Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 14, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | Two River Bancorp | ||
Entity Central Index Key | 1,343,034 | ||
Trading Symbol | trcb | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding (in shares) | 8,389,367 | ||
Entity Public Float | $ 73,871,447 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and due from banks | $ 19,844,000 | $ 21,566,000 |
Interest-bearing deposits in bank | 22,233,000 | 25,161,000 |
Cash and cash equivalents | 42,077,000 | 46,727,000 |
Securities available for sale | 34,464,000 | 33,530,000 |
Securities held to maturity (fair value of $57,284 and $43,668 at December 31, 2016 and 2015, respectively) | 57,843,000 | 43,167,000 |
Restricted investments, at cost | 4,805,000 | 3,596,000 |
Loans held for sale | 4,537,000 | 3,050,000 |
Loans | 753,092,000 | 693,150,000 |
Allowance for loan losses | (9,565,000) | (8,713,000) |
Net Loans | 743,527,000 | 684,437,000 |
Other real estate owned (“OREO”) | 259,000 | 411,000 |
Bank owned life insurance | 21,029,000 | 17,294,000 |
Premises and equipment, net | 4,662,000 | 5,083,000 |
Accrued interest receivable | 2,234,000 | 1,912,000 |
Goodwill | 18,109,000 | 18,109,000 |
Other intangible assets, net of accumulated amortization of $2,106 and $2,097 at December 31, 2016 and 2015, respectively | 9,000 | |
Other assets | 6,665,000 | 6,371,000 |
Total Assets | 940,211,000 | 863,696,000 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest bearing | 160,104,000 | 144,627,000 |
Interest bearing | 616,463,000 | 563,809,000 |
Total Deposits | 776,567,000 | 708,436,000 |
Securities sold under agreements to repurchase | 19,915,000 | 19,545,000 |
FHLB and other borrowings | 25,300,000 | 26,500,000 |
Subordinated debt | 9,855,000 | 9,824,000 |
Accrued interest payable | 100,000 | 118,000 |
Other liabilities | 7,758,000 | 6,271,000 |
Total Liabilities | 839,495,000 | 770,694,000 |
Shareholders’ Equity | ||
Preferred stock, no par value; 6,500,000 shares authorized; no shares issued and outstanding | ||
Common stock, no par value; 25,000,000 shares authorized; Issued – 8,677,536 and 8,213,196 at December 31, 2016 and 2015, respectively Outstanding – 8,365,442 and 7,929,196 at December 31, 2016 and 2015, respectively | 79,056,000 | 72,890,000 |
Retained earnings | 24,447,000 | 22,759,000 |
Treasury stock, at cost; 312,094 and 284,000 shares at December 31, 2016 and 2015, respectively | (2,396,000) | (2,248,000) |
Accumulated other comprehensive loss | (391,000) | (399,000) |
Total Shareholders’ Equity | 100,716,000 | 93,002,000 |
Total Liabilities and Shareholders’ Equity | $ 940,211,000 | $ 863,696,000 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities held-to-maturity, fair value | $ 57,284 | $ 43,668 |
Other intangible assets, accumulated amortization | $ 2,106 | $ 2,097 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 6,500,000 | 6,500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 8,677,536 | 8,213,196 |
Common stock, shares outstanding (in shares) | 8,365,442 | 7,929,196 |
Treasury stock, shares (in shares) | 312,094 | 284,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest Income | ||
Loans, including fees | $ 32,798,000 | $ 30,624,000 |
Securities: | ||
Taxable | 776,000 | 782,000 |
Tax-exempt | 917,000 | 623,000 |
Interest-bearing deposits | 133,000 | 74,000 |
Total Interest Income | 34,624,000 | 32,103,000 |
Interest Expense | ||
Deposits | 3,829,000 | 3,141,000 |
Securities sold under agreements to repurchase | 61,000 | 68,000 |
FHLB and other borrowings | 618,000 | 621,000 |
Subordinated debt | 656,000 | 33,000 |
Total Interest Expense | 5,164,000 | 3,863,000 |
Net Interest Income | 29,460,000 | 28,240,000 |
Provision for Loan Losses | 515,000 | 490,000 |
Net Interest Income after Provision for Loan Losses | 28,945,000 | 27,750,000 |
Non-Interest Income | ||
Service fees on deposit accounts | 587,000 | 578,000 |
Mortgage banking | 1,162,000 | 783,000 |
Other loan fees | 610,000 | 214,000 |
Earnings from investment in bank owned life insurance | 477,000 | 445,000 |
Death benefit on bank owned life insurance | 862,000 | |
Gain on sale of SBA loans | 868,000 | 561,000 |
Net gain on sale of securities | 72,000 | 37,000 |
Gain on sale of premises and equipment | 208,000 | |
Other income | 851,000 | 711,000 |
Total Non-Interest Income | 5,489,000 | 3,537,000 |
Non-Interest Expenses | ||
Salaries and employee benefits | 12,844,000 | 12,486,000 |
Occupancy and equipment | 4,117,000 | 3,942,000 |
Professional | 1,198,000 | 982,000 |
Insurance | 216,000 | 268,000 |
FDIC insurance and assessments | 412,000 | 433,000 |
Advertising | 415,000 | 403,000 |
Data processing | 554,000 | 475,000 |
Outside service fees | 500,000 | 499,000 |
Amortization of identifiable intangibles | 9,000 | 48,000 |
OREO expenses, impairments and sales, net | (274,000) | (70,000) |
Loan workout expenses | 73,000 | 431,000 |
Other operating | 1,411,000 | 1,458,000 |
Total Non-Interest Expenses | 21,475,000 | 21,355,000 |
Income before Income Taxes | 12,959,000 | 9,932,000 |
Income tax expense | 4,328,000 | 3,585,000 |
Net Income | 8,631,000 | 6,347,000 |
Preferred stock dividend | (57,000) | |
Net Income available to common shareholders | $ 8,631,000 | $ 6,290,000 |
Earnings Per Common Share: | ||
Basic (in dollars per share) | $ 1.04 | $ 0.76 |
Diluted (in dollars per share) | $ 1.01 | $ 0.74 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Net income | $ 8,631 | $ 6,347 | |
Other comprehensive income (loss): | |||
Reclassification adjustment for gains on sales of securities available for sale recognized in income, net of income tax expense 2015: $14 (a)(b) | [1],[2] | (23) | |
Unrealized holdings gain (loss) on securities available for sale, net of income tax expense (benefit) 2016: $5; 2015: $(24) | 8 | (31) | |
Other comprehensive income (loss) | 8 | (54) | |
Total comprehensive income | $ 8,639 | $ 6,293 | |
[1] | Gross amounts are included in net gain on sale of securities on the Consolidated Statements of Operations in non-interest income. | ||
[2] | Income tax amounts are included in income tax expense on the Consolidated Statements of Operation. |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification adjustment for gains on sales of securities recognized in income, tax | $ 14 | |
Unrealized holdings (loss) gain on securities available for sale, tax | $ 5 | $ (24) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) | Series C Preferred Stock [Member]Preferred Stock [Member] | Series C Preferred Stock [Member]Retained Earnings [Member] | Series C Preferred Stock [Member] | Preferred Stock [Member] | Common Stock [Member] | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Total |
Balance at Dec. 31, 2014 | $ 6,000,000 | $ 72,527,000 | $ 17,501,000 | $ (1,751,000) | $ (345,000) | $ 93,932,000 | |||
Balance (in shares) at Dec. 31, 2014 | 7,939,684 | ||||||||
Net income | 6,347,000 | 6,347,000 | |||||||
Other comprehensive Income (Loss) | (54,000) | (54,000) | |||||||
Redemption of preferred stock, Series C | $ (6,000,000) | $ (6,000,000) | |||||||
Dividends on preferred stock, Series C | $ (57,000) | $ (57,000) | |||||||
Stock-based compensation expense | $ 186,000 | 186,000 | |||||||
Cash dividends on common stock | (1,032,000) | (1,032,000) | |||||||
Options exercised (in shares) | 28,450 | ||||||||
Options exercised | $ 114,000 | 114,000 | |||||||
Tax benefit of exercised stock options | $ 7,000 | 7,000 | |||||||
Common stock repurchased (in shares) | (56,388) | ||||||||
Common stock repurchased | (497,000) | (497,000) | |||||||
Restricted stock awards (in shares) | 11,100 | ||||||||
Employee stock purchase program (in shares) | 6,350 | ||||||||
Employee stock purchase program | $ 56,000 | 56,000 | |||||||
Balance at Dec. 31, 2015 | $ 72,890,000 | 22,759,000 | (2,248,000) | (399,000) | 93,002,000 | ||||
Balance (in shares) at Dec. 31, 2015 | 7,929,196 | ||||||||
Net income | 8,631,000 | 8,631,000 | |||||||
Other comprehensive Income (Loss) | 8,000 | 8,000 | |||||||
Stock-based compensation expense | $ 231,000 | 231,000 | |||||||
Cash dividends on common stock | (1,193,000) | (1,193,000) | |||||||
Options exercised (in shares) | 27,527 | ||||||||
Options exercised | $ 104,000 | 104,000 | |||||||
Tax benefit of exercised stock options | $ 25,000 | $ 25,000 | |||||||
Common stock repurchased (in shares) | (13,232) | (13,894) | |||||||
Common stock repurchased | (148,000) | $ (148,000) | |||||||
Restricted stock awards (in shares) | 17,000 | ||||||||
Employee stock purchase program (in shares) | 5,397 | ||||||||
Employee stock purchase program | $ 56,000 | 56,000 | |||||||
Balance at Dec. 31, 2016 | $ 0 | $ 79,056,000 | 24,447,000 | $ (2,396,000) | $ (391,000) | $ 100,716,000 | |||
Balance (in shares) at Dec. 31, 2016 | 8,365,442 | ||||||||
Common stock dividend - 5% (in shares) | 399,554 | ||||||||
Common stock dividend - 5% | $ 5,750,000 | $ (5,750,000) |
Consolidated Statements of Sha8
Consolidated Statements of Shareholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Retained Earnings [Member] | ||
Cash dividends, per share (in dollars per share) | $ 0.14 | $ 0.12 |
Common Stock [Member] | ||
Common Stock Dividends, Percentage | 5.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 8,631,000 | $ 6,347,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 780,000 | 798,000 |
Provision for Loan Losses | 515,000 | 490,000 |
Intangible amortization | 9,000 | 48,000 |
Amortization of subordinated debt issuance costs | 31,000 | |
Net amortization of securities premiums and discounts | 714,000 | 557,000 |
Deferred income taxes | (463,000) | (484,000) |
Earnings from investment in bank owned life insurance | (477,000) | (445,000) |
Proceeds from sale of mortgage loans held for sale | 62,059,000 | 41,393,000 |
Origination of mortgage loans held for sale | (60,882,000) | (42,091,000) |
Gain on sale of mortgage loans held for sale | (1,059,000) | (650,000) |
Gain on sale of loans transferred from held for investment to held for sale | (113,000) | |
Net realized loss (gain) on sale of OREO | 45,000 | (107,000) |
Impairment on OREO | 84,000 | |
Stock-based compensation expense | 231,000 | 186,000 |
Net realized gain on sale of securities available for sale | (37,000) | |
Net realized gain on sale of securities held to maturity | (72,000) | |
Death benefit on bank owned life insurance | (862,000) | |
Proceeds from sale of SBA loans held for sale | 7,860,000 | 6,980,000 |
Origination of SBA loans held for sale | (8,597,000) | (6,419,000) |
Gain on sale of SBA loans held for sale | (868,000) | (561,000) |
Gain on sale of premises and equipment | (208,000) | |
Decrease (increase) in assets: | ||
Accrued interest receivable | (322,000) | (276,000) |
Other assets | 164,000 | 413,000 |
Accrued interest payable | (18,000) | 72,000 |
Other liabilities | 1,487,000 | 733,000 |
Net Cash Provided by Operating Activities | 8,906,000 | 6,710,000 |
Cash Flows from Investing Activities | ||
Purchase of securities available for sale | (8,038,000) | (20,707,000) |
Purchase of securities held to maturity | (25,213,000) | (25,297,000) |
Proceeds from repayments, calls and maturities of securities available for sale | 6,781,000 | 7,916,000 |
Proceeds from repayments, calls and maturities of securities held to maturity | 9,155,000 | 7,184,000 |
Proceeds from sales of securities available for sale | 24,306,000 | |
Proceeds from sales of securities held to maturity | 1,076,000 | |
Proceeds from sale of loans transferred from held for investment to held for sale | 5,727,000 | |
Net increase in loans | (59,605,000) | (71,261,000) |
Purchase of premises and equipment | (359,000) | (902,000) |
Proceeds from sale of premises and equipment | 925,000 | |
Purchase of restricted investments, net | (1,209,000) | (567,000) |
Proceeds from the sale of OREO | 107,000 | 1,367,000 |
Purchase of bank owned life insurance | (3,918,000) | |
Proceeds from death benefit on bank owned life insurance | 1,522,000 | |
Net Cash Used in Investing Activities | (79,701,000) | (71,309,000) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 68,131,000 | 66,046,000 |
Net increase (decrease) in securities sold under agreements to repurchase | 370,000 | (3,745,000) |
Redemption of preferred stock, Series C | (6,000,000) | |
Proceeds from FHLB and other borrowings | 13,000,000 | 12,000,000 |
Repayment of FHLB and other borrowings | (14,200,000) | (1,500,000) |
Cash dividends paid - preferred stock | (57,000) | |
Cash dividends paid - common stock | (1,193,000) | (1,032,000) |
Proceeds from employee stock purchase plan | 56,000 | 56,000 |
Proceeds from subordinated debt placement, net of issuance costs of $176,000 | 9,824,000 | |
Proceeds from exercise of stock options | 104,000 | 114,000 |
Common stock repurchased | (148,000) | (497,000) |
Tax benefit of stock options exercised | 25,000 | 7,000 |
Net Cash Provided by Financing Activities | 66,145,000 | 75,216,000 |
Net (Decrease) Increase in Cash and Cash Equivalents | (4,650,000) | 10,617,000 |
Cash and Cash Equivalents – Beginning | 46,727,000 | 36,110,000 |
Cash and Cash Equivalents – Ending | 42,077,000 | 46,727,000 |
Supplementary cash flow information: | ||
Interest paid | 5,182,000 | 3,791,000 |
Income taxes paid | 4,338,000 | 3,289,000 |
Supplementary schedule of non-cash activities: | ||
Transfer of loans held for investment to loans held for sale | 0 | 5,614,000 |
OREO acquired in settlement of loans | $ 152,000 |
Consolidated Statements of Ca10
Consolidated Statements of Cash Flows (Parentheticals) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Issuance costs on subordinated debt | $ 176 |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | Note 1 A. Organization and Basis of Presentation The accompanying consolidated financial statements include the accounts of Two River Bancorp (the “Company”), a bank holding company, and its wholly-owned subsidiary, Two River Community Bank (“the Bank” or “Two River”) and the Bank’s wholly-owned subsidiaries, TRCB Investment Corporation, TRCB Holdings Two LLC, TRCB Holdings Three LLC, TRCB Holdings Seven LLC and TRCB Holdings Eight LLC. All inter-company balances and transactions have been eliminated in the consolidated financial statements. B. Nature of Operations Two River Bancorp is a bank holding company whose principal activity is the ownership of Two River Community Bank. Through its banking subsidiary, the Company provides banking services to small and medium-sized businesses, professionals and individual consumers primarily in the Monmouth, Middlesex and Union Counties, located in Central and Northern New Jersey. The Company competes with other banking and financial institutions in its market communities. The Company and its bank subsidiary are subject to regulations of certain state and federal agencies and, accordingly, they are periodically examined by those regulatory authorities. As a consequence of the extensive regulation of commercial banking activities, the Company’s and the Bank’s businesses are susceptible to being affected by state and federal legislation and regulations. C. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The principal material estimates that are particularly susceptible to significant change in the near term related to: the allowance for loan losses, the potential impairment of goodwill, the potential impairment of restricted investments, the valuation of deferred tax assets, valuation of other real estate owned and the determination of other-than-temporary impairment on securities. D. Significant Concentrations of Credit Risk Most of the Company’s activities are with customers located within Monmouth, Middlesex and Union Counties of New Jersey. Note 2 3 may one E. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and unrealized losses related to factors other than credit on debt securities which have been determined to be other-than-temporarily impaired. F. Statement of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in banks, and Federal funds sold. Interest-bearing deposits are due from the Federal Reserve Bank of New York. Generally, Federal funds are purchased and sold for one G. Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities available for sale are recorded on the trade date and are determined using the specific identification method. Securities classified as held to maturity are those securities the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed by the interest method over the terms of the securities. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Other-than-temporary accounting guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporary impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not, the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income (loss). For held to maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income (loss) for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future cash flows of the security. H. Restricted Investments Restricted investments, which represents the required investment in the common stock of correspondent banks, is carried at cost and as of December 31, 2016 2015, $3,230,000 $2,021,000 December 31, 2016 2015, $ 75,000 December 31, 2016 2015. Restricted investments also include the Solomon Hess SBA Loan Fund, utilized for the purpose of the Bank satisfying its CRA lending requirements. As this fund operates as a private fund, shares in the Fund are not publicly traded and therefore have no readily determinable market value. An investor can have their interest in the Fund redeemed for the balance of their capital account at any quarter end assuming they give the Fund 60 $ 1,500,000 December 31, 2016 2015. Management evaluates the restricted investments for impairment in accordance with U.S. generally accepted accounting principles. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Management believes no impairment charge is necessary related to restricted investments as of December 31, 2016. I. Loans Receivable and Loans Held for Sale Loans receivable, which management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Generally, loans held for sale are designated at time of origination, generally consist of newly originated fixed rate residential loans and are recorded at the lower of aggregate cost or estimated fair value in the aggregate. The Company did not 2016. 2015, $5.6 The loans receivable portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial, real estate-construction and real estate-commercial. Consumer loans consist of the following classes: real estate-residential and consumer. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 may six J. Allowance for Loan Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet, which at December 31, 2016 2015, The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may may The allowance consists of specific, general and unallocated components. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of the loan. The specific component relates to loans that are classified as impaired. When a loan is impaired, there are three 310 10 35 1. The loan’s observable market price; 2. The fair value of the underlying collateral; or 3. The present value (PV) of expected future cash flows. Loans that are considered “collateral-dependent” should be evaluated under the “Fair market value of collateral.” Loans that are still expected to be supported by repayment from the borrower should be evaluated under the “Present value of future cash flows.” For the most part, the Company measures impairment under the “Fair market value of collateral” for any loan that would rely on the value of collateral for recovery in the event of default. The individual impairment analysis for each loan is clearly documented as to the chosen valuation method. The general component covers pools of loans by loan class including commercial and industrial, real estate-construction and real estate-commercial not considered impaired as well as smaller balance homogeneous loans such as real estate-residential and consumer. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: 1. Changes in lending policy and procedures, including changes in underwriting standards and collection practices not previously considered in estimating credit losses. 2. Changes in relevant economic and business conditions. 3. Changes in nature and volume of the loan portfolio and in the terms of loans. 4. Changes in experience, ability and depth of lending management and staff. 5. Changes in the volume and severity of past due loans, the volume of non-accrual loans and the volume and severity of adversely classified loans. 6. Changes in the quality of the loan review system. 7. Changes in the value of underlying collateral for collateral-dependent loans. 8. The existence and effect of any concentration of credit and changes in the level of such concentrations. 9. The effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Each factor is assigned a risk value to reflect low, moderate or high risk assessments based on management’s best judgment using current market, macro and other relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation in each factor and accompany the allowance for loan loss calculation. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The Company engages in a variety of lending activities, including commercial and industrial, real estate-commercial, real estate-construction, real estate-residential and consumer loans. The Company focuses its lending activities on individuals, professionals along with small to medium sized businesses. The Company originates commercial business loans to professionals, sole proprietorships and small businesses in our market areas. We extend commercial business loans on a secured and unsecured basis. Secured commercial loans are generally collateralized by residential and nonresidential real estate, marketable securities, accounts receivable, inventory, industrial/commercial machinery and equipment and furniture and fixtures. To further enhance our security position, we generally require personal guarantees of the principal owners of the entities to which we extend credit. These loans are made on both lines of credit and fixed-term basis typically ranging from one five Commercial real estate loans are made to local commercial, retail and professional firms and individuals for the acquisition of new property or the refinancing of existing property. These loans are typically related to commercial businesses and secured by the underlying real estate used in these businesses or real property of the principals. Commercial real estate loans typically require a loan to value ratio of not greater than 75%. five 5 25 Commercial loans are often larger and may may may may may The Company is an approved Preferred Lender by the Small Business Administration (“SBA”), which allows the Company delegated authority to approve and close SBA loans up to $5.0 7a 504 75% third December 31, 2016 2015 The Company originates fixed-rate and adjustable-rate loans to individuals and builders to finance the construction of residential dwellings. We also originate construction loans for commercial development projects, including apartment buildings, restaurants, shopping centers and owner-occupied properties used for businesses. Our construction loans generally provide for the payment of interest only during the construction phase which is typically twelve twelve eighteen The Company offers a full range of residential real estate and consumer loans. These loans consist of residential mortgages, home equity lines of credit, equity loans, personal loans, automobile loans and overdraft protection. We do not originate subprime or negative amortization loans. Each residential mortgage loan is evidenced by a promissory note secured by a mortgage or deed of trust creating a first one four two four $350,000 15 $350,000 15 Consumer loans may may may A loan is considered impaired when it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and industrial, real estate-commercial, real estate-construction, real estate-residential and consumer loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For commercial loans secured by real estate, estimated fair values are determined primarily through third For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Loans whose terms are modified are classified as troubled debt restructurings (“TDRs”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR generally involve a temporary reduction in interest rate or a modification of a loan’s amortization schedule. Non-accrual TDRs are restored to accrual status if principal and interest payments, under the modified terms, are current for six The Company’s TDR modifications are made on terms typically up to 12 The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may may K. Transfers of Financial Assets Transfers of financial assets, including sale of loans and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) (2) (3) L. Other Real Estate Owned Other Real Estate Owned (“OREO”) includes real estate acquired through foreclosure or by deed in lieu of foreclosure. OREO is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Any write-downs based on fair value less costs to sell at the date of foreclosure are charged to the allowance for loan losses. If at the time of foreclosure, the fair value less costs to sell is greater than the loan balance, the resulting gain is recognized at the time of foreclosure unless there has been a prior charge-off, in which case a recovery to the allowance for loan losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned are recorded as incurred. M. Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Company’s wholly-owned trust on a chosen group of officers and directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income generated from the increase in cash surrender value of the policies is included in non-interest income on the statements of operations. N. Bank Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is charged to operations on a straight-line basis over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of their estimated life or the lease term. O. Advertising The Company expenses advertising costs as incurred. P. Income Taxes Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company and its subsidiary file a consolidated Federal income tax return. The Company analyzes each tax position taken in its tax returns and those positions not taken and determines the likelihood that the position will be realized. Only tax positions that are “more likely than not” to be realized can be recognized in the Company’s financial statements. For tax positions that do not meet this recognition threshold, the Company will record an unrecognized tax benefit for the difference between the position taken on the tax return and the amount recognized in the financial statements. The Company does not have any material unrecognized tax benefits or accrued interest or penalties at December 31, 2016 2015 twelve January 1, 2013. Q. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the balance sheet when they are funded. R. Earnings per Common Share On January 19, 2017, 5% February 28, 2017 February 9, 2017. Earnings per common share are calculated on the basis of the weighted average number of common shares outstanding during the year. Basic earnings per common share excludes dilution and is calculated by dividing net income available to common shareholders by the weighted average common shares outstanding excluding potential common shares. Diluted earnings per common share takes into account the potential dilution that S. Stock-Based Compensation Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service periods, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. T. Correction of an Immaterial Error on the Consolidated Statement of Cash Flows The Company identified an immaterial error related to its consolidated statement of cash flows for the origination of SBA loans sold. The Company determined that in the prior period reported, these amounts were improperly reflected in cash flow from investing activities instead of in cash flow from operating activities. The Company reviewed the impact of this error on the prior period and determined that the error was not material to the prior period consolidated financial statements. The Company has corrected the consolidated statement of cash flows for the year ended December 31, 2015 $6.4 December 31, 2015. U. Goodwill and Other Intangible Assets The Company’s goodwill was recognized in connection with the acquisition of the Town Bank in April 2006. two one second second During the third 2016, September 30, 2016 August 31, 2016. August 31, 2016. The Company performed its annual goodwill impairment analysis as of August 31, 2016. one no 5 V. Segment Reporting The Company acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business and government customers. Through its branch, automated teller machine networks, and internet banking services, the Company offers a full array of commercial and retail financial services, including time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and consumer banking operations of the Company. Accordingly, all significant operating decisions are based upon analysis of the Bank as one W. Subsequent Events The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2016 X. Recent Accounting Pronouncements ASU 2014 09: May 2014, 2014 09, Revenue from Contracts with Customers December 15, 2016, August 2015, one December 15, 2017. December 15, 2016. ASU 2016 01: January 2016, 2016 01, Recognition and Measurement of Financial Assets and Financial Liabilities. 2016 01 2016 01 December 15, 2017, 2016 01 ASU 2016 02: February 2016, 2016 02, Leases. 12 December 15, 2018, A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has determined that the provisions of ASU 2016 02 ASU 2016 09 : In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718): two one The amendments are effective for public business entities for annual periods beginning after December 15, 2016, 2016 09 ASU 2016 13: September 2016, 2016 13, Financial Instruments—Credit Losses (Topic 326) December 15, 2019. December 15, 2020. December 15, 2020, December 15, 2021. December 15, 2018. 2016 13 ASU 2016 15: August 2016, 2016 15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments 2016 15 December 15, 2017, may may ASU 2016 18: November 2016, 2016 18, Statement of Cash Flows (Topic 230): 2016 18 230. 2016 18 December 15, 2017, 2016 18 ASU 2017 04: January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350) 2017 04 2 zero 2 zero December 15, 2019. December 15, 2020. December 15, 2021. January 1, 2017. |
Note 2 - Securities
Note 2 - Securities | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Note 2 The amortized cost, gross unrealized gains and losses, and fair values of the Company’s securities are summarized as follows: December 31, 2016: Gross Gross Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In Thousands) Securities available for sale: U.S. Government agency securities $ 8,474 $ 1 $ (62 ) $ 8,413 Municipal securities 501 2 - 503 U.S. Government-sponsored enterprises (“GSE”) – residential mortgage-backed securities 11,455 2 (202 ) 11,255 U.S. Government collateralized residential mortgage obligations 9,731 6 (200 ) 9,537 Corporate debt securities, primarily financial institutions 2,493 7 (141 ) 2,359 Sub-total 32,654 18 (605 ) 32,067 Community Reinvestment Act (“CRA”) mutual fund 2,451 - (54 ) 2,397 Total securities available for sale $ 35,105 $ 18 $ (659 ) $ 34,464 Securities held to maturity: Municipal securities $ 47,806 $ 224 $ (528 ) $ 47,502 GSE – residential mortgage-backed securities 5,414 6 (65 ) 5,355 U.S. Government collateralized residential mortgage obligations 2,801 1 (29 ) 2,773 Corporate debt securities, primarily financial institutions 1,822 - (168 ) 1,654 Total securities held to maturity $ 57,843 $ 231 $ (790 ) $ 57,284 December 31, 2015: Gross Gross Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In Thousands) Securities available for sale: U.S. Government agency securities $ 1,241 $ - $ (3 ) $ 1,238 Municipal securities 508 9 - 517 GSE – residential mortgage-backed securities 14,646 5 (202 ) 14,449 U.S. Government collateralized residential mortgage obligations 12,900 13 (286 ) 12,627 Corporate debt securities, primarily financial institutions 2,492 - (175 ) 2,317 Sub-total 31,787 27 (666 ) 31,148 CRA mutual fund 2,397 - (15 ) 2,382 Total securities available for sale $ 34,184 $ 27 $ (681 ) $ 33,530 Securities held to maturity: Municipal securities $ 33,956 $ 824 $ (9 ) $ 34,771 GSE – residential mortgage-backed securities 3,789 9 (44 ) 3,754 U.S. Government collateralized residential mortgage obligations 3,602 - (46 ) 3,556 Corporate debt securities, primarily financial institutions 1,820 - (233 ) 1,587 Total securities held to maturity $ 43,167 $ 833 $ (332 ) $ 43,668 The amortized cost and fair value of the Company’s debt securities at December 31, 2016, may Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ - $ - $ 12,784 $ 12,797 Due in one year through five years 3,286 3,288 3,681 3,754 Due in five years through ten years - - 5,343 5,383 Due after ten years 8,182 7,987 27,820 27,222 Sub-total 11,468 11,275 49,628 49,156 GSE – residential mortgage-backed securities 11,455 11,255 5,414 5,355 U.S. Government collateralized residential mortgage obligations 9,731 9,537 2,801 2,773 Total $ 32,654 $ 32,067 $ 57,843 $ 57,284 The Company had one 2016 1.0 $72,000 nineteen securities sales in 2015 $24,306,000 gains and losses of $70,000 $33,000 2016 Investment securities with a carrying value of $ 33,088,000 $32,596,000 December 31, 2016 2015, The tables below indicate the length of time individual securities have been in a continuous unrealized loss position at December 31, 2016 2015: Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016: (In Thousands) U.S. Government agency securities $ 7,125 $ (62 ) $ - $ - $ 7,125 $ (62 ) Municipal securities 22,036 (528 ) - - 22,036 (528 ) GSE – residential mortgage-backed securities 9,632 (163 ) 5,949 (104 ) 15,581 (267 ) U.S. Government collateralized residential mortgage obligations 5,630 (50 ) 4,990 (179 ) 10,620 (229 ) Corporate debt securities, primarily financial institutions - - 3,009 (309 ) 3,009 (309 ) CRA mutual fund 2,397 (54 ) - - 2,397 (54 ) Total temporarily impaired securities $ 46,820 $ (857 ) $ 13,948 $ (592 ) $ 60,768 $ (1,449 ) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015: (In Thousands) U.S. Government agency securities $ 1,238 $ (3 ) $ - $ - $ 1,238 $ (3 ) Municipal securities 5,858 (5 ) 498 (4 ) 6,356 (9 ) GSE – residential mortgage-backed securities 11,946 (151 ) 5,006 (95 ) 16,952 (246 ) U.S. Government collateralized residential mortgage obligations 8,284 (72 ) 6,861 (260 ) 15,145 (332 ) Corporate debt securities, primarily financial institutions 496 (1 ) 2,907 (407 ) 3,403 (408 ) CRA mutual fund 2,382 (15 ) - - 2,382 (15 ) Total temporarily impaired securities $ 30,204 $ (247 ) $ 15,272 $ (766 ) $ 45,476 $ (1,013 ) The Company had 69 December 31, 2016. may, December 31, 2016, Included in corporate debt securities are four Baa1 Ba1. December 31, 2016, December 31, 2016. four securities have an amortized cost value of $2.8 $2.5 December 31, 2016. There was no 2016 2015. |
Note 3 - Loans Receivable and A
Note 3 - Loans Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 3 The components of the loan portfolio at December 31, 2016 2015 2016 2015 (In Thousands) Commercial and industrial $ 93,697 $ 100,154 Real estate – construction 111,914 104,231 Real estate – commercial 460,685 422,665 Real estate – residential 59,065 39,524 Consumer 28,279 27,136 753,640 693,710 Allowance for loan losses (9,565 ) (8,713 ) Net unearned fees (548 ) (560 ) Net Loans $ 743,527 $ 684,437 The performance and credit quality of the loan portfolio is monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2016 2015: December 31, 2016: Loans Receivable (In Thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable >90 Days and Accruing Commercial and industrial $ - $ - $ 119 $ 119 $ 93,578 $ 93,697 $ - Real estate – construction - - - - 111,914 111,914 - Real estate – commercial 154 - 666 820 459,865 460,685 - Real estate – residential - - 533 533 58,532 59,065 - Consumer - - - - 28,279 28,279 - Total $ 154 $ - $ 1,318 $ 1,472 $ 752,168 $ 753,640 $ - December 31, 2015: Loans Receivable (In Thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable >90 Days and Accruing Commercial and industrial $ 107 $ - $ 31 $ 138 $ 100,016 $ 100,154 $ - Real estate – construction - 150 - 150 104,081 104,231 - Real estate – commercial 112 - 2,075 2,187 420,478 422,665 - Real estate – residential - - 796 796 38,728 39,524 - Consumer - - - - 27,136 27,136 - Total $ 219 $ 150 $ 2,902 $ 3,271 $ 690,439 $ 693,710 $ - The following table presents non-accrual loans by classes of the loan portfolio at December 31, 2016 2015: 2016 2015 (In Thousands) Commercial and industrial $ 119 $ 138 Real estate – construction - - Real estate – commercial 666 2,244 Real estate – residential 763 796 Consumer - - Total $ 1,548 $ 3,178 The following table summarizes information in regards to impaired loans by loan portfolio class as of and for the years ended December 31, 2016 2015: December 31, 2016: Recorded Investment, Net of Charge-offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In Thousands) With no related allowance recorded: Commercial and industrial $ 3,402 $ 3,415 $ - $ 3,575 $ 174 Real estate – construction 3,036 3,036 - 3,073 129 Real estate – commercial 1,548 1,577 - 1,618 47 Real estate – residential 1,139 1,189 - 1,164 18 Consumer - - - - - With an allowance recorded: Commercial and industrial $ 498 $ 498 $ 2 $ 507 $ 15 Real estate – construction - - - - - Real estate – commercial - - - - - Real estate – residential - - - - - Consumer - - - - - Total: Commercial and industrial $ 3,900 $ 3,913 $ 2 $ 4,082 $ 189 Real estate – construction 3,036 3,036 - 3,073 129 Real estate – commercial 1,548 1,577 - 1,618 47 Real estate – residential 1,139 1,189 - 1,164 18 Consumer - - - - - Total $ 9,623 $ 9,715 $ 2 $ 9,937 $ 383 December 31, 2015: Recorded Investment, Net of Charge-offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In Thousands) With no related allowance recorded: Commercial and industrial $ 652 $ 652 $ - $ 645 $ 18 Real estate – construction 3,855 3,855 - 4,381 186 Real estate – commercial 3,267 3,542 - 3,338 48 Real estate – residential 1,178 1,178 - 1,183 29 Consumer 209 209 - 215 9 With an allowance recorded: Commercial and industrial $ 3,305 $ 3,305 $ 49 $ 3,278 $ 152 Real estate – construction - - - - - Real estate – commercial - - - - - Real estate – residential - - - - - Consumer - - - - - Total: Commercial and industrial $ 3,957 $ 3,957 $ 49 $ 3,923 $ 170 Real estate – construction 3,855 3,855 - 4,381 186 Real estate – commercial 3,267 3,542 - 3,338 48 Real estate – residential 1,178 1,178 - 1,183 29 Consumer 209 209 - 215 9 Total $ 12,466 $ 12,741 $ 49 $ 13,040 $ 442 The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2016 2015: Pass Special Mention Substandard Doubtful Total (In Thousands) December 31, 2016: Commercial and industrial $ 88,776 $ 1,277 $ 3,644 $ - $ 93,697 Real estate – construction 108,728 1,894 1,292 - 111,914 Real estate – commercial 452,740 6,716 1,229 - 460,685 Real estate – residential 58,302 - 763 - 59,065 Consumer 27,856 230 193 - 28,279 Total $ 736,402 $ 10,117 $ 7,121 $ - $ 753,640 Pass Special Mention Substandard Doubtful Total (In Thousands) December 31, 2015: Commercial and industrial $ 96,038 $ 159 $ 3,957 $ - $ 100,154 Real estate – construction 100,376 1,830 2,025 - 104,231 Real estate – commercial 414,872 4,667 3,126 - 422,665 Real estate – residential 38,631 - 893 - 39,524 Consumer 26,891 38 207 - 27,136 Total $ 676,808 $ 6,694 $ 10,208 $ - $ 693,710 The following table presents the change in the allowance for loan losses by classes of loans as of December 31, 2016 2015: Allowance for Loan Losses Commercial and Industrial Real Estate - Construction Real Estate - Commercial Real Estate – Residential Consumer Unallocated Total (In Thousands) Beginning balance, January 1, 2016 $ 990 $ 1,283 $ 5,599 $ 304 $ 242 $ 295 $ 8,713 Charge-offs - - (444 ) - (5 ) - (449 ) Recoveries 12 12 696 - 66 - 786 Provision (158 ) (19 ) 464 159 (59 ) 128 515 Ending balance, December 31, 2016 $ 844 $ 1,276 $ 6,315 $ 463 $ 244 $ 423 $ 9,565 Allowance for Loan Losses Commercial and Industrial Real Estate - Construction Real Estate - Commercial Real Estate - Residential Consumer Unallocated Total (In Thousands) Beginning balance, January 1, 2015 $ 1,044 $ 1,454 $ 4,624 $ 223 $ 565 $ 159 $ 8,069 Charge-offs - - - - (82 ) - (82 ) Recoveries 12 217 2 - 5 - 236 Provision (66 ) (388 ) 973 81 (246 ) 136 490 Ending balance, December 31, 2015 $ 990 $ 1,283 $ 5,599 $ 304 $ 242 $ 295 $ 8,713 The following table presents the balance in the allowance for loan losses at December 31, 2016 2015 Allowance for Loan Losses Loans Receivable December 31, 2016: Balance Balance Related to Loans Individually Evaluated for Impairment Balance Related to Loans Collectively Evaluated for Impairment Balance Balance Individually Evaluated for Impairment Balance Collectively Evaluated for Impairment (In Thousands) Commercial and industrial $ 844 $ 2 $ 842 $ 93,697 $ 3,900 $ 89,797 Real estate – construction 1,276 - 1,276 111,914 3,036 108,878 Real estate – commercial 6,315 - 6,315 460,685 1,548 459,137 Real estate – residential 463 - 463 59,065 1,139 57,926 Consumer 244 - 244 28,279 - 28,279 Unallocated 423 - 423 - - - Total $ 9,565 $ 2 $ 9,563 $ 753,640 $ 9,623 $ 744,017 Allowance for Loan Losses Loans Receivable December 31, 2015: Balance Balance Related to Loans Individually Evaluated for Impairment Balance Related to Loans Collectively Evaluated for Impairment Balance Balance Individually Evaluated for Impairment Balance Collectively Evaluated for Impairment (In Thousands) Commercial and industrial $ 990 $ 49 $ 941 $ 100,154 $ 3,957 $ 96,197 Real estate – construction 1,283 - 1,283 104,231 3,855 100,376 Real estate – commercial 5,599 - 5,599 422,665 3,267 419,398 Real estate – residential 304 - 304 39,524 1,178 38,346 Consumer 242 - 242 27,136 209 26,927 Unallocated 295 - 295 - - - Total $ 8,713 $ 49 $ 8,664 $ 693,710 $ 12,466 $ 681,244 The following tables present newly troubled debt restructured loans that occurred during the years ended December 31, 2016 2015: Year Ended December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Troubled Debt Restructuring: Commercial and industrial 1 $ 257 $ 257 Year Ended December 31, 2015 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Troubled Debt Restructuring: Commercial and industrial 6 $ 3,227 $ 3,227 As of December 31, 2016, $8.2 $8.1 two $157,000. December 31, 2015, $10.8 $9.3 three $1.5 twelve December 31, 2016, eight $2.2 December 31, 2016 2015, $2,000 $49,000, one Our troubled debt restructured loans are generally structured with short-term payment plans. The extent of these plans is generally made on terms up to twelve December 31, 2016, There were no 12 December 31, 2016 2015. It is the Company’s policy to classify a TDR that is either 90 |
Note 4 - Premises and Equipment
Note 4 - Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | Note 4 Premises and equipment at December 31, 2016 2015 Estimated Useful Lives (years) 2016 2015 (In Thousands) Land Indefinite $ 1,250 $ 1,250 Buildings 30 1,413 1,419 Leasehold improvements 5 - 15 4,089 4,005 Furniture and equipment 2 - 7 9,229 8,954 Total premises and equipment 15,981 15,628 Less accumulated depreciation and amortization (11,319 ) (10,545 ) Total premises and equipment, net $ 4,662 $ 5,083 |
Note 5 - Goodwill and Other Int
Note 5 - Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 5 The Company’s goodwill was recognized in connection with the acquisition of The Town Bank (“Town Bank”) in April 2006. two one second second The Company performed its annual step one August 31, 2016, The market approach is used to calculate the fair value of a company by calculating median earnings and book value pricing multiples for recent actual acquisitions of companies of similar size and performance and then applying these multiples to our community banking reporting unit. No company or transaction in the analysis is identical to our community banking reporting unit and, accordingly, the results of the analysis are only indicative of comparable value. This technique uses historical data to create a current pricing level and is thus a trailing indicator. Results of the market approach need to be understood in this context, especially in periods of rapid price change and market uncertainty. The Company applied the market valuation approach to our then current stock price adjusted by an appropriate control premium and also to a peer group adjusted by an appropriate control premium. Based on the results of the step one two no 18,109,000 December 31, 2016 2015, The Company acquired core deposit intangible assets in conjunction with the acquisition of Town Bank. This intangible asset had no $2,106,000 December 31, 2016 $9,000, $2,097,000, December 31, 2015. $9,000 $48,000 December 31, 2016 2015, |
Note 6 - Deposits
Note 6 - Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Deposit Liabilities Disclosures [Text Block] | Note 6 The components of deposits at December 31, 2016 2015 2016 2015 (In Thousands) Demand, non-interest bearing $ 160,104 $ 144,627 Demand, interest bearing, money market and savings 476,704 445,788 Time, $250,000 and over 8,893 7,693 Time, other 130,866 110,328 Total deposits $ 776,567 $ 708,436 At December 31, 2016, 2017 $ 38,415 2018 37,902 2019 33,694 2020 25,402 2021 4,346 Total time deposits $ 139,759 Brokered CDs as of December 31, 2016 2015 $35,622,000 $37,859,000, December 31, 2016 2015 $47,648,000 $33,261,000, $993,000 $143,000 December 31, 2016 2015, |
Note 7 - Securities Sold Under
Note 7 - Securities Sold Under Agreements to Repurchase | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block] | Note 7 Securities sold under agreements to repurchase, which are classified as secured borrowings, generally mature within one four may December 31, 2016 2015 2016 2015 (Dollars In Thousands) Repurchase agreements: Balance at year-end $ 19,915 $ 19,545 Average during the year $ 19,309 $ 22,071 Maximum month-end balance $ 22,105 $ 27,916 Weighted average rate during the year 0.32 % 0.31 % Weighted average rate at December 31 0.24 % 0.24 % The Bank enters into Sweep Account Agreements with certain of its deposit account holders for repo sweep arrangements under which funds in excess of a predetermined amount are removed from each such depositor’s account at the end of each banking day, and the Bank’s obligation to restore those funds to the account at the beginning of the following banking day is evidenced by an integrated retail repurchase agreement (a “Repurchase Agreement”) secured by a collateral interest in favor of the depositor in certain government securities held by a third The following table presents the contractual maturities of the Repurchase Agreements as of December 31, 2016, Maturity of Repurchase Agreements (dollars in thousands) Overnight and Continuous Up to 30 days 30 to 90 days Over 90 days Total December 31, 2016: Class of Collateral Pledged: U.S. Government agency securities $ 8,371 $ - $ - $ - $ 8,371 GSE – Residential mortgage-backed securities 9,074 - - - 9,074 U.S. Government collateralized residential mortgage obligations 13,895 - - - 13,895 Total $ 31,340 $ - $ - $ - $ 31,340 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 19,915 Excess of collateral pledged over recognized liability $ 11,425 The potential risks associated with the Repurchase Agreements and related pledged collateral, including obligations arising from a decline in the fair value of the pledged collateral, are minimal due to the fact that the Repurchase Agreements pertain to overnight borrowings and therefore not subject to fluctuations in fair market value. |
Note 8 - FHLB and Other Borrowi
