Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 16, 2018 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FPBK | ||
Entity Registrant Name | FIRST PRIORITY FINANCIAL CORP. | ||
Entity Central Index Key | 1,389,772 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 6,646,469 | ||
Entity Public Float | $ 41,081,000 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 5,591 | $ 2,790 |
Interest-bearing deposits in banks | 2,666 | 1,971 |
Total cash and cash equivalents | 8,257 | 4,761 |
Securities available for sale, at fair value (amortized cost: $52,379 and $70,635, respectively) | 52,373 | 70,560 |
Securities held to maturity, at amortized cost (fair value: $19,665 and $19,584, respectively) | 18,665 | 19,043 |
Loans receivable | 518,927 | 488,243 |
Less: allowance for loan losses | 3,405 | 3,330 |
Net loans | 515,522 | 484,913 |
Restricted investments in bank stocks | 1,416 | 3,257 |
Premises and equipment, net | 1,607 | 1,755 |
Bank owned life insurance | 3,326 | 3,256 |
Accrued interest receivable | 2,007 | 1,817 |
Other real estate owned | 550 | 1,486 |
Deferred taxes | 923 | 2,697 |
Goodwill | 2,725 | 2,725 |
Intangible assets with finite lives, net | 169 | 235 |
Other assets | 2,402 | 1,290 |
Total Assets | 609,942 | 597,795 |
Deposits: | ||
Non-interest bearing | 65,634 | 54,817 |
Interest-bearing | 457,516 | 412,871 |
Total deposits | 523,150 | 467,688 |
Federal home Loan Bank of Pittsburgh advances | 24,625 | 68,164 |
Subordinated debt | 9,231 | 9,207 |
Accrued interest payable | 844 | 510 |
Other liabilities | 1,596 | 4,180 |
Total Liabilities | 559,446 | 549,749 |
Shareholders’ Equity: | ||
Common stock, $1 par value; authorized 20,000,000 shares; issued and outstanding: 2017: 6,577,969; 2016: 6,529,719 | 6,578 | 6,530 |
Surplus | 40,843 | 40,629 |
Accumulated deficit | (323) | (2,475) |
Accumulated other comprehensive loss | (6) | (42) |
Total Shareholders’ Equity | 50,496 | 48,046 |
Total Liabilities and Shareholders’ Equity | 609,942 | 597,795 |
Series C Preferred Stock [Member] | ||
Shareholders’ Equity: | ||
Preferred stock, value | $ 3,404 | $ 3,404 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Securities available for sale, amortized cost | $ 52,379 | $ 70,635 |
Securities held to maturity, fair value | $ 19,665 | $ 19,584 |
Common stock, par value | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 6,577,969 | 6,529,719 |
Common stock, shares outstanding | 6,577,969 | 6,529,719 |
Preferred stock, dividend rate | 9.00% | 9.00% |
Preferred stock, shares outstanding | 3,404 | 3,404 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 100 | $ 100 |
Preferred stock, authorized shares | 10,000,000 | 10,000,000 |
Preferred stock, dividend rate | 9.00% | 9.00% |
Preferred stock, liquidation value per share | $ 1,000 | $ 1,000 |
Preferred stock, shares issued | 3,404 | 3,404 |
Preferred stock, shares outstanding | 3,404 | 3,404 |
Preferred stock, total liquidation value | $ 3,404 | $ 3,404 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Interest and Dividend Income | ||
Loans receivable, including fees | $ 22,074 | $ 19,570 |
Securities—taxable | 1,199 | 1,150 |
Securities—exempt from federal taxes | 579 | 408 |
Interest bearing deposits and other | 201 | 118 |
Total Interest and Dividend Income | 24,053 | 21,246 |
Interest Expense | ||
Deposits | 4,713 | 3,547 |
Short-term borrowings | 305 | 137 |
Long-term debt | 142 | 158 |
Subordinated debt | 689 | 688 |
Total Interest Expense | 5,849 | 4,530 |
Net Interest Income | 18,204 | 16,716 |
Provision for Loan Losses | 385 | 710 |
Net Interest Income after Provision for Loan Losses | 17,819 | 16,006 |
Non-Interest Income | ||
Wealth management fee income | 168 | 308 |
Net gains on sales of investment securities | 416 | 795 |
Bank owned life insurance income | 70 | 78 |
Other | 387 | 364 |
Total Non-Interest Income | 1,041 | 1,545 |
Non-Interest Expenses | ||
Salaries and employee benefits | 8,273 | 8,046 |
Occupancy and equipment | 1,844 | 1,906 |
Data processing equipment and operations | 927 | 884 |
Professional fees | 690 | 709 |
Marketing, advertising, and business development | 336 | 230 |
FDIC insurance assessments | 520 | 398 |
Pennsylvania bank shares tax expense | 354 | 315 |
Other real estate owned | 178 | 423 |
Other | 1,279 | 1,212 |
Total Non-Interest Expenses | 14,401 | 14,123 |
Income before Income Tax Expense | 4,459 | 3,428 |
Income Tax Expense | 2,001 | 1,128 |
Net Income | 2,458 | 2,300 |
Preferred dividends | 306 | 407 |
Income to Common Shareholders | $ 2,152 | $ 1,893 |
Income per common share: | ||
Basic | $ 0.33 | $ 0.29 |
Diluted | $ 0.32 | $ 0.29 |
Weighted average common shares outstanding: | ||
Basic | 6,559 | 6,514 |
Diluted | 6,785 | 6,570 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net Income | $ 2,458 | $ 2,300 |
Securities available for sale: | ||
Change in unrealized gain on securities available for sale | 485 | 405 |
Reclassification adjustment for realized gains included in net income | (416) | (795) |
Tax effect | (24) | 133 |
Net gains (losses) arising during the period | 45 | (257) |
Net unrealized holding losses on securities transferred between available for sale and held to maturity: | ||
Amortization of net unrealized holding losses to income during the period | (15) | (31) |
Tax effect | 6 | 10 |
Net unrealized holding losses on securities transferred during the period | (9) | (21) |
Total other comprehensive income (loss) | 36 | (278) |
Total comprehensive income | $ 2,494 | $ 2,022 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Accumulated Deficit [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning balance at Dec. 31, 2015 | $ 52,091 | $ 9,404 | $ 6,492 | $ 40,327 | $ (4,368) | $ 236 |
Preferred stock dividends | (407) | (407) | ||||
Redemption of preferred stock | (6,000) | (6,000) | ||||
Issuance of restricted common stock, net of forfeitures | 36 | (36) | ||||
Exercise of common stock options | 12 | 2 | 10 | |||
Net income | 2,300 | 2,300 | ||||
Other comprehensive income (loss) | (278) | (278) | ||||
Stock based compensation expense | 328 | 328 | ||||
Ending balance at Dec. 31, 2016 | 48,046 | 3,404 | 6,530 | 40,629 | (2,475) | (42) |
Preferred stock dividends | (306) | (306) | ||||
Issuance of restricted common stock, net of forfeitures | 48 | (48) | ||||
Net income | 2,458 | 2,458 | ||||
Other comprehensive income (loss) | 36 | 36 | ||||
Stock based compensation expense | 262 | 262 | ||||
Ending balance at Dec. 31, 2017 | $ 50,496 | $ 3,404 | $ 6,578 | $ 40,843 | $ (323) | $ (6) |
Consolidated Statements of Sha7
Consolidated Statements of Shareholders' Equity (Parenthetical) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement Of Stockholders Equity [Abstract] | ||
Forfeited of restricted common stock , shares | 4,450 | 725 |
Issuance of restricted common stock net of forfeited, shares | 52,700 | 36,250 |
Exercise of common stock options, shares | 2,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash Flows from Operating Activities | ||
Net income | $ 2,458 | $ 2,300 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan losses | 385 | 710 |
Write down of other real estate owned | 44 | 139 |
Depreciation and amortization of premises and equipment | 262 | 309 |
Net amortization | 346 | 261 |
Stock based compensation expense | 262 | 328 |
Net amortization of investment securities premiums and discounts | 146 | 151 |
Net gains on sales of investment securities | (416) | (795) |
Net (gain) loss on sale of other real estate owned | (74) | 18 |
Net loss on disposal of premises and equipment | 1 | 25 |
Bank owned life insurance policy income | (70) | (78) |
Deferred income tax expense | 1,755 | 988 |
Increase in accrued interest receivable | (190) | (194) |
Increase in other assets | (272) | (20) |
Increase in accrued interest payable | 334 | 60 |
Increase in other liabilities | 115 | 2,813 |
Net Cash Provided by Operating Activities | 5,086 | 7,015 |
Cash Flows from Investing Activities | ||
Net originations in loans | (15,114) | (2,531) |
Purchase of loans | (16,151) | (77,326) |
Purchases of securities available for sale | (59,770) | (49,645) |
Redemption of restricted bank stock | 1,841 | 111 |
Proceeds from maturities or calls of securities available for sale | 61,490 | 60,537 |
Proceeds from maturities or calls of securities held to maturity | 290 | 740 |
Proceeds from the sale of securities available for sale | 13,340 | 13,563 |
Proceeds from the sale of other real estate owned | 966 | 332 |
Purchases of premises and equipment | (116) | (56) |
Net Cash Used in Investing Activities | (13,224) | (54,275) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 55,479 | 59,104 |
Net decrease in short-term borrowings | (40,539) | (3,561) |
Repayments of long-term borrowings | (3,000) | (3,000) |
Payments regarding subordinated debt issuance costs | (16) | |
Redemption of preferred stock | (6,000) | |
Proceeds from the exercise of common stock options | 12 | |
Cash dividends paid on preferred stock | (306) | (427) |
Net Cash Provided by Financing Activities | 11,634 | 46,112 |
Net Increase (Decrease) in Cash and Cash Equivalents | 3,496 | (1,148) |
Cash and Cash Equivalents—Beginning | 4,761 | 5,909 |
Cash and Cash Equivalents—Ending | 8,257 | 4,761 |
Supplementary Disclosures of Cash Flows Information | ||
Transfer of available for sale securities to held to maturity securities | 2,698 | |
Transfer of loans receivable to other real estate owned | 342 | |
Cash paid for interest on deposits and borrowings | 5,534 | 4,573 |
Cash paid for income taxes | $ 182 | $ 139 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1—Summary of Significant Accounting Policies Organization and Nature of Operations First Priority Financial Corp. First Priority Financial Corp. (“First Priority”, the “Company”) is a bank holding company incorporated under the laws of the Commonwealth of Pennsylvania on February 13, 2007. On May 11, 2007, as a result of a reorganization and merger, First Priority Bank (the “Bank”) became a wholly-owned subsidiary of First Priority. First Priority, primarily through the Bank, serves residents and businesses in the Delaware Valley with branches in Berks, Bucks, Chester and Montgomery counties in Pennsylvania. The Bank, headquartered in Malvern, PA, has seven retail branch office locations and one loan production office and is a locally managed community bank providing commercial banking products, primarily loans and deposits. First Priority provides banking services through the Bank and does not engage in any activities other than banking and related activities. First Priority Bank The Bank is a state-chartered commercial banking institution which was incorporated under the laws of the Commonwealth of Pennsylvania on May 25, 2005. The Bank’s deposits are insured by the FDIC up to the maximum amount permitted for all banks. The Bank engages in a full service commercial and consumer banking business with strong private banking and individual wealth management services. The Bank offers a variety of consumer, private banking and commercial loans, mortgage products and commercial real estate financing. The Company’s operations are significantly affected by prevailing economic conditions, competition, and the monetary, fiscal, and regulatory policies of governmental agencies. Lending activities are influenced by a number of factors, including the general credit needs of individuals and small and medium-sized businesses in the Company’s market area, competition, the current regulatory environment, the level of interest rates, and the availability of funds. Deposit flows and costs of funds are influenced by prevailing market rates of interest, competition, account maturities, and the level of personal income and savings in the market area. The Bank also offers certain financial planning and investment management services. These investment services are provided by First Priority Financial Services, a Division of First Priority Bank, through third party providers. In addition, the Bank has entered into solicitation agreements with several investment advisors to provide portfolio management services to customers of the Bank. The Bank currently seeks deposits and commercial and private banking relationships through its banking offices. The Bank provides deposit products that include checking, money market and savings accounts, and certificates of deposit as well as other deposit services, including cash management, electronic banking and mobile products as well as online account opening capabilities. The Bank obtains funding in the local community by providing excellent service and competitive rates to its customers and utilizes various advertising to attract current and potential deposit customers. The Bank also uses brokered certificates of deposit as a cost effective funding alternative. Basis of Presentation The accompanying consolidated financial statements consist of the Company and the Company’s wholly owned consolidated subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. These statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). Subsequent Events Management has evaluated events and transactions occurring subsequent to December 31, 2017 for items that should potentially be recognized or disclosed in these Consolidated Financial Statements. The evaluation was conducted through the date these financial statements were issued. Use of Estimates The preparation of financial statements in conformity with GAAP 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. Material estimates that are particularly susceptible to significant change in the near term relate to the valuation of acquired loans, the determination of the allowance for loan losses, stock-based compensation, impairment of goodwill, impairment of investments, the valuation of deferred tax assets and the valuation of other real estate owned. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the western and northwestern suburbs surrounding Philadelphia. Note 4 of the Notes to Consolidated Financial Statements discusses the types of securities in which the Company currently invests. Note 5 discusses the types of lending in which the Company engages. Although the Company intends to have a diversified loan portfolio, its debtors’ ability to honor their contracts will be influenced by the region’s economy. The Company’s investment portfolio consists principally of obligations of the United States and its agencies and obligations of states and political subdivisions. In the opinion of management, there is no concentration of credit risk in its investment portfolio. The Company places deposits in correspondent accounts and, on occasion, sells Federal funds to qualified financial institutions. Management believes credit risk associated with correspondent accounts and with Federal funds sold is not significant. Therefore, management believes that these particular practices do not subject the Company to unusual credit risk. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, Federal funds sold and short-term money market securities. Generally, Federal funds are purchased or sold for one day periods. Short-term investments are generally purchased with a maturity date of less than three months. The Company is required to maintain cash reserves that are considered restrictions on cash and cash equivalents which consist of required reserves with the Federal Reserve Bank, related to our deposit liabilities. At December 31, 2017 and 2016, these reserve balances were $1.7 million and $1.9 million, respectively. 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. 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. Available for sale securities are carried at fair value. Unrealized gains and losses on available for sale investment securities are reported as increases or decreases in other comprehensive income as a component of shareholders’ equity. 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 term of each security. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements, or anticipated movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities classified as held to maturity are those debt 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, using the interest method over the terms of the securities. Transfer of securities into held to maturity from available for sale are made at fair value at the date of transfer. The unrealized gain/loss at date of transfer is retained in other comprehensive income, and in the current value of the held to maturity securities. Such amounts are amortized over the remaining life of the security. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. When a determination is made that an other-than-temporary impairment exists but the Company does not intend to sell the debt security and it is more likely than not that it will not be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. Restricted Investments in Bank Stocks Restricted investments in bank stocks, which represents the required investment in the common stock of correspondent banks, are carried at cost and consist of stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) and Atlantic Community Bancshares, Inc. Federal law requires a member institution of the FHLB to hold FHLB stock according to a predetermined formula. 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. Loans Receivable Loans receivable that 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) by the interest method based on the contractual terms of the related loans, or if the commitment expires unexercised, recognized in income upon expiration. The loans receivable portfolio is segmented into commercial, residential mortgage loans and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial construction and commercial mortgage loans. Consumer loans consist of home equity lines of credit and all other consumer loans. The accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans is generally either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. Acquired Loans Loans acquired as part of a full bank acquisition are initially recorded at their acquisition date fair values. The carryover of allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate. Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments are accounted for as impaired loans under ASC 310-30. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loans using the interest method. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require the Company to evaluate the need for an allowance for loan losses on these loans. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the non-accretable discount which the Company then reclassifies as an accretable discount that is recognized into interest income over the remaining life of the loans using the interest method. As of December 31, 2017, there were three remaining acquired purchased credit impaired loans with a net recorded balance of $55 thousand, after a non-accretable credit discount of $352 thousand compared to a net recorded balance of $215 thousand, after a non-accretable credit discount of $362 thousand as of December 31, 2016. Acquired loans that met the criteria for non-accrual of interest prior to acquisition may be considered performing upon acquisition, or in the future, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. For acquired loans that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value and amortized over the life of the asset using the interest method. Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans, however, the Company records a provision for loan losses only when the required allowance exceeds any remaining pooled discounts for loans evaluated collectively for impairment. The Company also purchased portfolios of performing residential mortgage loans in 2014 through 2017, all of which were underwritten using similar underwriting standards as it uses for its organic portfolio. In August 2016, the Company purchased performing commercial loans from within the Bank’s market area. Net acquisition premiums, or discounts, from the purchased loans will be recognized into interest income over the remaining life of the loans using the interest method. There are currently no non-performing loans within these portfolios. 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, totaling $35 thousand as of both December 31, 2017 and 2016, represents management’s estimate of potential losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheets. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly 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 affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. 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 that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. 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. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Management team with experience, depth, and knowledge in banking and in many areas of lending. Each contributes to the sound credit culture and control within the Company. 5. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 6. The Company engages a third party to perform an independent review of the loan portfolio as a measure for quality and consistency in credit evaluation and credit decisions. 7. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 8. Effect of external factors, such as competition and legal and regulatory requirements. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. A majority of the Company’s loans are to business owners of many types. The Company makes commercial loans for real estate development and other business purposes required by our customers. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. The assets financed through commercial and industrial loans are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversions of assets. Commercial real estate loans include long-term loans financing commercial properties. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans typically require a loan to value ratio of not greater than 80% and vary in terms. Construction loans consists of acquisition, construction and development loans serving a diverse customer base in its primary market areas. The composition of this portfolio can change based on local economic conditions such as supply and demand, interest rates and real estate values. The Company typically lends to builders and developers with established relationships, successful operating histories and sound financial resources. Construction loans include both commercial and residential related loans. The commercial portion consists of loans for the purpose of acquiring, developing and constructing a commercial-use structure and for the acquisition, development and/or construction of residential properties, such as single-family homes or smaller multi-family buildings, by residential developers and builders. This may also include the acquisition and development of land on a selective basis. The residential portion consists of loans for the acquisition of and/or construction on land where a residential dwelling is to be built and occupied by the home-owner. Residential mortgages and home equity loans are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages and home equity loans have varying loan rates depending on the loan terms. Residential mortgages have amortizations up to 30 years and home equity loans have amortizations up to 15 years. Residential mortgages and home equity loans typically require a loan to value ratio of not greater than 80%. Other consumer loans include installment loans, car loans, and overdraft lines of credit. The majority of these loans are secured. 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. A loan is considered impaired when, based on current information and events, 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 payment 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 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-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values may be discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial 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. 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 criticized special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. Troubled Debt Restructurings Loans whose terms are modified are classified as troubled debt restructurings (“TDR”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR may be modified by means of extending the maturity date of the loan, reducing the interest rate on the loan to a rate which is below market, a combination of rate adjustments and maturity extensions, or by other means including covenant modifications, forbearances or other concessions. Generally, interest is not accrued on loans that were non-accrual prior to the TDR until they have performed in accordance with the modified terms for a period of at least six months; however, non-accrual TDR’s may be restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as TDR’s are designated as impaired. TDR’s which are performing based on modified terms and conditions, which reflect the current market, may be reclassified from TDR status. Management evaluates the allowance for loan losses with respect to TDR’s under the same policy and guidelines as all other performing loans are evaluated with respect to the allowance for loan losses. Transfers of Financial Assets Transfers of financial assets, including loan 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) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and generally are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Any write-down, at or prior to the dates the real estate is considered foreclosed, is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are generally carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance (write-downs) are included in other non-interest expenses. Any gain or loss upon the sale of real estate owned is reflected in operations as incurred. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Premises and equipment in an acquisition or merger are recorded on acquisition date at fair value. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets, ranging from 1 to 20 years beginning when the assets are placed in service. Buildings are depreciated from 14 to 20 years. Leasehold improvements are amortized over the term of the lease or estimated useful lives, whichever is shorter, ranging from 1 to 20 years. Furniture, fixtures and equipment are depreciated from 2 to 10 years, automobiles are depreciated over 5 years and computer equipment and data processing software are depreciated from 1 to 10 years. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in income for the period. The cost of maintenance and repairs is charged to expense as incurred. Bank Owned Life Insurance The Bank invests in bank owned life insurance (“BOLI”) policies that provide earnings to help cover the cost of employee benefit plans. The Bank is the owner of the life insurance policies it purchased directly on the lives of certain officers of the Bank. These policies were issued as split dollar life insurance policies which provide for a portion of the death benefit to be paid to the beneficiaries of the officer while employed by the Bank or through change in control provisions. The policies are carried on the Company’s consolidated balance sheet at their cash surrender value and are subject to regulatory capital requirements. The determination of the cash surrender value includes a full evaluation of the contractual terms of each policy. Additionally, the Company periodically reviews the creditworthiness of the insurance company that has underwritten the policies. Earnings accruing to the Company are derived from the general account investments of the insurance companies. Increases in the net cash surrender value of BOLI policies and insurance proceeds received are not taxable and are recorded |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Changes And Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Note 2—Recently Issued Accounting Standards Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. First Priority’s revenue is comprised of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. This accounting guidance can be implemented using either a full retrospective method or a modified retrospective approach and will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018 for First Priority). Early adoption is permitted; however, First Priority will adopt this new accounting guidance in 2018, as required, and will adopt the new guidance using the modified retrospective approach. The modified retrospective approach uses a cumulative-effect adjustment to retained earnings to reflect uncompleted contracts in the initial application of the guidance. The Company has assessed its revenue streams and its contracts with customers that could potentially be affected by the new guidance; including wealth management fees, fees on deposits, gains and losses on the sale of other real estate owned and debit card interchange fees; but did not identify material changes to the timing or amount of revenue recognition. The adoption of this accounting guidance does not have a material impact on the Company’s financial condition or results of operations. The Company will also be subject to expanded disclosure requirements upon adoption for which the Company is still in the process of evaluating. In January 2016, the FASB issued Accounting Standards Update 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 changes current U.S. GAAP for public entities by requiring the following, among others: (1) equity securities, except those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized in net income; (2) the use of the exit price when measuring fair value of financial instruments for disclosure purposes; (3) an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; and (4) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or notes to the financial statements. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods. Early application is permitted. The Company does not hold any equity investments (excluding restricted investments in bank stocks) that do not have a readily determinable market value. The Company has determined the implementation of this standard will not have a material impact to the financial statements and disclosures. In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statements of cash flows. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Accordingly, effective January of 2017, the Company adopted the pronouncement. During the year ended December 31, 2017, the Company had $10 thousand of tax benefits for stock option exercises and restricted stock vesting. In accordance with ASU 2016-09, forfeitures are recognized as they occur instead of applying an estimated forfeiture rate to each grant. For purposes of the determination of stock-based compensation expense for the year ended December 31, 2017, we recognized actual forfeitures of 4,450 shares of restricted stock awards that were granted to officers and other employees. In September 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company is reviewing our system and data collection to determine necessary changes to our current practice. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” This ASU clarifies how certain cash receipts and cash payments are presented in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. For public business entities this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of this ASU on its consolidated financial statements and disclosures. Historically the cash flows, addressed by this standard, have been infrequent and immaterial. In January 2017, the FASB issued ASU 2017-04, “Intangibles ─ Goodwill and Other (Topic 350).” This update intends to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments in this Update modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. For public business entities this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company does not expect the implementation of this standard to have a material impact on its consolidated statement of operations. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Earlier application is permitted for all entities, including adoption in an interim period. If an entity early adopts the ASU in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The Company does not expect the implementation of this standard to have a material impact on its consolidated statement of operations. In February 2018, the FASB issued ASU No. 2018-02, Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 states an entity may elect to reclassify the income tax effects of the Tax Cuts and Jobs Act on items within accumulated other comprehensive income to retained earnings. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, and the Company adopted this accounting guidance effective December 31, 2017. The amount of this reclassification was immaterial. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 3—Earnings Per Common Share Diluted earnings per common share take into account the potential dilution that could occur if securities or other contracts to issue common stock are exercised and converted into common stock. Proceeds assumed to have been received on such exercise or conversion, are assumed to be used to purchase shares of the Company’s common stock at the average market price during the period, as required by the “treasury stock method” of accounting for common stock equivalents. For purposes of calculating the basic and diluted earnings per share, the Company’s reported net income is adjusted for dividends on preferred stock to determine the net income to common shareholders. Securities that could potentially dilute basic earnings per common share in future periods that were not included in the computation of diluted earnings per common share because to do so would have been anti-dilutive amounted to 54,029 shares as of December 31, 2017, and 148,174 shares as of December 31, 2016. The calculations of basic and diluted earnings per common share are presented below for the years ended December 31, 2017 and 2016: For the year ended December 31, 2017 2016 (In thousands, except per share information) Net income $ 2,458 $ 2,300 Less: preferred stock dividends (306 ) (407 ) Income to common shareholders $ 2,152 $ 1,893 Average basic common shares outstanding 6,559 6,514 Effect of dilutive stock options 226 56 Average number of common shares used to calculate diluted earnings per common share 6,785 6,570 Basic earnings per common share $ 0.33 $ 0.29 Diluted earnings per common share $ 0.32 $ 0.29 The amount of preferred stock dividends related to each series of preferred stock are presented below for the years ended December 31, 2017 and 2016: For the year ended December 31, 2017 2016 (Dollars in thousands) Preferred dividends: Preferred Series A $ - $ 77 Preferred Series B - 4 Preferred Series C 306 326 Total preferred dividends $ 306 $ 407 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 4—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. 