to the investor. Because of the short-term nature of these derivative contracts, the fair value of the mortgage loans held for sale in most cases is materially the same as the value of the loan amount at its origination . Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated market value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations as a component of mortgage banking income. Gains or losses on sales of loans are recognized when control over these assets are surrendered and are included in mortgage banking income in the consolidated statements of operations. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | NOTE H – REVENUE RECOGNITION On January 1, 2018, the Company adopted ASU No. 2014-09 Revenue from Contracts with Customers (Topic 606) and all subsequent ASUs that modified Topic 606. As stated in Note C, Recent Accounting Pronouncements , the implementation of the new standard did not have a material impact on the measurement or recognition of revenue; as such, a cumulative effect adjustment to opening retained earnings was not deemed necessary. Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts were not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and annuity and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company’s revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of insufficient funds fees, account analysis fees (i.e., net fees earned on analyzed business and public checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company’s performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers’ accounts. Other Fees and Income Other fees and income primarily consist of debit and credit card income, ATM fees, merchant services income, and other service charges. Debit and credit card income primarily consists of interchange fees earned whenever the Company’s debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier’s checks, and other services. The Company’s performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. Other fees and income also includes other recurring revenue streams such as safe deposit box rental fees and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized upon receipt of payment. The Company determined that since rentals and renewals occur fairly consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and 2018. Three Months Three Months Ended Ended March 31, March 31, 2019 2018 (dollars in thousands) Service Charges on Deposit Accounts $ 266 $ 276 Other 502 413 Noninterest Income (in-scope of Topic 606) 768 689 Noninterest Income (out-of-scope of Topic 606) 429 476 Total Non-interest Income $ 1,197 $ 1,165 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity’s obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company’s noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of March 31, 2019 and December 31, 2018, the Company did not have any significant contract balances. Contract Acquisition Costs In connection with the adoption of Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. Upon adoption of Topic 606, the Company did not capitalize any contract acquisition cost. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Real Estate Owned [Text Block] | NOTE I – OTHER REAL ESTATE OWNED The following table explains changes in other real estate owned, or OREO, during the three months ended March 31, 2019 and the year ended December 31, 2018: Three Months Twelve Months Ended Ended March 31, December 31, 2019 2018 (dollars in thousands) Beginning balance January 1 $ 1,088 $ 1,258 Sales (65 ) (717 ) Write-downs (3 ) (71 ) Transfers 26 618 Ending balance $ 1,046 $ 1,088 At March 31, 2019 and December 31, 2018, the Company had $1.0 million and $1.1 million, respectively, of foreclosed residential real estate property in OREO. The Company had five loans with a recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure in the aggregate amount of $770,000 at March 31, 2019. At December 31, 2018, the Company had 5 loans with recorded investment in the amount of $376,000 in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure. |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
LEASES | Note J – LEASES The Company has operating leases for branches and certain equipment. The Company’s leases have remaining lease terms of 1 year to 15 At March 31, 2019, the Company did not have any leases that had not yet commenced for which we had created a right-of-use asset and a lease liability. The Company does not have any finance leases. For the operating leases the Company has elected the practical expedient of not separating lease components from non-lease components and instead to account for each separate lease component and the non-lease components associated with that lease as a single lease component. The Company’s lease agreements do not contain any material residual value guarantees or material restrictive covenants. Most of the lease agreements include periodic rate adjustments for inflation. Most leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 25 years. The components of lease expense were as follows: (In thousands) Three Months Ended March 31, 2019 Operating lease cost $ 261 Supplemental cash flow information related to leases was as follows: (In thousands) Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 261 Right-of-use assets obtained in exchange for lease obligations: Operating leases 9,013 The following table presents the remaining weighted average lease terms and discount rates as of March 31, 2019: Weighted Average Remaining Lease Term Operating leases 7.3 years Weighted Average Discount Rate Operating leases 6.0 % Maturities of lease liabilities were as follows: (In thousands) Year Ending December 31, Operating Leases 2019 (excluding the three months ended March 31, 2019) $ 398 2020 580 2021 642 2022 713 2023 693 Thereafter 5,816 Total lease payments $ 8,842 |
PER SHARE RESULTS (Tables)
PER SHARE RESULTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Basic net income per share is computed based upon the weighted average number of shares of common stock outstanding during the period. Diluted net income per share includes the dilutive effect of stock options outstanding during the period. At March 31, 2019 and 2018 there were 168,120 and 121,300 anti-dilutive options outstanding, respectively. Three Months Ended March 31, 2019 2018 Weighted average shares used for basic net income per share 19,315,686 14,011,707 Effect of dilutive stock options 49,668 70,069 Weighted average shares used for diluted net income per share 19,365,354 14,081,776 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a recurring basis as of March 31, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable March 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies- GSE’s $ 11,937 $ - $ 11,937 $ - Mortgage-backed securities-GSE’s 56,118 - 56,118 - Corporate bonds 1,638 - 1,638 - Municipal bonds 17,034 - 17,034 - Total investment for sale $ 86,727 $ - $ 86,727 $ - Quoted Prices in Significant Investment securities Active Markets Other Significant available for sale for Identical Observable Unobservable December 31, 2018 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) U.S. government agencies- GSE’s $ 9,837 $ - $ 9,837 $ - Mortgage-backed securities-GSE’s 22,983 - 22,983 - Corporate bonds 1,722 - 1,722 - Municipal bonds 16,991 - 16,991 - Total investment for sale $ 51,533 $ - $ 51,533 $ - |
Fair Value Measurements, Nonrecurring [Table Text Block] | The following tables summarize quantitative disclosures about the fair value measurement for each category of assets carried at fair value on a non-recurring basis as of March 31, 2019 and December 31, 2018 (in thousands): Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable March 31, 2019 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 6,337 $ - $ - $ 6,337 Loans held for sale 354 - 354 - Assets held for sale 668 - - 668 Foreclosed real estate 1,046 - - 1,046 Total $ 8,405 $ - $ 354 $ 8,051 Quoted Prices in Significant Active Markets Other Significant Asset Category for Identical Observable Unobservable December 31, 2018 Fair value Assets (Level 1) Inputs (Level 2) Inputs (Level 3) Impaired loans $ 7,257 $ - $ - $ 7,257 Loans held for sale 580 - 580 - Assets held for sale 668 - - 668 Foreclosed real estate 1,088 - - 1,088 Total $ 9,593 $ - $ 580 $ 9,013 |