Note 8 - FHLB and Other Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 8 The Bank utilizes an account relationship with Atlantic Community Bankers Bank to borrow funds through its Federal funds borrowing line in an aggregate amount up to $10.0 $36.0 three $48.6 $110.1 December 31, 2016. At December 31, 2016 2015, $25.3 $26.5 2.35% 2.28% December 31, 2016 2015, 2016 2015 Rate Original Term (years) Maturity Fixed Rate Note $ 7,500 $ 7,500 3.97 % 10 November 2017 Fixed Rate Note - 1,500 2.41 % 6 August 2016 Fixed Rate Note 1,500 1,500 2.71 % 7 August 2017 Fixed Rate Note 2,000 2,000 1.28 % 4 October 2017 Fixed Rate Note 2,000 2,000 1.65 % 5 October 2018 Fixed Rate Note - 2,700 0.60 % 1 January 2016 Fixed Rate Note 1,000 1,000 0.97 % 2 January 2017 Fixed Rate Note 1,300 1,300 1.31 % 3 January 2018 Fixed Rate Note 1,800 1,800 1.59 % 4 January 2019 Fixed Rate Note 2,700 2,700 1.81 % 5 January 2020 Fixed Rate Note 2,500 2,500 2.03 % 6 January 2021 Fixed Rate Note 1,000 - 1.09 % 3 July 2019 Fixed Rate Note 1,000 - 1.42 % 5 July 2021 Fixed Rate Note 1,000 - 1.70 % 7 July 2023 Total FHLB borrowings $ 25,300 $ 26,500 |
Note 9 - Subordinated Debenture
Note 9 - Subordinated Debentures | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subordinated Borrowings Disclosure [Text Block] | Note 9 In December 2015, $10 December 31, 2025 6.25% January 1, 2021. three 464 (4.64%) December 14, 2020 2 $9.9 December 31, 2016, $145,000 6.67%. |
Note 10 - Employee Benefit Plan
Note 10 - Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Compensation and Employee Benefit Plans [Text Block] | Note 10 Under the 401(k) 100% $288,000 $264,000 December 31, 2016 2015, may, 401(k) December 31, 2016 2015, The Company has a non-qualified Supplemental Executive Retirement Plan for certain executive officers that provides for payments upon retirement, death or disability. At December 31, 2016 2015, $1.6 $1.4 December 31, 2016, $204,000 $261,000 December 31, 2015. On September 7, 2016, September 1, 2016, may $100,000 may September 1, 2016, $70,000. may, $83,000 December 31, 2016, $83,000. |
Note 11 - Income Taxes
Note 11 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 11 The components of income tax expense for the years ended December 31, 2016 2015 2016 2015 (In Thousands) Current $ 4,791 $ 4,069 Deferred (463 ) (484 ) Income tax expense $ 4,328 $ 3,585 A reconciliation of the statutory Federal income tax at a rate of 34 December 31, 2016 2015: 2016 2015 Amount % Amount % (Dollars In Thousands) Federal income tax expense at statutory rate $ 4,406 34.0 % $ 3,376 34.0 % Increases (decreases) resulting from: Tax exempt interest (334 ) (2.6 ) (239 ) (2.4 ) Bank owned life insurance income (455 ) (3.5 ) (151 ) (1.5 ) State income taxes, net of federal income tax benefit 712 5.5 557 5.6 Other, net (1 ) - 42 0.4 Income tax expense $ 4,328 33.4 % $ 3,585 36.1 % The components of the net deferred tax asset, included in other assets on the Consolidated Balance Sheets, as of December 31, 2016 2015, 2016 2015 (In Thousands) Deferred tax assets: Allowance for loan losses $ 3,841 $ 3,501 Depreciation and amortization 507 535 Deferred compensation 1,291 1,130 OREO write-downs 33 7 Unrealized loss on securities available for sale 250 256 Other 31 10 Total deferred tax assets 5,953 5,439 Deferred tax liabilities: Purchase accounting adjustments - (4 ) Other (483 ) (422 ) Total deferred tax liabilities (483 ) (426 ) Net Deferred Tax Asset $ 5,470 $ 5,013 |
Note 12 - Earnings Per Common S
Note 12 - Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 12 The following sets forth the computation of basic and diluted earnings per common share for the years ended December 31, 2016 2015: Years Ended December 31, 2016 2015 (In Thousands, Except Per Share Data) Net income $ 8,631 $ 6,347 Preferred stock dividend - (57 ) Income applicable to common shareholders $ 8,631 $ 6,290 Weighted average common shares outstanding 8,321 8,304 Effect of dilutive securities, stock options and restricted stock 209 203 Weighted average common shares outstanding used to calculate diluted earnings per share 8,530 8,507 Basic earnings per common share $ 1.04 $ 0.76 Diluted earnings per common share $ 1.01 $ 0.74 Dilutive securities in the table above exclude common stock options with exercise prices that exceed the average market price of the Company’s common stock during the periods presented. Inclusion of these common stock options would be anti-dilutive to the diluted earnings per common share calculation. For 2016 2015, no |
Note 13 - Lease Commitments and
Note 13 - Lease Commitments and Total Rental Expense | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Operating Leases of Lessor Disclosure [Text Block] | Note 13 The Company leases banking facilities under non-cancelable operating lease agreements expiring through 2025. $1,982,000 $1,965,000 December 31, 2016 2015, The approximate future minimum rental commitments under operating leases at December 31, 2016 2017 $ 1,564 2018 1,474 2019 1,395 2020 1,169 2021 931 Thereafter 2,105 Total $ 8,638 |
Note 14 - Stock-based Compensat
Note 14 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 14 General On March 20, 2007, 2007 2007 may may December 31, 2016, 173,011. 5% February 28, 2017 February 9, 2017. Options awarded under the Plan may 422 1986, may The exercise price per share purchasable under either an ISO or a NQSO may may ten Restricted stock is stock which is subject to certain transfer restrictions and to a risk of forfeiture. The Committee will determine the period over which any restricted stock which is issued under the Plan will vest, and will impose such restrictions on transferability, risk of forfeiture and other restrictions as the Committee may Unless otherwise provided by the Committee in the award document or subject to other applicable restrictions, in the event of a Change in Control (as defined in the Plan) all non-forfeited options and awards carrying a right to exercise that was not previously exercisable and vested will become fully exercisable and vested as of the time of the Change in Control, and all restricted stock and awards subject to risk of forfeiture will become fully vested. Stock Options On October 11, 2016, 5,250 20% five October 11, 2017. $11.21 Stock-based compensation expense related to the stock option grants was approximately $113,000 $98,000 December 31, 2016 2015, Total unrecognized compensation cost related to non-vested options under the Plan was $195,000 December 31, 2016 1.6 The following table presents information regarding the Company’s outstanding options: Number of Shares Weighted Average Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Options outstanding, December 31, 2015 459,959 $ 4.91 Options granted 5,250 11.21 Options exercised (28,903 ) 3.60 Options forfeited (3,855 ) 7.99 Options outstanding, December 31, 2016 432,451 $ 5.05 3.85 $ 3,969,726 Options exercisable, December 31, 2016 357,476 $ 4.37 3.88 $ 3,520,288 Options price range at December 31, 2016 $2.87 to $11.21 The total intrinsic value of stock options exercised was $190,800 $137,000 December 31, 2016 2015, $104,100 $113,000, $25,000 $7,000 December 31, 2016 2015. The following summarizes information about stock options outstanding at December 31, 2016: Options Outstanding Range of Exercise Prices Number Outstanding at December 31, 2016 Weighted- Average Remaining Contractual Life (years) Weighted- Average Exercise Price $2.87 - $3.65 193,774 2.3 $ 3.23 $4.94 - $5.23 128,689 5.2 5.02 $7.06 - $8.00 69,458 7.4 7.53 $8.59 - $9.20 35,280 8.1 9.15 $11.21 5,250 9.8 11.21 Total options outstanding 432,451 The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model. The following assumptions were used to estimate the fair value of the stock options granted on October 11, 2016: Dividend yield 1.33 % Expected volatility 27.67 % Risk-free interest rate 1.54 % Expected life (in years) 7.5 Weighted average fair value of options granted $ 3.05 The following assumptions were used to estimate the fair value of the stock options granted on December 15, 2015: Dividend yield 1.45 % Expected volatility 27.22 % Risk-free interest rate 2.06 % Forfeiture rate 5.00 % Expected life (in years) 7.5 Weighted average fair value of options granted $ 2.66 The following assumptions were used to estimate the fair value of the stock options granted on May 11, 2015: Dividend yield 1.33 % Expected volatility 27.67 % Risk-free interest rate 2.00 % Expected life (in years) 7.5 Weighted average fair value of options granted $ 2.55 The dividend yield assumption is based on the Company’s history and expectations of cash dividends. The expected volatility is based on historical volatility. The risk-free interest rate is based on the U.S. Treasury yield curve for the expected life of the grants which is based on historical exercise experience. Restricted Stock Restricted stock is valued at the market value on the date of grant and expense is evenly attributed to the period in which the restrictions lapse. Compensation expense related to the restricted stock was to $118,000 $88,000 December 31, 2016 2015, no December 31, 2016 2015 Total unrecognized compensation cost related to restricted stock under the Plan was $237,000 December 31, 2016 1.4 The following table summarizes information about restricted stock for the year ended December 31, 2016: Number of Shares Weighted Average Price Unvested at December 31, 2015 24,079 $ 7.96 Restricted stock earned (6,797 ) (8.22 ) Granted 16,800 9.90 Unvested at December 31, 2016 34,082 $ 8.90 Other Awards During the year ended December 31, 2016, 1,050 $10,390 second 2016. |
Note 15 - Transactions with Exe
Note 15 - Transactions with Executive Officers, Directors and Principal Shareholders | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 15 Certain directors and executive officers of Two River Bancorp and its affiliates, including their immediate families and companies in which they are principal owners (more than 10%), December 31, 2016 December 31, 2016 2015 $14.4 $15.8 December 31, 2016 2015 $8.8 $10.2 2016, $721,000 $2.1 December 31, 2016 2015 $14.0 $14.8 $3.1 $1.7 In 2016, 2015, $1,820 one |
Note 16 - Financial Instruments
Note 16 - Financial Instruments with Off-balance Sheet Risk | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 16 The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and letters of credit. Those instruments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the financial statements. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Commitments generally have fixed expiration dates or other termination clauses and may may $203,728,000 and $166,262,000 December 31, 2016 2015, Standby letters of credit are conditional commitments issued by the Company to guarantee the financial performance of a customer to a third one $3,973,000 $4,315,000 December 31, 2016 2015, December 31, 2016 2015. |
Note 17 - Regulatory Matters
Note 17 - Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Note 17 The Company and the Bank are subject to various regulatory and capital requirements administered by the Federal banking agencies. Our federal banking regulators, the Board of Governors of the Federal Reserve System (the “Federal Reserve”) (which regulates bank holding companies) and the Federal Deposit Insurance Corporation (the “FDIC”) (which regulated the Bank), have issued guidelines classifying and defining capital. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification of the Company and the Bank is also subject to qualitative judgements by the regulators about components, risk weightings and other factors. Under the New Jersey Banking Act (the “Banking Act”), no dividend may 50% December 31, 2016 84.5 may Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios, set forth in the following tables of Tier 1 1 1 December 31, 2016, As of December 31, 2016, The capital ratios of the Company and the Bank, at December 31, 2016 2015, Actual For Capital Adequacy Purposes To be Well Capitalized under Prompt Corrective Action Regulations* Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2016 Common Equity Tier 1 Capital (to risk weighted assets) Two River Bancorp $ 82,994 10.33 % $ > 36,154 > 4 % $ N/A N/A Two River Community Bank 92,270 11.49 % > > % > > % Total Capital (to risk weighted assets) Two River Bancorp 102,509 12.76 % > > % N/A N/A Two River Community Bank 101,835 12.68 % > > % > > % Tier 1 Capital (to risk weighted assets) Two River Bancorp 82,994 10.33 % > 48 > % > > % Two River Community Bank 92,270 11.49 % > 48,183 > % > > % Tier 1 Capital (to average assets) Two River Bancorp 82,994 8.94 % > > % N/A N/A Two River Community Bank $ 92,270 9.95 % $ > > % $ > > % As of December 31, 2015 Common Equity Tier 1 Capital (to risk weighted assets) Two River Bancorp $ 75,273 10.13 % > > % $ N/A N/A Two River Community Bank 84,659 11.39 % > > % > > % Total Capital (to risk weighted assets) Two River Bancorp 93,986 12.65 % $ > > % $ N/A N/A Two River Community Bank 93,372 12.56 % > > % > > % Tier 1 Capital (to risk weighted assets) Two River Bancorp 75,273 10.13 % > > % > > % Two River Community Bank 84,659 11.39 % > > % > > % Tier 1 Capital (to average assets) Two River Bancorp 75,273 8.97 % > > % N/A N/A Two River Community Bank $ 84,659 10.09 % $ > > % $ > > % *Applies to the Bank only. For the Company to be “well-capitalized”, the Tier 1 6.00%. Basel III Capital Rules. July 2013, These revisions generally implemented higher minimum capital requirements, added a new common equity Tier 1 1 1 2 January 1, 2015, 1 4.5% (6.5% 1 6.0%, 4.0% 6.0% 8.0% 8.0% (10.0% The risk-based capital rules adopted effective January 1, 2015 250 four January 1, 2016, 0.625% 2016, 1.25% 2017, 1.875% 2018 2.5% 2019 Effective January 1, 2016, (i) a common equity Tier 1 5.125%; (ii) a Tier 1 6.625%; (iii) a Total Risk based capital ratio of 8.625%. As of December 31, 2016, 2.5%. |
Note 18 - Fair Value of Financi
Note 18 - Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | Note 18 Accounting guidance establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 3 three Level 1 Level 2 Level 3 An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2016 2015 Description (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Total (In Thousands) At December 31, 2016 Securities available for sale: U.S. Government agency securities $ - $ 8,413 $ - $ 8,413 Municipal securities - 503 - 503 GSE – Residential mortgage-backed securities - 11,255 - 11,255 U.S. Government collateralized residential mortgage obligations - 9,537 - 9,537 Corporate debt securities, primarily financial institutions - 2,359 - 2,359 CRA mutual fund 2,397 - - 2,397 Total securities available for sale $ 2,397 $ 32,067 $ - $ 34,464 At December 31, 2015 Securities available for sale: U.S. Government agency securities $ - $ 1,238 $ - $ 1,238 Municipal securities - 517 - 517 GSE – Residential mortgage-backed securities - 14,449 - 14,449 U.S. Government collateralized residential mortgage obligations - 12,627 - 12,627 Corporate debt securities, primarily financial institutions - 2,317 - 2,317 CRA mutual fund 2,382 - - 2,382 Total securities available for sale $ 2,382 $ 31,148 $ - $ 33,530 As of December 31, 2016 2015, no 3). For assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2016 2015 Description (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Total (In Thousands) At December 31, 2016 Impaired loans, net of allowance recorded $ - $ - $ 496 $ 496 OREO - - 259 259 At December 31, 2015 Impaired loans, net of allowance recorded $ - $ - $ 3,256 $ 3,256 Impaired loans, net of partial charge-offs - - 1,389 1,389 OREO - - 411 411 The Company’s policy is to recognize transfers between levels as of the beginning of the period. There were no transfers between Levels 1, 2 3 December 31, 2016 2015. The following valuation techniques were used to measure fair value of assets in the tables above: ● Impaired loans two one third may December 31, 2016, two 5.0% December 31, 2015, no December 31, 2016 2015, 5.0 5.0 3 ● OREO December 31, 2016, one 5.95%, December 31, 2015, 0.4% 6.0% 3.9%). 3 December 31, 2016 2015, 259,000 $411,000, December 31, 2016, no residential real estate properties held in OREO while at December 31, 2015, one $153,000 first 2016. December 31, 2016 2015, one $532,000 $542,000, The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may December 31, 2016 2015: Cash and Cash Equivalents (carried at cost ): The carrying amounts reported in the balance sheet for cash and short-term instruments approximate those assets’ fair values. Securities : The fair value of securities available-for-sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining quoted market prices on nationally recognized securities exchanges (Level 1), 2), 3). December 31, 2016 2015, no 3 Restricted Investments (carried at cost) : The carrying amount of restricted investment in Federal Home Loan Bank stock, Atlantic Community Bancshares, Inc. stock and Solomon Hess SBA Loan Fund approximates fair value, and considers the limited marketability of such securities. Loans Held for Sale: Loans held for sale are carried at the lower of aggregate cost or estimated fair value, less costs to sell. The fair value of these loans are equal to the contractual sales price. Loans Receivable (carried at cost) The fair values of loans, excluding collateral dependent impaired loans, are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and interest rate-risk inherent in the loans, including liquidity. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. The valuation of the loan portfolio reflects discounts that the Company believes are consistent with transactions occurring in the marketplace for both performing and distressed loan types. The carrying value that fair value is compared to is net of the allowance for loan losses and other associated premiums and discounts. Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Due to the significant judgment involved in evaluating credit quality risk, loans are classified within Level 3 Accrued Interest Receivable and Payable (carried at cost) The carrying amount of accrued interest receivable and accrued interest payable approximates its fair value. Deposit Liabilities (carried at cost) : The fair values disclosed for demand deposits (e.g., interest and non-interest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date, (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities on time deposits. Securities Sold Under Agreements to Repurchase (carried at cost) The carrying amounts of these short-term borrowings approximate their fair values. Long-term Debt (carried at cost) Fair values of FHLB advances are estimated by using a discounted cash flow analysis, based on quoted prices for new FHLB advances with similar credit risk characteristics, terms and remaining maturity. These prices obtained from this active market represent a market value that is deemed to represent the transfer price if the liability were assumed by a third Subordinated Debentures (carried at cost): The fair value of subordinated debentures is estimated by using a discounted cash flow analysis that, at December 31, 2016 2015, 4.64% 4.49% Off-Balance Sheet Financial Instruments (disclosed at cost) Fair values for the Company’s off-balance sheet financial instruments (lending commitments and letters of credit) are based on fees currently charged in the market to enter into similar agreements, taking into account, the remaining terms of the agreements and the counterparties’ credit standing. The fair values of such fees are not material at December 31, 2016 2015. The estimated fair values of the Company’s financial instruments at December 31, 2016 2015 Fair Value Measurements at December 31, 2016 (in thousands) Carrying Amount Estimated Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Financial assets: Cash and cash equivalents $ 42,077 $ 42,077 $ 42,077 $ - $ - Securities available for sale 34,464 34,464 2,397 32,067 - Securities held to maturity 57,843 57,284 - 57,284 - Restricted investments 4,805 4,805 - - 4,805 Loans held for sale 4,537 4,698 - - 4,698 Loans receivable, net 743,527 740,910 - - 740,910 Accrued interest receivable 2,234 2,234 - 621 1,613 Financial liabilities: Deposits 776,567 776,404 - 776,404 - Securities sold under agreements to repurchase 19,915 19,915 - 19,915 - Long-term debt 25,300 25,363 - 25,363 - Subordinated debt 9,855 9,827 - 9,827 - Accrued interest payable 100 100 - 100 - Fair Value Measurements at December 31, 2015 (in thousands) Carrying Amount Estimated Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Financial assets: Cash and cash equivalents $ 46,727 $ 46,727 $ 46,727 $ - $ - Securities available for sale 33,530 33,530 2,382 31,148 - Securities held to maturity 43,167 43,668 - 43,668 - Restricted investments 3,596 3,596 - - 3,596 Loans held for sale 3,050 3,105 - - 3,105 Loans receivable, net 684,437 676,703 - - 676,703 Accrued interest receivable 1,912 1,912 - 422 1,490 Financial liabilities: Deposits 708,436 707,908 - 707,908 - Securities sold under agreements to repurchase 19,545 19,545 - 19,545 - Long-term debt 26,500 26,882 - 26,882 - Subordinated debt 9,824 9,823 - 9,823 - Accrued interest payable 118 118 - 118 - |
Note 19 - Shareholders' Equity
Note 19 - Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | Note 19 On August 11, 2011, $12 1 $10 $50 $12 12,000 $1,000 1 December 15, 2014, $6.0 (6,000 December 15, 2015, $6.0 (6,000 July 1, 2013 December 15, 2015, 1.00%. From January 1, 2016 December 31, 2016, 13,894 $148,000. December 31, 2016. On December 15, 2016, $2.0 January 1, 2017 December 31, 2017. |
Note 20 - Condensed Financial S
Note 20 - Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 20 Condensed financial information pertaining to the parent company, Two River Bancorp, is as follows: Condensed Balance Sheets December 31, 2016 2015 (In Thousands) Assets Cash and cash equivalents $ 161 $ 333 Investments in subsidiaries 110,042 102,388 Other assets 470 345 Total assets $ 110,673 $ 103,066 Liabilities and Shareholders’ Equity Subordinated debt $ 9,855 $ 9,824 Other liabilities 102 240 Shareholders’ equity 100,716 93,002 Total liabilities and shareholders’ equity $ 110,673 $ 103,066 Condensed Statements of Operations and Comprehensive Income December 31, 2016 2015 (In Thousands) Dividends from Bank $ 1,636 $ 1,456 Interest expense - subordinated debt 656 33 Other operating expenses 233 186 Income before income taxes 747 1,237 Income tax benefit (239 ) (10 ) Income before undistributed income of subsidiaries 986 1,247 Equity in undistributed income of subsidiaries 7,645 5,100 Net income $ 8,631 $ 6,347 Equity in other comprehensive income (loss) of subsidiaries, net of tax 8 (54 ) Total comprehensive income, net of tax $ 8,639 $ 6,293 Condensed Statements of Cash Flows December 31, 2016 2015 (In Thousands) Cash flows from operating activities: Net income $ 8,631 $ 6,347 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries, net of dividends received from Bank (7,645 ) (5,100 ) Amortization of subordinated debt issuance costs 31 - Stock-based compensation expense 231 186 Other, net (264 ) 248 Net cash provided by operating activities 984 1,681 Cash flows from investing activities: Contributions to subsidiary, net - (3,809 ) Net cash used in investing activities - (3,809 ) Cash flows from financing activities: Proceeds from exercise of stock options 104 114 Tax benefit of stock options exercised 25 7 Proceeds from employee stock purchase program 56 56 Redemption of preferred stock, Series C - (6,000 ) Proceeds from subordinated debt placement, net of issuance costs - 9,824 Common stock repurchased (148 ) (497 ) Cash dividends paid on common stock (1,193 ) (1,032 ) Dividends paid on preferred stock, Series C - (57 ) Net cash provided by (used in) financing activities (1,156 ) 2,415 Net increase (decrease) in cash and cash equivalents (172 ) 287 Cash and Cash Equivalents - Beginning 333 46 Cash and Cash Equivalents – Ending $ 161 $ 333 |
Note 21 - Summary of Quarterly