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. Available for sale securities are carried at fair value. Securities classified as held to maturity are those debt 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 a method which approximates the interest method over the terms of the securities. The Company previously transferred investment securities from available for sale to held to maturity securities. Related to these transfers, there were net unrealized holding losses of $3 thousand, before the impact of taxes, as of December 31, 2017, compared to net unrealized holding gains of $12 thousand, before the impact of taxes, as of December 31, 2016, which are being amortized over the remaining life of the related securities as an adjustment of yield in a manner consistent with the accretion of discount on the same transferred debt securities. This will have no impact on the Company’s net income because the amortization of the unrealized holding loss reported in equity will offset the effect on the interest income of the accretion of the discount on these securities. The amortized cost, unrealized gains and losses, and the fair value of the Company’s investment securities available for sale and held to maturity are as follows for the periods presented: December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in thousands) Available For Sale: Obligations of U.S. government agencies and corporations $ 20,991 $ - $ (20 ) $ 20,971 Obligations of states and political subdivisions 4,218 168 - 4,386 Federal agency mortgage-backed securities 25,524 16 (251 ) 25,289 Federal agency collateralized mortgage obligations 111 - (2 ) 109 Other debt securities 1,500 83 - 1,583 Money market mutual fund 35 - - 35 Total investment securities available for sale $ 52,379 $ 267 $ (273 ) $ 52,373 Held To Maturity: Obligations of states and political subdivisions $ 18,183 $ 953 $ (4 ) $ 19,132 Other debt securities 482 51 - 533 Total held to maturity $ 18,665 $ 1,004 $ (4 ) $ 19,665 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in thousands) Available For Sale: Obligations of U.S. government agencies and corporations $ 45,984 $ 8 $ (5 ) $ 45,987 Obligations of states and political subdivisions 6,103 46 (10 ) 6,139 Federal agency mortgage-backed securities 13,863 33 (176 ) 13,720 Federal agency collateralized mortgage obligations 190 - (1 ) 189 Other debt securities 1,500 30 - 1,530 Money market mutual fund 2,995 - - 2,995 Total investment securities available for sale $ 70,635 $ 117 $ (192 ) $ 70,560 Held To Maturity: Obligations of states and political subdivisions $ 18,561 $ 561 $ (33 ) $ 19,089 Other debt securities 482 13 - 495 Total held to maturity $ 19,043 $ 574 $ (33 ) $ 19,584 Included in unrealized losses are market losses on securities that have been in a continuous unrealized loss position for twelve months or more and those securities that have been in a continuous unrealized loss position for less than twelve months. The table below details the aggregate unrealized losses and aggregate fair value of the underlying securities whose fair values are below their amortized cost at December 31, 2017 and 2016. As of December 31, 2017 Less than 12 Months 12 Months or longer Total Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count (Dollars in thousands) Available for Sale: Obligations of U.S. government agencies and corporations $ 3,975 $ (17 ) 3 $ 1,996 $ (3 ) 2 $ 5,971 $ (20 ) 5 Federal agency mortgage-backed securities 20,099 (162 ) 12 3,416 (89 ) 4 23,515 (251 ) 16 Federal agency collateralized mortgage obligations - - - 109 (2 ) 1 109 (2 ) 1 Total Available for Sale........ $ 24,074 $ (179 ) 15 $ 5,521 $ (94 ) 7 $ 29,595 $ (273 ) 22 Held to Maturity: Obligations of states and political subdivisions $ 195 $ (1 ) 1 $ 315 $ (3 ) 1 $ 510 $ (4 ) 2 Total Held to Maturity.......... $ 195 $ (1 ) 1 $ 315 $ (3 ) 1 $ 510 $ (4 ) 2 As of December 31, 2016 Less than 12 Months 12 Months or longer Total Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count (Dollars in thousands) Available for Sale: Obligations of U.S. government agencies and corporations $ 3,984 $ (5 ) 4 $ - $ - - $ 3,984 $ (5 ) 4 Obligations of states and political subdivisions - - - 872 (10 ) 1 872 (10 ) 1 Federal agency mortgage-backed securities 10,667 (175 ) 11 39 (1 ) 1 10,706 (176 ) 12 Federal agency collateralized mortgage obligations 159 (1 ) 1 - - - 159 (1 ) 1 Total Available for Sale........ $ 14,810 $ (181 ) 16 $ 911 $ (11 ) 2 $ 15,721 $ (192 ) 18 Held to Maturity: Obligations of states and political subdivisions $ 2,289 $ (33 ) 7 $ - $ - - $ 2,289 $ (33 ) 7 Total Held to Maturity.......... $ 2,289 $ (33 ) 7 $ - $ - - $ 2,289 $ (33 ) 7 As of December 31, 2017, management believes that the estimated fair value of the securities disclosed above is primarily dependent upon the movement in market interest rates, particularly given the minimal inherent credit risk associated with the issuers of these securities and that the unrealized losses in these portfolios are not the result of deteriorating credit within any investment category. Securities issued by states and political subdivisions are all rated investment grade. Each holding is reviewed quarterly for impairment by management and our third party investment advisor. All mortgage backed securities and collateralized mortgage obligations are issued by U.S. government sponsored agencies; there are no holdings of private label mortgage backed securities or securities backed by loans classified as “Alt-A” or “Subprime”. Although the fair value will fluctuate as market interest rates move, management believes that these fair values will recover as the underlying portfolios mature. The Company evaluates a variety of factors in concluding whether securities are other-than-temporarily impaired. These factors include, but are not limited to, the type and purpose of the bond, the underlying rating of the bond issuer, and the presence of credit enhancements (i.e. state guarantees, municipal bond insurance, collateral requirements, etc.). The Company does not intend to sell any of these securities and it is not likely to be required to sell any of these securities before recovery. Management does not believe any unrealized loss on individual securities, as of December 31, 2017 and 2016, represents other than temporary impairment. For the years ended December 31, 2017 and 2016 gross gains of $416 thousand and $795 thousand, respectively, were realized from the sale of available for sale securities. Securities totaling $69.0 million and $42.0 million were pledged at December 31, 2017 and 2016, respectively, to secure public fund deposits. In addition, securities pledged to secure borrowings by the Bank totaled $20 thousand and $40 thousand as of December 31, 2017 and December 31, 2016, respectively. The amortized cost and fair value of securities as of December 31, 2017 by contractual maturity are shown below. Certain of these investment securities have call features which allow the issuer to call the security prior to its maturity date at the issuer’s discretion. December 31, 2017 Available for Sale Securities Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due within one year $ 18,997 $ 18,993 $ - $ - Due after one year through five years 1,994 1,978 1,208 1,225 Due after five years through ten years 1,500 1,583 1,826 1,890 Due after ten years 4,218 4,386 15,631 16,550 26,709 26,940 18,665 19,665 Federal agency collateralized mortgage obligations 111 109 - - Federal agency mortgage-backed securities 25,524 25,289 - - Money market mutual fund 35 35 - - Total $ 52,379 $ 52,373 $ 18,665 $ 19,665 |
Loans Receivable and Related Al
Loans Receivable and Related Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Loans Receivable and Related Allowance for Loan Losses | Note 5—Loans Receivable and Related Allowance for Loan Losses Loans receivable consist of the following at December 31, 2017 and 2016. December 31, 2017 2016 (Dollars in thousands) Commercial: Commercial and industrial $ 85,395 $ 89,625 Commercial mortgage 235,946 223,315 Commercial construction 30,866 22,408 Total commercial 352,207 335,348 Residential mortgage loans 133,727 110,538 Consumer: Home equity lines of credit 19,295 24,669 Other consumer loans 13,780 17,514 Total consumer 33,075 42,183 Total loans 519,009 488,069 Allowance for loan losses (3,405 ) (3,330 ) Net deferred loan cost (fees) (82 ) 174 Total loans receivable, net $ 515,522 $ 484,913 In June 2017, the Company purchased $7.0 million in performing residential real estate loans, at a slight acquisition discount totaling $35 thousand and in December 2017, purchased $9.0 million of performing residential real estate loans, including acquisition premiums of $117 thousand. Previously, in August, 2016, the Company increased its loans outstanding through the acquisition of $64.6 million, including acquisition premiums of $197 thousand, of various types of performing commercial loans within the Bank’s market area. In June 2016, the Company purchased $12.7 million, including acquisition premiums of $280 thousand, of performing residential real estate loans. All portfolios of purchased loans were underwritten using similar standards as the Bank uses for its organic portfolio. The following tables summarize the activity in the allowance for loan losses by loan class for the years ended December 31, 2017 and 2016: For the year ended December 31, 2017 Allowance for Loan Losses (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision for loan losses Ending Balance Commercial and industrial $ 647 $ (281 ) $ 4 $ 296 $ 666 Commercial mortgage 1,051 (30 ) - 57 1,078 Commercial construction 113 - - 34 147 Residential mortgage loans 452 - - 172 624 Home equity lines of credit 188 - 2 (87 ) 103 Other consumer loans 97 (24 ) 19 (18 ) 74 Unallocated 782 - - (69 ) 713 Total $ 3,330 $ (335 ) $ 25 $ 385 $ 3,405 For the year ended December 31, 2016 Allowance for Loan Losses (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision for loan losses Ending Balance Commercial and industrial $ 631 $ (75 ) $ 21 $ 70 $ 647 Commercial mortgage 831 (72 ) 2 290 1,051 Commercial construction 56 - - 57 113 Residential mortgage loans 259 - - 193 452 Home equity lines of credit 167 - 9 12 188 Other consumer loans 84 (75 ) 15 73 97 Unallocated 767 - - 15 782 Total $ 2,795 $ (222 ) $ 47 $ 710 $ 3,330 The following tables present the balance in the allowance for loan losses at December 31, 2017 and 2016 disaggregated on the basis of the Company’s impairment method by class of loans receivable along with the balance of loans receivable by class disaggregated on the basis of the Company’s impairment methodology: December 31, 2017 Allowance for Loan Losses Loans Receivables (Dollars in thousands) Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Commercial and industrial $ 666 $ 42 $ 624 $ 85,395 $ 582 $ 84,813 Commercial mortgage 1,078 - 1,078 235,946 346 235,600 Commercial construction 147 - 147 30,866 - 30,866 Residential mortgage loans 624 140 484 133,727 637 133,090 Home equity lines of credit 103 - 103 19,295 - 19,295 Other consumer loans 74 - 74 13,780 3 13,777 Unallocated 713 - 713 - - - Total $ 3,405 $ 182 $ 3,223 $ 519,009 $ 1,568 $ 517,441 December 31, 2016 Allowance for Loan Losses Loans Receivables (Dollars in thousands) Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Commercial and industrial $ 647 $ - $ 647 $ 89,625 $ 705 $ 88,920 Commercial mortgage 1,051 - 1,051 223,315 6 223,309 Commercial construction 113 - 113 22,408 - 22,408 Residential mortgage loans 452 47 405 110,538 637 109,901 Home equity lines of credit 188 - 188 24,669 14 24,655 Other consumer loans 97 - 97 17,514 51 17,463 Unallocated 782 - 782 - - - Total $ 3,330 $ 47 $ 3,283 $ 488,069 $ 1,413 $ 486,656 The following tables summarize information in regard to impaired loans by loan portfolio class as of December 31, 2017 and 2016 as well as for the years then ended, respectively: December 31, 2017 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 251 $ 906 $ - $ 705 $ 1,268 $ - Commercial mortgage 346 418 - 6 57 - Commercial construction - - - - - - Residential mortgage loans - - - - - - Home equity lines of credit - - - 14 16 - Other consumer loans 3 3 - 51 80 - With an allowance recorded: Commercial and industrial $ 331 $ 331 $ 42 $ - $ - $ - Commercial mortgage - - - - - - Commercial construction - - - - - - Residential mortgage loans 637 637 140 637 637 47 Home equity lines of credit - - - - - - Other consumer loans - - - - - - Total: Commercial and industrial $ 582 $ 1,237 $ 42 $ 705 $ 1,268 $ - Commercial mortgage 346 418 - 6 57 - Commercial construction - - - - - - Residential mortgage loans 637 637 140 637 637 47 Home equity lines of credit - - - 14 16 - Other consumer loans 3 3 - 51 80 - Total $ 1,568 $ 2,295 $ 182 $ 1,413 $ 2,058 $ 47 For the year ended December 31, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 495 $ 4 $ 1,042 $ 9 Commercial mortgage 88 4 1,200 54 Commercial construction - - - - Residential mortgage loans - - 28 1 Home equity lines of credit - - 94 4 Other consumer loans 3 - 170 7 With an allowance recorded: Commercial and industrial $ 196 $ - $ 503 $ 19 Commercial mortgage 42 - 331 16 Commercial construction - - - - Residential mortgage loans 637 23 638 24 Home equity lines of credit - - - - Other consumer loans - - - - Total: Commercial and industrial $ 691 $ 4 $ 1,545 $ 28 Commercial mortgage 130 4 1,531 70 Commercial construction - - - - Residential mortgage loans 637 23 666 25 Home equity lines of credit - - 94 4 Other consumer loans 3 - 170 7 Total $ 1,461 $ 31 $ 4,006 $ 134 The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2017 and 2016: December 31, 2017 2016 (Dollars in thousands) Commercial and industrial $ 435 $ 705 Commercial mortgage 200 6 Home equity lines of credit - 14 Other consumer loans 3 51 Total loans $ 638 $ 776 The Company’s policy for interest income recognition on non-accrual loans is to recognize income under the cash basis when the loans are both current and the collateral on the loan is sufficient to cover the outstanding obligation to the Company. The Company will not recognize income if these factors do not exist. Interest that would have been accrued on non-accruing loans under the original terms but was not recognized as interest income totaled $72 thousand and $93 thousand for the years ended December 31, 2017 and 2016, respectively. The following tables present 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, 2017 and 2016: December 31, 2017 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial: Commercial and industrial $ 84,811 $ - $ 584 $ - $ 85,395 Commercial mortgage 235,114 - 832 - 235,946 Commercial construction 30,866 - - - 30,866 Residential mortgage loans 133,727 - - - 133,727 Consumer: Home equity lines of credit 19,295 - - - 19,295 Other consumer loans 13,780 - - - 13,780 Total $ 517,593 $ - $ 1,416 $ - $ 519,009 December 31, 2016 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial: Commercial and industrial $ 88,503 $ - $ 1,122 $ - $ 89,625 Commercial mortgage 221,544 - 1,771 - 223,315 Commercial construction 22,408 - - - 22,408 Residential mortgage loans 110,538 - - - 110,538 Consumer: Home equity lines of credit 24,655 - 14 - 24,669 Other consumer loans 17,463 - 51 - 17,514 Total $ 485,111 $ - $ 2,958 $ - $ 488,069 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of December 31, 2017 and 2016: December 31, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivables (Dollars in thousands) Commercial: Commercial and industrial $ 36 $ 284 $ 698 $ 1,018 $ 84,377 $ 85,395 Commercial mortgage 2,206 - 200 2,406 233,540 235,946 Commercial construction - - - - 30,866 30,866 Residential mortgage loans 329 - - 329 133,398 133,727 Consumer: Home equity lines of credit - - - - 19,295 19,295 Other consumer loans 33 65 3 101 13,679 13,780 Total $ 2,604 $ 349 $ 901 $ 3,854 $ 515,155 $ 519,009 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivables (Dollars in thousands) Commercial: Commercial and industrial $ 293 $ 60 $ 632 $ 985 $ 88,640 $ 89,625 Commercial mortgage - - 6 6 223,309 223,315 Commercial construction - - - - 22,408 22,408 Residential mortgage loans - 104 - 104 110,434 110,538 Consumer: Home equity lines of credit - - - - 24,669 24,669 Other consumer loans 17 - 4 21 17,493 17,514 Total $ 310 $ 164 $ 642 $ 1,116 $ 486,953 $ 488,069 As of December 31, 2017 there was one loan totaling $263 thousand that is past due 90 days and still accruing interest. This single loan relationship was paid off in its entirety in January 2018, with no losses incurred. As of December 31, 2016, there were no loans 90 days past due and still accruing interest. Troubled Debt Restructurings The Company may grant a concession or modification for economic or legal reasons related to a borrower’s declining financial condition that it would not otherwise consider, resulting in a modified loan which is then identified as a troubled debt restructuring (“TDR”). The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, and negative trends may result in a payment default in the near future. The following table reflects information regarding TDR’s entered into by the Company for the period ended December 31, 2017. For the year ended December 31, 2017 Number of Contracts Pre-Modification Outstanding Recorded Investments Post-Modification Outstanding Recorded Investments (Dollars in thousands) Troubled debt restructurings: Commercial and industrial 2 $ 221 $ 206 Commercial mortgage 1 164 149 Total 3 $ 385 $ 355 For the year ended December 31, 2017, there were two loans, involving one borrower, modified into trouble debt restructurings related to a participation in a combined loan relationship whereby the Bank and all other banks involved entered into an agreement to accept a payment modification which resulted in a loss recorded by the Bank of $30 thousand and one loan for $55 thousand, modified into an interest only payment which did not result in any losses incurred. For the year ended December 31, 2016 there were no new TDR’s entered into. The following tables summarize the balance of outstanding TDR’s at December 31, 2017 and December 31, 2016: Number of Loans Performing TDR's Non-Performing TDR's Total TDRs (Dollars in thousands) December 31, 2017 Commercial and Industrial 2 $ 147 $ 55 $ 202 Commercial mortgage loans 1 146 - 146 Residential mortgage loans 1 637 - 637 Total 4 $ 930 $ 55 $ 985 Number of Loans Performing TDR's Non-Performing TDR's Total TDRs (Dollars in thousands) December 31, 2016 Residential mortgage loans 1 $ 637 $ - $ 637 Home equity lines of credit 1 - 14 14 Other consumer loans 1 - 20 20 Total 3 $ 637 $ 34 $ 671 As of December 31, 2017, there was one commercial loan TDR totaling $55 thousand which was in default and is classified as non-accrual. As of December 31, 2017 and 2016 there were no other TDR’s which were subsequently in default and there were no commitments to lend additional funds to debtors whose terms have been modified in TDR’s. The carrying amount of foreclosed residential mortgage properties held was $466 thousand as of December 31, 2017. There were no consumer mortgage loans collateralized by residential real estate property that were in the process of foreclosure as of December 31, 2017. |
Transactions with Executive Off