Schedule of Fair Value, Off-balance Sheet Risks [Table Text Block] | The following table presents the carrying values and estimated fair values of the Company's financial instruments at March 31, 2019 and December 31, 2018: March 31, 2019 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 15,586 $ 15,586 $ 15,586 $ - $ - Certificates of deposit 1,000 1,000 1,000 - - Interest-earning deposits in other banks 44,894 44,894 44,894 - - Federal funds sold 9,809 9,809 9,809 - - Investment securities available for sale 86,727 86,727 - 86,727 - Loans held for sale 354 354 354 - Loans, net 983,291 975,395 - - 975,395 Accrued interest receivable 4,120 4,120 - 4,120 - Stock in FHLB 3,342 3,342 - - 3,342 Other non-marketable securities 738 738 - - 738 Financial liabilities: Deposits $ 950,966 $ 952,022 $ - $ 952,022 $ - Short-term debt 7,000 7,000 - 7,000 - Long-term debt 57,372 55,878 - 55,878 - Accrued interest payable 519 519 - 519 - December 31, 2018 Carrying Estimated Amount Fair Value Level 1 Level 2 Level 3 (dollars in thousands) Financial assets: Cash and due from banks $ 17,059 $ 17,059 $ 17,059 $ - $ - Certificates of deposits 1,000 1,000 1,000 - - Interest-earning deposits in other banks 121,303 121,303 121,303 - - Investment securities available for sale 51,533 51,533 - 51,533 - Loans held for sale 580 580 - 580 - Loans, net 977,371 970,330 - - 970,330 Accrued interest receivable 3,889 3,889 - 3,889 - Stock in the FHLB 3,283 3,283 - - 3,283 Other non-marketable securities 762 762 - - 762 Assets held for sale 668 668 - - 668 Financial liabilities: Deposits $ 980,427 $ 979,570 $ - $ 979,570 $ - Short-term debt 7,000 7,000 - 7,000 - Long-term debt 57,372 55,504 - 55,504 - Accrued interest payable 667 667 - 667 - |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Available-for-sale Securities Reconciliation [Table Text Block] | The amortized cost and fair value of available for sale investments (“AFS”), with gross unrealized gains and losses, follow: March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 11,808 $ 151 $ (22 ) $ 11,937 Mortgage-backed securities GSE’s 56,064 167 (113 ) 56,118 Corporate bonds 1,617 21 - 1,638 Municipal bonds 16,846 190 (2 ) 17,034 $ 86,335 $ 529 $ (137 ) $ 86,727 The amortized cost and fair value of available for sale (“AFS”) investments, with gross unrealized gains and losses, follow: December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: U.S. government agencies GSE’s $ 9,852 $ 36 $ (51 ) $ 9,837 Mortgage-backed securities GSE’s 23,150 62 (229 ) 22,983 Corporate bonds 1,697 25 - 1,722 Municipal bonds 16,910 105 (24 ) 16,991 $ 51,609 $ 228 $ (304 ) $ 51,533 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and fair value of securities available for sale, with gross unrealized gains and losses, follow: March 31, 2019 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 5,174 $ 15 $ - $ 5,189 After 1 year but within 5 years 34,438 203 (126 ) 34,515 After 5 years but within 10 years 27,940 130 (10 ) 28,060 After 10 years 18,783 181 (1 ) 18,963 $ 86,335 $ 529 $ (137 ) $ 86,727 December 31, 2018 Gross Gross Amortized unrealized unrealized Fair cost gains losses value (dollars in thousands) Securities available for sale: Within 1 year $ 3,275 $ 13 $ - $ 3,288 After 1 year but within 5 years 32,862 96 (252 ) 32,706 After 5 years but within 10 years 6,551 48 (29 ) 6,570 After 10 years 8,921 71 (23 ) 8,969 $ 51,609 $ 228 $ (304 ) $ 51,533 |
Schedule of Unrealized Loss on Investments [Table Text Block] | The following tables show the gross unrealized losses and fair value of the Company’s investment securities, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, at March 31, 2019 and December 31, 2018. March 31, 2019 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies- GSEs $ - $ - $ 3,026 $ (22 ) $ 3,026 $ (22 ) Mortgage-backed securities- GSEs 10,044 (13 ) 11,858 (100 ) 21,902 (113 ) Municipal bonds - - 1,301 (2 ) 1,301 (2 ) Total temporarily impaired securities $ 10,044 $ (13 ) $ 16,185 $ (124 ) $ 26,229 $ (137 ) December 31, 2018 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized value losses value losses value losses (dollars in thousands) Securities available for sale: U.S. government agencies- GSEs $ 1,224 $ (6 ) $ 4,086 $ (45 ) $ 5,310 $ (51 ) Mortgage-backed securities-GSEs 200 - 16,932 (229 ) 17,132 (229 ) Corporate bonds - - - - - - Municipal bonds 1,007 (2 ) 1,740 (22 ) 2,747 (24 ) Total temporarily impaired securities $ 2,431 $ (8 ) $ 22,758 $ (296 ) $ 25,189 $ (304 ) |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Following is a summary of the composition of the Company’s loan portfolio at March 31, 2019 and December 31, 2018: March 31, December 31, Total Loans: 2019 2018 Percent Percent Amount of total Amount of total (dollars in thousands) Real estate loans: 1-to-4 family residential $ 156,732 15.80 % $ 159,597 16.19 % Commercial real estate 458,488 46.23 % 457,611 46.41 % Multi-family residential 57,230 5.77 % 63,459 6.44 % Construction 181,162 18.26 % 170,404 17.28 % Home equity lines of credit (“HELOC”) 48,760 4.92 % 49,713 5.04 % Total real estate loans 902,372 90.98 % 900,784 91.36 % Other loans: Commercial and industrial 79,729 8.04 % 74,181 7.52 % Loans to individuals 11,338 1.14 % 12,597 1.28 % Overdrafts 92 0.01 % 217 0.02 % Total other loans 91,159 9.19 % 86,995 8.82 % Gross loans 993,531 987,779 Less deferred loan origination fees, net (1,730 ) (0.17 )% (1,739 ) (0.18 )% Total loans 991,801 100.00 % 986,040 100.00 % Allowance for loan losses (8,510 ) (8,669 ) Total loans, net $ 983,291 $ 977,371 |
Schedule of Fair Values of Expected Cash Flows and Loan Related Payments to Acquired Company at the Time of Merger [Table Text Block] | For Purchased Credit Impaired, or PCI loans, the contractually required payments including principal and interest, cash flows expected to be collected and fair values as of March 31, 2019 and December 31, 2018 were: (dollars in thousands) March 31, 2019 December 31, 2018 Contractually required payments $ 24,366 $ 24,823 Nonaccretable difference 1,842 1,962 Cash flows expected to be collected 22,524 22,861 Accretable yield 3,721 3,593 Carrying value $ 18,803 $ 19,268 |
Past Due Financing Receivables [Table Text Block] | The following tables present an age analysis of past due loans, segregated by class of loans as of March 31, 2019 and December 31, 2018, respectively: March 31, 2019 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Commercial and industrial $ 36 $ 452 $ 1,340 $ 2,652 $ 4,480 $ 75,249 $ 79,729 Construction 31 1,799 70 543 2,443 178,719 181,162 Multi-family residential - - - - - 57,230 57,230 Commercial real estate 254 829 313 1,867 3,263 455,225 458,488 Loans to individuals & overdrafts 12 - - 29 41 11,389 11,430 1-to-4 family residential 594 75 1,423 266 2,358 154,374 156,732 HELOC 13 - - 980 993 47,767 48,760 Deferred loan (fees) cost, net - - - - - - (1,730 ) $ 940 $ 3,155 $ 3,146 $ 6,337 $ 13,578 $ 979,953 $ 991,801 December 31, 2018 30-59 60-89 90+ Non- Total Days Days Days Accrual Past Total Past Due Past Due Accruing Loans Due Current Loans (dollars in thousands) Commercial and industrial $ 27 $ 203 $ 1,665 $ 4,170 $ 6,065 $ 68,116 $ 74,181 Construction - - 69 587 656 169,748 170,404 Multi-family residential - - - - - 63,459 63,459 Commercial real estate 103 483 - 1,074 1,660 455,951 457,611 Loans to individuals & overdrafts 1 24 - - 25 12,789 12,814 1-to-4 family residential 502 505 1,433 386 2,826 156,771 159,597 HELOC - 43 - 1,040 1,083 48,630 49,713 Deferred loan (fees) cost, net - - - - - - (1,739 ) $ 633 $ 1,258 $ 3,167 $ 7,257 $ 12,315 $ 975,464 $ 986,040 |
Impaired Financing Receivables [Table Text Block] | The following tables present information on loans that were considered to be impaired as of March 31, 2019 and December 31, 2018: Three months ended As of March 31, 2019 March 31, 2019 Contractual Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 2,584 $ 2,788 $ - $ 3,853 $ 4 Construction 465 525 - 552 5 Commercial real estate 6,008 7,251 - 5,843 66 Multi-family residential 211 211 - 213 3 Loans to individuals 117 121 - 109 - HELOC 857 1,060 - 957 15 1-to-4 family residential 648 1,196 - 990 16 Subtotal: 10,890 13,152 - 12,517 109 With an allowance recorded: Commercial and industrial 183 239 75 232 6 Construction 78 133 - - - HELOC - - - - - 1-to-4 family residential - - 7 134 7 Subtotal: 261 372 82 366 13 Totals: Commercial 9,451 11,014 75 10,693 84 Consumer 117 121 - 109 - Residential 1,583 2,389 7 2,081 38 Grand Total: $ 11,151 $ 13,524 $ 82 $ 12,883 $ 122 Three months ended As of December 31, 2018 March 31, 2018 Contractual Unpaid Related Average Interest Income Recorded Principal Allowance Recorded Recognized on Investment Balance for Loan Losses Investment Impaired Loans (dollars in thousands) With no related allowance recorded: Commercial and industrial $ 4,210 $ 4,495 $ - $ 1,806 $ 72 Construction 561 647 - 382 1 Commercial real estate 4,744 6,903 - 4,655 60 Multi-family residential 101 109 - 232 3 Loans to individuals 215 215 - 1 - HELOC 1,040 1,204 - 803 13 1-to-4 family residential 572 732 - 998 48 Subtotal: 11,443 14,305 - 8,877 197 With an allowance recorded: Commercial and industrial 127 325 51 142 1 Construction 27 27 14 13 - HELOC - - - 16 - 1-to-4 family residential 137 555 22 177 5 Subtotal: 291 907 87 348 6 Totals: Commercial 10,007 12,612 65 7,230 137 Consumer 101 109 - 1 - Residential 1,626 2,491 22 1,994 66 Grand Total: $ 11,734 $ 15,212 $ 87 $ 9,225 $ 203 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table presents loans that were modified as troubled debt restructurings (“TDRs”) with a breakdown of the types of concessions made by loan class during the first quarter of 2019 and 2018: Three months ended March 31, 2019 Three months ended March 31, 2018 Pre- Post- Pre- Post- Modification Modification Modification Modification Outstanding Outstanding Outstanding Outstanding Number Recorded Recorded Number Recorded Recorded of loans Investment Investment of loans Investment Investment (dollars in