Note 21 - Summary of Quarterly Results (Unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Quarterly Financial Information [Text Block] | Note 21 The following summarizes the consolidated results of operations during 2016 2015, may (in thousands, except per share data): 2016 Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 8,970 $ 8,777 $ 8,539 $ 8,338 Interest expense 1,376 1,308 1,270 1,210 Net interest income 7,594 7,469 7,269 7,128 Provision for loan losses (345 ) 470 390 - Net interest income after provision for loan losses 7,939 6,999 6,879 7,128 Non-interest income 1,447 1,983 1,166 893 Non-interest expense 5,360 5,339 5,379 5,397 Income before income taxes 4,026 3,643 2,666 2,624 Income taxes 1,459 999 939 931 Net income $ 2,567 $ 2,644 $ 1,727 $ 1,693 Per common share data: Basic earnings $ 0.31 $ 0.32 $ 0.21 $ 0.20 Diluted earnings $ 0.30 $ 0.31 $ 0.20 $ 0.20 2015 Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 8,306 $ 8,218 $ 7,903 $ 7,676 Interest expense 1,019 973 967 904 Net interest income 7,287 7,245 6,936 6,772 Provision for loan losses 90 120 190 90 Net interest income after provision for loan losses 7,197 7,125 6,746 6,682 Non-interest income 984 836 941 776 Non-interest expense 5,509 5,308 5,377 5,161 Income before income taxes 2,672 2,653 2,310 2,297 Income taxes 921 961 849 854 Net income 1,751 1,692 1,461 1,443 Preferred stock dividends (12 ) (15 ) (15 ) (15 ) Net income available to common shareholders $ 1,739 $ 1,677 $ 1,446 $ 1,428 Per common share data: Basic earnings $ 0.21 $ 0.20 $ 0.17 $ 0.17 Diluted earnings $ 0.20 $ 0.20 $ 0.17 $ 0.17 |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | A. Organization and Basis of Presentation The accompanying consolidated financial statements include the accounts of Two River Bancorp (the “Company”), a bank holding company, and its wholly-owned subsidiary, Two River Community Bank (“the Bank” or “Two River”) and the Bank’s wholly-owned subsidiaries, TRCB Investment Corporation, TRCB Holdings Two LLC, TRCB Holdings Three LLC, TRCB Holdings Seven LLC and TRCB Holdings Eight LLC. All inter-company balances and transactions have been eliminated in the consolidated financial statements. |
Use of Estimates, Policy [Policy Text Block] | C. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The principal material estimates that are particularly susceptible to significant change in the near term related to: the allowance for loan losses, the potential impairment of goodwill, the potential impairment of restricted investments, the valuation of deferred tax assets, valuation of other real estate owned and the determination of other-than-temporary impairment on securities. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | D. Significant Concentrations of Credit Risk Most of the Company’s activities are with customers located within Monmouth, Middlesex and Union Counties of New Jersey. Note 2 3 may one |
Comprehensive Income, Policy [Policy Text Block] | E. Comprehensive Income Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available for sale and unrealized losses related to factors other than credit on debt securities which have been determined to be other-than-temporarily impaired. |
Statement of Cash Flows, Policy [Policy Text Block] | F. Statement of Cash Flows For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest-bearing deposits in banks, and Federal funds sold. Interest-bearing deposits are due from the Federal Reserve Bank of New York. Generally, Federal funds are purchased and sold for one |
Investment, Policy [Policy Text Block] | G. Securities Securities classified as available for sale are those securities that the Company intends to hold for an indefinite period of time but not necessarily to maturity. Securities available for sale are carried at fair value. Any decision to sell a security classified as available for sale would be based on various factors, including significant movement in interest rates, changes in maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Unrealized gains or losses are reported as increases or decreases in other comprehensive income (loss), net of the related deferred tax effect. Realized gains or losses, determined on the basis of the cost of the specific securities sold, are included in earnings. Premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities available for sale are recorded on the trade date and are determined using the specific identification method. Securities classified as held to maturity are those securities the Company has both the intent and ability to hold to maturity regardless of changes in market conditions, liquidity needs or changes in general economic conditions. These securities are carried at cost adjusted for the amortization of premium and accretion of discount, computed by the interest method over the terms of the securities. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates such designation as of each balance sheet date. Other-than-temporary accounting guidance specifies that (a) if a company does not have the intent to sell a debt security prior to recovery and (b) it is more likely than not that it will not have to sell the debt security prior to recovery, the security would not be considered other-than-temporary impaired unless there is a credit loss. When an entity does not intend to sell the security, and it is more likely than not, the entity will not have to sell the security before recovery of its cost basis, it will recognize the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income (loss). For held to maturity debt securities, the amount of an other-than-temporary impairment recorded in other comprehensive income (loss) for the noncredit portion of a previous other-than-temporary impairment should be amortized prospectively over the remaining life of the security on the basis of the timing of future cash flows of the security. |
Restricted Investments, Policy [Policy Text Block] | H. Restricted Investments Restricted investments, which represents the required investment in the common stock of correspondent banks, is carried at cost and as of December 31, 2016 2015, $3,230,000 $2,021,000 December 31, 2016 2015, $75,000 December 31, 2016 2015. Restricted investments also include the Solomon Hess SBA Loan Fund, utilized for the purpose of the Bank satisfying its CRA lending requirements. As this fund operates as a private fund, shares in the Fund are not publicly traded and therefore have no readily determinable market value. An investor can have their interest in the Fund redeemed for the balance of their capital account at any quarter end assuming they give the Fund 60 $1,500,000 December 31, 2016 2015. Management evaluates the restricted investments for impairment in accordance with U.S. generally accepted accounting principles. Management’s determination of whether these investments are impaired is based on their assessment of the ultimate recoverability of their cost rather than by recognizing temporary declines in value. Management believes no impairment charge is necessary related to restricted investments as of December 31, 2016. |
Finance, Loans and Leases Receivable, Policy [Policy Text Block] | I. Loans Receivable and Loans Held for Sale Loans receivable, which management has the intent and ability to hold for the foreseeable future or until maturity or payoff are stated at their outstanding unpaid principal balances, net of an allowance for loan losses and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the yield (interest income) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Generally, loans held for sale are designated at time of origination, generally consist of newly originated fixed rate residential loans and are recorded at the lower of aggregate cost or estimated fair value in the aggregate. The Company did not 2016. 2015, $5.6 The loans receivable portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial, real estate-construction and real estate-commercial. Consumer loans consist of the following classes: real estate-residential and consumer. For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 may six |
Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block] | J. Allowance for Loan Losses The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet, which at December 31, 2016 2015, The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a monthly evaluation of the adequacy of the allowance. The allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may may The allowance consists of specific, general and unallocated components. For loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of the loan. The specific component relates to loans that are classified as impaired. When a loan is impaired, there are three 310 10 35 1. The loan’s observable market price; 2. The fair value of the underlying collateral; or 3. The present value (PV) of expected future cash flows. Loans that are considered “collateral-dependent” should be evaluated under the “Fair market value of collateral.” Loans that are still expected to be supported by repayment from the borrower should be evaluated under the “Present value of future cash flows.” For the most part, the Company measures impairment under the “Fair market value of collateral” for any loan that would rely on the value of collateral for recovery in the event of default. The individual impairment analysis for each loan is clearly documented as to the chosen valuation method. The general component covers pools of loans by loan class including commercial and industrial, real estate-construction and real estate-commercial not considered impaired as well as smaller balance homogeneous loans such as real estate-residential and consumer. These pools of loans are evaluated for loss exposure based upon historical loss rates for each of these categories of loans, adjusted for qualitative factors. These qualitative risk factors include: 1. Changes in lending policy and procedures, including changes in underwriting standards and collection practices not previously considered in estimating credit losses. 2. Changes in relevant economic and business conditions. 3. Changes in nature and volume of the loan portfolio and in the terms of loans. 4. Changes in experience, ability and depth of lending management and staff. 5. Changes in the volume and severity of past due loans, the volume of non-accrual loans and the volume and severity of adversely classified loans. 6. Changes in the quality of the loan review system. 7. Changes in the value of underlying collateral for collateral-dependent loans. 8. The existence and effect of any concentration of credit and changes in the level of such concentrations. 9. The effect of other external forces such as competition, legal and regulatory requirements on the level of estimated credit losses in the existing portfolio. Each factor is assigned a risk value to reflect low, moderate or high risk assessments based on management’s best judgment using current market, macro and other relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation in each factor and accompany the allowance for loan loss calculation. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. The Company engages in a variety of lending activities, including commercial and industrial, real estate-commercial, real estate-construction, real estate-residential and consumer loans. The Company focuses its lending activities on individuals, professionals along with small to medium sized businesses. The Company originates commercial business loans to professionals, sole proprietorships and small businesses in our market areas. We extend commercial business loans on a secured and unsecured basis. Secured commercial loans are generally collateralized by residential and nonresidential real estate, marketable securities, accounts receivable, inventory, industrial/commercial machinery and equipment and furniture and fixtures. To further enhance our security position, we generally require personal guarantees of the principal owners of the entities to which we extend credit. These loans are made on both lines of credit and fixed-term basis typically ranging from one five Commercial real estate loans are made to local commercial, retail and professional firms and individuals for the acquisition of new property or the refinancing of existing property. These loans are typically related to commercial businesses and secured by the underlying real estate used in these businesses or real property of the principals. Commercial real estate loans typically require a loan to value ratio of not greater than 75%. five 5 25 Commercial loans are often larger and may may may may may The Company is an approved Preferred Lender by the Small Business Administration (“SBA”), which allows the Company delegated authority to approve and close SBA loans up to $5.0 7a 504 75% third December 31, 2016 2015 The Company originates fixed-rate and adjustable-rate loans to individuals and builders to finance the construction of residential dwellings. We also originate construction loans for commercial development projects, including apartment buildings, restaurants, shopping centers and owner-occupied properties used for businesses. Our construction loans generally provide for the payment of interest only during the construction phase which is typically twelve twelve eighteen The Company offers a full range of residential real estate and consumer loans. These loans consist of residential mortgages, home equity lines of credit, equity loans, personal loans, automobile loans and overdraft protection. We do not originate subprime or negative amortization loans. Each residential mortgage loan is evidenced by a promissory note secured by a mortgage or deed of trust creating a first one four two four $350,000 15 $350,000 15 Consumer loans may may may A loan is considered impaired when it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and industrial, real estate-commercial, real estate-construction, real estate-residential and consumer loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For commercial loans secured by real estate, estimated fair values are determined primarily through third For commercial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Loans whose terms are modified are classified as troubled debt restructurings (“TDRs”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR generally involve a temporary reduction in interest rate or a modification of a loan’s amortization schedule. Non-accrual TDRs are restored to accrual status if principal and interest payments, under the modified terms, are current for six The Company’s TDR modifications are made on terms typically up to 12 The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of collateral, if appropriate, are evaluated annually for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial and consumer loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may In addition, federal and state regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may may |
Transfers and Servicing of Financial Assets, Policy [Policy Text Block] | K. Transfers of Financial Assets Transfers of financial assets, including sale of loans and loan participation sales, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) (2) (3) |
Loans and Leases Receivable, Real Estate Acquired Through Foreclosure, Policy [Policy Text Block] | L. Other Real Estate Owned Other Real Estate Owned (“OREO”) includes real estate acquired through foreclosure or by deed in lieu of foreclosure. OREO is initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Any write-downs based on fair value less costs to sell at the date of foreclosure are charged to the allowance for loan losses. If at the time of foreclosure, the fair value less costs to sell is greater than the loan balance, the resulting gain is recognized at the time of foreclosure unless there has been a prior charge-off, in which case a recovery to the allowance for loan losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Operating results from real estate owned, including rental income, operating expenses, and gains and losses realized from the sales of real estate owned are recorded as incurred. |
Bank Owned Life Insurance, Policy [Policy Text Block] | M. Bank Owned Life Insurance The Company invests in bank owned life insurance (“BOLI”) as a source of funding for employee benefit expenses. BOLI involves the purchasing of life insurance by the Company’s wholly-owned trust on a chosen group of officers and directors. The Company is the owner and beneficiary of the policies. This life insurance investment is carried at the cash surrender value of the underlying policies. Income generated from the increase in cash surrender value of the policies is included in non-interest income on the statements of operations. |
Property, Plant and Equipment, Policy [Policy Text Block] | N. Bank Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is charged to operations on a straight-line basis over the estimated useful lives of the respective assets. Leasehold improvements are amortized over the shorter of their estimated life or the lease term. |
Advertising Costs, Policy [Policy Text Block] | O. Advertising The Company expenses advertising costs as incurred. |
Income Tax, Policy [Policy Text Block] | P. Income Taxes Deferred income taxes are provided on the liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company and its subsidiary file a consolidated Federal income tax return. The Company analyzes each tax position taken in its tax returns and those positions not taken and determines the likelihood that the position will be realized. Only tax positions that are “more likely than not” to be realized can be recognized in the Company’s financial statements. For tax positions that do not meet this recognition threshold, the Company will record an unrecognized tax benefit for the difference between the position taken on the tax return and the amount recognized in the financial statements. The Company does not have any material unrecognized tax benefits or accrued interest or penalties at December 31, 2016 2015 twelve January 1, 2013. |
Off-Balance-Sheet Credit Exposure, Policy [Policy Text Block] | Q. Off-Balance Sheet Financial Instruments In the ordinary course of business, the Company has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the balance sheet when they are funded. |
Earnings Per Share, Policy [Policy Text Block] | R. Earnings per Common Share On January 19, 2017, 5% February 28, 2017 February 9, 2017. Earnings per common share are calculated on the basis of the weighted average number of common shares outstanding during the year. Basic earnings per common share excludes dilution and is calculated by dividing net income available to common shareholders by the weighted average common shares outstanding excluding potential common shares. Diluted earnings per common share takes into account the potential dilution that |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | S. Stock-Based Compensation Stock compensation accounting guidance requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service periods, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. |
Correction of an Immaterial Error on the Consolidated Statement of Cash Flows, Policy [Policy Text Block] | T. Correction of an Immaterial Error on the Consolidated Statement of Cash Flows The Company identified an immaterial error related to its consolidated statement of cash flows for the origination of SBA loans sold. The Company determined that in the prior period reported, these amounts were improperly reflected in cash flow from investing activities instead of in cash flow from operating activities. The Company reviewed the impact of this error on the prior period and determined that the error was not material to the prior period consolidated financial statements. The Company has corrected the consolidated statement of cash flows for the year ended December 31, 2015 $6.4 December 31, 2015. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | U. Goodwill and Other Intangible Assets The Company’s goodwill was recognized in connection with the acquisition of the Town Bank in April 2006. two one second second During the third 2016, September 30, 2016 August 31, 2016. August 31, 2016. The Company performed its annual goodwill impairment analysis as of August 31, 2016. one no 5 |
Segment Reporting, Policy [Policy Text Block] | V. Segment Reporting The Company acts as an independent community financial services provider, and offers traditional banking and related financial services to individual, business and government customers. Through its branch, automated teller machine networks, and internet banking services, the Company offers a full array of commercial and retail financial services, including time, savings and demand deposits; the making of commercial, consumer and mortgage loans; and the providing of other financial services. Management does not separately allocate expenses, including the cost of funding loan demand, between the commercial, retail, mortgage banking and consumer banking operations of the Company. Accordingly, all significant operating decisions are based upon analysis of the Bank as one |
Subsequent Events, Policy [Policy Text Block] | W. Subsequent Events The Company has evaluated events and transactions occurring subsequent to the balance sheet date of December 31, 2016 |
New Accounting Pronouncements, Policy [Policy Text Block] | X. Recent Accounting Pronouncements ASU 2014 09: May 2014, 2014 09, Revenue from Contracts with Customers December 15, 2016, August 2015, one December 15, 2017. December 15, 2016. ASU 2016 01: January 2016, 2016 01, Recognition and Measurement of Financial Assets and Financial Liabilities. 2016 01 2016 01 December 15, 2017, 2016 01 ASU 2016 02: February 2016, 2016 02, Leases. 12 December 15, 2018, A modified retrospective transition approach is required for lessors for sales-type, direct financing, and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company has determined that the provisions of ASU 2016 02 ASU 2016 09 : In March 2016, 2016 09, Compensation - Stock Compensation (Topic 718): two one The amendments are effective for public business entities for annual periods beginning after December 15, 2016, 2016 09 ASU 2016 13: September 2016, 2016 13, Financial Instruments—Credit Losses (Topic 326) December 15, 2019. December 15, 2020. December 15, 2020, December 15, 2021. December 15, 2018. 2016 13 ASU 2016 15: August 2016, 2016 15, Statement of Cash Flows (Topic 230) : Classification of Certain Cash Receipts and Cash Payments 2016 15 December 15, 2017, may may ASU 2016 18: November 2016, 2016 18, Statement of Cash Flows (Topic 230): 2016 18 230. 2016 18 December 15, 2017, 2016 18 ASU 2017 04: January 2017, 2017 04, Intangibles—Goodwill and Other (Topic 350) 2017 04 2 zero 2 zero December 15, 2019. December 15, 2020. December 15, 2021. January 1, 2017. |
Note 2 - Securities (Tables)