Transactions with Executive Officers, Directors and Principal Shareholders | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Transactions with Executive Officers, Directors and Principal Shareholders | Note 6—Transactions with Executive Officers, Directors and Principal Shareholders The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with its executive officers, directors, principal shareholders, their immediate families and affiliated companies (commonly referred to as related parties), on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with others and do not involve more than the normal risk of collectability. Activity of these loans is as follows: December 31, 2017 2016 (Dollars in thousands) Balance, beginning of year $ 5,466 $ 5,722 New loans 2,549 2,174 Loans of Retired Officers (773 ) - Repayments (1,686 ) (2,430 ) Balance at end of year $ 5,556 $ 5,466 Deposits of related parties totaled $9.5 million and $7.7 million at December 31, 2017 and 2016, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 7—Premises and Equipment The components of premises and equipment at December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (Dollars in thousands) Buildings $ 1,143 $ 1,143 Leasehold improvements 1,424 1,422 Furniture, fixtures and equipment 799 818 Automobiles 20 24 Computer equipment and data processing software 765 736 4,151 4,143 Accumulated depreciation (2,544 ) (2,388 ) $ 1,607 $ 1,755 Depreciation expense for the years ended December 31, 2017 and 2016 was $262 thousand and $309 thousand, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |
Deposits | Note 8—Deposits The components of deposits at December 31, 2017 and 2016 are as follows: As of December 31, 2017 2016 (Dollars in thousands) Demand, non-interest bearing $ 65,634 $ 54,817 Demand, interest-bearing 29,918 57,168 Money market and savings accounts 145,355 113,655 Time, $100 and over 84,358 45,311 Time, other 197,885 196,737 $ 523,150 $ 467,688 Included in time, other at December 31, 2017 and 2016 are brokered deposits of $120.2 million, and $138.8 million, respectively. As of December 31, 2017 and 2016 aggregate time deposits which exceed the $250 thousand FDIC insurance limit were $32.1 million and $8.0 million, respectively. At December 31, 2017, the scheduled maturities of time deposits are as follows: December 31, 2017 (Dollars in thousands) 2018 $ 155,229 2019 76,431 2020 24,421 2021 17,942 2022 8,220 Thereafter - $ 282,243 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Note 9—Borrowings As of December 31, 2017 and 2016, the Company had an unused borrowing facility with a correspondent bank totaling $10 million, of which $2 million is available unsecured. The remaining $8 million is a secured line of credit with security provided, when utilized, by a pledge of the Company’s investment assets. The Bank has been a member of FHLB since March 2008. Advances are collateralized by restricted investments in FHLB bank stock totaling $1.3 million and $3.1 million at December 31, 2017 and 2016, respectively, by a specific pledge of the Bank’s investment assets and by a blanket lien on the Bank’s loan portfolio. At December 31, 2017 and 2016, respectively, the Bank had borrowing capacity with the FHLB, of $221 million and $206 million, respectively, with advances outstanding as of those dates of $24.6 million and $68.2 million, respectively. Investment securities with a carrying value of $20 thousand and $40 thousand were specifically pledged as collateral to secure FHLB borrowings as of December 31, 2017 and 2016, respectively. Short-Term Borrowings At December 31, 2017 and 2016, First Priority had short-term borrowings totaling $15.6 million and $56.2 million, respectively, consisting of advances from the FHLB with an original maturity of less than a year. Advances from the FHLB at December 31, 2017 are collateralized by our investment in the common stock of the FHLB and by a blanket lien on selected mortgage loans within the Bank’s portfolio. The following table outlines First Priority’s various sources of short-term borrowed funds at or for the years ended December 31, 2017 and 2016. The maximum balance represents the highest indebtedness for each category of short-term borrowed funds at any month-end during each of the years shown. December 31, 2017 2016 (Dollars in thousands) Federal funds purchased: Balance at year end $ - $ - Weighted average rate at year end - - Maximum month-end balance $ 19 $ - Average daily balance during the year $ 3 $ 2 Weighted average rate during the year 1.52 % 0.76 % FHLB short-term borrowings: Balance at year end $ 15,625 $ 56,164 Weighted average rate at year end 1.54 % 0.74 % Maximum month-end balance $ 70,400 $ 60,688 Average daily balance during the year $ 26,446 $ 22,508 Weighted average rate during the year 1.15 % 0.61 % Long-Term Debt Long-term debt, consisting of FHLB advances with an original maturity of one year or greater, totaled $9.0 million and $12.0 million as of December 31, 2017 and 2016, respectively. Average balances outstanding totaled $10.9 million and $14.1 million, respectively, with an average cost of 1.30% and 1.12%, respectively, for the years ended December 31, 2017 and 2016. Advances are made pursuant to several different credit programs offered from time to time by the FHLB. At December 31, 2017, scheduled maturities of long-term borrowings with the FHLB are as follows: Balance Weighted Average Rate (Dollars in thousands) 2018 $ 3,000 1.31 % 2019 2,000 1.64 % 2020 4,000 1.75 % $ 9,000 1.58 % |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | Note 10 —Subordinated Debt On November 13, 2015, First Priority Bank entered into Subordinated Note Purchase Agreements with five accredited investors under which the Bank issued subordinated notes (the “Notes”) totaling $9.5 million, resulting in net proceeds of approximately $9.2 million after issuance costs of $318 thousand. The Notes have a maturity date of November 30, 2025, and will bear interest at a fixed rate of 7.00% per annum. The Notes are non-callable for an initial period of five years and include provisions for redemption pricing between 101.5% and 100.5% of the total of $9.5 million, plus accrued but unpaid interest thereon up to but excluding the redemption date, if called after five years but prior to the maturity date. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Lease Commitments | Note 11—Lease Commitments Pursuant to the terms of non-cancellable lease agreements in effect at December 31, 2017, pertaining to premises, future minimum lease payments by year and in the aggregate, under these lease agreements, are as follows: Minimum Lease Payments (Dollars in thousands) 2018 $ 1,246 2019 1,266 2020 1,172 2021 971 2022 878 Thereafter 2,832 $ 8,365 The minimum lease payments shown above include payments for the entire current term. Option periods for which the Company has an option to extend the lease beyond current periods have not been included as part of the minimum lease payments. Lease expense for all leases for the years ended December 31, 2017 and 2016 was $1.09 million and $1.13 million, respectively. During 2016, the Bank closed its Plumstead branch office location upon reaching the end of the initial lease term. |
Severance and Employment Agreem
Severance and Employment Agreements | 12 Months Ended |
Dec. 31, 2017 | |
Restructuring And Related Activities [Abstract] | |
Severance and Employment Agreements | Note 12—Severance and Employment Agreements On December 19, 2013, the board of directors of the Company approved severance agreements between the Company and participating senior officers. Under the First Priority Bank Severance Plan (the “Severance Plan”), which is a broad-based severance plan applicable to certain employees of the Company and the Bank. Each participating senior officer will receive a severance benefit equal to continued base salary, as defined, for a period ranging between six and eighteen months in the event that the officer’s employment is terminated within one year following a “change in control” as a result of a work force reduction or job elimination. In addition, each senior officer also received a grant of stock options under the Company’s existing Stock Compensation Program. These issued options, totaling 355,000, which vest only upon a change in control of the Company, will remain outstanding for a period of ten years, expiring as of December 19, 2023, at an exercise price of $5.25. On December 19, 2013, as part of the Company’s long-term incentive compensation program, each senior officer also received a grant of restricted stock under the Company’s Stock Compensation Program, totaling 89,500 shares in aggregate, which vested three years from the grant date. The Company has an employment agreement with its president, who does not participate in the previously mentioned Severance Plan. The employment agreement provides for a three year term that is automatically renewed on each anniversary date of the agreement for an additional year unless either party gives notice to the other of non-renewal at least 60 days prior to such anniversary date. The agreement provides for a base salary and benefits commensurate with other First Priority executive officers, including health insurance, vacation, use of a company vehicle, supplemental life insurance and disability coverage, among other things. The agreement can be terminated for “cause” as defined in the agreement. If First Priority were to terminate its president’s employment without cause, or if the president were to terminate his employment for “good reason”, as defined, including but not limited to, change in control of First Priority, he will be entitled to receive post termination benefits as follows: an amount equal to three (3) times the sum of (i) the highest salary paid to him in the year of termination or prior two calendar years and (ii) the highest bonus paid to him in one of the three calendar years prior to termination and (iii) an adjustment for benefits. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2017 | |
Equity [Abstract] | |
Shareholders' Equity | Note 13—Shareholders’ Equity The Company amended its articles of incorporation, effective May 4, 2016, to increase the number of authorized shares of its common stock, $1.00 par value, from 10,000,000 shares to 20,000,000 shares. The amendment was approved by shareholders at the 2016 annual meeting of shareholders held on May 3, 2016. As of December 31, 2017 and 2016 the Company had 3,404 shares of 9% fixed rate, Cumulative Perpetual Preferred Stock outstanding totaling $3.4 million. On January 22, 2016, First Priority redeemed $6.0 million of its outstanding Preferred Stock for a total redemption price of $1,016.75 per share which included accrued dividends. This redemption included all shares of outstanding Series A (4,579 shares; par value $1,000) and Series B (229 shares; par value $1,000); and approximately 25.9% of Series C (1,192 shares of 4,596 shares outstanding; par value $1,000). The shares of Series C were selected for redemption on a pro rata basis. After the completion of these redemptions, 3,404 shares of Series C Preferred Stock are outstanding as of December 31, 2017. The Preferred Stock has no maturity date and ranks senior to common stock with respect to dividends and upon liquidation, dissolution, or winding up. The Company may redeem the Preferred Stock, in whole or in part, at its liquidation preference plus accrued and unpaid dividends. |
Stock Compensation Program
Stock Compensation Program | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Compensation Program | Note 14—Stock Compensation Program In 2005, the Company adopted the 2005 Stock Compensation Program, which was amended at the Company’s annual meeting on April 23, 2009 as the 2009 Stock Compensation Program (the “Program”) and further amended effective March 18, 2010. The Program allows equity benefits to be awarded in the form of Incentive Stock Options, Compensatory Stock Options or Restricted Stock. The Program authorizes the Board of Directors to grant options up to an aggregate maximum of 1,207,957 shares to officers, other employees and directors of the Company, including 382,957 shares which were authorized for grant under this plan as a result of the merger with Affinity. Only employees of the Company will be eligible to receive Incentive Stock Options and such grants are subject to the limitations under Section 422 of the Internal Revenue Code. All stock options granted under the Program fully vest in four years from the date of grant (or potentially earlier upon a change of control), excluding options issued in regards to the Company’s Severance Plan which vest only upon change in control, and options terminate ten years from the date of the grant. The exercise price of the options granted is the fair value of a share of common stock at the time of the grant. A summary of the Stock Option Plan is presented below: For the Years Ended December 31, 2017 2016 Options to Purchase Common Shares Weighted Average Exercise Price Options to Purchase Common Shares (1) Weighted Average Exercise Price Outstanding at beginning of year 955,060 $6.35 970,193 $6.41 Granted during year 7,500 7.92 37,500 5.93 Forfeited/cancelled during the year (40,000) 6.19 (32,500) 5.91 Exercised - - (2,000) 5.73 Expired (114,690) 10.08 (18,133) 9.65 Outstanding at end of year 807,870 $5.84 955,060 $6.35 Exercisable at end of year 239,870 $6.62 354,560 $7.74 (1) Included in options outstanding and exercisable at December 31, 2016 are 100,000 organizer options, with an exercise price of $10.00 per share which expired on October 18, 2017. The weighted average remaining contractual lives of all outstanding stock options and exercisable at December 31, 2017 and 2016 were 5.46 years and 3.05 years, respectively, and 5.84 years and 2.98 years, respectively. The aggregate intrinsic value of all outstanding stock options based on the closing stock price was $2.5 million as of December 31, 2017, including $586 thousand related to currently exercisable options, and $705 thousand as of December 31, 2016, including $150 thousand related to exercisable options. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2017 2016 Dividend yield 0.0% 0.0% Expected life 7 years 7 years Expected volatility 23% 26% Risk-free interest rate 2.04% 1.63% Weighted average fair value $2.34 $1.83 For option grants to individual employees, the Company assumes no forfeitures. For option grants made to a group of employees, a 10% forfeiture rate is typically assumed at the date of the grant, and compared to actual forfeitures on an annual basis. The dividend yield assumption is based on the Company’s history and expectation of dividend payouts. Due to the Company’s lack of sufficient historical exercise data and the limited period of time for which shares have been issued, the “simplified” method is used to determine the expected life of options, calculated as the average of the sum of the vesting term and original contractual term for all periods presented. The expected volatility percentage is based on the average expected volatility of similar public financial institutions in the Company’s market area. The risk-free interest rates for periods within the contractual life of the awards are based on the U.S. Treasury yield curve in effect at the time of grant. As of December 31, 2017, there was $146 thousand of unrecognized compensation cost related to non-vested stock options granted after January 1, 2007, excluding those stock options issued in conjunction with the severance plan (see Note 12). That cost is expected to be recognized over a weighted average period of 1.72 years. There was no tax benefit recognized related to this stock-based compensation. There are 355,000 stock options issued in connection with the termination of the previously executed change in control agreements and the adoption of the severance plan with $576 thousand of unrecognized compensation cost which will only be recognized if a change in control occurs, based on the options which remain outstanding and are probable to vest at that time. During 2015, included in the options granted, there were 99,000 performance options issued to various employees. Certain performance criteria must be achieved over the performance period in order for the option granted to vest. Performance is analyzed on a quarterly basis to determine if the specific required performance is more likely than not to be achieved. Based on this evaluation, 82,500 performance options were cancelled to date, leaving 16,500 outstanding as of December 31, 2017. These non-vested options may be further adjusted in the future if the performance measures are not met. Restricted stock grants fully vest after a minimum of three years from the date of grant (or potentially earlier upon a change of control or retirement after the age of 66), subject to the recipient remaining an employee of the Company. Directors are also granted restricted stock as part of their compensation for their services on the Board of Directors, or related Committees, as approved by the Compensation Committee of the Board. Upon issuance of the shares, resale of the shares is restricted during the vesting period, during which the shares may not be sold, pledged, or otherwise disposed of. Prior to the vesting date and in the event the recipient terminates association with Company for any reasons other than death, disability or change of control, the recipient forfeits all rights to the shares that would otherwise be issued under the grant. Compensation expense related to restricted stock awards granted under the Plan is determined at the date of the award based on the estimated fair value of the shares and is amortized over the vesting period. As of December 31, 2017, there was $520 thousand of unrecognized compensation cost related to restricted stock, which will be amortized through July 31, 2021. A summary of restricted stock award activity is presented below for the years presented: For the Years Ended December 31, 2017 2016 Outstanding unvested shares at beginning of year 89,450 165,474 Shares granted during year 52,700 36,250 Shares forfeited/cancelled during year (4,450 ) (725 ) Vested Shares during this period (13,550 ) (111,549 ) Outstanding unvested shares at end of year 124,150 89,450 |
Federal Income Taxes