thousands) Extended payment terms: Commercial and industrial 4 $ 1,365 $ 1,275 4 $ 1,046 $ 1,046 Commercial real estate 3 1,283 1,015 - - - 1-to-4 family residential 2 432 409 - - - Loans to individuals 1 1 1 - - - Total 10 $ 3,081 $ 2,700 4 $ 1,046 $ 1,046 The following table presents loans that were modified as TDRs within the past twelve months with a breakdown of the types for which there was a payment default during that period together with concessions made by loan class during the twelve month periods ended March 31, 2019 and 2018: Twelve months ended Twelve months ended March 31, 2019 March 31, 2018 Number Recorded Number Recorded of loans investment of loans investment (dollars in thousands) Extended payment terms: Commercial and industrial 8 $ 1,591 3 $ 996 Construction 1 34 1 62 Commercial real estate 3 697 1 899 Loans to Individuals 1 1 - - 1-to-4 family residential 4 128 2 125 Total 17 $ 2,451 7 $ 2,082 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables present information on risk ratings of the commercial and consumer loan portfolios, segregated by loan class as of March 31, 2019 and December 31, 2018, respectively: Total loans: March 31, 2019 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 990 $ - $ 185 $ - Very good 2,207 142 1,075 - Good 6,203 11,705 53,857 4,965 Acceptable 25,780 24,847 271,454 35,438 Acceptable with care 38,572 141,357 124,997 16,616 Special mention 84 697 1,414 - Substandard 5,893 2,414 5,506 211 Doubtful - - - - Loss - - - - $ 79,729 $ 181,162 $ 458,488 $ 57,230 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 153,077 $ 47,300 Special mention 1,125 76 Substandard 2,530 1,384 $ 156,732 $ 48,760 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 11,309 Non -pass 121 $ 11,430 Total Loans: December 31, 2018 Commercial Credit Exposure By Commercial Commercial Internally and real Multi-family Assigned Grade industrial Construction estate residential (dollars in thousands) Superior $ 1,662 $ - $ 21 $ - Very good 2,266 246 1,120 - Good 5,773 12,106 47,959 5,116 Acceptable 22,332 30,897 263,017 37,832 Acceptable with care 34,626 125,788 139,484 20,296 Special mention 879 711 1,789 - Substandard 6,643 656 4,221 215 Doubtful - - - - Loss - - - - $ 74,181 $ 170,404 $ 457,611 $ 63,459 Consumer Credit Exposure By Internally 1-to-4 family Assigned Grade residential HELOC Pass $ 155,117 $ 48,143 Special mention 900 88 Substandard 3,580 1,482 $ 159,597 $ 49,713 Consumer Credit Exposure Based Loans to On Payment individuals & Activity overdrafts Pass $ 10,891 Special mention 1,923 $ 12,814 |
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Table Text Block] | The following table documents changes to the amount of the accretable yield on PCI loans for the three months ended March 31, 2019 and 2018: 2019 2018 (dollars in thousands) Accretable yield, beginning of period $ 3,593 $ 3,307 Accretion (288 ) (354 ) Reclassification from (to) nonaccretable difference 117 - Other changes, net 299 87 Accretable yield, end of period $ 3,721 $ 3,040 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | The following tables present a roll forward of the Company’s allowance for loan losses by loan class for the three month periods ended March 31, 2019 and March 31, 2018, respectively (dollars in thousands): Three months ended March 31, 2019 Commercial 1-to-4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 762 $ 1,385 $ 3,024 $ 1,663 $ 555 $ 206 $ 471 $ 8,066 Provision for (recovery of) loan losses 214 186 356 (461 ) (80 ) (15 ) (63 ) 137 Loans charged-off (251 ) - - - (49 ) (19 ) - (319 ) Recoveries 5 1 15 9 13 5 - 48 Balance, end of period $ 730 $ 1,572 $ 3,395 $ 1,211 $ 439 $ 177 $ 408 $ 7,932 PCI Loans Balance, beginning of period $ 214 $ - $ 385 $ 4 $ - $ - $ - $ 603 Provision for (recovery of) loan losses (168 ) 23 (152 ) 242 2 - 28 (25 ) Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ 46 $ 23 $ 233 $ 246 $ 2 $ - $ 28 $ 578 Total Loans Balance, beginning of period $ 976 $ 1,385 $ 3,409 $ 1,667 $ 555 $ 206 $ 471 $ 8,669 Provision for (recovery of) loan losses 46 209 204 (219 ) (78 ) (15 ) (35 ) 112 Loans charged-off (251 ) - - - (49 ) (19 ) - (319 ) Recoveries 5 1 15 9 13 5 - 48 Balance, end of period $ 776 $ 1,595 $ 3,628 $ 1,457 $ 441 $ 177 $ 436 $ 8,510 Ending Balance: individually evaluated for impairment $ 75 $ - $ - $ 7 $ - $ - $ - $ 82 Ending Balance: collectively evaluated for impairment $ 701 $ 1,595 $ 3,628 $ 1,450 $ 441 $ 177 $ 436 $ 8,428 Loans: Ending Balance: collectively evaluated for impairment non PCI loans $ 75,481 $ 179,872 $ 444,893 $ 148,073 $ 47,853 $ 11,313 $ 56,092 $ 963,577 Ending Balance: collectively evaluated for impairment PCI loans $ 1,481 $ 747 $ 7,587 $ 8,011 $ 50 $ - $ 927 $ 18,803 Ending Balance: individually evaluated for impairment $ 2,767 $ 543 $ 6,008 $ 648 $ 857 $ 117 $ 211 $ 11,151 Ending Balance $ 79,729 $ 181,162 $ 458,488 $ 156,732 $ 48,760 $ 11,430 $ 57,230 $ 993,531 Three months ended March 31, 2018 Commercial 1-to-4 Loans to Multi- and Commercial family individuals & family Allowance for loan losses industrial Construction real estate residential HELOC overdrafts residential Total Loans – excluding PCI Balance, beginning of period $ 742 $ 1,955 $ 3,304 $ 1,058 $ 549 $ 305 $ 791 $ 8,704 Provision for (recovery of) loan losses (10 ) (275 ) 282 208 125 (174 ) (94 ) 62 Loans charged-off (9 ) - - - (35 ) (15 ) - (59 ) Recoveries 6 6 4 9 6 9 - 40 Balance, end of period $ 729 $ 1,686 $ 3,590 $ 1,275 $ 645 $ 125 $ 697 $ 8,747 PCI Loans Balance, beginning of period $ 65 $ - $ 66 $ - $ - $ - $ - $ 131 Provision for loan losses 79 - - - - - - 79 Loans charged-off - - - - - - - - Recoveries - - - - - - - - Balance, end of period $ 144 $ - $ 66 $ - $ - $ - $ - $ 210 Total Loans Balance, beginning of period $ 807 $ 1,955 $ 3,370 $ 1,058 $ 549 $ 305 $ 791 $ 8,835 Provision for (recovery of) loan losses 69 (275 ) 282 208 125 (174 ) (94 ) 141 Loans charged-off (9 ) - - - (35 ) (15 ) - (59 ) Recoveries 6 6 4 9 6 9 - 40 Balance, end of period $ 873 $ 1,686 $ 3,656 $ 1,275 $ 645 $ 125 $ 697 $ 8,957 Ending Balance: individually evaluated for impairment $ 49 $ 14 $ - $ 13 $ - $ - $ - $ 76 Ending Balance: collectively evaluated for impairment $ 824 $ 1,672 $ 3,657 $ 1,262 $ 645 $ 125 $ 697 $ 8,881 Loans: Ending Balance: collectively evaluated for impairment $ 105,045 $ 169,869 $ 410,783 $ 149,490 $ 51,174 $ 10,754 $ 73,572 $ 970,687 Ending Balance: individually evaluated for impairment $ 2,071 $ 430 $ 4,858 $ 862 $ 595 $ 1 $ 230 $ 9,047 Ending Balance $ 107,116 $ 170,299 $ 415,641 $ 150,352 $ 51,769 $ 10,755 $ 73,802 $ 979,734 |
REVENUE RECOGNITION (Tables)
REVENUE RECOGNITION (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended March 31, 2019 and 2018. Three Months Three Months Ended Ended March 31, March 31, 2019 2018 (dollars in thousands) Service Charges on Deposit Accounts $ 266 $ 276 Other 502 413 Noninterest Income (in-scope of Topic 606) 768 689 Noninterest Income (out-of-scope of Topic 606) 429 476 Total Non-interest Income $ 1,197 $ 1,165 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule Of Real Estate Owned Properties [Table Text Block] | The following table explains changes in other real estate owned, or OREO, during the three months ended March 31, 2019 and the year ended December 31, 2018: Three Months Twelve Months Ended Ended March 31, December 31, 2019 2018 (dollars in thousands) Beginning balance January 1 $ 1,088 $ 1,258 Sales (65 ) (717 ) Write-downs (3 ) (71 ) Transfers 26 618 Ending balance $ 1,046 $ 1,088 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense were as follows: (In thousands) Three Months Ended March 31, 2019 Operating lease cost $ 261 |
Supplemental Cash Flow Related To Leases [Table Text Block] | Supplemental cash flow information related to leases was as follows: (In thousands) Three Months Ended March 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 261 Right-of-use assets obtained in exchange for lease obligations: Operating leases 9,013 The following table presents the remaining weighted average lease terms and discount rates as of March 31, 2019: Weighted Average Remaining Lease Term Operating leases 7.3 years Weighted Average Discount Rate Operating leases 6.0 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities were as follows: (In thousands) Year Ending December 31, Operating Leases 2019 (excluding the three months ended March 31, 2019) $ 398 2020 580 2021 642 2022 713 2023 693 Thereafter 5,816 Total lease payments $ 8,842 |
PER SHARE RESULTS (Details)
PER SHARE RESULTS (Details) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Weighted average shares used for basic net income per share | 19,315,686 | 14,011,707 |
Effect of dilutive stock options | 49,668 | 70,069 |
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per share | 19,365,354 | 14,081,776 |
PER SHARE RESULTS (Details Text
PER SHARE RESULTS (Details Textual) - shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 168,120 | 121,300 |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Detail Textual) - USD ($) | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] |
Operating Lease, Right-of-Use Asset | $ 8,750,000 | $ 0 | ||