Note 2 - Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Unrealized Gain (Loss) on Investments [Table Text Block] | December 31, 2016: Gross Gross Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In Thousands) Securities available for sale: U.S. Government agency securities $ 8,474 $ 1 $ (62 ) $ 8,413 Municipal securities 501 2 - 503 U.S. Government-sponsored enterprises (“GSE”) – residential mortgage-backed securities 11,455 2 (202 ) 11,255 U.S. Government collateralized residential mortgage obligations 9,731 6 (200 ) 9,537 Corporate debt securities, primarily financial institutions 2,493 7 (141 ) 2,359 Sub-total 32,654 18 (605 ) 32,067 Community Reinvestment Act (“CRA”) mutual fund 2,451 - (54 ) 2,397 Total securities available for sale $ 35,105 $ 18 $ (659 ) $ 34,464 Securities held to maturity: Municipal securities $ 47,806 $ 224 $ (528 ) $ 47,502 GSE – residential mortgage-backed securities 5,414 6 (65 ) 5,355 U.S. Government collateralized residential mortgage obligations 2,801 1 (29 ) 2,773 Corporate debt securities, primarily financial institutions 1,822 - (168 ) 1,654 Total securities held to maturity $ 57,843 $ 231 $ (790 ) $ 57,284 December 31, 2015: Gross Gross Amortized Cost Unrealized Gains Unrealized Losses Fair Value (In Thousands) Securities available for sale: U.S. Government agency securities $ 1,241 $ - $ (3 ) $ 1,238 Municipal securities 508 9 - 517 GSE – residential mortgage-backed securities 14,646 5 (202 ) 14,449 U.S. Government collateralized residential mortgage obligations 12,900 13 (286 ) 12,627 Corporate debt securities, primarily financial institutions 2,492 - (175 ) 2,317 Sub-total 31,787 27 (666 ) 31,148 CRA mutual fund 2,397 - (15 ) 2,382 Total securities available for sale $ 34,184 $ 27 $ (681 ) $ 33,530 Securities held to maturity: Municipal securities $ 33,956 $ 824 $ (9 ) $ 34,771 GSE – residential mortgage-backed securities 3,789 9 (44 ) 3,754 U.S. Government collateralized residential mortgage obligations 3,602 - (46 ) 3,556 Corporate debt securities, primarily financial institutions 1,820 - (233 ) 1,587 Total securities held to maturity $ 43,167 $ 833 $ (332 ) $ 43,668 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Available for Sale Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (In Thousands) Due in one year or less $ - $ - $ 12,784 $ 12,797 Due in one year through five years 3,286 3,288 3,681 3,754 Due in five years through ten years - - 5,343 5,383 Due after ten years 8,182 7,987 27,820 27,222 Sub-total 11,468 11,275 49,628 49,156 GSE – residential mortgage-backed securities 11,455 11,255 5,414 5,355 U.S. Government collateralized residential mortgage obligations 9,731 9,537 2,801 2,773 Total $ 32,654 $ 32,067 $ 57,843 $ 57,284 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2016: (In Thousands) U.S. Government agency securities $ 7,125 $ (62 ) $ - $ - $ 7,125 $ (62 ) Municipal securities 22,036 (528 ) - - 22,036 (528 ) GSE – residential mortgage-backed securities 9,632 (163 ) 5,949 (104 ) 15,581 (267 ) U.S. Government collateralized residential mortgage obligations 5,630 (50 ) 4,990 (179 ) 10,620 (229 ) Corporate debt securities, primarily financial institutions - - 3,009 (309 ) 3,009 (309 ) CRA mutual fund 2,397 (54 ) - - 2,397 (54 ) Total temporarily impaired securities $ 46,820 $ (857 ) $ 13,948 $ (592 ) $ 60,768 $ (1,449 ) Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2015: (In Thousands) U.S. Government agency securities $ 1,238 $ (3 ) $ - $ - $ 1,238 $ (3 ) Municipal securities 5,858 (5 ) 498 (4 ) 6,356 (9 ) GSE – residential mortgage-backed securities 11,946 (151 ) 5,006 (95 ) 16,952 (246 ) U.S. Government collateralized residential mortgage obligations 8,284 (72 ) 6,861 (260 ) 15,145 (332 ) Corporate debt securities, primarily financial institutions 496 (1 ) 2,907 (407 ) 3,403 (408 ) CRA mutual fund 2,382 (15 ) - - 2,382 (15 ) Total temporarily impaired securities $ 30,204 $ (247 ) $ 15,272 $ (766 ) $ 45,476 $ (1,013 ) |
Note 3 - Loans Receivable and34
Note 3 - Loans Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 2016 2015 (In Thousands) Commercial and industrial $ 93,697 $ 100,154 Real estate – construction 111,914 104,231 Real estate – commercial 460,685 422,665 Real estate – residential 59,065 39,524 Consumer 28,279 27,136 753,640 693,710 Allowance for loan losses (9,565 ) (8,713 ) Net unearned fees (548 ) (560 ) Net Loans $ 743,527 $ 684,437 |
Past Due Financing Receivables [Table Text Block] | December 31, 2016: Loans Receivable (In Thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable >90 Days and Accruing Commercial and industrial $ - $ - $ 119 $ 119 $ 93,578 $ 93,697 $ - Real estate – construction - - - - 111,914 111,914 - Real estate – commercial 154 - 666 820 459,865 460,685 - Real estate – residential - - 533 533 58,532 59,065 - Consumer - - - - 28,279 28,279 - Total $ 154 $ - $ 1,318 $ 1,472 $ 752,168 $ 753,640 $ - December 31, 2015: Loans Receivable (In Thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable >90 Days and Accruing Commercial and industrial $ 107 $ - $ 31 $ 138 $ 100,016 $ 100,154 $ - Real estate – construction - 150 - 150 104,081 104,231 - Real estate – commercial 112 - 2,075 2,187 420,478 422,665 - Real estate – residential - - 796 796 38,728 39,524 - Consumer - - - - 27,136 27,136 - Total $ 219 $ 150 $ 2,902 $ 3,271 $ 690,439 $ 693,710 $ - |
Schedule of Financing Receivables, Non Accrual Status [Table Text Block] | 2016 2015 (In Thousands) Commercial and industrial $ 119 $ 138 Real estate – construction - - Real estate – commercial 666 2,244 Real estate – residential 763 796 Consumer - - Total $ 1,548 $ 3,178 |
Impaired Financing Receivables [Table Text Block] | December 31, 2016: Recorded Investment, Net of Charge-offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In Thousands) With no related allowance recorded: Commercial and industrial $ 3,402 $ 3,415 $ - $ 3,575 $ 174 Real estate – construction 3,036 3,036 - 3,073 129 Real estate – commercial 1,548 1,577 - 1,618 47 Real estate – residential 1,139 1,189 - 1,164 18 Consumer - - - - - With an allowance recorded: Commercial and industrial $ 498 $ 498 $ 2 $ 507 $ 15 Real estate – construction - - - - - Real estate – commercial - - - - - Real estate – residential - - - - - Consumer - - - - - Total: Commercial and industrial $ 3,900 $ 3,913 $ 2 $ 4,082 $ 189 Real estate – construction 3,036 3,036 - 3,073 129 Real estate – commercial 1,548 1,577 - 1,618 47 Real estate – residential 1,139 1,189 - 1,164 18 Consumer - - - - - Total $ 9,623 $ 9,715 $ 2 $ 9,937 $ 383 December 31, 2015: Recorded Investment, Net of Charge-offs Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (In Thousands) With no related allowance recorded: Commercial and industrial $ 652 $ 652 $ - $ 645 $ 18 Real estate – construction 3,855 3,855 - 4,381 186 Real estate – commercial 3,267 3,542 - 3,338 48 Real estate – residential 1,178 1,178 - 1,183 29 Consumer 209 209 - 215 9 With an allowance recorded: Commercial and industrial $ 3,305 $ 3,305 $ 49 $ 3,278 $ 152 Real estate – construction - - - - - Real estate – commercial - - - - - Real estate – residential - - - - - Consumer - - - - - Total: Commercial and industrial $ 3,957 $ 3,957 $ 49 $ 3,923 $ 170 Real estate – construction 3,855 3,855 - 4,381 186 Real estate – commercial 3,267 3,542 - 3,338 48 Real estate – residential 1,178 1,178 - 1,183 29 Consumer 209 209 - 215 9 Total $ 12,466 $ 12,741 $ 49 $ 13,040 $ 442 |
Financing Receivable Credit Quality Indicators [Table Text Block] | Pass Special Mention Substandard Doubtful Total (In Thousands) December 31, 2016: Commercial and industrial $ 88,776 $ 1,277 $ 3,644 $ - $ 93,697 Real estate – construction 108,728 1,894 1,292 - 111,914 Real estate – commercial 452,740 6,716 1,229 - 460,685 Real estate – residential 58,302 - 763 - 59,065 Consumer 27,856 230 193 - 28,279 Total $ 736,402 $ 10,117 $ 7,121 $ - $ 753,640 Pass Special Mention Substandard Doubtful Total (In Thousands) December 31, 2015: Commercial and industrial $ 96,038 $ 159 $ 3,957 $ - $ 100,154 Real estate – construction 100,376 1,830 2,025 - 104,231 Real estate – commercial 414,872 4,667 3,126 - 422,665 Real estate – residential 38,631 - 893 - 39,524 Consumer 26,891 38 207 - 27,136 Total $ 676,808 $ 6,694 $ 10,208 $ - $ 693,710 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for Loan Losses Loans Receivable December 31, 2016: Balance Balance Related to Loans Individually Evaluated for Impairment Balance Related to Loans Collectively Evaluated for Impairment Balance Balance Individually Evaluated for Impairment Balance Collectively Evaluated for Impairment (In Thousands) Commercial and industrial $ 844 $ 2 $ 842 $ 93,697 $ 3,900 $ 89,797 Real estate – construction 1,276 - 1,276 111,914 3,036 108,878 Real estate – commercial 6,315 - 6,315 460,685 1,548 459,137 Real estate – residential 463 - 463 59,065 1,139 57,926 Consumer 244 - 244 28,279 - 28,279 Unallocated 423 - 423 - - - Total $ 9,565 $ 2 $ 9,563 $ 753,640 $ 9,623 $ 744,017 Allowance for Loan Losses Loans Receivable December 31, 2015: Balance Balance Related to Loans Individually Evaluated for Impairment Balance Related to Loans Collectively Evaluated for Impairment Balance Balance Individually Evaluated for Impairment Balance Collectively Evaluated for Impairment (In Thousands) Commercial and industrial $ 990 $ 49 $ 941 $ 100,154 $ 3,957 $ 96,197 Real estate – construction 1,283 - 1,283 104,231 3,855 100,376 Real estate – commercial 5,599 - 5,599 422,665 3,267 419,398 Real estate – residential 304 - 304 39,524 1,178 38,346 Consumer 242 - 242 27,136 209 26,927 Unallocated 295 - 295 - - - Total $ 8,713 $ 49 $ 8,664 $ 693,710 $ 12,466 $ 681,244 |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | Year Ended December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Troubled Debt Restructuring: Commercial and industrial 1 $ 257 $ 257 Year Ended December 31, 2015 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Troubled Debt Restructuring: Commercial and industrial 6 $ 3,227 $ 3,227 |
Change in Financing Receivable [Member] | |
Notes Tables | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Allowance for Loan Losses Commercial and Industrial Real Estate - Construction Real Estate - Commercial Real Estate – Residential Consumer Unallocated Total (In Thousands) Beginning balance, January 1, 2016 $ 990 $ 1,283 $ 5,599 $ 304 $ 242 $ 295 $ 8,713 Charge-offs - - (444 ) - (5 ) - (449 ) Recoveries 12 12 696 - 66 - 786 Provision (158 ) (19 ) 464 159 (59 ) 128 515 Ending balance, December 31, 2016 $ 844 $ 1,276 $ 6,315 $ 463 $ 244 $ 423 $ 9,565 Allowance for Loan Losses Commercial and Industrial Real Estate - Construction Real Estate - Commercial Real Estate - Residential Consumer Unallocated Total (In Thousands) Beginning balance, January 1, 2015 $ 1,044 $ 1,454 $ 4,624 $ 223 $ 565 $ 159 $ 8,069 Charge-offs - - - - (82 ) - (82 ) Recoveries 12 217 2 - 5 - 236 Provision (66 ) (388 ) 973 81 (246 ) 136 490 Ending balance, December 31, 2015 $ 990 $ 1,283 $ 5,599 $ 304 $ 242 $ 295 $ 8,713 |
Note 4 - Premises and Equipme35
Note 4 - Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | Estimated Useful Lives (years) 2016 2015 (In Thousands) Land Indefinite $ 1,250 $ 1,250 Buildings 30 1,413 1,419 Leasehold improvements 5 - 15 4,089 4,005 Furniture and equipment 2 - 7 9,229 8,954 Total premises and equipment 15,981 15,628 Less accumulated depreciation and amortization (11,319 ) (10,545 ) Total premises and equipment, net $ 4,662 $ 5,083 |
Note 6 - Deposits (Tables)
Note 6 - Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Deposits Components [Table Text Block] | 2016 2015 (In Thousands) Demand, non-interest bearing $ 160,104 $ 144,627 Demand, interest bearing, money market and savings 476,704 445,788 Time, $250,000 and over 8,893 7,693 Time, other 130,866 110,328 Total deposits $ 776,567 $ 708,436 |
Deposits Schedule of Maturities [Table Text Block] | 2017 $ 38,415 2018 37,902 2019 33,694 2020 25,402 2021 4,346 Total time deposits $ 139,759 |
Note 7 - Securities Sold Unde37
Note 7 - Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Repurchase Agreements [Table Text Block] | 2016 2015 (Dollars In Thousands) Repurchase agreements: Balance at year-end $ 19,915 $ 19,545 Average during the year $ 19,309 $ 22,071 Maximum month-end balance $ 22,105 $ 27,916 Weighted average rate during the year 0.32 % 0.31 % Weighted average rate at December 31 0.24 % 0.24 % |
Schedule of Repurchase Agreements Maturities [Table Text Block] | Maturity of Repurchase Agreements (dollars in thousands) Overnight and Continuous Up to 30 days 30 to 90 days Over 90 days Total December 31, 2016: Class of Collateral Pledged: U.S. Government agency securities $ 8,371 $ - $ - $ - $ 8,371 GSE – Residential mortgage-backed securities 9,074 - - - 9,074 U.S. Government collateralized residential mortgage obligations 13,895 - - - 13,895 Total $ 31,340 $ - $ - $ - $ 31,340 Gross amount of recognized liabilities for repurchase agreements and securities lending $ 19,915 Excess of collateral pledged over recognized liability $ 11,425 |
Note 8 - FHLB and Other Borro38
Note 8 - FHLB and Other Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Maturities of Long-term Debt [Table Text Block] | 2016 2015 Rate Original Term (years) Maturity Fixed Rate Note $ 7,500 $ 7,500 3.97 % 10 November 2017 Fixed Rate Note - 1,500 2.41 % 6 August 2016 Fixed Rate Note 1,500 1,500 2.71 % 7 August 2017 Fixed Rate Note 2,000 2,000 1.28 % 4 October 2017 Fixed Rate Note 2,000 2,000 1.65 % 5 October 2018 Fixed Rate Note - 2,700 0.60 % 1 January 2016 Fixed Rate Note 1,000 1,000 0.97 % 2 January 2017 Fixed Rate Note 1,300 1,300 1.31 % 3 January 2018 Fixed Rate Note 1,800 1,800 1.59 % 4 January 2019 Fixed Rate Note 2,700 2,700 1.81 % 5 January 2020 Fixed Rate Note 2,500 2,500 2.03 % 6 January 2021 Fixed Rate Note 1,000 - 1.09 % 3 July 2019 Fixed Rate Note 1,000 - 1.42 % 5 July 2021 Fixed Rate Note 1,000 - 1.70 % 7 July 2023 Total FHLB borrowings $ 25,300 $ 26,500 |
Note 11 - Income Taxes (Tables)
Note 11 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 2016 2015 (In Thousands) Current $ 4,791 $ 4,069 Deferred (463 ) (484 ) Income tax expense $ 4,328 $ 3,585 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2016 2015 Amount % Amount % (Dollars In Thousands) Federal income tax expense at statutory rate $ 4,406 34.0 % $ 3,376 34.0 % Increases (decreases) resulting from: Tax exempt interest (334 ) (2.6 ) (239 ) (2.4 ) Bank owned life insurance income (455 ) (3.5 ) (151 ) (1.5 ) State income taxes, net of federal income tax benefit 712 5.5 557 5.6 Other, net (1 ) - 42 0.4 Income tax expense $ 4,328 33.4 % $ 3,585 36.1 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 2016 2015 (In Thousands) Deferred tax assets: Allowance for loan losses $ 3,841 $ 3,501 Depreciation and amortization 507 535 Deferred compensation 1,291 1,130 OREO write-downs 33 7 Unrealized loss on securities available for sale 250 256 Other 31 10 Total deferred tax assets 5,953 5,439 Deferred tax liabilities: Purchase accounting adjustments - (4 ) Other (483 ) (422 ) Total deferred tax liabilities (483 ) (426 ) Net Deferred Tax Asset $ 5,470 $ 5,013 |
Note 12 - Earnings Per Common40
Note 12 - Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Years Ended December 31, 2016 2015 (In Thousands, Except Per Share Data) Net income $ 8,631 $ 6,347 Preferred stock dividend - (57 ) Income applicable to common shareholders $ 8,631 $ 6,290 Weighted average common shares outstanding 8,321 8,304 Effect of dilutive securities, stock options and restricted stock 209 203 Weighted average common shares outstanding used to calculate diluted earnings per share 8,530 8,507 Basic earnings per common share $ 1.04 $ 0.76 Diluted earnings per common share $ 1.01 $ 0.74 |
Note 13 - Lease Commitments a41
Note 13 - Lease Commitments and Total Rental Expense (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Rent Expense [Table Text Block] | 2017 $ 1,564 2018 1,474 2019 1,395 2020 1,169 2021 931 Thereafter 2,105 Total $ 8,638 |
Note 14 - Stock-based Compens42
Note 14 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Number of Shares Weighted Average Price Weighted Average Remaining Contractual Life (years) Aggregate Intrinsic Value Options outstanding, December 31, 2015 459,959 $ 4.91 Options granted 5,250 11.21 Options exercised (28,903 ) 3.60 Options forfeited (3,855 ) 7.99 Options outstanding, December 31, 2016 432,451 $ 5.05 3.85 $ 3,969,726 Options exercisable, December 31, 2016 357,476 $ 4.37 3.88 $ 3,520,288 Options price range at December 31, 2016 $2.87 to $11.21 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | Options Outstanding Range of Exercise Prices Number Outstanding at December 31, 2016 Weighted- Average Remaining Contractual Life (years) Weighted- Average Exercise Price $2.87 - $3.65 193,774 2.3 $ 3.23 $4.94 - $5.23 128,689 5.2 5.02 $7.06 - $8.00 69,458 7.4 7.53 $8.59 - $9.20 35,280 8.1 9.15 $11.21 5,250 9.8 11.21 Total options outstanding 432,451 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | Dividend yield 1.33 % Expected volatility 27.67 % Risk-free interest rate 1.54 % Expected life (in years) 7.5 Weighted average fair value of options granted $ 3.05 Dividend yield 1.45 % Expected volatility 27.22 % Risk-free interest rate 2.06 % Forfeiture rate 5.00 % Expected life (in years) 7.5 Weighted average fair value of options granted $ 2.66 Dividend yield 1.33 % Expected volatility 27.67 % Risk-free interest rate 2.00 % Expected life (in years) 7.5 Weighted average fair value of options granted $ 2.55 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | Number of Shares Weighted Average Price Unvested at December 31, 2015 24,079 $ 7.96 Restricted stock earned (6,797 ) (8.22 ) Granted 16,800 9.90 Unvested at December 31, 2016 34,082 $ 8.90 |
Note 17 - Regulatory Matters (T
Note 17 - Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual For Capital Adequacy Purposes To be Well Capitalized under Prompt Corrective Action Regulations* Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) As of December 31, 2016 Common Equity Tier 1 Capital (to risk weighted assets) Two River Bancorp $ 82,994 10.33 % $ > 36,154 > 4 % $ N/A N/A Two River Community Bank 92,270 11.49 % > > % > > % Total Capital (to risk weighted assets) Two River Bancorp 102,509 12.76 % > > % N/A N/A Two River Community Bank 101,835 12.68 % > > % > > % Tier 1 Capital (to risk weighted assets) Two River Bancorp 82,994 10.33 % > 48 > % > > % Two River Community Bank 92,270 11.49 % > 48,183 > % > > % Tier 1 Capital (to average assets) Two River Bancorp 82,994 8.94 % > > % N/A N/A Two River Community Bank $ 92,270 9.95 % $ > > % $ > > % As of December 31, 2015 Common Equity Tier 1 Capital (to risk weighted assets) Two River Bancorp $ 75,273 10.13 % > > % $ N/A N/A Two River Community Bank 84,659 11.39 % > > % > > % Total Capital (to risk weighted assets) Two River Bancorp 93,986 12.65 % $ > > % $ N/A N/A Two River Community Bank 93,372 12.56 % > > % > > % Tier 1 Capital (to risk weighted assets) Two River Bancorp 75,273 10.13 % > > % > > % Two River Community Bank 84,659 11.39 % > > % > > % Tier 1 Capital (to average assets) Two River Bancorp 75,273 8.97 % > > % N/A N/A Two River Community Bank $ 84,659 10.09 % $ > > % $ > > % |
Note 18 - Fair Value of Finan44
Note 18 - Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Description (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Total (In Thousands) At December 31, 2016 Securities available for sale: U.S. Government agency securities $ - $ 8,413 $ - $ 8,413 Municipal securities - 503 - 503 GSE – Residential mortgage-backed securities - 11,255 - 11,255 U.S. Government collateralized residential mortgage obligations - 9,537 - 9,537 Corporate debt securities, primarily financial institutions - 2,359 - 2,359 CRA mutual fund 2,397 - - 2,397 Total securities available for sale $ 2,397 $ 32,067 $ - $ 34,464 At December 31, 2015 Securities available for sale: U.S. Government agency securities $ - $ 1,238 $ - $ 1,238 Municipal securities - 517 - 517 GSE – Residential mortgage-backed securities - 14,449 - 14,449 U.S. Government collateralized residential mortgage obligations - 12,627 - 12,627 Corporate debt securities, primarily financial institutions - 2,317 - 2,317 CRA mutual fund 2,382 - - 2,382 Total securities available for sale $ 2,382 $ 31,148 $ - $ 33,530 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Description (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Total (In Thousands) At December 31, 2016 Impaired loans, net of allowance recorded $ - $ - $ 496 $ 496 OREO - - 259 259 At December 31, 2015 Impaired loans, net of allowance recorded $ - $ - $ 3,256 $ 3,256 Impaired loans, net of partial charge-offs - - 1,389 1,389 OREO - - 411 411 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Fair Value Measurements at December 31, 2016 (in thousands) Carrying Amount Estimated Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Financial assets: Cash and cash equivalents $ 42,077 $ 42,077 $ 42,077 $ - $ - Securities available for sale 34,464 34,464 2,397 32,067 - Securities held to maturity 57,843 57,284 - 57,284 - Restricted investments 4,805 4,805 - - 4,805 Loans held for sale 4,537 4,698 - - 4,698 Loans receivable, net 743,527 740,910 - - 740,910 Accrued interest receivable 2,234 2,234 - 621 1,613 Financial liabilities: Deposits 776,567 776,404 - 776,404 - Securities sold under agreements to repurchase 19,915 19,915 - 19,915 - Long-term debt 25,300 25,363 - 25,363 - Subordinated debt 9,855 9,827 - 9,827 - Accrued interest payable 100 100 - 100 - Fair Value Measurements at December 31, 2015 (in thousands) Carrying Amount Estimated Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs Financial assets: Cash and cash equivalents $ 46,727 $ 46,727 $ 46,727 $ - $ - Securities available for sale 33,530 33,530 2,382 31,148 - Securities held to maturity 43,167 43,668 - 43,668 - Restricted investments 3,596 3,596 - - 3,596 Loans held for sale 3,050 3,105 - - 3,105 Loans receivable, net 684,437 676,703 - - 676,703 Accrued interest receivable 1,912 1,912 - 422 1,490 Financial liabilities: Deposits 708,436 707,908 - 707,908 - Securities sold under agreements to repurchase 19,545 19,545 - 19,545 - Long-term debt 26,500 26,882 - 26,882 - Subordinated debt 9,824 9,823 - 9,823 - Accrued interest payable 118 118 - 118 - |
Note 20 - Condensed Financial45
Note 20 - Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Condensed Balance Sheet [Table Text Block] | December 31, 2016 2015 (In Thousands) Assets Cash and cash equivalents $ 161 $ 333 Investments in subsidiaries 110,042 102,388 Other assets 470 345 Total assets $ 110,673 $ 103,066 Liabilities and Shareholders’ Equity Subordinated debt $ 9,855 $ 9,824 Other liabilities 102 240 Shareholders’ equity 100,716 93,002 Total liabilities and shareholders’ equity $ 110,673 $ 103,066 |
Condensed Income Statement [Table Text Block] | December 31, 2016 2015 (In Thousands) Dividends from Bank $ 1,636 $ 1,456 Interest expense - subordinated debt 656 33 Other operating expenses 233 186 Income before income taxes 747 1,237 Income tax benefit (239 ) (10 ) Income before undistributed income of subsidiaries 986 1,247 Equity in undistributed income of subsidiaries 7,645 5,100 Net income $ 8,631 $ 6,347 Equity in other comprehensive income (loss) of subsidiaries, net of tax 8 (54 ) Total comprehensive income, net of tax $ 8,639 $ 6,293 |
Condensed Cash Flow Statement [Table Text Block] | December 31, 2016 2015 (In Thousands) Cash flows from operating activities: Net income $ 8,631 $ 6,347 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed income of subsidiaries, net of dividends received from Bank (7,645 ) (5,100 ) Amortization of subordinated debt issuance costs 31 - Stock-based compensation expense 231 186 Other, net (264 ) 248 Net cash provided by operating activities 984 1,681 Cash flows from investing activities: Contributions to subsidiary, net - (3,809 ) Net cash used in investing activities - (3,809 ) Cash flows from financing activities: Proceeds from exercise of stock options 104 114 Tax benefit of stock options exercised 25 7 Proceeds from employee stock purchase program 56 56 Redemption of preferred stock, Series C - (6,000 ) Proceeds from subordinated debt placement, net of issuance costs - 9,824 Common stock repurchased (148 ) (497 ) Cash dividends paid on common stock (1,193 ) (1,032 ) Dividends paid on preferred stock, Series C - (57 ) Net cash provided by (used in) financing activities (1,156 ) 2,415 Net increase (decrease) in cash and cash equivalents (172 ) 287 Cash and Cash Equivalents - Beginning 333 46 Cash and Cash Equivalents – Ending $ 161 $ 333 |
Note 21 - Summary of Quarterl46
Note 21 - Summary of Quarterly Results (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Quarterly Financial Information [Table Text Block] | 2016 Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 8,970 $ 8,777 $ 8,539 $ 8,338 Interest expense 1,376 1,308 1,270 1,210 Net interest income 7,594 7,469 7,269 7,128 Provision for loan losses (345 ) 470 390 - Net interest income after provision for loan losses 7,939 6,999 6,879 7,128 Non-interest income 1,447 1,983 1,166 893 Non-interest expense 5,360 5,339 5,379 5,397 Income before income taxes 4,026 3,643 2,666 2,624 Income taxes 1,459 999 939 931 Net income $ 2,567 $ 2,644 $ 1,727 $ 1,693 Per common share data: Basic earnings $ 0.31 $ 0.32 $ 0.21 $ 0.20 Diluted earnings $ 0.30 $ 0.31 $ 0.20 $ 0.20 2015 Fourth Quarter Third Quarter Second Quarter First Quarter Interest income $ 8,306 $ 8,218 $ 7,903 $ 7,676 Interest expense 1,019 973 967 904 Net interest income 7,287 7,245 6,936 6,772 Provision for loan losses 90 120 190 90 Net interest income after provision for loan losses 7,197 7,125 6,746 6,682 Non-interest income 984 836 941 776 Non-interest expense 5,509 5,308 5,377 5,161 Income before income taxes 2,672 2,653 2,310 2,297 Income taxes 921 961 849 854 Net income 1,751 1,692 1,461 1,443 Preferred stock dividends (12 ) (15 ) (15 ) (15 ) Net income available to common shareholders $ 1,739 $ 1,677 $ 1,446 $ 1,428 Per common share data: Basic earnings $ 0.21 $ 0.20 $ 0.17 $ 0.17 Diluted earnings $ 0.20 $ 0.20 $ 0.17 $ 0.17 |