Federal Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Federal Income Taxes | Note 15—Federal Income Taxes Deferred tax assets (“DTA”) are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. When determining the need for a valuation allowance, the Company assessed the possible sources of taxable income available under tax law to realize a tax benefit for deductible temporary differences and carryforwards, as defined by Accounting Standards Codification (“ASC”) Topic 740-10-30-18. This guidance related to when a valuation allowance on the DTA should be maintained, generally provides that the valuation allowance should be reversed, when in the judgment of management, it is more likely than not that the DTA will be realized. First Priority has determined that it is more likely than not that the net deferred tax asset will be realized, and therefore, in its judgment, a valuation allowance related to net deferred tax assets is not required. When evaluating the Company’s deferred tax asset and related valuation allowance, management considered the four sources of taxable income identified in ASC Topic 740-10-30-18 including: • Future reversals of existing taxable temporary differences. • Taxable income in prior carryback year(s) if carryback is permitted under the tax law. • Tax-planning strategies (see paragraph 740-10-30-19) that would, if necessary, be implemented • Future taxable income exclusive of reversing temporary differences and carryforwards Additionally, the Company also considers tax planning strategies which could accelerate taxable income and allow the Company to take advantage of future deductible differences. A qualified tax-planning strategy is an action that (a) is prudent and feasible; (b) a company ordinarily might not take, but would take to prevent an operating loss or tax credit carryforward from expiring unused; and (c) would result in the realization of deferred tax assets. The components of the net deferred tax asset at December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 583 $ 701 Organization and start-up costs 35 75 Net operating loss carryforwards - 833 Net operating loss carryforwards--acquired 231 670 Contribution carryforward - 9 Non-qualified stock option expense 208 283 Other real estate owned deferred costs 18 215 Unrealized loss on investment securities 3 21 Alternative minimum tax carryforward - 199 Property and equipment 35 35 Unfunded loan commitment reserve 7 12 Total Deferred Tax Assets 1,120 3,053 Deferred tax liabilities: Acquisition accounting 66 135 Cash basis conversions 120 206 Discount accretion on investment securities 11 15 Total Deferred Tax Liabilities 197 356 Net Deferred Tax Asset $ 923 $ 2,697 First Priority’s net deferred tax asset as of December 31, 2017 includes $231 thousand related to net operating losses (“NOL”) acquired related to the acquisition of Prestige Community Bank and Affinity Bancorp which are subject to certain limitations and expire in 2028 and 2032, respectively, if not fully utilized. The acquired NOL carryforward balance of $1.1 million remains available to reduce future federal income taxes as of December 31, 2017. The following table presents the income tax expense for the years ended December 31, 2017 and 2016. For the year ended December 31, 2017 2016 (Dollars in thousands) Current tax expense: Federal $ 227 $ 94 State 19 46 Deferred Income tax expense: Federal 1,755 988 Income tax expense $ 2,001 $ 1,128 Reconciliation of the statutory federal income tax expense computed at 34% to the income tax expense included in the consolidated statements of income is as follows: For the year ended December 31, 2017 2016 (Dollars in thousands) Federal income tax expense at statutory rate of 34%: $ 1,516 $ 1,165 Increase (decrease) in taxes resulting from: Tax exempt interest income, net (159 ) (109 ) Tax exempt income on bank owned life insurance (24 ) (26 ) Applicable state income taxes 13 30 Stock compensation adjustment for expired options (3 ) 30 Tax Cut and Jobs Act adjustment to deferred tax asset 571 - Other 87 38 Federal income tax expense $ 2,001 $ 1,128 The year ended December 31, 2017 included a non-recurring non-cash reduction in the value of First Priority’s net deferred tax asset which resulted in a charge of $571 thousand and is included in the provision for income tax expense. This income tax adjustment was a result of the Tax Cuts and Jobs Act, enacted on December 22, 2017, which lowered First Priority’s future maximum corporate tax rate from 34 percent to 21 percent. Although this reduced rate will provide tax savings in future periods, this charge was required to write-down First Priority’s DTA which was previously valued based upon the projection of a 34 percent future tax benefit. The Company’s policy |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2017 | |
Commitments And Contingencies Disclosure [Abstract] | |
Financial Instruments with Off-Balance Sheet Risk | Note 16—Financial Instruments with Off-Balance Sheet Risk 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. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheet. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend 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. At December 31, 2017 and 2016, outstanding commitments to extend credit consisting of total unfunded commitments under lines of credit were $115.2 million and $98.2 million, respectively. In addition, as of each of these dates, there were $2.3 million and $958 thousand of performance standby letters of credit outstanding, respectively, and $1.7 million of financial standby letters of credit as of each respective date, issued on behalf of the Bank’s customers. As of December 31, 2017 the Company did not have any deposit letters of credit outstanding; however as of December 31, 2016, the Company had deposit letters of credit totaling $16.0 million, issued by the Federal Home Loan Bank of Pittsburgh (“FHLB”), as required to provide collateral on certain municipal deposits maintained at the Bank. These deposit letters of credit were secured by a blanket lien on selected mortgage loans within First Priority Bank’s portfolio. 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 require payment of a fee. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include residential or commercial real estate, accounts receivable, inventory and equipment. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |
Regulatory Matters | Note 17—Regulatory Matters The Bank’s capital amounts (dollars in thousands) and ratios at December 31, 2017 and 2016 are presented below: Actual Minimum Capital Requirement To be Well Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Total capital (to risk-weighted assets) $ 59,886 12.15 % $ 39,434 >8.0 % $ >49,292 >10.0 % Tier 1 capital (to risk-weighted assets) 47,215 9.58 >29,575 >6.0 >39,434 >8.0 Tier 1 common equity capital (to risk-weighted assets) 47,215 9.58 >22,182 >4.5 >32,040 >6.5 Tier 1 capital (to total assets) 47,215 8.08 >23,384 >4.0 >29,230 >5.0 December 31, 2016 Total capital (to risk-weighted assets) $ 55,900 12.07 % $ >37,064 >8.0 % $ >46,330 >10.0 % Tier 1 capital (to risk-weighted assets) 43,328 9.35 >27,798 >6.0 >37,064 >8.0 Tier 1 common equity capital (to risk-weighted assets) 43,328 9.35 >20,848 >4.5 >30,114 >6.5 Tier 1 capital (to total assets) 43,328 7.87 >22,023 >4.0 >27,528 >5.0 The federal banking agencies approved rules that implemented the Dodd-Frank requirements and certain other regulatory capital reforms which were designed to enhance such requirements and implement the revised standards of the Basel Committee on Banking Supervision, commonly referred to as Basel III. Under these rules, in order to avoid limitations on capital distributions (including dividend payments and certain discretionary bonus payments to executive officers), a banking organization must hold a capital conservation buffer comprised of common equity tier 1 capital above its minimum risk-based capital requirements in an amount greater than 2.5% of total risk-weighted assets. The capital contribution buffer requirements is being phased in over a three-year period beginning January 1, 2016 and was 0.625% in 2016, 1.25% during 2017 and is 1.875% in 2018. The capital buffer requirement, on a fully phased-in basis as of January 1, 2019, effectively raises the minimum required common equity Tier 1 capital ratio to 7.0% (5.125% in 2016 and 5.75% in 2017), the Tier 1 capital ratio to 8.5% (6.625% in 2016 and 7.25% in 2017), and the total capital ratio to 10.5% (8.625% in 2016 and 9.25% in 2017). First Priority’s ability to pay cash dividends is dependent on receiving cash in the form of dividends from the Bank. However, certain restrictions exist regarding the ability of the Bank to transfer funds to First Priority in the form of cash dividends. All dividends are currently subject to prior approval of the Pennsylvania Department of Banking and Securities and the FDIC and are payable only from the undivided profits of the Bank, with the exception of an exemption enacted by the Pennsylvania Department of Banking and Securities which allows the Bank to pay dividends related to preferred stock originally issued under the U.S. Department of the Treasury’s Troubled Asset Relief Program—Capital Purchase Program. Additionally, First Priority has met the requirement of obtaining prior approval from the Federal Reserve Bank on any payment of dividends including dividends on the aforementioned preferred stock, when net income for the past four quarters is not sufficient to fund the dividend payments over that same period or when such payment would negatively impact capital adequacy of the Company. |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Values of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Fair Values of Financial Instruments | Note 18—Fair Value Measurements and Fair Values of Financial Instruments Management uses its best judgment in estimating the fair value of the Bank’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of December 31, 2017 and 2016 and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each year-end. The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with FASB ASC Topic 820 – Fair Value Measurements The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. FASB ASC Topic 820 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 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under FASB ASC Topic 820 are as follows: Level 1 : Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. Level 2 : Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. Level 3 : Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. During the years ended December 31, 2017 and 2016 there were no changes in methodologies for determining fair value measurements and there were no transfers between fair value hierarchy levels. 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, 2017 and 2016 are as follows: Description Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs (Dollars in thousands) As of December 31, 2017: Investment securities available for sale: Obligations of U.S. government agencies and corporations $ 20,971 $ - $ 20,971 $ - Obligations of states and political subdivisions 4,386 - 4,386 - Federal agency mortgage-backed securities 25,289 - 25,289 - Federal agency collateralized mortgage obligations 109 - 109 - Other debt securities 1,583 - 1,583 - Money market mutual fund 35 35 - - Total assets measured at fair value on a recurring basis $ 52,373 $ 35 $ 52,338 $ - Description Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs (Dollars in thousands) As of December 31, 2016: Investment securities available for sale: Obligations of U.S. government agencies and corporations $ 45,987 $ - $ 45,987 $ - Obligations of states and political subdivisions 6,139 - 6,139 - Federal agency mortgage-backed securities 13,720 - 13,720 - Federal agency collateralized mortgage obligations 189 - 189 - Other debt securities 1,530 - 1,530 - Money market mutual fund 2,995 2,995 - - Total assets measured at fair value on a recurring basis $ 70,560 $ 2,995 $ 67,565 $ - For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and 2016 are as follows: Description Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs (Dollars in thousands) As of December 31, 2017: Impaired loans $ 1,119 $ - $ - $ 1,119 Other real estate owned 69 - - 69 Total assets measured at fair value on a nonrecurring basis $ 1,188 $ - $ - $ 1,188 As of December 31, 2016: Impaired loans $ 1,257 $ - $ - $ 1,257 Other real estate owned 679 - - 679 Total assets measured at fair value on a nonrecurring basis $ 1,936 $ - $ - $ 1,936 Management generally uses a discounted appraisal technique in valuing impaired assets, resulting in the discounting of the collateral values underlying each impaired asset. A discounted tax assessment rate has been applied for smaller assets to determine the discounted collateral value. All impaired loans are classified as Level 3 in the fair value hierarchy. Collateral may be real estate and / or business assets. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment. Quantitative information about Level 3 fair value measurements at December 31, 2017 is included in the table below: Fair Value Valuation Techniques Unobservable Inputs (2) Estimated Ratings (Weighted Average) (3) (Dollars in thousands) Impaired loans $ 1,119 Appraisal of real estate collateral (1) Appraisal adjustments 0%-75% (12.19%) Liquidation expenses 0%-10% (8.47%) Other real estate owned $ 69 Appraisal of collateral(1) Appraisal adjustments 0% (0.00%) Liquidation expenses 8% (8.00%) Quantitative information about Level 3 fair value measurements at December 31, 2016 is included in the table below: Fair Value Valuation Techniques Unobservable Inputs (2) Estimated Ratings (Weighted Average) (3) (Dollars in thousands) Impaired loans $ 1,257 Appraisal of real estate collateral (1) Appraisal adjustments 0%-25% (4.87%) Valuation of business assets used as collateral(4) Valuation adjustments 0%-80% (75.32%) Liquidation expenses 0%-10% (8.01%) Other real estate owned $ 679 Appraisal of collateral(1) Appraisal adjustments 0% (0.00%) Liquidation expenses 5%-7% (6.94%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which include Level 3 inputs that are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. (3) The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value. (4) Fair value is generally determined based on specific customer’s business assets, such as accounts receivable, which have been used as collateral for loans. Valuation of real estate collateral may be discounted based on the age of the existing appraisal. Discounts are typically not taken for recent appraisals. Valuations related to business assets used as collateral are typically discounted more heavily due to the inherent level of uncertainty in determining the fair value of these types of assets. Liquidation costs relating to these assets are charged to expense. Other real estate owned measured at fair value on a nonrecurring basis consists of properties acquired as a result of accepting a deed in lieu of foreclosure, foreclosure or through other means related to collateral on Bank loans which resulted in a gain or loss recognized during the period. Costs relating to the development or improvement of assets are capitalized and costs relating to holding the property are charged to expense. At December 31, 2017 and 2016, the fair value of other real estate owned consists of balances of $69 thousand and $1.2 million, respectively, net of valuation allowances of $38 thousand, and $520 thousand, respectively. Fair value is generally determined based upon independent third-party appraisals of the property. Real estate properties acquired through, or in lieu of, foreclosure are to be sold and are carried at fair value less estimated cost to sell. Fair value is based upon independent market prices or appraised value of the property. These assets are included in Level 3 fair value based upon the lowest level of input that is significant to the fair value measurement. 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 not be meaningful. The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2017 and 2016: Cash and Cash Equivalents 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), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices. Loans Receivable The fair values of 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. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Impaired Loans Impaired loans, which are included in loans receivable, are those that are accounted for under FASB ASC Topic 310, “Receivables” , Restricted Investment in Bank Stock The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities. Accrued Interest Receivable and Payable The carrying amount of accrued interest receivable and accrued interest payable approximates fair value. Deposit Liabilities The fair values disclosed for demand deposits (interest and noninterest checking), money market and savings accounts are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market to the maturities of the time deposits. Short-Term Borrowings The carrying amounts of short-term borrowings approximate their fair values. Long-Term Debt Fair values of FHLB advances are estimated using 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 party. Subordinated Debt The fair values of subordinated debt has been estimated using discounted cash flow calculation taking into account contractual maturities, call features, and market interest rates for instruments with similar financial and credit characteristics. These instruments are classified within Level 2 of the fair value hierarchy. Off-Balance Sheet Financial Instruments 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. At December 31, 2017 and 2016, the estimated fair values of the Company’s financial instruments were as follows: December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 8,257 $ 8,257 $ 8,257 $ - $ - Securities available for sale 52,373 52,373 35 52,338 - Securities held to maturity 18,665 19,665 - 19,665 - Loans receivable, net 515,522 519,721 - - 519,721 Restricted stock 1,416 1,416 - 1,416 - Accrued interest receivable 2,007 2,007 - 2,007 - Liabilities: Deposits 523,150 521,922 - 521,922 - Federal Home Loan Bank of Pittsburgh advances 24,625 24,546 - 24,546 - Subordinated debt 9,231 9,539 - 9,539 - Accrued interest payable 844 844 - 844 - Off-balance sheet credit related instruments: Commitments to extend credit - - - - - December 31, 2016 Carrying Amount Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 4,761 $ 4,761 $ 4,761 $ - $ - Securities available for sale 70,560 70,560 2,995 67,565 - Securities held to maturity 19,043 19,584 - 19,584 - Loans receivable, net 484,913 490,890 - - 490,890 Restricted stock 3,257 3,257 - 3,257 - Accrued interest receivable 1,817 1,817 - 1,817 - Liabilities: Deposits 467,688 467,616 - 467,616 - Federal Home Loan Bank of Pittsburgh advances 68,164 68,157 - 68,157 - Subordinated debt 9,207 9,273 - 9,273 - Accrued interest payable 510 510 - 510 - Off-balance sheet credit related instruments: |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Information | Note 19—Parent Company Only Financial Information Condensed financial statements of First Priority Financial Corp. follow: CONDENSED BALANCE SHEETS December 31, 2017 2016 (Dollars in thousands) Assets Cash and cash equivalents $ 27 $ 243 Investment in subsidiary 50,118 47,454 Deferred taxes 238 349 Receivable due from bank subsidiary 119 - Other assets 18 32 Total assets $ 50,520 $ 48,078 Liabilities and shareholders' equity Other liabilities $ 24 $ 32 Shareholders' equity 50,496 48,046 Total liabilities and shareholders' equity $ 50,520 $ 48,078 CONDENSED INCOME STATEMENTS For the year ended December 31, 2017 2016 (Dollars in thousands) Dividend income from subsidiary, net of dividends paid by Bank $ 306 $ 407 Interest from subsidiary 1 2 Total income 307 409 Non-interest expenses 103 161 Income before taxes and equity in undistributed net income of subsidiary 204 248 Federal income tax expense (benefit) 112 (54 ) Income before equity in undistributed net income of subsidiary 92 302 Equity in undistributed net income of subsidiary 2,366 1,998 Net income $ 2,458 $ 2,300 STATEMENTS OF COMPREHENSIVE INCOME For the year ended December 31, 2017 2016 (Dollars in thousands) Net income $ 2,458 $ 2,300 Other comprehensive (loss) income: Securities available for sale: Change in unrealized gain on securities available for sale 484 405 Reclassification adjustment for realized gains included in net income (416 ) (795 ) Tax effect (23 ) 133 Net (losses) gains arising during the period 45 (257 ) Net unrealized holding losses on securities transferred between available for sale and held to maturity: Amortization of net unrealized holding losses to income during the period……………………………………..…….…………………………………… (14 ) (31 ) Tax effect 5 10 Net unrealized holding losses on securities transferred during the period (9 ) (21 ) Total other comprehensive (loss) income 36 (278 ) Total comprehensive income $ 2,494 $ 2,022 CONDENSED STATEMENTS OF CASH FLOWS For the year ended December 31, 2017 2016 (Dollars in thousands) Operating activities: Net income $ 2,458 $ 2,300 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiary, net of dividends from Bank (2,628 ) (2,326 ) Stock based compensation distribution from Bank 262 328 Deferred income tax expense (benefit) 111 (54 ) Net increase in other assets (105 ) (4 ) Net (decrease) increase in other liabilities (8 ) 3 Net cash provided by operating activities 90 247 Financing activities: Redemptions of preferred stock - (6,000 ) Proceeds from the exercise of common stock options - 12 Cash dividends paid on preferred stock (306 ) (427 ) Net cash used in financing activities (306 ) (6,415 ) Net decrease in cash (216 ) (6,168 ) Cash and cash equivalents at beginning of the period 243 6,411 Cash and cash equivalents at end of period $ 27 $ 243 |
Subsequent Event
Subsequent Event | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Event | Note 20—Subsequent Event Merger with Mid Penn Bancorp, Inc. As previously announced on January 16, 2018, First Priority entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Mid Penn Bancorp, Inc. (“Mid Penn”) pursuant to which First Priority will merge with and into Mid Penn (the “Merger”), with Mid Penn being the surviving corporation in the Merger. On a pro forma basis, at December 31, 2017, the combined company would have approximately $2.2 billion in total assets, $1.6 billion in loans, $1.8 billion in deposits and $170 million in equity capital. Under the terms of the Merger Agreement, shareholders of First Priority will receive 0.3481 shares of Mid Penn common stock for each share of First Priority common stock they own. Subject to customary closing conditions including regulatory and shareholder approvals, it is expected that the Merger will be completed in the third quarter of 2018. The combination will establish a community bank with 37 retail locations serving 12 counties in Pennsylvania and will have a geographical presence in southeastern Pennsylvania in Berks, Bucks Chester and Montgomery counties, central Pennsylvania in Cumberland, Dauphin, Lancaster, Luzerne, Northumberland and Schuylkill counties and western Pennsylvania in Fayette and Westmoreland counties resulting from Mid Penn’s acquisition of Scottdale Bank & Trust on January 8, 2018. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations First Priority Financial Corp. First Priority Financial Corp. (“First Priority”, the “Company”) is a bank holding company incorporated under the laws of the Commonwealth of Pennsylvania on February 13, 2007. On May 11, 2007, as a result of a reorganization and merger, First Priority Bank (the “Bank”) became a wholly-owned subsidiary of First Priority. First Priority, primarily through the Bank, serves residents and businesses in the Delaware Valley with branches in Berks, Bucks, Chester and Montgomery counties in Pennsylvania. The Bank, headquartered in Malvern, PA, has seven retail branch office locations and one loan production office and is a locally managed community bank providing commercial banking products, primarily loans and deposits. First Priority provides banking services through the Bank and does not engage in any activities other than banking and related activities. First Priority Bank The Bank is a state-chartered commercial banking institution which was incorporated under the laws of the Commonwealth of Pennsylvania on May 25, 2005. The Bank’s deposits are insured by the FDIC up to the maximum amount permitted for all banks. The Bank engages in a full service commercial and consumer banking business with strong private banking and individual wealth management services. The Bank offers a variety of consumer, private banking and commercial loans, mortgage products and commercial real estate financing. The Company’s operations are significantly affected by prevailing economic conditions, competition, and the monetary, fiscal, and regulatory policies of governmental agencies. Lending activities are influenced by a number of factors, including the general credit needs of individuals and small and medium-sized businesses in the Company’s market area, competition, the current regulatory environment, the level of interest rates, and the availability of funds. Deposit flows and costs of funds are influenced by prevailing market rates of interest, competition, account maturities, and the level of personal income and savings in the market area. The Bank also offers certain financial planning and investment management services. These investment services are provided by First Priority Financial Services, a Division of First Priority Bank, through third party providers. In addition, the Bank has entered into solicitation agreements with several investment advisors to provide portfolio management services to customers of the Bank. The Bank currently seeks deposits and commercial and private banking relationships through its banking offices. The Bank provides deposit products that include checking, money market and savings accounts, and certificates of deposit as well as other deposit services, including cash management, electronic banking and mobile products as well as online account opening capabilities. The Bank obtains funding in the local community by providing excellent service and competitive rates to its customers and utilizes various advertising to attract current and potential deposit customers. The Bank also uses brokered certificates of deposit as a cost effective funding alternative. |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements consist of the Company and the Company’s wholly owned consolidated subsidiary, the Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. These statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). |
Subsequent Events | Subsequent Events Management has evaluated events and transactions occurring subsequent to December 31, 2017 for items that should potentially be recognized or disclosed in these Consolidated Financial Statements. The evaluation was conducted through the date these financial statements were issued. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP 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. Material estimates that are particularly susceptible to significant change in the near term relate to the valuation of acquired loans, the determination of the allowance for loan losses, stock-based compensation, impairment of goodwill, impairment of investments, the valuation of deferred tax assets and the valuation of other real estate owned. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the western and northwestern suburbs surrounding Philadelphia. Note 4 of the Notes to Consolidated Financial Statements discusses the types of securities in which the Company currently invests. Note 5 discusses the types of lending in which the Company engages. Although the Company intends to have a diversified loan portfolio, its debtors’ ability to honor their contracts will be influenced by the region’s economy. The Company’s investment portfolio consists principally of obligations of the United States and its agencies and obligations of states and political subdivisions. In the opinion of management, there is no concentration of credit risk in its investment portfolio. The Company places deposits in correspondent accounts and, on occasion, sells Federal funds to qualified financial institutions. Management believes credit risk associated with correspondent accounts and with Federal funds sold is not significant. Therefore, management believes that these particular practices do not subject the Company to unusual credit risk. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, Federal funds sold and short-term money market securities. Generally, Federal funds are purchased or sold for one day periods. Short-term investments are generally purchased with a maturity date of less than three months. The Company is required to maintain cash reserves that are considered restrictions on cash and cash equivalents which consist of required reserves with the Federal Reserve Bank, related to our deposit liabilities. At December 31, 2017 and 2016, these reserve balances were $1.7 million and $1.9 million, respectively. |
Securities | 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. 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. Available for sale securities are carried at fair value. Unrealized gains and losses on available for sale investment securities are reported as increases or decreases in other comprehensive income as a component of shareholders’ equity. 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 term of each security. Any decision to sell a security classified as available for sale would be based on various factors, including significant movements, or anticipated movements in interest rates, changes in the maturity mix of the Company’s assets and liabilities, liquidity needs, regulatory capital considerations and other similar factors. Securities classified as held to maturity are those debt 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, using the interest method over the terms of the securities. Transfer of securities into held to maturity from available for sale are made at fair value at the date of transfer. The unrealized gain/loss at date of transfer is retained in other comprehensive income, and in the current value of the held to maturity securities. Such amounts are amortized over the remaining life of the security. In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost; (2) the financial condition and near-term prospects of the issuer; and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. When a determination is made that an other-than-temporary impairment exists but the Company does not intend to sell the debt security and it is more likely than not that it will not be required to sell the debt security prior to its anticipated recovery, the other-than-temporary impairment is separated into (a) the amount of the total other-than-temporary impairment related to a decrease in cash flows expected to be collected from the debt security (the credit loss) and (b) the amount of the total other-than-temporary impairment related to all other factors. The amount of the total other-than-temporary impairment related to the credit loss is recognized in earnings. The amount of the total other-than-temporary impairment related to all other factors is recognized in other comprehensive income. |
Restricted Investments in Bank Stocks | Restricted Investments in Bank Stocks Restricted investments in bank stocks, which represents the required investment in the common stock of correspondent banks, are carried at cost and consist of stock of the Federal Home Loan Bank of Pittsburgh (“FHLB”) and Atlantic Community Bancshares, Inc. Federal law requires a member institution of the FHLB to hold FHLB stock according to a predetermined formula. 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. |
Loans Receivable | Loans Receivable Loans receivable that 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) by the interest method based on the contractual terms of the related loans, or if the commitment expires unexercised, recognized in income upon expiration. The loans receivable portfolio is segmented into commercial, residential mortgage loans and consumer loans. Commercial loans consist of the following classes: commercial and industrial, commercial construction and commercial mortgage loans. Consumer loans consist of home equity lines of credit and all other consumer loans. The accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. When a loan is placed on nonaccrual status, unpaid interest credited to income in the current year is reversed and unpaid interest accrued in prior years is charged against the allowance for loan losses. Interest received on nonaccrual loans is generally either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The past due status of all classes of loans receivable is determined based on contractual due dates for loan payments. |
Acquired Loans | Acquired Loans Loans acquired as part of a full bank acquisition are initially recorded at their acquisition date fair values. The carryover of allowance for loan losses is prohibited as any credit losses in the loans are included in the determination of the fair value of the loans at the acquisition date. Fair values for acquired loans are based on a discounted cash flow methodology that involves assumptions and judgments as to credit risk, prepayment risk, liquidity risk, default rates, loss severity, payment speeds, collateral values and discount rate. Acquired loans that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments are accounted for as impaired loans under ASC 310-30. The excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable discount and is recognized into interest income over the remaining life of the loans using the interest method. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the non-accretable discount. The non-accretable discount represents estimated future credit losses expected to be incurred over the life of the loan. Subsequent decreases to the expected cash flows require the Company to evaluate the need for an allowance for loan losses on these loans. Subsequent improvements in expected cash flows result in the reversal of a corresponding amount of the non-accretable discount which the Company then reclassifies as an accretable discount that is recognized into interest income over the remaining life of the loans using the interest method. As of December 31, 2017, there were three remaining acquired purchased credit impaired loans with a net recorded balance of $55 thousand, after a non-accretable credit discount of $352 thousand compared to a net recorded balance of $215 thousand, after a non-accretable credit discount of $362 thousand as of December 31, 2016. Acquired loans that met the criteria for non-accrual of interest prior to acquisition may be considered performing upon acquisition, or in the future, regardless of whether the customer is contractually delinquent, if the Company can reasonably estimate the timing and amount of the expected cash flows on such loans and if the Company expects to fully collect the new carrying value of the loans. As such, the Company may no longer consider the loan to be non-accrual or non-performing and may accrue interest on these loans, including the impact of any accretable discount. For acquired loans that are not deemed impaired at acquisition, credit discounts representing the principal losses expected over the life of the loan are a component of the initial fair value and amortized over the life of the asset using the interest method. Subsequent to the acquisition date, the methods utilized to estimate the required allowance for loan losses for these loans is similar to originated loans, however, the Company records a provision for loan losses only when the required allowance exceeds any remaining pooled discounts for loans evaluated collectively for impairment. The Company also purchased portfolios of performing residential mortgage loans in 2014 through 2017, all of which were underwritten using similar underwriting standards as it uses for its organic portfolio. In August 2016, the Company purchased performing commercial loans from within the Bank’s market area. Net acquisition premiums, or discounts, from the purchased loans will be recognized into interest income over the remaining life of the loans using the interest method. There are currently no non-performing loans within these portfolios. |