Operating Lease, Liability | $ 8,842,000 | $ 0 | ||
Accounting Standards Update 2016-02 [Member] | ||||
Operating Lease, Right-of-Use Asset | $ 9,013,900 | |||
Operating Lease, Liability | $ 9,013,900 | |||
[1] | Derived from audited consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets, Fair Value Disclosure | $ 86,727 | $ 51,533 |
US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 11,937 | 9,837 |
Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | 56,118 | 22,983 |
Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure | 17,034 | 16,991 |
Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 1,638 | 1,722 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 86,727 | 51,533 |
Fair Value, Inputs, Level 2 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 11,937 | 9,837 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | 56,118 | 22,983 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure | 17,034 | 16,991 |
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 1,638 | 1,722 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | US Government Agencies Debt Securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_2
FAIR VALUE MEASUREMENTS (Details 1) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets, Fair Value Disclosure | $ 8,405 | $ 9,593 |
Impaired Loans [Member] | ||
Assets, Fair Value Disclosure | 6,337 | 7,257 |
Assets held for sale [Member] | ||
Assets, Fair Value Disclosure | 668 | 668 |
Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure | 1,046 | 1,088 |
Loans Held For Sale [Member] | ||
Assets, Fair Value Disclosure | 354 | 580 |
Fair Value, Inputs, Level 1 [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Loans Held For Sale [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets, Fair Value Disclosure | 354 | 580 |
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Loans Held For Sale [Member] | ||
Assets, Fair Value Disclosure | 354 | 580 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Fair Value Disclosure | 8,051 | 9,013 |
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Assets, Fair Value Disclosure | 6,337 | 7,257 |
Fair Value, Inputs, Level 3 [Member] | Assets held for sale [Member] | ||
Assets, Fair Value Disclosure | 668 | 668 |
Fair Value, Inputs, Level 3 [Member] | Foreclosed Real Estate [Member] | ||
Assets, Fair Value Disclosure | 1,046 | 1,088 |
Fair Value, Inputs, Level 3 [Member] | Loans Held For Sale [Member] | ||
Assets, Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Deta_3
FAIR VALUE MEASUREMENTS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financial assets: | |||
Cash and due from banks | $ 15,586 | $ 17,059 | [1] |
Certificates of deposits | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 44,894 | 121,303 | |
Federal funds sold | 9,809 | 0 | [1] |
Investment securities available for sale | 86,727 | 51,533 | |
Loans held for sale | 354 | 580 | [1] |
Loans, net | 983,291 | 977,371 | |
Accrued interest receivable | 4,120 | 3,889 | [1] |
Stock in the FHLB | 3,342 | 3,283 | [1] |
Other non-marketable securities | 738 | 762 | |
Assets held for sale | 668 | ||
Financial liabilities: | |||
Deposits | 950,966 | 980,427 | [1] |
Short-term debt | 7,000 | 7,000 | [1] |
Long-term debt | 57,372 | 57,372 | [1] |
Accrued interest payable | 519 | 667 | [1] |
Estimate of Fair Value Measurement [Member] | |||
Financial assets: | |||
Cash and due from banks | 15,586 | 17,059 | |
Certificates of deposits | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 44,894 | 121,303 | |
Federal funds sold | 9,809 | ||
Investment securities available for sale | 86,727 | 51,533 | |
Loans held for sale | 354 | 580 | |
Loans, net | 975,395 | 970,330 | |
Accrued interest receivable | 4,120 | 3,889 | |
Stock in the FHLB | 3,342 | 3,283 | |
Other non-marketable securities | 738 | 762 | |
Assets held for sale | 668 | ||
Financial liabilities: | |||
Deposits | 952,022 | 979,570 | |
Short-term debt | 7,000 | 7,000 | |
Long-term debt | 55,878 | 55,504 | |
Accrued interest payable | 519 | 667 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets: | |||
Cash and due from banks | 15,586 | 17,059 | |
Certificates of deposits | 1,000 | 1,000 | |
Interest-earning deposits in other banks | 44,894 | 121,303 | |
Federal funds sold | 9,809 | ||
Investment securities available for sale | 0 | 0 | |
Loans held for sale | 0 | ||
Loans, net | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Stock in the FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Assets held for sale | 0 | ||
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Certificates of deposits | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Federal funds sold | 0 | ||
Investment securities available for sale | 86,727 | 51,533 | |
Loans held for sale | 354 | 580 | |
Loans, net | 0 | 0 | |
Accrued interest receivable | 4,120 | 3,889 | |
Stock in the FHLB | 0 | 0 | |
Other non-marketable securities | 0 | 0 | |
Assets held for sale | 0 | ||
Financial liabilities: | |||
Deposits | 952,022 | 979,570 | |
Short-term debt | 7,000 | 7,000 | |
Long-term debt | 55,878 | 55,504 | |
Accrued interest payable | 519 | 667 | |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets: | |||
Cash and due from banks | 0 | 0 | |
Certificates of deposits | 0 | 0 | |
Interest-earning deposits in other banks | 0 | 0 | |
Federal funds sold | 0 | ||
Investment securities available for sale | 0 | 0 | |
Loans held for sale | 0 | 0 | |
Loans, net | 975,395 | 970,330 | |
Accrued interest receivable | 0 | 0 | |
Stock in the FHLB | 3,342 | 3,283 | |
Other non-marketable securities | 738 | 762 | |
Assets held for sale | 668 | ||
Financial liabilities: | |||
Deposits | 0 | 0 | |
Short-term debt | 0 | 0 | |
Long-term debt | 0 | 0 | |
Accrued interest payable | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
FAIR VALUE MEASUREMENTS (Deta_4
FAIR VALUE MEASUREMENTS (Details Textual) | Mar. 31, 2019 |
Minimum [Member] | |
Percentage Of Discount From Impaired Loans | 5.00% |
Percentage Of Discount From Assets held for sale | 1.00% |
Minimum [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Percentage Of Discount From Foreclosed Real Estate | 6.00% |
Maximum [Member] | |
Percentage Of Discount From Impaired Loans | 50.00% |
Percentage Of Discount From Assets held for sale | 25.00% |
Maximum [Member] | Fair Value, Measurements, Nonrecurring [Member] | |
Percentage Of Discount From Foreclosed Real Estate | 10.00% |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Securities available for sale: | |||
Amortized cost | $ 86,335 | $ 51,609 | |
Gross unrealized gains | 529 | 228 | |
Gross unrealized Losses | (137) | (304) | |
Fair value | 86,727 | 51,533 | [1] |
U.S. government agencies - GSE's | |||
Securities available for sale: | |||
Amortized cost | 11,808 | 9,852 | |
Gross unrealized gains | 151 | 36 | |
Gross unrealized Losses | (22) | (51) | |
Fair value | 11,937 | 9,837 | |
Mortgage-backed securities - GSE's [Member] | |||
Securities available for sale: | |||
Amortized cost | 56,064 | 23,150 | |
Gross unrealized gains | 167 | 62 | |
Gross unrealized Losses | (113) | (229) | |
Fair value | 56,118 | 22,983 | |
Municipal bonds [Member] | |||
Securities available for sale: | |||
Amortized cost | 16,846 | 16,910 | |
Gross unrealized gains | 190 | 105 | |
Gross unrealized Losses | (2) | (24) | |
Fair value | 17,034 | 16,991 | |
Corporate Bonds [Member] | |||
Securities available for sale: | |||
Amortized cost | 1,617 | 1,697 | |
Gross unrealized gains | 21 | 25 | |
Gross unrealized Losses | 0 | 0 | |
Fair value | $ 1,638 | $ 1,722 | |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | ||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost, Within 1 year | $ 5,174 | $ 3,275 | |
Gross unrealized gains, Within 1 year | 15 | 13 | |
Gross unrealized losses, Within 1 year | 0 | 0 | |
Fair Value, Within 1 year | 5,189 | 3,288 | |
Amortized Cost, After 1 year but within 5 years | 34,438 | 32,862 | |
Gross unrealized gains, After 1 year but within 5 years | 203 | 96 | |
Gross unrealized losses, After 1 year but within 5 years | (126) | (252) | |
Fair Value, After 1 year but within 5 years | 34,515 | 32,706 | |
Amortized Cost, After 5 years but within 10 years | 27,940 | 6,551 | |
Gross unrealized gains, After 5 years but within 10 years | 130 | 48 | |
Gross unrealized losses, After 5 years but within 10 years | (10) | (29) | |
Fair Value, After 5 years but within 10 years | 28,060 | 6,570 | |
Amortized Cost, After 10 years | 18,783 | 8,921 | |
Gross unrealized gains, After 10 years | 181 | 71 | |
Gross unrealized losses, After 10 years | (1) | (23) | |
Fair Value, After 10 years | 18,963 | 8,969 | |
Available-for-sale Securities, Amortized Cost Total | 86,335 | 51,609 | |
Available-for-sale securities, Gross unrealized gain Total | 529 | 228 | |
Available-for-sale securities, Gross unrealized loss Total | (137) | (304) | |
Available-for-sale Securities, Fair Value Total | $ 86,727 | $ 51,533 | [1] |
[1] | Derived from audited consolidated financial statements. |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
U.S. government agencies - GSE's | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | $ 0 | $ 1,224 |
Less Than 12 Months Unrealized losses | 0 | (6) |