Note 1 - Summary of Significa47
Note 1 - Summary of Significant Accounting Policies (Details Textual) - USD ($) | Jan. 19, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Stock | $ 3,230,000 | $ 2,021,000 | |
Atlantic Community Bankers Bank Stock | 75,000 | 75,000 | |
Investment in Solomon Hess SBA Loan Fund | 1,500,000 | 1,500,000 | |
Transfer of Portfolio Loans and Leases to Held-for-sale | $ 0 | $ 5,614,000 | |
Loan to Value Ratio | 75.00% | ||
Rate Readjustment Period | 5 years | ||
SBA Loans Authorized | $ 5,000,000 | ||
Line of Credit Available to Applicants | $ 350,000 | ||
Line of Credit Facility, Expiration Period | 15 years | ||
Number of Operating Segments | 1 | ||
Goodwill, Impairment Loss | $ 0 | ||
Year Ended December 31, 2015 [Member] | Net Cash from Origination and Proceeds From Sale of Small Business Loans Reclassified from Investing Activities to Operating Activities [Member] | |||
Prior Period Reclassification Adjustment | 6,400,000 | ||
Subsequent Event [Member] | |||
Common Stock Dividends, Percentage | 5.00% | ||
Home Equity Line of Credit [Member] | |||
Line of Credit Available to Applicants | $ 350,000 | ||
Line of Credit Facility, Expiration Period | 15 years | ||
Commercial Portfolio Segment [Member] | Minimum [Member] | |||
Debt Instrument, Term | 1 year | ||
Debt Amortization Schedule | 5 years | ||
Commercial Portfolio Segment [Member] | Maximum [Member] | |||
Debt Instrument, Term | 5 years | ||
Debt Amortization Schedule | 25 years |
Note 2 - Securities (Details Te
Note 2 - Securities (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Available for Sale Securities Number of Positions Sold | 1 | 19 |
Proceeds from Sale of Held-to-maturity Securities | $ 1,076,000 | |
Held-to-maturity Securities, Sold Security, Realized Gain (Loss) | 72,000 | |
Proceeds from Sale of Available-for-sale Securities | 24,306,000 | |
Available-for-sale Securities, Gross Realized Gains | 70,000 | |
Available-for-sale Securities, Gross Realized Losses | 33,000 | |
Available-for-sale Securities Pledged as Collateral | $ 33,088,000 | 32,596,000 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions | 69 | |
Number of Individual Trust Preferred Securities | 4 | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net | $ 0 | $ 0 |
Not Other Than Temporary Impaired [Member] | Corporate Debt Securities, Primarily Financial Institutions [Member] | ||
Continuous Unrealized Loss 12 Months or More Amortized Cost | 2,800,000 | |
Continuous Unrealized Loss 12 Months or More | $ 2,500,000 |
Note 2 - Securities - Summary o
Note 2 - Securities - Summary of Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Securities available-for-sale, amortized cost | $ 35,105 | $ 34,184 |
Securities available-for-sale, gross unrealized gains | 18 | 27 |
Securities available-for-sale, gross unrealized losses | (659) | (681) |
Securities available-for-sale | 34,464 | 33,530 |
Securities held-to-maturity, amortized cost | 57,843 | 43,167 |
Securities held-to-maturity, gross unrealized gains | 231 | 833 |
Securities held-to-maturity, gross unrealized losses | (790) | (332) |
Securities held to maturity | 57,284 | 43,668 |
US Government Agencies Debt Securities [Member] | ||
Securities available-for-sale, amortized cost | 8,474 | 1,241 |
Securities available-for-sale, gross unrealized gains | 1 | |
Securities available-for-sale, gross unrealized losses | (62) | (3) |
Securities available-for-sale | 8,413 | 1,238 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available-for-sale, amortized cost | 501 | 508 |
Securities available-for-sale, gross unrealized gains | 2 | 9 |
Securities available-for-sale, gross unrealized losses | 0 | 0 |
Securities available-for-sale | 503 | 517 |
Securities held-to-maturity, amortized cost | 47,806 | 33,956 |
Securities held-to-maturity, gross unrealized gains | 224 | 824 |
Securities held-to-maturity, gross unrealized losses | (528) | (9) |
Securities held to maturity | 47,502 | 34,771 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities available-for-sale, amortized cost | 11,455 | 14,646 |
Securities available-for-sale, gross unrealized gains | 2 | 5 |
Securities available-for-sale, gross unrealized losses | (202) | (202) |
Securities available-for-sale | 11,255 | 14,449 |
Securities held-to-maturity, amortized cost | 5,414 | 3,789 |
Securities held-to-maturity, gross unrealized gains | 6 | 9 |
Securities held-to-maturity, gross unrealized losses | (65) | (44) |
Securities held to maturity | 5,355 | 3,754 |
Residential Mortgage Backed Securities [Member] | ||
Securities available-for-sale, amortized cost | 9,731 | 12,900 |
Securities available-for-sale, gross unrealized gains | 6 | 13 |
Securities available-for-sale, gross unrealized losses | (200) | (286) |
Securities available-for-sale | 9,537 | 12,627 |
Securities held-to-maturity, amortized cost | 2,801 | 3,602 |
Securities held-to-maturity, gross unrealized gains | 1 | 0 |
Securities held-to-maturity, gross unrealized losses | (29) | (46) |
Securities held to maturity | 2,773 | 3,556 |
Corporate Debt Securities [Member] | ||
Securities available-for-sale, amortized cost | 2,493 | 2,492 |
Securities available-for-sale, gross unrealized gains | 7 | |
Securities available-for-sale, gross unrealized losses | (141) | (175) |
Securities available-for-sale | 2,359 | 2,317 |
Securities held-to-maturity, amortized cost | 1,822 | 1,820 |
Securities held-to-maturity, gross unrealized gains | 0 | 0 |
Securities held-to-maturity, gross unrealized losses | (168) | (233) |
Securities held to maturity | 1,654 | 1,587 |
Securities Portfolio Without CRA [Member] | ||
Securities available-for-sale, amortized cost | 32,654 | 31,787 |
Securities available-for-sale, gross unrealized gains | 18 | 27 |
Securities available-for-sale, gross unrealized losses | (605) | (666) |
Securities available-for-sale | 32,067 | 31,148 |
CRA Mutual Fund [Member] | ||
Securities available-for-sale, amortized cost | 2,451 | 2,397 |
Securities available-for-sale, gross unrealized gains | 0 | |
Securities available-for-sale, gross unrealized losses | (54) | (15) |
Securities available-for-sale | $ 2,397 | $ 2,382 |
Note 2 - Securities - Investmen
Note 2 - Securities - Investments Classified by Contractual Maturity Date (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Due in one year or less, available for sale, amortized cost | $ 0 |
Due in one year or less, available for sale, fair value | 0 |
Due in one year or less, held to maturity, amortized cost | 12,784 |
Due in one year or less, held to maturity, fair value | 12,797 |
Due in one year through five years, available for sale, amortized cost | 3,286 |
Due in one year through five years, available for sale, fair value | 3,288 |
Due in one year through five years, held to maturity, amortized cost | 3,681 |
Due in one year through five years, held to maturity, fair value | 3,754 |
Due in five years through ten years, available for sale, amortized cost | |
Due in five years through ten years, available for sale, fair value | |
Due in five years through ten years, held to maturity, amortized cost | 5,343 |
Due in five years through ten years, held to maturity, fair value | 5,383 |
Due after ten years, available for sale, amortized cost | 8,182 |
Due after ten years, available for sale, fair value | 7,987 |
Due after ten years, held to maturity, amortized cost | 27,820 |
Due after ten years, held to maturity, fair value | 27,222 |
Sub-total | 11,468 |
Sub-total | 11,275 |
Sub-total | 49,628 |
Sub-total | 49,156 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |
Available-for-sale Securities, without single maturity date, Amortized Cost | 11,455 |
Available-for-sale Securities, without single maturity date, Fair Value | 11,255 |
Held-to-maturity Securities, without single maturity date, Amortized Cost | 5,414 |
Held-to-maturity Securities, without single maturity date, Fair Value | 5,355 |
Residential Mortgage Backed Securities [Member] | |
Available-for-sale Securities, without single maturity date, Amortized Cost | 9,731 |
Available-for-sale Securities, without single maturity date, Fair Value | 9,537 |
Held-to-maturity Securities, without single maturity date, Amortized Cost | 2,801 |
Held-to-maturity Securities, without single maturity date, Fair Value | 2,773 |
Securities Portfolio Without CRA [Member] | |
Available-for-sale Securities, without single maturity date, Amortized Cost | 32,654 |
Available-for-sale Securities, without single maturity date, Fair Value | 32,067 |
Held-to-maturity Securities, without single maturity date, Amortized Cost | 57,843 |
Held-to-maturity Securities, without single maturity date, Fair Value | $ 57,284 |
Note 2 - Securities - Securitie
Note 2 - Securities - Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Less than 12 Months Fair Value | $ 46,820 | $ 30,204 |
Less than 12 Months Unrealized Losses | (857) | (247) |
12 Months or More Fair Value | 13,948 | 15,272 |
12 Months or More Unrealized Losses | (592) | (766) |
Total Fair Value | 60,768 | 45,476 |
Total Unrealized Losses | (1,449) | (1,013) |
US Government Agencies Debt Securities [Member] | ||
Less than 12 Months Fair Value | 7,125 | 1,238 |
Less than 12 Months Unrealized Losses | (62) | (3) |
12 Months or More Fair Value | 0 | |
12 Months or More Unrealized Losses | 0 | |
Total Fair Value | 7,125 | 1,238 |
Total Unrealized Losses | (62) | (3) |
US States and Political Subdivisions Debt Securities [Member] | ||
Less than 12 Months Fair Value | 22,036 | 5,858 |
Less than 12 Months Unrealized Losses | (528) | (5) |
12 Months or More Fair Value | 498 | |
12 Months or More Unrealized Losses | (4) | |
Total Fair Value | 22,036 | 6,356 |
Total Unrealized Losses | (528) | (9) |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Less than 12 Months Fair Value | 9,632 | 11,946 |
Less than 12 Months Unrealized Losses | (163) | (151) |
12 Months or More Fair Value | 5,949 | 5,006 |
12 Months or More Unrealized Losses | (104) | (95) |
Total Fair Value | 15,581 | 16,952 |
Total Unrealized Losses | (267) | (246) |
Residential Mortgage Backed Securities [Member] | ||
Less than 12 Months Fair Value | 5,630 | 8,284 |
Less than 12 Months Unrealized Losses | (50) | (72) |
12 Months or More Fair Value | 4,990 | 6,861 |
12 Months or More Unrealized Losses | (179) | (260) |
Total Fair Value | 10,620 | 15,145 |
Total Unrealized Losses | (229) | (332) |
Corporate Debt Securities [Member] | ||
Less than 12 Months Fair Value | 496 | |
Less than 12 Months Unrealized Losses | (1) | |
12 Months or More Fair Value | 3,009 | 2,907 |
12 Months or More Unrealized Losses | (309) | (407) |
Total Fair Value | 3,009 | 3,403 |
Total Unrealized Losses | (309) | (408) |
CRA Mutual Fund [Member] | ||
Less than 12 Months Fair Value | 2,397 | 2,382 |
Less than 12 Months Unrealized Losses | (54) | (15) |
12 Months or More Fair Value | 0 | |
12 Months or More Unrealized Losses | 0 | |
Total Fair Value | 2,397 | 2,382 |
Total Unrealized Losses | $ (54) | $ (15) |
Note 3 - Loans Receivable and52
Note 3 - Loans Receivable and Allowance for Loan Losses (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Financing Receivable, Modifications, Recorded Investment | $ 8,200,000 | $ 10,800,000 |
Financing Receivable Modifications Recorded Investment Current | 8,100,000 | 9,300,000 |
Financing Receivable Modifications Non Accrual Status Recorded Investment | 157,000 | 1,500,000 |
Payments for (Proceeds from) Loans and Leases | 59,605,000 | 71,261,000 |
Allowance for Credit Losses, Change in Method of Calculating Impairment | $ 2,000 | $ 49,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 0 | 0 |
Trouble Debt Restructuring [Member] | ||
Financing Receivable, Paid in Full Number of Loans | $ 8 | |
Payments for (Proceeds from) Loans and Leases | $ 2,200,000 | |
Non Accrual Loans [Member] | ||
Financing Receivable, Modifications, Number of Contracts | 2 | 3 |
Note 3 - Loans Receivable and53
Note 3 - Loans Receivable and Allowance for Loan Losses - Components of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Loans | $ 753,640 | $ 693,710 | |
Allowance for loan losses | (9,565) | (8,713) | $ (8,069) |
Net unearned fees | (548) | (560) | |
Net Loans | 743,527 | 684,437 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | |||
Loans | 93,697 | 100,154 | |
Allowance for loan losses | (844) | (990) | (1,044) |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | |||
Loans | 111,914 | 104,231 | |
Allowance for loan losses | (1,276) | (1,283) | (1,454) |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | |||
Loans | 460,685 | 422,665 | |
Allowance for loan losses | (6,315) | (5,599) | (4,624) |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | |||
Loans | 59,065 | 39,524 | |
Allowance for loan losses | (463) | (304) | (223) |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | |||
Loans | 28,279 | 27,136 | |
Allowance for loan losses | $ (244) | $ (242) | $ (565) |
Note 3 - Loans Receivable and54
Note 3 - Loans Receivable and Allowance for Loan Losses - Past Due Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Past due | $ 1,472 | $ 3,271 |
Current | 752,168 | 690,439 |
Loans | 753,640 | 693,710 |
Loans receivable >90 days and still accruing | 0 | 0 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 154 | 219 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 150 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 1,318 | 2,902 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | ||
Past due | 119 | 138 |
Current | 93,578 | 100,016 |
Loans | 93,697 | 100,154 |
Loans receivable >90 days and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 107 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 0 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 119 | 31 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | ||
Past due | 150 | |
Current | 111,914 | 104,081 |
Loans | 111,914 | 104,231 |
Loans receivable >90 days and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 150 | |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 0 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | ||
Past due | 820 | 2,187 |
Current | 459,865 | 420,478 |
Loans | 460,685 | 422,665 |
Loans receivable >90 days and still accruing | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 154 | 112 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 0 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 666 | 2,075 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||
Past due | 533 | 796 |
Current | 58,532 | 38,728 |
Loans | 59,065 | 39,524 |
Loans receivable >90 days and still accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 0 | |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 0 | 0 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | 533 | 796 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | ||
Past due | ||
Current | 28,279 | 27,136 |
Loans | 28,279 | 27,136 |
Loans receivable >90 days and still accruing | 0 | 0 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Past due | 0 | 0 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Past due | 0 | |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Past due | $ 0 |
Note 3 - Loans Receivable and55
Note 3 - Loans Receivable and Allowance for Loan Losses - Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Non-accrual loans | $ 1,548 | $ 3,178 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | ||
Non-accrual loans | 119 | 138 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | ||
Non-accrual loans | 0 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | ||
Non-accrual loans | 666 | 2,244 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||
Non-accrual loans | 763 | 796 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | ||
Non-accrual loans | $ 0 |
Note 3 - Loans Receivable and56
Note 3 - Loans Receivable and Allowance for Loan Losses - Impaired Financing Receivables (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related allowance | $ 2 | $ 49 |
Recorded investment, net of charge-offs | 9,623 | 12,466 |
Unpaid principal balance | 9,715 | 12,741 |
Average recorded investment | 9,937 | 13,040 |
Interest income recognized | 383 | 442 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | ||
Recorded investment, net of charge-offs, with no related allowance recorded | 3,402 | 652 |
Unpaid principal balance, with no related allowance recorded | 3,415 | 652 |
Average recorded investment, with no related allowance recorded | 3,575 | 645 |
Interest income recognized, with no related allowance recorded | 174 | 18 |
Recorded investment, net of charge-offs, with an allowance recorded | 498 | 3,305 |
Unpaid principal balance, with an allowance recorded | 498 | 3,305 |
Related allowance | 2 | 49 |
Average recorded investment, with an allowance recorded | 507 | 3,278 |
Interest income recognized, with an allowance recorded | 15 | 152 |
Recorded investment, net of charge-offs | 3,900 | 3,957 |
Unpaid principal balance | 3,913 | 3,957 |
Average recorded investment | 4,082 | 3,923 |
Interest income recognized | 189 | 170 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | ||
Recorded investment, net of charge-offs, with no related allowance recorded | 3,036 | 3,855 |
Unpaid principal balance, with no related allowance recorded | 3,036 | 3,855 |
Average recorded investment, with no related allowance recorded | 3,073 | 4,381 |
Interest income recognized, with no related allowance recorded | 129 | 186 |
Recorded investment, net of charge-offs, with an allowance recorded | 0 | 0 |
Unpaid principal balance, with an allowance recorded | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 0 |
Interest income recognized, with an allowance recorded | 0 | 0 |
Recorded investment, net of charge-offs | 3,036 | 3,855 |
Unpaid principal balance | 3,036 | 3,855 |
Average recorded investment | 3,073 | 4,381 |
Interest income recognized | 129 | 186 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | ||
Recorded investment, net of charge-offs, with no related allowance recorded | 1,548 | 3,267 |
Unpaid principal balance, with no related allowance recorded | 1,577 | 3,542 |
Average recorded investment, with no related allowance recorded | 1,618 | 3,338 |
Interest income recognized, with no related allowance recorded | 47 | 48 |
Recorded investment, net of charge-offs, with an allowance recorded | 0 | 0 |
Unpaid principal balance, with an allowance recorded | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 0 |
Interest income recognized, with an allowance recorded | 0 | 0 |
Recorded investment, net of charge-offs | 1,548 | 3,267 |
Unpaid principal balance | 1,577 | 3,542 |
Average recorded investment | 1,618 | 3,338 |
Interest income recognized | 47 | 48 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||
Recorded investment, net of charge-offs, with no related allowance recorded | 1,139 | 1,178 |
Unpaid principal balance, with no related allowance recorded | 1,189 | 1,178 |
Average recorded investment, with no related allowance recorded | 1,164 | 1,183 |
Interest income recognized, with no related allowance recorded | 18 | 29 |
Recorded investment, net of charge-offs, with an allowance recorded | 0 | 0 |
Unpaid principal balance, with an allowance recorded | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 0 |
Interest income recognized, with an allowance recorded | 0 | 0 |
Recorded investment, net of charge-offs | 1,139 | 1,178 |
Unpaid principal balance | 1,189 | 1,178 |
Average recorded investment | 1,164 | 1,183 |
Interest income recognized | 18 | 29 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | ||
Recorded investment, net of charge-offs, with no related allowance recorded | 0 | 209 |
Unpaid principal balance, with no related allowance recorded | 0 | 209 |
Average recorded investment, with no related allowance recorded | 0 | 215 |
Interest income recognized, with no related allowance recorded | 0 | 9 |
Recorded investment, net of charge-offs, with an allowance recorded | 0 | 0 |
Unpaid principal balance, with an allowance recorded | 0 | 0 |
Related allowance | 0 | 0 |
Average recorded investment, with an allowance recorded | 0 | 0 |
Interest income recognized, with an allowance recorded | 0 | 0 |
Recorded investment, net of charge-offs | 0 | 209 |
Unpaid principal balance | 0 | 209 |
Average recorded investment | 0 | 215 |
Interest income recognized | $ 0 | $ 9 |
Note 3 - Loans Receivable and57
Note 3 - Loans Receivable and Allowance for Loan Losses - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Loans | $ 753,640 | $ 693,710 |
Pass [Member] | ||
Loans | 736,402 | 676,808 |
Special Mention [Member] | ||
Loans | 10,117 | 6,694 |
Substandard [Member] | ||
Loans | 7,121 | 10,208 |
Doubtful [Member] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | ||
Loans | 93,697 | 100,154 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Pass [Member] | ||
Loans | 88,776 | 96,038 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Special Mention [Member] | ||
Loans | 1,277 | 159 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Substandard [Member] | ||
Loans | 3,644 | 3,957 |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | ||
Loans | 111,914 | 104,231 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Pass [Member] | ||
Loans | 108,728 | 100,376 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Special Mention [Member] | ||
Loans | 1,894 | 1,830 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Substandard [Member] | ||
Loans | 1,292 | 2,025 |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | ||
Loans | 460,685 | 422,665 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Pass [Member] | ||
Loans | 452,740 | 414,872 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Special Mention [Member] | ||
Loans | 6,716 | 4,667 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Substandard [Member] | ||
Loans | 1,229 | 3,126 |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||
Loans | 59,065 | 39,524 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Pass [Member] | ||
Loans | 58,302 | 38,631 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Special Mention [Member] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Substandard [Member] | ||
Loans | 763 | 893 |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | Doubtful [Member] | ||
Loans | 0 | 0 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | ||
Loans | 28,279 | 27,136 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Pass [Member] | ||
Loans | 27,856 | 26,891 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Special Mention [Member] | ||
Loans | 230 | 38 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Substandard [Member] | ||
Loans | 193 | 207 |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | Doubtful [Member] | ||
Loans | $ 0 | $ 0 |
Note 3 - Loans Receivable and58
Note 3 - Loans Receivable and Allowance for Loan Losses - Change in Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Beginning balance | $ 8,713 | $ 8,069 | $ 8,713 | $ 8,069 | ||||||
Charge-offs | (449) | (82) | ||||||||
Recoveries | 786 | 236 | ||||||||
Provision for Loan Losses | $ (345) | $ 470 | $ 390 | $ 90 | $ 120 | $ 190 | 90 | 515 | 490 | |
Ending balance | 9,565 | 8,713 | 9,565 | 8,713 | ||||||
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | ||||||||||
Beginning balance | 990 | 1,044 | 990 | 1,044 | ||||||
Charge-offs | 0 | 0 | ||||||||
Recoveries | 12 | 12 | ||||||||
Provision for Loan Losses | (158) | (66) | ||||||||
Ending balance | 844 | 990 | 844 | 990 | ||||||
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | ||||||||||
Beginning balance | 1,283 | 1,454 | 1,283 | 1,454 | ||||||
Charge-offs | 0 | 0 | ||||||||
Recoveries | 12 | 217 | ||||||||
Provision for Loan Losses | (19) | (388) | ||||||||
Ending balance | 1,276 | 1,283 | 1,276 | 1,283 | ||||||
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | ||||||||||
Beginning balance | 5,599 | 4,624 | 5,599 | 4,624 | ||||||
Charge-offs | (444) | 0 | ||||||||
Recoveries | 696 | 2 | ||||||||
Provision for Loan Losses | 464 | 973 | ||||||||
Ending balance | 6,315 | 5,599 | 6,315 | 5,599 | ||||||