Allowance for Loan Losses | 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, totaling $35 thousand as of both December 31, 2017 and 2016, represents management’s estimate of potential losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheets. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Because all identified losses are immediately charged off, no portion of the allowance for loan losses is restricted to any individual loan or groups of loans, and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly 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 affect the borrower’s ability to repay, the estimated value of any underlying collateral, composition of the loan portfolio, current economic conditions and other relevant factors. This evaluation is inherently subjective as it requires material estimates that may be susceptible to significant revision as more information becomes available. The allowance consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. 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 that loan. The general component covers pools of loans by loan class including commercial loans not considered impaired, as well as smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. 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. Lending policies and procedures, including underwriting standards and collection, charge-off, and recovery practices. 2. National, regional, and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Nature and volume of the portfolio and terms of loans. 4. Management team with experience, depth, and knowledge in banking and in many areas of lending. Each contributes to the sound credit culture and control within the Company. 5. Volume and severity of past due, classified and nonaccrual loans as well as other loan modifications. 6. The Company engages a third party to perform an independent review of the loan portfolio as a measure for quality and consistency in credit evaluation and credit decisions. 7. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 8. Effect of external factors, such as competition and legal and regulatory requirements. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss calculation. A majority of the Company’s loans are to business owners of many types. The Company makes commercial loans for real estate development and other business purposes required by our customers. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower and/or term of the loan. The assets financed through commercial and industrial loans are used within the business for its ongoing operation. Repayment of these kinds of loans generally comes from the cash flow of the business or the ongoing conversions of assets. Commercial real estate loans include long-term loans financing commercial properties. Repayment of this kind of loan is dependent upon either the ongoing cash flow of the borrowing entity or the resale of or lease of the subject property. Commercial real estate loans typically require a loan to value ratio of not greater than 80% and vary in terms. Construction loans consists of acquisition, construction and development loans serving a diverse customer base in its primary market areas. The composition of this portfolio can change based on local economic conditions such as supply and demand, interest rates and real estate values. The Company typically lends to builders and developers with established relationships, successful operating histories and sound financial resources. Construction loans include both commercial and residential related loans. The commercial portion consists of loans for the purpose of acquiring, developing and constructing a commercial-use structure and for the acquisition, development and/or construction of residential properties, such as single-family homes or smaller multi-family buildings, by residential developers and builders. This may also include the acquisition and development of land on a selective basis. The residential portion consists of loans for the acquisition of and/or construction on land where a residential dwelling is to be built and occupied by the home-owner. Residential mortgages and home equity loans are secured by the borrower’s residential real estate in either a first or second lien position. Residential mortgages and home equity loans have varying loan rates depending on the loan terms. Residential mortgages have amortizations up to 30 years and home equity loans have amortizations up to 15 years. Residential mortgages and home equity loans typically require a loan to value ratio of not greater than 80%. Other consumer loans include installment loans, car loans, and overdraft lines of credit. The majority of these loans are secured. 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. A loan is considered impaired when, based on current information and events, 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 payment 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 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-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values may be discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial 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. 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 criticized special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition, Federal regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. |
Troubled Debt Restructurings | Troubled Debt Restructurings Loans whose terms are modified are classified as troubled debt restructurings (“TDR”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR may be modified by means of extending the maturity date of the loan, reducing the interest rate on the loan to a rate which is below market, a combination of rate adjustments and maturity extensions, or by other means including covenant modifications, forbearances or other concessions. Generally, interest is not accrued on loans that were non-accrual prior to the TDR until they have performed in accordance with the modified terms for a period of at least six months; however, non-accrual TDR’s may be restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. Loans classified as TDR’s are designated as impaired. TDR’s which are performing based on modified terms and conditions, which reflect the current market, may be reclassified from TDR status. Management evaluates the allowance for loan losses with respect to TDR’s under the same policy and guidelines as all other performing loans are evaluated with respect to the allowance for loan losses. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan 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) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and generally are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Any write-down, at or prior to the dates the real estate is considered foreclosed, is charged to the allowance for loan losses. Subsequent to foreclosure, valuations are periodically performed by management and the assets are generally carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance (write-downs) are included in other non-interest expenses. Any gain or loss upon the sale of real estate owned is reflected in operations as incurred. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Premises and equipment in an acquisition or merger are recorded on acquisition date at fair value. Depreciation is computed on the straight-line method over the estimated useful lives of the related assets, ranging from 1 to 20 years beginning when the assets are placed in service. Buildings are depreciated from 14 to 20 years. Leasehold improvements are amortized over the term of the lease or estimated useful lives, whichever is shorter, ranging from 1 to 20 years. Furniture, fixtures and equipment are depreciated from 2 to 10 years, automobiles are depreciated over 5 years and computer equipment and data processing software are depreciated from 1 to 10 years. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any gain or loss is reflected in income for the period. The cost of maintenance and repairs is charged to expense as incurred. |
Bank Owned Life Insurance | Bank Owned Life Insurance The Bank invests in bank owned life insurance (“BOLI”) policies that provide earnings to help cover the cost of employee benefit plans. The Bank is the owner of the life insurance policies it purchased directly on the lives of certain officers of the Bank. These policies were issued as split dollar life insurance policies which provide for a portion of the death benefit to be paid to the beneficiaries of the officer while employed by the Bank or through change in control provisions. The policies are carried on the Company’s consolidated balance sheet at their cash surrender value and are subject to regulatory capital requirements. The determination of the cash surrender value includes a full evaluation of the contractual terms of each policy. Additionally, the Company periodically reviews the creditworthiness of the insurance company that has underwritten the policies. Earnings accruing to the Company are derived from the general account investments of the insurance companies. Increases in the net cash surrender value of BOLI policies and insurance proceeds received are not taxable and are recorded in non-interest income in the consolidated statement of income. |
Employee Benefit Plans | Employee Benefit Plans The Company’s 401(k) plan allows eligible participants to set aside a certain percentage of their salaries before taxes. The Company may elect to match employee contributions up to a specified percentage of their respective salaries in an amount determined by the Board of Directors. The Company’s total matching contributions related to these plans resulted in expenses of $155 thousand and $149 thousand for the years ended December 31, 2017 and 2016, respectively. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents the excess of the cost of an acquired entity over the fair value of the identifiable net assets acquired in accordance with the acquisition method of accounting. Goodwill is not amortized but is reviewed for potential impairment at the reporting unit level on an annual basis, or more often if events or circumstances indicate that there may be impairment. ASC Topic 350-20 requires an at least annual review of the fair value of a reporting unit that has goodwill in order to determine if it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less than its carrying amount, including goodwill. The Company elects to perform this review on July 1st of each year. A qualitative factor test can be performed to determine whether it is necessary to perform a quantitative goodwill impairment test. If this qualitative test determines it is not likely (less than 50% probability) the fair value of the reporting unit is less than book value, then the Company is not required to perform a quantitative test and goodwill can be considered not impaired. The Company reviewed the requirements of the qualitative assessments listed in ASC 350-20-35-3C, and resultantly identified nine qualitative assessments that are relevant to the general banking industry and specifically to First Priority. These qualitative assessments were intended to isolate change factors which would contribute to the increased risk of impairment of goodwill. The qualitative factors were then used to compare base year levels with current levels to identify potential change factors which could contribute to the increased risk of impairment of goodwill. Based on the results of this analysis, it is more likely than not that the fair value of reporting unit as of the date of this analysis is higher than its book value and, therefore, goodwill is considered not impaired and no further testing is required pursuant to ASC Topic 350-20. Any impairment loss related to goodwill and other intangible assets is reflected as other non-interest expense in the statement of operations in the period in which the impairment is determined. No assurance can be given that future impairment tests will not result in a charge to earnings. Core deposit and other intangible assets acquired in acquisitions are identified, recognized and amortized based upon the estimated economic benefits received using a 10 year sum of the years amortization method. |
Segment Information | Segment Information First Priority has one reportable segment, Community Banking. All of the Company’s activities are interrelated, and each activity is dependent and assessed based on how each of the activities of the Company supports the others. Lending activities are dependent upon the ability of the Company to fund itself with deposits and borrowings while managing the interest rate and credit risk. Accordingly, all significant operating decisions are based upon analysis of the Company as one segment or unit. |
Advertising Costs | Advertising Costs The Company follows the policy of charging the costs of advertising to expense as incurred. |
Income Taxes | Income Taxes Deferred 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 and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. The Company files a consolidated federal income tax return with the Bank. The Company evaluates the carrying amount of its deferred tax assets on a quarterly basis or more frequently, if necessary, in accordance with the guidance provided in Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 740 (ASC 740), in particular, applying the criteria set forth therein to determine whether it is more likely than not (i.e. a likelihood of more than 50%) that some portion, or all, of the deferred tax asset will not be realized within its life cycle, based on the weight of available evidence. If management makes a determination based on the available evidence that it is more likely than not that some portion or all of the deferred tax assets will not be realized in future periods a valuation allowance is calculated and recorded. These determinations are inherently subjective and dependent upon estimates and judgments concerning management’s evaluation of both positive and negative evidence. Judgment is required when considering the relative impact of such evidence. The weight given to the potential effect of positive and negative evidence must be commensurate with the extent to which it can be objectively verified. When determining the potential for a valuation allowance, the Company assessed the possible sources of taxable income available under tax law to realize a tax benefit for deductible temporary differences and carryforwards as defined in paragraph 740-10-30-18. The Company also considers tax planning strategies which could accelerate taxable income and allow the Company to take advantage of future deductible differences. The strategy must be prudent and feasible; however, the Company does not need to have specific plans to implement the strategy, but could be an opportunity that the Company could implement in order to take advantage of net operating loss carryforwards. The Company has adopted guidance on accounting for uncertainty in income taxes as presented in FASB ASC 740-10. A tax position is recognized as a benefit at the largest amount that is more-likely-than not to be sustained in a tax examination based solely on its merits. An uncertain tax position will not be recognized if it has a less than 50% likelihood of being sustained. Under the threshold guidelines, the Company believes no significant uncertain tax positions exist, either individually or in the aggregate, that would result in recognition of a liability for unrecognized tax benefits as of December 31, 2017 and December 31, 2016. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share exclude dilution and are computed by dividing income available to common shareholders by the weighted average common shares and participating securities (restricted stock) outstanding during the period. Diluted earnings per common share take into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. Proceeds assumed to have been received on such exercise or conversion, are assumed to be used to purchase shares of the Company’s common stock at the average market price during the period, as required by the “treasury stock method” of accounting. The effects of securities or other contracts to issue common stock are excluded from the computation of diluted earnings per share in periods in which the effect would be antidilutive. |
Stock Options and Restricted Stock Grants | Stock Options and Restricted Stock Grants Compensation costs related to share-based payment transactions are recognized in the financial statements over the period that an employee provides service in exchange for the award. For the years ended December 31, 2017 and 2016, compensation expense related to outstanding stock options and restricted stock grants totaled $262 thousand and $328 thousand, respectively, which is included in salaries and employee benefits in the accompanying consolidated statements of operations. There was no tax benefit recognized related to this stock-based compensation. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the shareholders’ equity section of the balance sheet, such items, along with net income, are components of total comprehensive income. Total reclassifications from accumulated other comprehensive income (loss) for the periods presented are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement where Net Income is Presented December 31, 2017 2016 (Dollars in thousands) Sale of investment securities available for sale $ (416 ) $ (795 ) Gains on sale of investment securities Amortization of unrealized holding gains (losses) on securities transferred from available for sale to held to maturity (14 ) (31 ) Interest and dividend income on taxable securities Tax effect 146 281 Income tax expense Total reclassification $ (284 ) $ (545 ) Accumulated other comprehensive income (loss) at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (Dollars in thousands) Net unrealized gain (loss) on available for sale securities $ (4 ) $ (50 ) Net unrealized holding gains on securities transferred from available for sale to held to maturity (2 ) 8 Total $ (6 ) $ (42 ) |