12 Months or More Fair value | 3,026 | 4,086 |
12 Months or More Unrealized losses | (22) | (45) |
Total Fair value | 3,026 | 5,310 |
Total Unrealized losses | (22) | (51) |
Mortgage-backed securities - GSE's [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 10,044 | 200 |
Less Than 12 Months Unrealized losses | (13) | 0 |
12 Months or More Fair value | 11,858 | 16,932 |
12 Months or More Unrealized losses | (100) | (229) |
Total Fair value | 21,902 | 17,132 |
Total Unrealized losses | (113) | (229) |
Corporate Bonds [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 0 | |
Less Than 12 Months Unrealized losses | 0 | |
12 Months or More Fair value | 0 | |
12 Months or More Unrealized losses | 0 | |
Total Fair value | 0 | |
Total Unrealized losses | 0 | |
Municipal bonds [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 0 | 1,007 |
Less Than 12 Months Unrealized losses | 0 | (2) |
12 Months or More Fair value | 1,301 | 1,740 |
12 Months or More Unrealized losses | (2) | (22) |
Total Fair value | 1,301 | 2,747 |
Total Unrealized losses | (2) | (24) |
Total temporarily impaired securities [Member] | ||
Securities available for sale: | ||
Less Than 12 Months Fair value | 10,044 | 2,431 |
Less Than 12 Months Unrealized losses | (13) | (8) |
12 Months or More Fair value | 16,185 | 22,758 |
12 Months or More Unrealized losses | (124) | (296) |
Total Fair value | 26,229 | 25,189 |
Total Unrealized losses | $ (137) | $ (304) |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | ||
US Government Securities, at Carrying Value | $ 6,100,000 | $ 6,400,000 |
Trading Securities Descriptions | At March 31, 2019, the Company had twenty-two securities with an unrealized loss for more than twelve months of $124,000 which consisted of five U.S. government agencies-GSEs, fourteen mortgage-backed GSEs and three municipal bonds. Three mortgage-backed GSEs had unrealized losses for less than twelve months totaling $13,000 at March 31, 2019. All unrealized losses are attributable to the general trend of interest rates. There were no sales of investment securities during the first quarter of 2019. | At December 31, 2018, the Company had twenty-four AFS mortgage-backed GSE’s, four municipals and six U.S Government agencies – GSE’s with an unrealized loss for twelve or more consecutive months totaling $296,000. The Company had six AFS securities with a loss for twelve months or less. Three U.S. government agency GSE’s, two municipals and one mortgage-backed GSE had unrealized losses for less than twelve months totaling $8,000 at December 31, 2018. All unrealized losses are attributable to the general trend of interest rates and the abnormal spreads of all debt instruments to U.S. Treasury securities. There were no sales of investment securities available for sale during 2018. |
Available-for-sale Securities, Gross Unrealized Gain (Loss) | $ 392,000 | $ 76,000 |
Deferred Income Taxes and Other Liabilities, Noncurrent | 91,000 | 17,000 |
Temporarily Impaired Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 124,000 | 296,000 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | $ 13,000 | $ 8,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Gross loans | $ 993,531 | $ 987,779 | ||
Less deferred loan origination fees, net | (1,730) | (1,739) | ||
Total loans | 991,801 | 986,040 | [1] | $ 979,734 |
Allowance for loan losses | (8,510) | (8,669) | [1] | |
Total loans, net | $ 983,291 | $ 977,371 | [1] | |
Less Percentage of deferred loan origination fees, net | (0.17%) | (0.18%) | ||
Percent of total | 100.00% | 100.00% | ||
1- to- 4 family residential Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 156,732 | $ 159,597 | 150,352 | |
Percent of total | 15.80% | 16.19% | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 458,488 | $ 457,611 | 415,641 | |
Percent of total | 46.23% | 46.41% | ||
Multi-family residential Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 57,230 | $ 63,459 | 73,802 | |
Percent of total | 5.77% | 6.44% | ||
Construction Real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 181,162 | $ 170,404 | 170,299 | |
Percent of total | 18.26% | 17.28% | ||
Home Equity Line of Credit [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 48,760 | $ 49,713 | 51,769 | |
Percent of total | 4.92% | 5.04% | ||
Total real estate loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 902,372 | $ 900,784 | ||
Percent of total | 90.98% | 91.36% | ||
Commercial and industrial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 79,729 | $ 74,181 | $ 107,116 | |
Percent of total | 8.04% | 7.52% | ||
Loans to individuals [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 11,338 | $ 12,597 | ||
Percent of total | 1.14% | 1.28% | ||
Overdrafts Other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 92 | $ 217 | ||
Percent of total | 0.01% | 0.02% | ||
Total other loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 91,159 | $ 86,995 | ||
Percent of total | 9.19% | 8.82% | ||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Contractually required payments | $ 24,366 | $ 24,823 |
Nonaccretable difference | 1,842 | 1,962 |
Cash flows expected to be collected | 22,524 | 22,861 |
Accretable yield | 3,721 | 3,593 |
Carrying value | $ 18,803 | $ 19,268 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Deferred loan (fees) cost, net | $ (1,730) | $ (1,739) | ||
Total Loans | 991,801 | 986,040 | [1] | $ 979,734 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 940 | 633 | ||
Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 3,155 | 1,258 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 3,146 | 3,167 | ||
Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 13,578 | 12,315 | ||
Current | 979,953 | 975,464 | ||
Deferred loan (fees) cost, net | (1,730) | (1,739) | ||
Total Loans | 991,801 | 986,040 | ||
Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 6,337 | 7,257 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 79,729 | 74,181 | 107,116 | |
Commercial and Industrial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 36 | 27 | ||
Commercial and Industrial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 452 | 203 | ||
Commercial and Industrial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,340 | 1,665 | ||
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 4,480 | 6,065 | ||
Current | 75,249 | 68,116 | ||
Total Loans | 79,729 | 74,181 | ||
Commercial and Industrial [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 2,652 | 4,170 | ||
Construction Loans Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 181,162 | 170,404 | 170,299 | |
Construction Loans Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 31 | 0 | ||
Construction Loans Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,799 | 0 | ||
Construction Loans Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 70 | 69 | ||
Construction Loans Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 2,443 | 656 | ||
Current | 178,719 | 169,748 | ||
Total Loans | 181,162 | 170,404 | ||
Construction Loans Real Estate [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 543 | 587 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 57,230 | 63,459 | 73,802 | |
Multi Family Residential Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Current | 57,230 | 63,459 | ||
Total Loans | 57,230 | 63,459 | ||
Multi Family Residential Real Estate [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 458,488 | 457,611 | 415,641 | |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 254 | 103 | ||
Commercial Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 829 | 483 | ||
Commercial Real Estate [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 313 | 0 | ||
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 3,263 | 1,660 | ||
Current | 455,225 | 455,951 | ||
Total Loans | 458,488 | 457,611 | ||
Commercial Real Estate [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,867 | 1,074 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 11,430 | 1,923 | 10,755 | |
Loans to Individuals and Overdrafts [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 12 | 1 | ||
Loans to Individuals and Overdrafts [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 24 | ||
Loans to Individuals and Overdrafts [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 41 | 25 | ||
Current | 11,389 | 12,789 | ||
Total Loans | 11,430 | 12,814 | ||
Loans to Individuals and Overdrafts [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 29 | 0 | ||
1-to-4 family residential [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 156,732 | 159,597 | 150,352 | |
1-to-4 family residential [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 594 | 502 | ||
1-to-4 family residential [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 75 | 505 | ||
1-to-4 family residential [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 1,423 | 1,433 | ||
1-to-4 family residential [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 2,358 | 2,826 | ||
Current | 154,374 | 156,771 | ||
Total Loans | 156,732 | 159,597 | ||
1-to-4 family residential [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 266 | 386 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Loans | 48,760 | 49,713 | $ 51,769 | |