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | ||||||||||
Beginning balance | 304 | 223 | 304 | 223 | ||||||
Charge-offs | 0 | 0 | ||||||||
Recoveries | 0 | 0 | ||||||||
Provision for Loan Losses | 159 | 81 | ||||||||
Ending balance | 463 | 304 | 463 | 304 | ||||||
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | ||||||||||
Beginning balance | 242 | 565 | 242 | 565 | ||||||
Charge-offs | (5) | (82) | ||||||||
Recoveries | 66 | 5 | ||||||||
Provision for Loan Losses | (59) | (246) | ||||||||
Ending balance | 244 | 242 | 244 | 242 | ||||||
Unallocated Financing Receivables [Member] | ||||||||||
Beginning balance | $ 295 | $ 159 | 295 | 159 | ||||||
Charge-offs | 0 | 0 | ||||||||
Recoveries | 0 | 0 | ||||||||
Provision for Loan Losses | 128 | 136 | ||||||||
Ending balance | $ 423 | $ 295 | $ 423 | $ 295 |
Note 3 - Loans Receivable and59
Note 3 - Loans Receivable and Allowance for Loan Losses - Allowance for Credit Losses on Financing Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Allowance for loan losses | $ 9,565 | $ 8,713 | $ 8,069 |
Allowance for loan losses individually evaluated for impairment | 2 | 49 | |
Allowance for loan losses collectively evaluated for impairment | 9,563 | 8,664 | |
Loans | 753,640 | 693,710 | |
Loans individually evaluated for impairment | 9,623 | 12,466 | |
Loans collectively evaluated for impairment | 744,017 | 681,244 | |
Commercial Portfolio Segment [Member] | Commercial and Industrial Loans [Member] | |||
Allowance for loan losses | 844 | 990 | 1,044 |
Allowance for loan losses individually evaluated for impairment | 2 | 49 | |
Allowance for loan losses collectively evaluated for impairment | 842 | 941 | |
Loans | 93,697 | 100,154 | |
Loans individually evaluated for impairment | 3,900 | 3,957 | |
Loans collectively evaluated for impairment | 89,797 | 96,197 | |
Commercial Portfolio Segment [Member] | Construction Real Estate Loans [Member] | |||
Allowance for loan losses | 1,276 | 1,283 | 1,454 |
Allowance for loan losses individually evaluated for impairment | 0 | ||
Allowance for loan losses collectively evaluated for impairment | 1,276 | 1,283 | |
Loans | 111,914 | 104,231 | |
Loans individually evaluated for impairment | 3,036 | 3,855 | |
Loans collectively evaluated for impairment | 108,878 | 100,376 | |
Commercial Portfolio Segment [Member] | Commercial Real Estate Loans [Member] | |||
Allowance for loan losses | 6,315 | 5,599 | 4,624 |
Allowance for loan losses individually evaluated for impairment | 0 | ||
Allowance for loan losses collectively evaluated for impairment | 6,315 | 5,599 | |
Loans | 460,685 | 422,665 | |
Loans individually evaluated for impairment | 1,548 | 3,267 | |
Loans collectively evaluated for impairment | 459,137 | 419,398 | |
Consumer Portfolio Segment [Member] | Residential Real Estate Loans [Member] | |||
Allowance for loan losses | 463 | 304 | 223 |
Allowance for loan losses individually evaluated for impairment | 0 | 0 | |
Allowance for loan losses collectively evaluated for impairment | 463 | 304 | |
Loans | 59,065 | 39,524 | |
Loans individually evaluated for impairment | 1,139 | 1,178 | |
Loans collectively evaluated for impairment | 57,926 | 38,346 | |
Consumer Portfolio Segment [Member] | Consumer Loans [Member] | |||
Allowance for loan losses | 244 | 242 | 565 |
Allowance for loan losses individually evaluated for impairment | 0 | 0 | |
Allowance for loan losses collectively evaluated for impairment | 244 | 242 | |
Loans | 28,279 | 27,136 | |
Loans individually evaluated for impairment | 209 | ||
Loans collectively evaluated for impairment | 28,279 | 26,927 | |
Unallocated Financing Receivables [Member] | |||
Allowance for loan losses | 423 | 295 | $ 159 |
Allowance for loan losses individually evaluated for impairment | 0 | 0 | |
Allowance for loan losses collectively evaluated for impairment | 423 | 295 | |
Loans | 0 | 0 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | $ 0 | $ 0 |
Note 3 - Loans Receivable and60
Note 3 - Loans Receivable and Allowance for Loan Losses - Troubled Debt Restructurings on Financing Receivables (Details) - Commercial Portfolio Segment [Member] - Commercial and Industrial Loans [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Number of contracts | 1 | 6 |
Pre-modification recorded investment | $ 257 | $ 3,227 |
Post-modification recorded investment | $ 257 | $ 3,227 |
Note 4 - Premises and Equipme61
Note 4 - Premises and Equipment - Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Premises and equipment, gross | $ 15,981 | $ 15,628 |
Less accumulated depreciation and amortization | (11,319) | (10,545) |
Total premises and equipment, net | $ 4,662 | 5,083 |
Land [Member] | ||
Estimated useful life | Indefinite | |
Premises and equipment, gross | $ 1,250 | 1,250 |
Building [Member] | ||
Premises and equipment, gross | $ 1,413 | 1,419 |
Estimated useful lives (Year) | 30 years | |
Leasehold Improvements [Member] | ||
Premises and equipment, gross | $ 4,089 | 4,005 |
Leasehold Improvements [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 5 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 15 years | |
Furniture and Fixtures [Member] | ||
Premises and equipment, gross | $ 9,229 | $ 8,954 |
Furniture and Fixtures [Member] | Minimum [Member] | ||
Estimated useful lives (Year) | 2 years | |
Furniture and Fixtures [Member] | Maximum [Member] | ||
Estimated useful lives (Year) | 7 years |
Note 5 - Goodwill and Other I62
Note 5 - Goodwill and Other Intangible Assets (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Goodwill | $ 18,109,000 | $ 18,109,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 2,106,000 | 2,097,000 |
Amortization of Intangible Assets | 9,000 | 48,000 |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | 2,106,000 | 2,097,000 |
Finite-Lived Intangible Assets, Net | $ 0 | $ 9,000 |
Note 6 - Deposits (Details Text
Note 6 - Deposits (Details Textual) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Certificates of Deposit, at Carrying Value | $ 47,648,000 | $ 33,261,000 |
Deposit Liabilities Reclassified as Loans Receivable | 993,000 | 143,000 |
Certificates of Deposit [Member] | ||
Interest-bearing Domestic Deposit, Brokered | $ 35,622,000 | $ 37,859,000 |
Note 6 - Deposits - Deposits (D
Note 6 - Deposits - Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Non-interest bearing | $ 160,104 | $ 144,627 |
Demand, interest bearing, money market and savings | 476,704 | 445,788 |
Time, $250,000 and over | 8,893 | 7,693 |
Time, other | 130,866 | 110,328 |
Total Deposits | $ 776,567 | $ 708,436 |
Note 6 - Deposits - Maturities
Note 6 - Deposits - Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 38,415 |
2,018 | 37,902 |
2,019 | 33,694 |
2,020 | 25,402 |
2,021 | 4,346 |
Total time deposits | $ 139,759 |
Note 7 - Securities Sold Unde66
Note 7 - Securities Sold Under Agreements to Repurchase - Repurchase Agreements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Securities sold under agreements to repurchase | $ 19,915 | $ 19,545 |
Securities Sold under Agreements to Repurchase [Member] | ||
Securities sold under agreements to repurchase | 19,915 | 19,545 |
Average during the year | 19,309 | 22,071 |
Maximum month-end balance | $ 22,105 | $ 27,916 |
Weighted average rate during the year | 0.32% | 0.31% |
Weighted average rate at December 31 | 0.24% | 0.24% |
Note 7 - Securities Sold Unde67
Note 7 - Securities Sold Under Agreements to Repurchase - Maturities of Repurchase Agreements (Details) - Securities Pledged as Collateral [Member] - Securities Sold under Agreements to Repurchase [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Securities sold under repurchase agreements | $ 31,340 |
Gross amount of recognized liabilities for repurchase agreements and securities lending | 19,915 |
Excess of collateral pledged over recognized liability | 11,425 |
Maturity Overnight and Continuous [Member] | |
Securities sold under repurchase agreements | 31,340 |
Maturity Less than 30 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Maturity 30 to 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Maturity Greater than 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
US Government Agencies Debt Securities [Member] | |
Securities sold under repurchase agreements | 8,371 |
US Government Agencies Debt Securities [Member] | Maturity Overnight and Continuous [Member] | |
Securities sold under repurchase agreements | 8,371 |
US Government Agencies Debt Securities [Member] | Maturity Less than 30 Days [Member] | |
Securities sold under repurchase agreements | 0 |
US Government Agencies Debt Securities [Member] | Maturity 30 to 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
US Government Agencies Debt Securities [Member] | Maturity Greater than 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | |
Securities sold under repurchase agreements | 9,074 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity Overnight and Continuous [Member] | |
Securities sold under repurchase agreements | 9,074 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity Less than 30 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity 30 to 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Maturity Greater than 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Residential Mortgage Backed Securities [Member] | |
Securities sold under repurchase agreements | 13,895 |
Residential Mortgage Backed Securities [Member] | Maturity Overnight and Continuous [Member] | |
Securities sold under repurchase agreements | 13,895 |
Residential Mortgage Backed Securities [Member] | Maturity Less than 30 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Residential Mortgage Backed Securities [Member] | Maturity 30 to 90 Days [Member] | |
Securities sold under repurchase agreements | 0 |
Residential Mortgage Backed Securities [Member] | Maturity Greater than 90 Days [Member] | |
Securities sold under repurchase agreements | $ 0 |
Note 8 - FHLB and Other Borro68
Note 8 - FHLB and Other Borrowings (Details Textual) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Advances from Federal Home Loan Banks | $ 25,300 | $ 26,500 |
Unsecured Debt [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 36,000 | |
Federal Fund Borrowing Line [Member] | Atlantic Community Bankers Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 10,000 | |
Federal Home Loan Bank [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 48,600 | |
Pledged Assets Separately Reported, Loans Pledged for Federal Home Loan Bank, at Fair Value | 110,100 | |
Advances from Federal Home Loan Banks | $ 25,300 | $ 26,500 |
Federal Home Loan Bank, Advances, Weighted Average Interest Rate | 2.35% | 2.28% |
Note 8 - FHLB and Other Borro69
Note 8 - FHLB and Other Borrowings - Maturities of Long-term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fixed Rate Note | $ 25,300 | $ 26,500 |
Fixed Rate Note 1 [Member] | ||
Fixed Rate Note | $ 7,500 | 7,500 |
Fixed Rate Note, Rate | 3.97% | |
Fixed Rate Note, Original Term (Year) | 10 years | |
Fixed Rate Note 2 [Member] | ||
Fixed Rate Note | $ 0 | 1,500 |
Fixed Rate Note, Rate | 2.41% | |
Fixed Rate Note, Original Term (Year) | 6 years | |
Fixed Rate Note 3 [Member] | ||
Fixed Rate Note | $ 1,500 | 1,500 |
Fixed Rate Note, Rate | 2.71% | |
Fixed Rate Note, Original Term (Year) | 7 years | |
Fixed Rate Note 4 [Member] | ||
Fixed Rate Note | $ 2,000 | 2,000 |
Fixed Rate Note, Rate | 1.28% | |
Fixed Rate Note, Original Term (Year) | 4 years | |
Fixed Rate Note 5 [Member] | ||
Fixed Rate Note | $ 2,000 | 2,000 |
Fixed Rate Note, Rate | 1.65% | |
Fixed Rate Note, Original Term (Year) | 5 years | |
Fixed Rate Note 6 [Member] | ||
Fixed Rate Note | 2,700 | |
Fixed Rate Note, Rate | 0.60% | |
Fixed Rate Note, Original Term (Year) | 1 year | |
Fixed Rate Note 7 [Member] | ||
Fixed Rate Note | $ 1,000 | 1,000 |
Fixed Rate Note, Rate | 0.97% | |
Fixed Rate Note, Original Term (Year) | 2 years | |
Fixed Rate Note 8 [Member] | ||
Fixed Rate Note | $ 1,300 | 1,300 |
Fixed Rate Note, Rate | 1.31% | |
Fixed Rate Note, Original Term (Year) | 3 years | |
Fixed Rate Note 9 [Member] | ||
Fixed Rate Note | $ 1,800 | 1,800 |
Fixed Rate Note, Rate | 1.59% | |
Fixed Rate Note, Original Term (Year) | 4 years | |
Fixed Rate Note 10 [Member] | ||
Fixed Rate Note | $ 2,700 | 2,700 |
Fixed Rate Note, Rate | 1.81% | |
Fixed Rate Note, Original Term (Year) | 5 years | |
Fixed Rate Note 11 [Member] | ||
Fixed Rate Note | $ 2,500 | 2,500 |
Fixed Rate Note, Rate | 2.03% | |
Fixed Rate Note, Original Term (Year) | 6 years | |
Fixed Rate Note 12 [Member] | ||
Fixed Rate Note | $ 1,000 | 0 |
Fixed Rate Note, Rate | 1.09% | |
Fixed Rate Note, Original Term (Year) | 3 years | |
Fixed Rate Note 13 [Member] | ||
Fixed Rate Note | $ 1,000 | |
Fixed Rate Note, Rate | 1.42% | |
Fixed Rate Note, Original Term (Year) | 5 years | |
Fixed Rate Note 14 [Member] | ||
Fixed Rate Note | $ 1,000 | |
Fixed Rate Note, Rate | 1.70% | |
Fixed Rate Note, Original Term (Year) | 7 years |
Note 9 - Subordinated Debentu70
Note 9 - Subordinated Debentures (Details Textual) - USD ($) | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Proceeds from Issuance of Subordinated Long-term Debt | $ 10,000,000 | $ 9,824,000 | |
Subordinated Borrowing, Interest Rate | 6.25% | ||
Subordinated Debt | $ 9,824,000 | 9,855,000 | $ 9,824,000 |
Subordinated Debt [Member] | |||
Unamortized Debt Issuance Expense | $ 145,000 | ||
Debt Instrument, Interest Rate, Effective Percentage | 6.67% | ||
Subordinated Debt [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 4.64% |
Note 10 - Employee Benefit Pl71
Note 10 - Employee Benefit Plans (Details Textual) - USD ($) | Sep. 01, 2016 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100.00% | ||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 288,000 | $ 264,000 | |
President and Chief Executive officer [Member] | Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Deferred Receipt of Base Salary, Maximum | $ 100,000 | ||
Deferred Compensation Arrangement with Individual, Employer Contribution | $ 70,000 | ||
Salaries and Employee Benefits [Member] | |||
Defined Contribution Plan, Cost Recognized | 204,000 | 261,000 | |
Salaries and Employee Benefits [Member] | President and Chief Executive officer [Member] | Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Compensation Expense | 83,000 | ||
Other Liabilities [Member] | |||
Deferred Compensation Liability, Current and Noncurrent | 1,600,000 | $ 1,400,000 | |
Other Liabilities [Member] | President and Chief Executive officer [Member] | Deferred Compensation, Excluding Share-based Payments and Retirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Recorded Liability | $ 83,000 |
Note 11 - Income Taxes (Details
Note 11 - Income Taxes (Details Textual) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 34.00% | 34.00% |
Note 11 - Income Taxes - Compon
Note 11 - Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current | $ 4,791 | $ 4,069 | ||||||||
Deferred income taxes | (463) | (484) | ||||||||
Income tax expense | $ 1,459 | $ 999 | $ 939 | $ 931 | $ 921 | $ 961 | $ 849 | $ 854 | $ 4,328 | $ 3,585 |
Note 11 - Income Taxes - Reconc
Note 11 - Income Taxes - Reconciliation of Statutory Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Federal income tax expense at statutory rate, amount | $ 4,406 | $ 3,376 | ||||||||
Federal income tax expense at statutory rate, percent | 34.00% | 34.00% | ||||||||
Tax exempt interest, amount | $ (334) | $ (239) | ||||||||
Tax exempt interest, percent | (2.60%) | (2.40%) | ||||||||
Bank owned life insurance income, amount | $ (455) | $ (151) | ||||||||
Bank-owned life insurance income, percent | (3.50%) | (1.50%) | ||||||||
State income taxes, net of federal income tax benefit, amount | $ 712 | $ 557 | ||||||||
State income taxes, net of federal income tax benefit, percent | 5.50% | 5.60% | ||||||||
Other, net, amount | $ (1) | $ 42 | ||||||||
Other, net, percent | 0.40% | |||||||||
Income tax expense | $ 1,459 | $ 999 | $ 939 | $ 931 | $ 921 | $ 961 | $ 849 | $ 854 | $ 4,328 | $ 3,585 |
Income tax expense, percent | 33.40% | 36.10% |
Note 11 - Income Taxes - Comp75
Note 11 - Income Taxes - Components of Net Deferred Tax Asset Included in Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Allowance for loan losses | $ 3,841 | $ 3,501 |
Depreciation and amortization | 507 | 535 |
Deferred compensation | 1,291 | 1,130 |
OREO write-downs | 33 | 7 |
Unrealized loss on securities available for sale | 250 | 256 |
Other | 31 | 10 |
Total deferred tax assets | 5,953 | 5,439 |
Deferred tax liabilities: | ||
Purchase accounting adjustments | (4) | |
Other | (483) | (422) |
Total deferred tax liabilities | (483) | (426) |
Net Deferred Tax Asset | $ 5,470 | $ 5,013 |
Note 12 - Earnings Per Common76
Note 12 - Earnings Per Common Share (Details Textual) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Note 12 - Earnings Per Common77
Note 12 - Earnings Per Common Share - Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net income | $ 2,567 | $ 2,644 | $ 1,727 | $ 1,693 | $ 1,751 | $ 1,692 | $ 1,461 | $ 1,443 | $ 8,631 | $ 6,347 |
Preferred stock dividend | 12 | 15 | 15 | 15 | (57) | |||||
Net income available to common shareholders | $ 1,739 | $ 1,677 | $ 1,446 | $ 1,428 | $ 8,631 | $ 6,290 | ||||
Weighted average common shares outstanding (in shares) | 8,321 | 8,304 | ||||||||
Effect of dilutive securities, stock options and restricted stock (in shares) | 209 | 203 | ||||||||
Weighted average common shares outstanding used to calculate diluted earnings per share (in shares) | 8,530 | 8,507 | ||||||||
Basic earnings per common share (in dollars per share) | $ 0.31 | $ 0.32 | $ 0.21 | $ 0.20 | $ 0.21 | $ 0.20 | $ 0.17 | $ 0.17 | $ 1.04 | $ 0.76 |
Diluted earnings per common share (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.17 | $ 0.17 | $ 1.01 | $ 0.74 |
Note 13 - Lease Commitments a78
Note 13 - Lease Commitments and Total Rental Expense (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Operating Leases, Rent Expense | $ 1,982,000 | $ 1,965,000 |
Note 13 - Lease Commitments a79
Note 13 - Lease Commitments and Total Rental Expense - Future Minimum Rental Commitments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 1,564 |
2,018 | 1,474 |
2,019 | 1,395 |
2,020 | 1,169 |
2,021 | 931 |
Thereafter | 2,105 |
Total | $ 8,638 |
Note 14 - Stock-based Compens80
Note 14 - Stock-based Compensation (Details Textual) - USD ($) | Feb. 28, 2017 | Jan. 19, 2017 | Oct. 11, 2016 | Dec. 15, 2015 | May 11, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 182 days | 7 years 182 days | 7 years 182 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,250 | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 11.21 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 190,800 | $ 137,000 | |||||
Employee Service Share-based Compensation, Cash Received from Exercise of Stock Options | 104,100 | 113,000 | |||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 25,000 | 7,000 | |||||
Stock Issued During Period, Shares, Issued for Services | 1,050 | ||||||
Stock Issued During Period, Value, Issued for Services | $ 10,390 | ||||||
Employee Benefits and Share-based Compensation | 0 | 0 | |||||
Employee Stock Option [Member] | |||||||
Allocated Share-based Compensation Expense | 113,000 | 98,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ 195,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 219 days | ||||||
Restricted Stock [Member] | |||||||
Allocated Share-based Compensation Expense | $ 118,000 | $ 88,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 146 days | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 237,000 | ||||||
Officer [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 5,250 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Rights, Percentage | 20.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period | 5 years | ||||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 11.21 | ||||||
Subsequent Event [Member] | |||||||
Common Stock Dividends, Percentage | 5.00% | ||||||
Two River Bancorp 2007 Equity Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 173,011 | ||||||
Two River Bancorp 2007 Equity Incentive Plan [Member] | Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 10 years | ||||||
Two River Bancorp 2007 Equity Incentive Plan [Member] | Subsequent Event [Member] | |||||||
Common Stock Dividends, Percentage | 5.00% |
Note 14 - Stock-based Compens81
Note 14 - Stock-based Compensation Plans - Outstanding Stock Options (Details) | 12 Months Ended |
Dec. 31, 2016USD ($)$ / sharesshares | |
Options outstanding, Number of shares (in shares) | shares | 459,959 |
Options outstanding, Weighted average price (in dollars per share) | $ 4.91 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 5,250 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 11.21 |
Options exercised, Number of shares (in shares) | shares | (28,903) |
Options exercised, Weighted average price (in dollars per share) | $ 3.60 |
Options forfeited, Number of shares (in shares) | shares | (3,855) |
Options forfeited, Weighted average price (in dollars per share) | $ 7.99 |
Options outstanding, Number of shares (in shares) | shares | 432,451 |
Options outstanding, Weighted average price (in dollars per share) | $ 5.05 |
Options outstanding, Weighted average remaining contractual life (Year) | 3 years 310 days |
Options outstanding, Aggregate intrinsic value | $ | $ 3,969,726 |
Options exercisable, Number of shares (in shares) | shares | 357,476 |
Options exercisable, Weighted average price (in dollars per share) | $ 4.37 |
Options exercisable, Weighted average remaining contractual life (Year) | 3 years 321 days |
Options exercisable, Aggregate intrinsic value | $ | $ 3,520,288 |
Minimum [Member] | |
Options price range at December 31, 2016 (in dollars per share) | $ 2.87 |
Maximum [Member] | |
Options price range at December 31, 2016 (in dollars per share) | $ 11.21 |
Note 14 - Stock-Based Compens82
Note 14 - Stock-Based Compensation - Stock Options Outstanding (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Number of options outstanding (in shares) | 432,451 | |
Weighted average exercise price of options outstanding (in dollars per share) | $ 5.05 | $ 4.91 |
Range 1 [Member] | ||
Lower exercise price range (in dollars per share) | 2.87 | |
Upper exercise price range (in dollars per share) | $ 3.65 | |
Number of options outstanding (in shares) | 193,774 | |
Weighted average remaining contractual life (Year) | 2 years 109 days | |
Weighted average exercise price of options outstanding (in dollars per share) | $ 3.23 | |
Range 2 [Member] | ||
Lower exercise price range (in dollars per share) | 4.94 | |
Upper exercise price range (in dollars per share) | $ 5.23 | |
Number of options outstanding (in shares) | 128,689 | |
Weighted average remaining contractual life (Year) | 5 years 73 days | |
Weighted average exercise price of options outstanding (in dollars per share) | $ 5.02 | |
Range 3 [Member] | ||
Lower exercise price range (in dollars per share) | 7.06 | |
Upper exercise price range (in dollars per share) | $ 8 | |
Number of options outstanding (in shares) | 69,458 | |
Weighted average remaining contractual life (Year) | 7 years 146 days | |
Weighted average exercise price of options outstanding (in dollars per share) | $ 7.53 | |
Range 4 [Member] | ||
Lower exercise price range (in dollars per share) | 8.59 | |
Upper exercise price range (in dollars per share) | $ 9.20 | |
Number of options outstanding (in shares) | 35,280 | |
Weighted average remaining contractual life (Year) | 8 years 36 days | |
Weighted average exercise price of options outstanding (in dollars per share) | $ 9.15 | |
Range 5 [Member] | ||
Lower exercise price range (in dollars per share) | 11.21 | |
Upper exercise price range (in dollars per share) | $ 11.21 | |
Number of options outstanding (in shares) | 5,250 | |
Weighted average remaining contractual life (Year) | 9 years 292 days | |
Weighted average exercise price of options outstanding (in dollars per share) | $ 11.21 |
Note 14 - Stock-Based Compens83
Note 14 - Stock-Based Compensation - Weighted Average Fair Value Assumptions (Details) - $ / shares | Oct. 11, 2016 | Dec. 15, 2015 | May 11, 2015 |
Dividend yield | 1.33% | 1.45% | 1.33% |