Home Equity Line of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 13 | 0 | ||
Home Equity Line of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 43 | ||
Home Equity Line of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 0 | 0 | ||
Home Equity Line of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | 993 | 1,083 | ||
Current | 47,767 | 48,630 | ||
Total Loans | 48,760 | 49,713 | ||
Home Equity Line of Credit [Member] | Non Accrual Loans [Member] | ||||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||||
Total Past Due | $ 980 | $ 1,040 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | $ 10,890 | $ 11,443 | |
With no related allowance, Contractual Unpaid Principal Balance | 13,152 | 14,305 | |
With no related allowance, Average Recorded Investment | 12,517 | $ 8,877 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 109 | 197 | |
With an related allowance, Recorded Investment | 261 | 291 | |
With an related allowance, Contractual Unpaid Principal Balance | 372 | 907 | |
With an related allowance, Average Recorded Investment | 366 | 348 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 13 | 6 | |
Related Allowance | 82 | 87 | |
Recorded Investment Total | 11,151 | 11,734 | |
Contractual Unpaid Principal Balance Total | 13,524 | 15,212 | |
Average Recorded Investment Total | 12,883 | 9,225 | |
Interest Income Recognized on impaired Loans Total | 122 | 203 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 7 | 22 | |
Recorded Investment Total | 1,583 | 1,626 | |
Contractual Unpaid Principal Balance Total | 2,389 | 2,491 | |
Average Recorded Investment Total | 2,081 | 1,994 | |
Interest Income Recognized on impaired Loans Total | 38 | 66 | |
Commercial Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 75 | 65 | |
Recorded Investment Total | 9,451 | 10,007 | |
Contractual Unpaid Principal Balance Total | 11,014 | 12,612 | |
Average Recorded Investment Total | 10,693 | 7,230 | |
Interest Income Recognized on impaired Loans Total | 84 | 137 | |
Consumer Loan [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
Recorded Investment Total | 117 | 101 | |
Contractual Unpaid Principal Balance Total | 121 | 109 | |
Average Recorded Investment Total | 109 | 1 | |
Interest Income Recognized on impaired Loans Total | 0 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 2,584 | 4,210 | |
With no related allowance, Contractual Unpaid Principal Balance | 2,788 | 4,495 | |
With no related allowance, Average Recorded Investment | 3,853 | 1,806 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 4 | 72 | |
With an related allowance, Recorded Investment | 183 | 127 | |
With an related allowance, Contractual Unpaid Principal Balance | 239 | 325 | |
With an related allowance, Average Recorded Investment | 232 | 142 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 6 | 1 | |
Related Allowance | 75 | 51 | |
Construction Loans Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 465 | 561 | |
With no related allowance, Contractual Unpaid Principal Balance | 525 | 647 | |
With no related allowance, Average Recorded Investment | 552 | 382 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 5 | 1 | |
With an related allowance, Recorded Investment | 78 | 27 | |
With an related allowance, Contractual Unpaid Principal Balance | 133 | 27 | |
With an related allowance, Average Recorded Investment | 0 | 13 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | |
Related Allowance | 0 | 14 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 6,008 | 4,744 | |
With no related allowance, Contractual Unpaid Principal Balance | 7,251 | 6,903 | |
With no related allowance, Average Recorded Investment | 5,843 | 4,655 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 66 | 60 | |
Loans to Individuals and Overdrafts [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 117 | 215 | |
With no related allowance, Contractual Unpaid Principal Balance | 121 | 215 | |
With no related allowance, Average Recorded Investment | 109 | 1 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | |
Multi Family Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 211 | 101 | |
With no related allowance, Contractual Unpaid Principal Balance | 211 | 109 | |
With no related allowance, Average Recorded Investment | 213 | 232 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 3 | 3 | |
Home Equity Line of Credit [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 857 | 1,040 | |
With no related allowance, Contractual Unpaid Principal Balance | 1,060 | 1,204 | |
With no related allowance, Average Recorded Investment | 957 | 803 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 15 | 13 | |
With an related allowance, Recorded Investment | 0 | 0 | |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 0 | |
With an related allowance, Average Recorded Investment | 0 | 16 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 0 | 0 | |
Related Allowance | 0 | 0 | |
1-to-4 family residential [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With no related allowance, Recorded Investment | 648 | 572 | |
With no related allowance, Contractual Unpaid Principal Balance | 1,196 | 732 | |
With no related allowance, Average Recorded Investment | 990 | 998 | |
With no related allowance, Interest Income Recognized on Impaired Loans | 16 | 48 | |
With an related allowance, Recorded Investment | 0 | 137 | |
With an related allowance, Contractual Unpaid Principal Balance | 0 | 555 | |
With an related allowance, Average Recorded Investment | 134 | 177 | |
With an related allowance, Interest Income Recognized on Impaired Loans | 7 | $ 5 | |
Related Allowance | $ 7 | $ 22 |
LOANS (Details 4)
LOANS (Details 4) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)LoanNumber | Mar. 31, 2018USD ($)LoanNumber | Mar. 31, 2019USD ($)Loan | Mar. 31, 2018USD ($)Loan | |
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Loan | 17 | 7 | ||
Recorded investment | $ 2,451 | $ 2,082 | ||
Commercial and Inustrial Below Market Interest Rate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Number | 4 | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,365 | $ 1,046 | ||
Post-Modification Outstanding Recorded Investment | $ 1,275 | $ 1,046 | ||
Number of loans | Loan | 8 | 3 | ||
Recorded investment | $ 1,591 | $ 996 | ||
Construction Below Market Interest Rate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Loan | 1 | 1 | ||
Recorded investment | $ 34 | $ 62 | ||
Commercial Real Estate Below Market Interest Rate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Number | 3 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 1,283 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 1,015 | $ 0 | ||
Number of loans | Loan | 3 | 1 | ||
Recorded investment | $ 697 | $ 899 | ||
Residential 1 to 4 Family Below Market Interest Rate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Number | 2 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 432 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 409 | $ 0 | ||
Number of loans | Loan | 4 | 2 | ||
Recorded investment | $ 128 | $ 125 | ||
Below Market Interest Rate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Number | 10 | 4 | ||
Pre-Modification Outstanding Recorded Investment | $ 3,081 | $ 1,046 | ||
Post-Modification Outstanding Recorded Investment | $ 2,700 | $ 1,046 | ||
Loans To Individuals and Overdrafts [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of loans | Loan | 1 | 0 | ||
Pre-Modification Outstanding Recorded Investment | $ 1 | $ 0 | ||
Post-Modification Outstanding Recorded Investment | $ 1 | $ 0 | ||
Number of loans | Loan | 1 | 0 | ||
Recorded investment | $ 1 | $ 0 |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 991,801 | $ 986,040 | [1] | $ 979,734 |
Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 991,801 | 986,040 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 79,729 | 74,181 | 107,116 | |
Commercial and Industrial [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 79,729 | 74,181 | ||
Commercial and Industrial [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 990 | 1,662 | ||
Commercial and Industrial [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,207 | 2,266 | ||
Commercial and Industrial [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 6,203 | 5,773 | ||
Commercial and Industrial [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 25,780 | 22,332 | ||
Commercial and Industrial [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 38,572 | 34,626 | ||
Commercial and Industrial [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 84 | 879 | ||
Commercial and Industrial [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,893 | 6,643 | ||
Commercial and Industrial [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial and Industrial [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 181,162 | 170,404 | ||
Construction Loans [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 142 | 246 | ||
Construction Loans [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 11,705 | 12,106 | ||
Construction Loans [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 24,847 | 30,897 | ||
Construction Loans [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 141,357 | 125,788 | ||
Construction Loans [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 697 | 711 | ||
Construction Loans [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,414 | 656 | ||
Construction Loans [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Construction Loans [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 458,488 | 457,611 | 415,641 | |
Commercial Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 458,488 | 457,611 | ||
Commercial Real Estate [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 185 | 21 | ||
Commercial Real Estate [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,075 | 1,120 | ||
Commercial Real Estate [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 53,857 | 47,959 | ||
Commercial Real Estate [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 271,454 | 263,017 | ||
Commercial Real Estate [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 124,997 | 139,484 | ||
Commercial Real Estate [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,414 | 1,789 | ||
Commercial Real Estate [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,506 | 4,221 | ||
Commercial Real Estate [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Commercial Real Estate [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 57,230 | 63,459 | 73,802 | |
Multi Family Residential Real Estate [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 57,230 | 63,459 | ||
Multi Family Residential Real Estate [Member] | Superior [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Very Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Good [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,965 | 5,116 | ||
Multi Family Residential Real Estate [Member] | Acceptable [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 35,438 | 37,832 | ||
Multi Family Residential Real Estate [Member] | Acceptable With Care [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 16,616 | 20,296 | ||
Multi Family Residential Real Estate [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 211 | 215 | ||
Multi Family Residential Real Estate [Member] | Doubtful [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Multi Family Residential Real Estate [Member] | Loss [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Loans to Individuals and Overdrafts [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 11,430 | 1,923 | 10,755 | |
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 11,430 | 12,814 | ||
Loans to Individuals and Overdrafts [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 11,309 | 10,891 | ||
Loans to Individuals and Overdrafts [Member] | Non-Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 121 | |||
1-to-4 family residential [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 156,732 | 159,597 | 150,352 | |
1-to-4 family residential [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 156,732 | 159,597 | ||
1-to-4 family residential [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 153,077 | 155,117 | ||
1-to-4 family residential [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,125 | 900 | ||
1-to-4 family residential [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,530 | 3,580 | ||
Home Equity Line of Credit [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 48,760 | 49,713 | $ 51,769 | |
Home Equity Line of Credit [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 48,760 | 49,713 | ||
Home Equity Line of Credit [Member] | Pass [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 47,300 | 48,143 | ||
Home Equity Line of Credit [Member] | Special Mention [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 76 | 88 | ||
Home Equity Line of Credit [Member] | Substandard [Member] | Total Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 1,384 | $ 1,482 | ||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Certain Loans Acquired In Transfer Accounted For As Debt Securities Accretable Yield [Line Items] | ||
Accretable yield, beginning of period | $ 3,593 | $ 3,307 |
Accretion | (288) | (354) |
Reclassification from (to) nonaccretable difference | 117 | 0 |
Other changes, net | 299 | 87 |
Accretable yield, end of period | $ 3,721 | $ 3,040 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | [1] | $ 8,669 | |||
Provision for loan losses | (11,200) | $ (11,700) | |||
Allowance for loan losses, Balance, end of period | 8,510 | 8,669 | [1] | ||
Ending Balance: individually evaluated for impairment | 82 | $ 76 | |||
Ending Balance: collectively evaluated for impairment | 8,428 | 8,881 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 11,151 | ||||
Ending balance | 991,801 | 979,734 | 986,040 | [1] | |
Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 578 | 131 | 131 | ||
Provision for loan losses | (25) | 79 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 210 | 578 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 18,803 | 9,047 | |||
Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 8,066 | 8,704 | 8,704 | ||
Provision for loan losses | 137 | 62 | |||
Loans charged-off | (319) | (59) | |||
Recoveries | 48 | 40 | |||
Allowance for loan losses, Balance, end of period | 7,932 | 8,747 | 8,066 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 963,577 | 970,687 | |||
Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 8,669 | 8,835 | 8,835 | ||
Provision for loan losses | 112 | 141 | |||
Loans charged-off | (319) | (59) | |||
Recoveries | 48 | 40 | |||
Allowance for loan losses, Balance, end of period | 8,510 | 8,957 | 8,669 | ||
Loans | |||||
Ending balance | 991,801 | 986,040 | |||
Commercial and Industrial [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 75 | 49 | |||
Ending Balance: collectively evaluated for impairment | 701 | 824 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 2,767 | ||||
Ending balance | 79,729 | 107,116 | 74,181 | ||
Commercial and Industrial [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 214 | 65 | 65 | ||
Provision for loan losses | (168) | 79 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 144 | 214 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 1,481 | 2,071 | |||
Commercial and Industrial [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 762 | 742 | 742 | ||
Provision for loan losses | 214 | (10) | |||
Loans charged-off | (251) | (9) | |||
Recoveries | 5 | 6 | |||
Allowance for loan losses, Balance, end of period | 730 | 729 | 762 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 75,481 | 105,045 | |||
Commercial and Industrial [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 976 | 807 | 807 | ||
Provision for loan losses | 46 | 69 | |||
Loans charged-off | (251) | (9) | |||
Recoveries | 5 | 6 | |||
Allowance for loan losses, Balance, end of period | 776 | 873 | 976 | ||
Loans | |||||
Ending balance | 79,729 | 74,181 | |||
Construction Loans Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 14 | |||
Ending Balance: collectively evaluated for impairment | 1,595 | 1,672 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 543 | ||||
Ending balance | 181,162 | 170,299 | 170,404 | ||
Construction Loans Real Estate [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | ||
Provision for loan losses | 23 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 747 | 430 | |||
Construction Loans Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 1,385 | 1,955 | 1,955 | ||
Provision for loan losses | 186 | (275) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 1 | 6 | |||
Allowance for loan losses, Balance, end of period | 1,572 | 1,686 | 1,385 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 179,872 | 169,869 | |||
Construction Loans Real Estate [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 1,385 | 1,955 | 1,955 | ||
Provision for loan losses | 209 | (275) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 1 | 6 | |||
Allowance for loan losses, Balance, end of period | 1,595 | 1,686 | 1,385 | ||
Loans | |||||
Ending balance | 181,162 | 170,404 | |||
Commercial Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 0 | |||
Ending Balance: collectively evaluated for impairment | 3,628 | 3,657 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 6,008 | ||||
Ending balance | 458,488 | 415,641 | 457,611 | ||
Commercial Real Estate [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 233 | 66 | 66 | ||
Provision for loan losses | (152) | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 66 | 233 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 7,587 | 4,858 | |||
Commercial Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 3,024 | 3,304 | 3,304 | ||
Provision for loan losses | 356 | 282 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 15 | 4 | |||
Allowance for loan losses, Balance, end of period | 3,395 | 3,590 | 3,024 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 444,893 | 410,783 | |||
Commercial Real Estate [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 3,409 | 3,370 | 3,370 | ||
Provision for loan losses | 204 | 282 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 15 | 4 | |||