Expected volatility | 27.67% | 27.22% | 27.67% |
Risk-free interest rate | 1.54% | 2.06% | 2.00% |
Expected life (in years) (Year) | 7 years 182 days | 7 years 182 days | 7 years 182 days |
Weighted average fair value of options granted (in dollars per share) | $ 3.05 | $ 2.66 | $ 2.55 |
Forfeiture rate | 5.00% |
Note 14 - Stock-based Compens84
Note 14 - Stock-based Compensation Plans - Restricted Stock (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Unvested, Number of shares (in shares) | shares | 24,079 |
Unvested, Weighted average price (in dollars per share) | $ / shares | $ 7.96 |
Restricted stock earned, Number of shares (in shares) | shares | (6,797) |
Restricted stock earned, Weighted average price (in dollars per share) | $ / shares | $ (8.22) |
Granted, Number of shares (in shares) | shares | 16,800 |
Granted, Weighted average price (in dollars per share) | $ / shares | $ 9.90 |
Unvested, Number of shares (in shares) | shares | 34,082 |
Unvested, Weighted average price (in dollars per share) | $ / shares | $ 8.90 |
Note 15 - Transactions with E85
Note 15 - Transactions with Executive Officers, Directors and Principal Shareholders (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | |
Loans and Leases Receivable, Extensions of Credit Related Parties | $ 14,400,000 | $ 15,800,000 |
Loans and Leases Receivable, Related Parties | 8,800,000 | 10,200,000 |
Loans and Leases Receivable, Related Parties, Additions | 721,000 | |
Loans and Leases Receivable, Related Parties, Proceeds | 2,100,000 | |
Related Party Deposit Liabilities | 14,000,000 | 14,800,000 |
Securities Sold Under Agreements to Repurchase Related Parties | $ 3,100,000 | 1,700,000 |
Services [Member] | Director [Member] | ||
Related Party Transaction, Amounts of Transaction | $ 1,820 |
Note 16 - Financial Instrumen86
Note 16 - Financial Instruments with Off-balance Sheet Risk (Details Textual) - Commitments to Extend Credit [Member] - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value Disclosure, Off-balance Sheet Risks, Amount, Liability | $ 203,728,000 | $ 166,262,000 |
Letters of Credit Outstanding, Amount | $ 3,973,000 | $ 4,315,000 |
Note 17 - Regulatory Matters (D
Note 17 - Regulatory Matters (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2016 | Dec. 31, 2015 | |
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |||||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 6.00% | 6.00% | ||||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.625% | 8.00% | |||
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | |||||
Capital Conservation Buffer | 2.50% | |||||
Capital Conservation Buffer, Phase In Period | 4 years | |||||
Capital Conservation Buffer Phase In Amount | 0.625% | |||||
Common Equity Tier 1 Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | 5.125% | 4.50% | |||
Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 6.625% | 6.00% | |||
Scenario, Forecast [Member] | ||||||
Capital Conservation Buffer Phase In Amount | 2.50% | 1.875% | 1.25% | |||
Minimum [Member] | ||||||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 4.00% | |||||
Parent Company [Member] | ||||||
Statutory Accounting Practices, Statutory Amount Available for Dividend Payments without Regulatory Approval | $ 84.5 | |||||
Common Equity Tier One Capital Required for Capital Adequacy to Risk Weighted Assets | 6.50% | |||||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% |
Note 17 - Regulatory Matters -
Note 17 - Regulatory Matters - Capital Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jan. 01, 2016 | Dec. 31, 2015 |
Common Equity Tier 1 Capital | $ 82,994 | $ 75,273 | |
Common Equity Tier 1 Capital, ratio | 10.33% | 10.13% | |
Common Equity Tier 1 Capital, minimum required for capital adequacy purposes | $ 36,154 | $ 33,438 | |
Common Equity Tier 1 Capital, minimum required for capital adequacy purposes, ratio | 4.50% | 5.125% | 4.50% |
Common Equity Tier 1 Capital, to be well capitalized | |||
Common Equity Tier 1 Capital, to be well capitalized, ratio | |||
Total Capital to risk-weighted assets | $ 102,509 | $ 93,986 | |
Total Capital to risk-weighted assets, ratio | 12.76% | 12.65% | |
Total Capital to risk-weighted assets, minimum required for capital adequacy purposes | $ 64,269 | $ 59,438 | |
Total Capital to risk-weighted assets, minimum required for capital adequacy purposes, ratio | 8.00% | 8.625% | 8.00% |
Total Capital to risk-weighted assets, to be well capitalized | |||
Total Capital to risk-weighted assets, to be well capitalized, ratio | 10.00% | ||
Tier 1 Capital, to risk-weighted assets | $ 82,994 | $ 75,273 | |
Tier 1 Capital to risk-weighted assets, ratio | 10.33% | 10.13% | |
Tier 1 Capital to risk-weighted assets, minimum required for capital adequacy purposes | $ 48,206 | $ 44,584 | |
Tier 1 Capital to risk-weighted assets, minimum required for capital adequacy purposes, ratio | 6.00% | 6.625% | 6.00% |
Tier 1 Capital to risk-weighted assets, to be well capitalized | $ 48,206 | $ 44,584 | |
Tier 1 Capital to risk-weighted assets, to be well capitalized, ratio | 6.00% | 6.00% | |
Tier 1 Capital, to average assets | $ 82,994 | $ 75,273 | |
Tier 1 Capital, to average assets, to average assets | 8.94% | 8.97% | |
Tier 1 Capital to average assets, minimum required for captial adequacy purposes | $ 37,134 | $ 33,567 | |
Tier 1 Capital to average assets, minimum required for captial adequacy purposes, ratio | 4.00% | 4.00% | |
Tier 1 Capital to average assets, to be well capitalized | |||
Tier 1 Capital to average assets, to be well capitalized, ratio | |||
Two River Community Bank [Member] | |||
Common Equity Tier 1 Capital | $ 92,270 | $ 84,659 | |
Common Equity Tier 1 Capital, ratio | 11.49% | 11.39% | |
Common Equity Tier 1 Capital, minimum required for capital adequacy purposes | $ 36,137 | $ 33,447 | |
Common Equity Tier 1 Capital, minimum required for capital adequacy purposes, ratio | 4.50% | 4.50% | |
Common Equity Tier 1 Capital, to be well capitalized | $ 52,198 | $ 48,313 | |
Common Equity Tier 1 Capital, to be well capitalized, ratio | 6.50% | 6.50% | |
Total Capital to risk-weighted assets | $ 101,835 | $ 93,372 | |
Total Capital to risk-weighted assets, ratio | 12.68% | 12.56% | |
Total Capital to risk-weighted assets, minimum required for capital adequacy purposes | $ 64,249 | $ 59,473 | |
Total Capital to risk-weighted assets, minimum required for capital adequacy purposes, ratio | 8.00% | 8.00% | |
Total Capital to risk-weighted assets, to be well capitalized | $ 80,312 | $ 74,341 | |
Total Capital to risk-weighted assets, to be well capitalized, ratio | 10.00% | 10.00% | |
Tier 1 Capital, to risk-weighted assets | $ 92,270 | $ 84,659 | |
Tier 1 Capital to risk-weighted assets, ratio | 11.49% | 11.39% | |
Tier 1 Capital to risk-weighted assets, minimum required for capital adequacy purposes | $ 48,183 | $ 44,596 | |
Tier 1 Capital to risk-weighted assets, minimum required for capital adequacy purposes, ratio | 6.00% | 6.00% | |
Tier 1 Capital to risk-weighted assets, to be well capitalized | $ 64,244 | $ 59,462 | |
Tier 1 Capital to risk-weighted assets, to be well capitalized, ratio | 8.00% | 8.00% | |
Tier 1 Capital, to average assets | $ 92,270 | $ 84,659 | |
Tier 1 Capital, to average assets, to average assets | 9.95% | 10.09% | |
Tier 1 Capital to average assets, minimum required for captial adequacy purposes | $ 37,093 | $ 33,562 | |
Tier 1 Capital to average assets, minimum required for captial adequacy purposes, ratio | 4.00% | 4.00% | |
Tier 1 Capital to average assets, to be well capitalized | $ 46,367 | $ 41,952 | |
Tier 1 Capital to average assets, to be well capitalized, ratio | 5.00% | 5.00% |
Note 18 - Fair Value of Finan89
Note 18 - Fair Value of Financial Instruments (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate Acquired Through Foreclosure | $ 259,000 | $ 411,000 |
Mortgage Loans in Process of Foreclosure, Amount | $ 532,000 | $ 542,000 |
Fair Value of Subordinated Debentures Credit Spread on Variable Rate | 4.64% | 4.49% |
Available-for-sale Securities | $ 34,464,000 | $ 33,530,000 |
Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale Securities | 34,464,000 | 33,530,000 |
Fair Value, Inputs, Level 3 [Member] | ||
Marketable Securities | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Available-for-sale Securities | $ 0 | 0 |
Residential Real Estate Loans [Member] | ||
Real Estate Acquired Through Foreclosure | $ 153,000 | |
Impaired Loan [Member] | ||
Liquidation Expense, Percentage | 5.00% | 5.00% |
Impaired Loan [Member] | Weighted Average [Member] | ||
Liquidation Expense, Percentage | 5.00% | 5.00% |
Impaired Loan [Member] | Appraisal Values [Member] | ||
Fair Value Inputs, Discount Rate | 5.00% | 0.00% |
Other Real Estate Owned [Member] | ||
Liquidation Expense, Percentage | 5.95% | |
Other Real Estate Owned [Member] | Weighted Average [Member] | ||
Liquidation Expense, Percentage | 3.90% | |
Other Real Estate Owned [Member] | Minimum [Member] | ||
Liquidation Expense, Percentage | 0.40% | |
Other Real Estate Owned [Member] | Maximum [Member] | ||
Liquidation Expense, Percentage | 6.00% |
Note 18 - Fair Value Measuremen
Note 18 - Fair Value Measurements - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Securities available for sale: | ||
Securities available-for-sale | $ 34,464,000 | $ 33,530,000 |
Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 34,464,000 | 33,530,000 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,397,000 | 2,382,000 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 32,067,000 | 31,148,000 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
US Government Agencies Debt Securities [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 8,413,000 | 1,238,000 |
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 8,413,000 | 1,238,000 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 8,413,000 | 1,238,000 |
US Government Agencies Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 503,000 | 517,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 503,000 | 517,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 503,000 | 517,000 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 11,255,000 | 14,449,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 11,255,000 | 14,449,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 11,255,000 | 14,449,000 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
Residential Mortgage Backed Securities [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 9,537,000 | 12,627,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 9,537,000 | 12,627,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 9,537,000 | 12,627,000 |
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,359,000 | 2,317,000 |
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,359,000 | 2,317,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,359,000 | 2,317,000 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
CRA Mutual Fund [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,397,000 | 2,382,000 |
CRA Mutual Fund [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,397,000 | 2,382,000 |
CRA Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 2,397,000 | 2,382,000 |
CRA Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | 0 | 0 |
CRA Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Securities available for sale: | ||
Securities available-for-sale | $ 0 | $ 0 |
Note 18 - Fair Value Measurem91
Note 18 - Fair Value Measurements - Assets Measured on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Impaired loans, net of allowance recorded | $ 496 | $ 3,256 |
OREO | 259 | 411 |
Impaired loans, net of partial charge-offs | 1,389 | |
Fair Value, Inputs, Level 1 [Member] | ||
Impaired loans, net of allowance recorded | ||
OREO | ||
Impaired loans, net of partial charge-offs | ||
Fair Value, Inputs, Level 2 [Member] | ||
Impaired loans, net of allowance recorded | ||
OREO | ||
Impaired loans, net of partial charge-offs | ||
Fair Value, Inputs, Level 3 [Member] | ||
Impaired loans, net of allowance recorded | 496 | 3,256 |
OREO | $ 259 | 411 |
Impaired loans, net of partial charge-offs | $ 1,389 |
Note 18 - Fair Value Measurem92
Note 18 - Fair Value Measurements - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial assets: | ||
Available-for-sale Securities | $ 34,464 | $ 33,530 |
Securities held to maturity | 57,284 | 43,668 |
Reported Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 42,077 | 46,727 |
Available-for-sale Securities | 34,464 | 33,530 |
Securities held to maturity | 57,843 | 43,167 |
Restricted investments | 4,805 | 3,596 |
Loans held for sale | 4,537 | 3,050 |
Loans receivable, net | 743,527 | 684,437 |
Accrued interest receivable | 2,234 | 1,912 |
Financial liabilities: | ||
Deposits | 776,567 | 708,436 |
Securities sold under agreements to repurchase | 19,915 | 19,545 |
Long-term debt | 25,300 | 26,500 |
Subordinated debt | 9,855 | 9,824 |
Accrued interest payable | 100 | 118 |
Estimate of Fair Value Measurement [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 42,077 | 46,727 |
Available-for-sale Securities | 34,464 | 33,530 |
Securities held to maturity | 57,284 | 43,668 |
Restricted investments | 4,805 | 3,596 |
Loans held for sale | 4,698 | 3,105 |
Loans receivable, net | 740,910 | 676,703 |
Accrued interest receivable | 2,234 | 1,912 |
Financial liabilities: | ||
Deposits | 776,404 | 707,908 |
Securities sold under agreements to repurchase | 19,915 | 19,545 |
Long-term debt | 25,363 | 26,882 |
Subordinated debt | 9,827 | 9,823 |
Accrued interest payable | 100 | 118 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 42,077 | 46,727 |
Available-for-sale Securities | 2,397 | 2,382 |
Securities held to maturity | 0 | 0 |
Restricted investments | 0 | 0 |
Loans held for sale | 0 | |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 0 | |
Financial liabilities: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | |
Accrued interest payable | 0 | 0 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale Securities | 32,067 | 31,148 |
Securities held to maturity | 57,284 | 43,668 |
Restricted investments | 0 | 0 |
Loans held for sale | 0 | |
Loans receivable, net | 0 | 0 |
Accrued interest receivable | 621 | 422 |
Financial liabilities: | ||
Deposits | 776,404 | 707,908 |
Securities sold under agreements to repurchase | 19,915 | 19,545 |
Long-term debt | 25,363 | 26,882 |
Subordinated debt | 9,827 | 9,823 |
Accrued interest payable | 100 | 118 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 0 | 0 |
Available-for-sale Securities | 0 | 0 |
Securities held to maturity | 0 | 0 |
Restricted investments | 4,805 | 3,596 |
Loans held for sale | 4,698 | 3,105 |
Loans receivable, net | 740,910 | 676,703 |
Accrued interest receivable | 1,613 | 1,490 |
Financial liabilities: | ||
Deposits | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Long-term debt | 0 | 0 |
Subordinated debt | 0 | |
Accrued interest payable | $ 0 | $ 0 |
Note 19 - Shareholders' Equity
Note 19 - Shareholders' Equity (Details Textual) - USD ($) | Dec. 15, 2015 | Dec. 15, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 15, 2015 | Aug. 11, 2011 |
Preferred Stock, Shares Issued | 0 | 0 | ||||
Treasury Stock, Shares, Acquired | 13,894 | |||||
Treasury Stock, Value, Acquired, Cost Method | $ 148,000 | $ 497,000 | ||||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | |||||
Series C Preferred Stock [Member] | ||||||
Preferred Stock, Value, Outstanding | $ 12,000,000 | |||||
Preferred Stock, Shares Issued | 12,000 | |||||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |||||
Stock Redeemed or Called During Period, Value | $ 6,000,000 | $ 6,000,000 | $ 6,000,000 | |||
Stock Redeemed or Called During Period, Shares | 6,000 | 6,000 | ||||
Noncumulative Preferred Stock [Member] | ||||||
Preferred Stock, Dividend Rate, Percentage | 1.00% |
Note 20 - Condensed Financial94
Note 20 - Condensed Financial Statements of Parent Company - Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | |||
Cash and due from banks | $ 19,844 | $ 21,566 | |
Other assets | 6,665 | 6,371 | |
Total assets | 940,211 | 863,696 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Subordinated debt | 9,855 | 9,824 | |
Other liabilities | 7,758 | 6,271 | |
Shareholders’ equity | 100,716 | 93,002 | $ 93,932 |
Total liabilities and shareholders’ equity | 940,211 | 863,696 | |
Parent Company [Member] | |||
ASSETS | |||
Cash and due from banks | 161 | 333 | |
Investments in subsidiaries | 110,042 | 102,388 | |
Other assets | 470 | 345 | |
Total assets | 110,673 | 103,066 | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
Subordinated debt | 9,855 | 9,824 | |
Other liabilities | 102 | 240 | |
Shareholders’ equity | 100,716 | 93,002 | |
Total liabilities and shareholders’ equity | $ 110,673 | $ 103,066 |
Note 20 - Condensed Financial95
Note 20 - Condensed Financial Statements of Parent Company - Condensed Statements of Operations and Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Subordinated debt | $ 656 | $ 33 | ||||||||
Other operating expenses | 1,411 | 1,458 | ||||||||
Income before income taxes | $ 4,026 | $ 3,643 | $ 2,666 | $ 2,624 | $ 2,672 | $ 2,653 | $ 2,310 | $ 2,297 | 12,959 | 9,932 |
Income tax benefit | 1,459 | 999 | 939 | 931 | 921 | 961 | 849 | 854 | 4,328 | 3,585 |
Net income | $ 2,567 | $ 2,644 | $ 1,727 | $ 1,693 | $ 1,751 | $ 1,692 | $ 1,461 | $ 1,443 | 8,631 | 6,347 |
Other comprehensive Income (Loss) | 8 | (54) | ||||||||
Total comprehensive income, net of tax | 8,639 | 6,293 | ||||||||
Parent Company [Member] | ||||||||||
Dividends from Bank | 1,636 | 1,456 | ||||||||
Subordinated debt | 656 | 33 | ||||||||
Other operating expenses | 233 | 186 | ||||||||
Income before income taxes | 747 | 1,237 | ||||||||
Income tax benefit | (239) | (10) | ||||||||
Income before undistributed income of subsidiaries | 986 | 1,247 | ||||||||
Equity in undistributed income of subsidiaries | 7,645 | 5,100 | ||||||||
Net income | 8,631 | 6,347 | ||||||||
Other comprehensive Income (Loss) | 8 | (54) | ||||||||
Total comprehensive income, net of tax | $ 8,639 | $ 6,293 |
Note 20 - Condensed Financial96
Note 20 - Condensed Financial Statements of Parent Company - Condensed Statements of Cash Flows (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2015 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | |||||||||||
Net income | $ 2,567,000 | $ 2,644,000 | $ 1,727,000 | $ 1,693,000 | $ 1,751,000 | $ 1,692,000 | $ 1,461,000 | $ 1,443,000 | $ 8,631,000 | $ 6,347,000 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Amortization of subordinated debt issuance costs | (31,000) | ||||||||||
Stock-based compensation expense | 231,000 | 186,000 | |||||||||
Other, net | 1,487,000 | 733,000 | |||||||||
Net cash provided by operating activities | 8,906,000 | 6,710,000 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Net cash used in investing activities | (79,701,000) | (71,309,000) | |||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from exercise of stock options | 104,000 | 114,000 | |||||||||
Proceeds from employee stock purchase plan | 56,000 | 56,000 | |||||||||
Redemption of preferred stock, Series C | (6,000,000) | ||||||||||
Proceeds from subordinated debt placement, net of issuance costs of $176,000 | $ 10,000,000 | 9,824,000 | |||||||||
Common stock repurchased | (148,000) | (497,000) | |||||||||
Cash dividends paid - common stock | (1,193,000) | (1,032,000) | |||||||||
Cash dividends paid - preferred stock | (57,000) | ||||||||||
Net cash provided by (used in) financing activities | 66,145,000 | 75,216,000 | |||||||||
Net increase (decrease) in cash and cash equivalents | (4,650,000) | 10,617,000 | |||||||||
Cash and Cash Equivalents – Beginning | 46,727,000 | 36,110,000 | 46,727,000 | 36,110,000 | |||||||
Cash and Cash Equivalents – Ending | 46,727,000 | 42,077,000 | 46,727,000 | 42,077,000 | 46,727,000 | ||||||
Parent Company [Member] | |||||||||||
Cash Flows from Operating Activities | |||||||||||
Net income | 8,631,000 | 6,347,000 | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed income of subsidiaries, net of dividends received from Bank | (7,645,000) | (5,100,000) | |||||||||
Amortization of subordinated debt issuance costs | (31,000) | ||||||||||
Stock-based compensation expense | 231,000 | 186,000 | |||||||||
Other, net | (264,000) | 248,000 | |||||||||
Net cash provided by operating activities | 984,000 | 1,681,000 | |||||||||
Cash Flows from Investing Activities | |||||||||||
Contributions to subsidiary, net | (3,809,000) | ||||||||||
Net cash used in investing activities | (3,809,000) | ||||||||||
Cash Flows from Financing Activities | |||||||||||
Proceeds from exercise of stock options | 104,000 | 114,000 | |||||||||
Tax benefit of stock options exercised | 25,000 | 7,000 | |||||||||
Proceeds from employee stock purchase plan | 56,000 | 56,000 | |||||||||
Redemption of preferred stock, Series C | (6,000,000) | ||||||||||
Proceeds from subordinated debt placement, net of issuance costs of $176,000 | 9,824,000 | ||||||||||
Common stock repurchased | (148,000) | (497,000) | |||||||||
Cash dividends paid - common stock | (1,193,000) | (1,032,000) | |||||||||
Cash dividends paid - preferred stock | (57,000) | ||||||||||
Net cash provided by (used in) financing activities | (1,156,000) | 2,415,000 | |||||||||
Net increase (decrease) in cash and cash equivalents | (172,000) | 287,000 | |||||||||
Cash and Cash Equivalents – Beginning | $ 333,000 | $ 46,000 | 333,000 | 46,000 | |||||||
Cash and Cash Equivalents – Ending | $ 333,000 | $ 161,000 | $ 333,000 | $ 161,000 | $ 333,000 |
Note 21 - Summary of Quarterl97
Note 21 - Summary of Quarterly Results (Unaudited) - Consolidated Results of Operations on Quarterly Basis (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest income | $ 8,970 | $ 8,777 | $ 8,539 | $ 8,338 | $ 8,306 | $ 8,218 | $ 7,903 | $ 7,676 | $ 34,624 | $ 32,103 |
Interest expense | 1,376 | 1,308 | 1,270 | 1,210 | 1,019 | 973 | 967 | 904 | 5,164 | 3,863 |
Net interest income | 7,594 | 7,469 | 7,269 | 7,128 | 7,287 | 7,245 | 6,936 | 6,772 | 29,460 | 28,240 |
Provision for Loan Losses | (345) | 470 | 390 | 90 | 120 | 190 | 90 | 515 | 490 | |
Net interest income after provision for loan losses | 7,939 | 6,999 | 6,879 | 7,128 | 7,197 | 7,125 | 6,746 | 6,682 | 28,945 | 27,750 |
Non-interest income | 1,447 | 1,983 | 1,166 | 893 | 984 | 836 | 941 | 776 | 5,489 | 3,537 |
Non-interest expense | 5,360 | 5,339 | 5,379 | 5,397 | 5,509 | 5,308 | 5,377 | 5,161 | 21,475 | 21,355 |
Income before income taxes | 4,026 | 3,643 | 2,666 | 2,624 | 2,672 | 2,653 | 2,310 | 2,297 | 12,959 | 9,932 |
Income tax expense | 1,459 | 999 | 939 | 931 | 921 | 961 | 849 | 854 | 4,328 | 3,585 |
Net income | $ 2,567 | $ 2,644 | $ 1,727 | $ 1,693 | $ 1,751 | $ 1,692 | $ 1,461 | $ 1,443 | $ 8,631 | $ 6,347 |
Earnings Per Common Share: | ||||||||||
Basic (in dollars per share) | $ 0.31 | $ 0.32 | $ 0.21 | $ 0.20 | $ 0.21 | $ 0.20 | $ 0.17 | $ 0.17 | $ 1.04 | $ 0.76 |
Diluted (in dollars per share) | $ 0.30 | $ 0.31 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.17 | $ 0.17 | $ 1.01 | $ 0.74 |
Interest income | $ 8,970 | $ 8,777 | $ 8,539 | $ 8,338 | $ 8,306 | $ 8,218 | $ 7,903 | $ 7,676 | $ 34,624 | $ 32,103 |
Interest expense | 1,376 | 1,308 | 1,270 | 1,210 | 1,019 | 973 | 967 | 904 | 5,164 | 3,863 |
Net interest income | 7,594 | 7,469 | 7,269 | 7,128 | 7,287 | 7,245 | 6,936 | 6,772 | 29,460 | 28,240 |
Provision for Loan Losses | (345) | 470 | 390 | 90 | 120 | 190 | 90 | 515 | 490 | |
Net interest income after provision for loan losses | 7,939 | 6,999 | 6,879 | 7,128 | 7,197 | 7,125 | 6,746 | 6,682 | 28,945 | 27,750 |
Non-interest income | 1,447 | 1,983 | 1,166 | 893 | 984 | 836 | 941 | 776 | 5,489 | 3,537 |
Non-interest expense | 5,360 | 5,339 | 5,379 | 5,397 | 5,509 | 5,308 | 5,377 | 5,161 | 21,475 | 21,355 |
Income before income taxes | 4,026 | 3,643 | 2,666 | 2,624 | 2,672 | 2,653 | 2,310 | 2,297 | 12,959 | 9,932 |
Income tax expense | 1,459 | 999 | 939 | 931 | 921 | 961 | 849 | 854 | 4,328 | 3,585 |
Net income | $ 2,567 | $ 2,644 | $ 1,727 | $ 1,693 | 1,751 | 1,692 | 1,461 | 1,443 | 8,631 | 6,347 |
Preferred stock dividends | (12) | (15) | (15) | (15) | 57 | |||||
Net income available to common shareholders | $ 1,739 | $ 1,677 | $ 1,446 | $ 1,428 | $ 8,631 | $ 6,290 |