Allowance for loan losses, Balance, end of period | 3,628 | 3,656 | 3,409 | ||
Loans | |||||
Ending balance | 458,488 | 457,611 | |||
Family Residential Real Estate 1 to 4 [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 7 | 13 | |||
Ending Balance: collectively evaluated for impairment | 1,450 | 1,262 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 648 | ||||
Ending balance | 156,732 | 150,352 | 159,597 | ||
Family Residential Real Estate 1 to 4 [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 246 | 0 | 0 | ||
Provision for loan losses | 242 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 246 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 8,011 | 862 | |||
Family Residential Real Estate 1 to 4 [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 1,663 | 1,058 | 1,058 | ||
Provision for loan losses | (461) | 208 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 9 | 9 | |||
Allowance for loan losses, Balance, end of period | 1,211 | 1,275 | 1,663 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 148,073 | 149,490 | |||
Family Residential Real Estate 1 to 4 [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 1,667 | 1,058 | 1,058 | ||
Provision for loan losses | (219) | 208 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 9 | 9 | |||
Allowance for loan losses, Balance, end of period | 1,457 | 1,275 | 1,667 | ||
Loans | |||||
Ending balance | 156,732 | 159,597 | |||
Home Equity Line of Credit [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 0 | |||
Ending Balance: collectively evaluated for impairment | 441 | 645 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 857 | ||||
Ending balance | 48,760 | 51,769 | 49,713 | ||
Home Equity Line of Credit [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | ||
Provision for loan losses | 2 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 50 | 595 | |||
Home Equity Line of Credit [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 555 | 549 | 549 | ||
Provision for loan losses | (80) | 125 | |||
Loans charged-off | (49) | (35) | |||
Recoveries | 13 | 6 | |||
Allowance for loan losses, Balance, end of period | 439 | 645 | 555 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 47,853 | 51,174 | |||
Home Equity Line of Credit [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 555 | 549 | 549 | ||
Provision for loan losses | (78) | 125 | |||
Loans charged-off | (49) | (35) | |||
Recoveries | 13 | 6 | |||
Allowance for loan losses, Balance, end of period | 441 | 645 | 555 | ||
Loans | |||||
Ending balance | 48,760 | 49,713 | |||
Loans to Individuals and Overdrafts [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 0 | |||
Ending Balance: collectively evaluated for impairment | 177 | 125 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 117 | ||||
Ending balance | 11,430 | 10,755 | 1,923 | ||
Loans to Individuals and Overdrafts [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | ||
Provision for loan losses | 0 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 0 | 1 | |||
Loans to Individuals and Overdrafts [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 206 | 305 | 305 | ||
Provision for loan losses | (15) | (174) | |||
Loans charged-off | (19) | (15) | |||
Recoveries | 5 | 9 | |||
Allowance for loan losses, Balance, end of period | 177 | 125 | 206 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 11,313 | 10,754 | |||
Loans to Individuals and Overdrafts [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 206 | 305 | 305 | ||
Provision for loan losses | (15) | (174) | |||
Loans charged-off | (19) | (15) | |||
Recoveries | 5 | 9 | |||
Allowance for loan losses, Balance, end of period | 177 | 125 | 206 | ||
Loans | |||||
Ending balance | 11,430 | 12,814 | |||
Multi Family Residential Real Estate [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Ending Balance: individually evaluated for impairment | 0 | 0 | |||
Ending Balance: collectively evaluated for impairment | 436 | 697 | |||
Loans | |||||
Ending balance: individually evaluated for impairment | 211 | ||||
Ending balance | 57,230 | 73,802 | 63,459 | ||
Multi Family Residential Real Estate [Member] | Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 0 | 0 | 0 | ||
Provision for loan losses | 28 | 0 | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 0 | 0 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 927 | 230 | |||
Multi Family Residential Real Estate [Member] | Excluding Purchase Credit Impairment Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 471 | 791 | 791 | ||
Provision for loan losses | (63) | (94) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 408 | 697 | 471 | ||
Loans | |||||
Ending balance: collectively evaluated for impairment | 56,092 | 73,572 | |||
Multi Family Residential Real Estate [Member] | Total Loans [Member] | |||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||
Allowance for loan losses, Balance, beginning of period | 471 | 791 | 791 | ||
Provision for loan losses | (35) | (94) | |||
Loans charged-off | 0 | 0 | |||
Recoveries | 0 | 0 | |||
Allowance for loan losses, Balance, end of period | 436 | $ 697 | 471 | ||
Loans | |||||
Ending balance | $ 57,230 | $ 63,459 | |||
[1] | Derived from audited consolidated financial statements. |
LOANS (Details Textual)
LOANS (Details Textual) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | $ 11,151,000 | $ 11,734,000 | |
Impaired Loans Required for Specific Reserves | 261,000 | 291,000 | |
With no related allowance, Recorded Investment | 10,890,000 | 11,443,000 | |
Allowance for Loan and Lease Losses Write-offs, Net | 1,100,000 | 3,500,000 | |
Provision for Loan and Lease Losses | 11,200,000 | 11,700,000 | |
Aggregate Impaired Loans Required For Specific Reserves | 87,000 | ||
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged | 138,100,000 | ||
Nonaccrual Impaired Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 6,300,000 | 7,300,000 | |
Accrual Impaired Loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 4,900,000 | $ 4,400,000 | |
Troubled Debt Restructurings [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 7,700,000 | $ 6,700,000 | |
Troubled Debt Restructuring Accrual Status [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 5,200,000 | 4,800,000 | |
Troubled Debt Restructuring Nonaccrual Status [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Impaired Financing Receivable, Recorded Investment | 2,500,000 | $ 1,900,000 | |
Unused Lines of Credit [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Line of Credit Facility, Maximum Amount Outstanding During Period | $ 176,800,000 |
REVENUE RECOGNITION (Details)
REVENUE RECOGNITION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | $ 1,197 | $ 1,165 |
Noninterest Income (in-scope of Topic 606) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | 768 | 689 |
Noninterest Income (out-of-scope of Topic 606) [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | 429 | 476 |
Service Charges on Deposit Accounts [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | 266 | 276 |
Other [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Noninterest Income | $ 502 | $ 413 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | |||
Schedule Of Real Estate Owned Properties [Line Items] | ||||
Beginning balance January 1 | $ 1,088 | [1] | $ 1,258 | |
Sales | (65) | (717) | ||
Write-downs | (3) | (71) | ||
Transfers | 26 | 618 | ||
Ending balance | $ 1,046 | $ 1,088 | [1] | |
[1] | Derived from audited consolidated financial statements. |
OTHER REAL ESTATE OWNED (Deta_2
OTHER REAL ESTATE OWNED (Details Textual) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loans | Sep. 30, 2018USD ($) | ||
Schedule Of Real Estate Owned Properties [Line Items] | ||||
Real Estate Acquired Through Foreclosure | $ 1,046,000 | $ 1,088,000 | [1] | $ 1,258,000 |
Mortgage Loans in Process of Foreclosure, Amount | $ 770,000 | $ 376,000 | ||
Mortgage Loans on Real Estate, Number of Loans | 5 | 5 | ||
[1] | Derived from audited consolidated financial statements. |
LEASES (Details)
LEASES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Operating lease cost | $ 261 |
LEASES (Details 1)
LEASES (Details 1) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 261 |
Right Of Use Asset Obtained In Exchange For Lease Obligations | |
Operating leases | $ 9,013 |
Weighted Average Remaining Lease Term | |
Operating leases | 7 years 3 months 18 days |
Weighted Average Discount Rate | |
Operating leases | 6.00% |
LEASES (Details 2)
LEASES (Details 2) $ in Thousands | Mar. 31, 2019USD ($) |
2019 | $ 398 |
2020 | 580 |
2021 | 642 |
2022 | 713 |
2023 | 693 |
Thereafter | 5,816 |
Total lease payments | $ 8,842 |
LEASES (Details Textual)
LEASES (Details Textual) | 3 Months Ended |
Mar. 31, 2019 | |
Lessee, Operating Lease, Option to Extend | options to extend the leases for up to 5 years per option period |
Lessee Operating Lease Expire Term | month to month or expire within 1 year |
Maximum [Member] | |
Operating Lease Remaining Lease Term | 15 years |
Lessee, Operating Lease, Renewal Term | 25 years |
Minimum [Member] | |
Operating Lease Remaining Lease Term | 1 year |
Lessee, Operating Lease, Renewal Term | 1 year |