Off-Balance Sheet Financial Instruments | 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. Such financial instruments are recorded in the consolidated balance sheet when they are funded. |
Recently Issued Accounting Standards | Accounting Standards Update (“ASU”) 2014-09, “Revenue from Contracts with Customers (Topic 606).” ASU 2014-09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. First Priority’s revenue is comprised of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of ASU 2014-09, and non-interest income. This accounting guidance can be implemented using either a full retrospective method or a modified retrospective approach and will be effective for interim and annual reporting periods beginning after December 15, 2017 (effective January 1, 2018 for First Priority). Early adoption is permitted; however, First Priority will adopt this new accounting guidance in 2018, as required, and will adopt the new guidance using the modified retrospective approach. The modified retrospective approach uses a cumulative-effect adjustment to retained earnings to reflect uncompleted contracts in the initial application of the guidance. The Company has assessed its revenue streams and its contracts with customers that could potentially be affected by the new guidance; including wealth management fees, fees on deposits, gains and losses on the sale of other real estate owned and debit card interchange fees; but did not identify material changes to the timing or amount of revenue recognition. The adoption of this accounting guidance does not have a material impact on the Company’s financial condition or results of operations. The Company will also be subject to expanded disclosure requirements upon adoption for which the Company is still in the process of evaluating. In January 2016, the FASB issued Accounting Standards Update 2016-01, “Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”). ASU 2016-01 changes current U.S. GAAP for public entities by requiring the following, among others: (1) equity securities, except those accounted for under the equity method of accounting, to be measured at fair value with changes in fair value recognized in net income; (2) the use of the exit price when measuring fair value of financial instruments for disclosure purposes; (3) an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value; and (4) separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or notes to the financial statements. ASU 2016-01 is effective for annual periods beginning after December 15, 2017, including interim periods. Early application is permitted. The Company does not hold any equity investments (excluding restricted investments in bank stocks) that do not have a readily determinable market value. The Company has determined the implementation of this standard will not have a material impact to the financial statements and disclosures. In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases. In March 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting.” This ASU simplifies several aspects of the accounting for employee share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statements of cash flows. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods therein. Accordingly, effective January of 2017, the Company adopted the pronouncement. During the year ended December 31, 2017, the Company had $10 thousand of tax benefits for stock option exercises and restricted stock vesting. In accordance with ASU 2016-09, forfeitures are recognized as they occur instead of applying an estimated forfeiture rate to each grant. For purposes of the determination of stock-based compensation expense for the year ended December 31, 2017, we recognized actual forfeitures of 4,450 shares of restricted stock awards that were granted to officers and other employees. In September 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities, this ASU is effective for financial statements issued for fiscal years beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company is reviewing our system and data collection to determine necessary changes to our current practice. In August 2016, the FASB issued ASU 2016-15, “Classification of Certain Cash Receipts and Cash Payments.” This ASU clarifies how certain cash receipts and cash payments are presented in the statement of cash flows. This update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. For public business entities this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted. The Company is evaluating the impact of this ASU on its consolidated financial statements and disclosures. Historically the cash flows, addressed by this standard, have been infrequent and immaterial. In January 2017, the FASB issued ASU 2017-04, “Intangibles ─ Goodwill and Other (Topic 350).” This update intends to simplify the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. The amendments in this Update modify the concept of impairment from the condition that exists when the carrying amount of goodwill exceeds its implied fair value to the condition that exists when the carrying amount of a reporting unit exceeds its fair value. For public business entities this ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019, and interim periods therein. Early adoption is permitted. The Company does not expect the implementation of this standard to have a material impact on its consolidated statement of operations. In March 2017, the FASB issued ASU 2017-08, Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities held at a premium, shortening such period to the earliest call date. The ASU is effective for public business entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. For all other entities, the ASU is effective for fiscal years beginning after December 15, 2019, and interim periods within fiscal years beginning after December 15, 2020. Earlier application is permitted for all entities, including adoption in an interim period. If an entity early adopts the ASU in an interim period, any adjustments must be reflected as of the beginning of the fiscal year that includes that interim period. The Company does not expect the implementation of this standard to have a material impact on its consolidated statement of operations. In February 2018, the FASB issued ASU No. 2018-02, Income Statement Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income; (“ASU 2018-02”). ASU 2018-02 states an entity may elect to reclassify the income tax effects of the Tax Cuts and Jobs Act on items within accumulated other comprehensive income to retained earnings. The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, and the Company adopted this accounting guidance effective December 31, 2017. The amount of this reclassification was immaterial. |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Schedule of Total Reclassifications from Accumulated Other Comprehensive Income (Loss) | Total reclassifications from accumulated other comprehensive income (loss) for the periods presented are as follows: Details about Accumulated Other Comprehensive Income (Loss) Components Amounts Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statement where Net Income is Presented December 31, 2017 2016 (Dollars in thousands) Sale of investment securities available for sale $ (416 ) $ (795 ) Gains on sale of investment securities Amortization of unrealized holding gains (losses) on securities transferred from available for sale to held to maturity (14 ) (31 ) Interest and dividend income on taxable securities Tax effect 146 281 Income tax expense Total reclassification $ (284 ) $ (545 ) |
Schedule of Accumulated Other Comprehensive Income (Loss) | Accumulated other comprehensive income (loss) at December 31, 2017 and 2016 consisted of the following: December 31, 2017 2016 (Dollars in thousands) Net unrealized gain (loss) on available for sale securities $ (4 ) $ (50 ) Net unrealized holding gains on securities transferred from available for sale to held to maturity (2 ) 8 Total $ (6 ) $ (42 ) |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Calculations of Basic and Diluted Earnings per Common Share | The calculations of basic and diluted earnings per common share are presented below for the years ended December 31, 2017 and 2016: For the year ended December 31, 2017 2016 (In thousands, except per share information) Net income $ 2,458 $ 2,300 Less: preferred stock dividends (306 ) (407 ) Income to common shareholders $ 2,152 $ 1,893 Average basic common shares outstanding 6,559 6,514 Effect of dilutive stock options 226 56 Average number of common shares used to calculate diluted earnings per common share 6,785 6,570 Basic earnings per common share $ 0.33 $ 0.29 Diluted earnings per common share $ 0.32 $ 0.29 |
Schedule of Amount of Preferred Stock Dividends Related to Each Series of Preferred Stock | The amount of preferred stock dividends related to each series of preferred stock are presented below for the years ended December 31, 2017 and 2016: For the year ended December 31, 2017 2016 (Dollars in thousands) Preferred dividends: Preferred Series A $ - $ 77 Preferred Series B - 4 Preferred Series C 306 326 Total preferred dividends $ 306 $ 407 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Value of Company's Investment Securities Available for Sale | The amortized cost, unrealized gains and losses, and the fair value of the Company’s investment securities available for sale and held to maturity are as follows for the periods presented: December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in thousands) Available For Sale: Obligations of U.S. government agencies and corporations $ 20,991 $ - $ (20 ) $ 20,971 Obligations of states and political subdivisions 4,218 168 - 4,386 Federal agency mortgage-backed securities 25,524 16 (251 ) 25,289 Federal agency collateralized mortgage obligations 111 - (2 ) 109 Other debt securities 1,500 83 - 1,583 Money market mutual fund 35 - - 35 Total investment securities available for sale $ 52,379 $ 267 $ (273 ) $ 52,373 Held To Maturity: Obligations of states and political subdivisions $ 18,183 $ 953 $ (4 ) $ 19,132 Other debt securities 482 51 - 533 Total held to maturity $ 18,665 $ 1,004 $ (4 ) $ 19,665 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in thousands) Available For Sale: Obligations of U.S. government agencies and corporations $ 45,984 $ 8 $ (5 ) $ 45,987 Obligations of states and political subdivisions 6,103 46 (10 ) 6,139 Federal agency mortgage-backed securities 13,863 33 (176 ) 13,720 Federal agency collateralized mortgage obligations 190 - (1 ) 189 Other debt securities 1,500 30 - 1,530 Money market mutual fund 2,995 - - 2,995 Total investment securities available for sale $ 70,635 $ 117 $ (192 ) $ 70,560 Held To Maturity: Obligations of states and political subdivisions $ 18,561 $ 561 $ (33 ) $ 19,089 Other debt securities 482 13 - 495 Total held to maturity $ 19,043 $ 574 $ (33 ) $ 19,584 |
Schedule of Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities Available for Sale | The table below details the aggregate unrealized losses and aggregate fair value of the underlying securities whose fair values are below their amortized cost at December 31, 2017 and 2016. As of December 31, 2017 Less than 12 Months 12 Months or longer Total Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count (Dollars in thousands) Available for Sale: Obligations of U.S. government agencies and corporations $ 3,975 $ (17 ) 3 $ 1,996 $ (3 ) 2 $ 5,971 $ (20 ) 5 Federal agency mortgage-backed securities 20,099 (162 ) 12 3,416 (89 ) 4 23,515 (251 ) 16 Federal agency collateralized mortgage obligations - - - 109 (2 ) 1 109 (2 ) 1 Total Available for Sale........ $ 24,074 $ (179 ) 15 $ 5,521 $ (94 ) 7 $ 29,595 $ (273 ) 22 Held to Maturity: Obligations of states and political subdivisions $ 195 $ (1 ) 1 $ 315 $ (3 ) 1 $ 510 $ (4 ) 2 Total Held to Maturity.......... $ 195 $ (1 ) 1 $ 315 $ (3 ) 1 $ 510 $ (4 ) 2 As of December 31, 2016 Less than 12 Months 12 Months or longer Total Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count Fair Value Unrealized Losses Count (Dollars in thousands) Available for Sale: Obligations of U.S. government agencies and corporations $ 3,984 $ (5 ) 4 $ - $ - - $ 3,984 $ (5 ) 4 Obligations of states and political subdivisions - - - 872 (10 ) 1 872 (10 ) 1 Federal agency mortgage-backed securities 10,667 (175 ) 11 39 (1 ) 1 10,706 (176 ) 12 Federal agency collateralized mortgage obligations 159 (1 ) 1 - - - 159 (1 ) 1 Total Available for Sale........ $ 14,810 $ (181 ) 16 $ 911 $ (11 ) 2 $ 15,721 $ (192 ) 18 Held to Maturity: Obligations of states and political subdivisions $ 2,289 $ (33 ) 7 $ - $ - - $ 2,289 $ (33 ) 7 Total Held to Maturity.......... $ 2,289 $ (33 ) 7 $ - $ - - $ 2,289 $ (33 ) 7 |
Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities as of December 31, 2017 by contractual maturity are shown below. Certain of these investment securities have call features which allow the issuer to call the security prior to its maturity date at the issuer’s discretion. December 31, 2017 Available for Sale Securities Held to Maturity Amortized Cost Fair Value Amortized Cost Fair Value (Dollars in thousands) Due within one year $ 18,997 $ 18,993 $ - $ - Due after one year through five years 1,994 1,978 1,208 1,225 Due after five years through ten years 1,500 1,583 1,826 1,890 Due after ten years 4,218 4,386 15,631 16,550 26,709 26,940 18,665 19,665 Federal agency collateralized mortgage obligations 111 109 - - Federal agency mortgage-backed securities 25,524 25,289 - - Money market mutual fund 35 35 - - Total $ 52,379 $ 52,373 $ 18,665 $ 19,665 |
Loans Receivable and Related 33
Loans Receivable and Related Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Receivables [Abstract] | |
Summary of Loans Receivable | Loans receivable consist of the following at December 31, 2017 and 2016. December 31, 2017 2016 (Dollars in thousands) Commercial: Commercial and industrial $ 85,395 $ 89,625 Commercial mortgage 235,946 223,315 Commercial construction 30,866 22,408 Total commercial 352,207 335,348 Residential mortgage loans 133,727 110,538 Consumer: Home equity lines of credit 19,295 24,669 Other consumer loans 13,780 17,514 Total consumer 33,075 42,183 Total loans 519,009 488,069 Allowance for loan losses (3,405 ) (3,330 ) Net deferred loan cost (fees) (82 ) 174 Total loans receivable, net $ 515,522 $ 484,913 |
Activity in Allowance for Loan Losses by Loan Class | The following tables summarize the activity in the allowance for loan losses by loan class for the years ended December 31, 2017 and 2016: For the year ended December 31, 2017 Allowance for Loan Losses (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision for loan losses Ending Balance Commercial and industrial $ 647 $ (281 ) $ 4 $ 296 $ 666 Commercial mortgage 1,051 (30 ) - 57 1,078 Commercial construction 113 - - 34 147 Residential mortgage loans 452 - - 172 624 Home equity lines of credit 188 - 2 (87 ) 103 Other consumer loans 97 (24 ) 19 (18 ) 74 Unallocated 782 - - (69 ) 713 Total $ 3,330 $ (335 ) $ 25 $ 385 $ 3,405 For the year ended December 31, 2016 Allowance for Loan Losses (Dollars in thousands) Beginning Balance Charge-offs Recoveries Provision for loan losses Ending Balance Commercial and industrial $ 631 $ (75 ) $ 21 $ 70 $ 647 Commercial mortgage 831 (72 ) 2 290 1,051 Commercial construction 56 - - 57 113 Residential mortgage loans 259 - - 193 452 Home equity lines of credit 167 - 9 12 188 Other consumer loans 84 (75 ) 15 73 97 Unallocated 767 - - 15 782 Total $ 2,795 $ (222 ) $ 47 $ 710 $ 3,330 |
Allowance For Loan Losses Impairment Method | The following tables present the balance in the allowance for loan losses at December 31, 2017 and 2016 disaggregated on the basis of the Company’s impairment method by class of loans receivable along with the balance of loans receivable by class disaggregated on the basis of the Company’s impairment methodology: December 31, 2017 Allowance for Loan Losses Loans Receivables (Dollars in thousands) Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Commercial and industrial $ 666 $ 42 $ 624 $ 85,395 $ 582 $ 84,813 Commercial mortgage 1,078 - 1,078 235,946 346 235,600 Commercial construction 147 - 147 30,866 - 30,866 Residential mortgage loans 624 140 484 133,727 637 133,090 Home equity lines of credit 103 - 103 19,295 - 19,295 Other consumer loans 74 - 74 13,780 3 13,777 Unallocated 713 - 713 - - - Total $ 3,405 $ 182 $ 3,223 $ 519,009 $ 1,568 $ 517,441 December 31, 2016 Allowance for Loan Losses Loans Receivables (Dollars in thousands) Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Ending Balance Ending Balance Individually Evaluated for Impairment Ending Balance Collectively Evaluated for Impairment Commercial and industrial $ 647 $ - $ 647 $ 89,625 $ 705 $ 88,920 Commercial mortgage 1,051 - 1,051 223,315 6 223,309 Commercial construction 113 - 113 22,408 - 22,408 Residential mortgage loans 452 47 405 110,538 637 109,901 Home equity lines of credit 188 - 188 24,669 14 24,655 Other consumer loans 97 - 97 17,514 51 17,463 Unallocated 782 - 782 - - - Total $ 3,330 $ 47 $ 3,283 $ 488,069 $ 1,413 $ 486,656 |
Summary of Impaired Loans by Loan Portfolio Class | The following tables summarize information in regard to impaired loans by loan portfolio class as of December 31, 2017 and 2016 as well as for the years then ended, respectively: December 31, 2017 December 31, 2016 Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 251 $ 906 $ - $ 705 $ 1,268 $ - Commercial mortgage 346 418 - 6 57 - Commercial construction - - - - - - Residential mortgage loans - - - - - - Home equity lines of credit - - - 14 16 - Other consumer loans 3 3 - 51 80 - With an allowance recorded: Commercial and industrial $ 331 $ 331 $ 42 $ - $ - $ - Commercial mortgage - - - - - - Commercial construction - - - - - - Residential mortgage loans 637 637 140 637 637 47 Home equity lines of credit - - - - - - Other consumer loans - - - - - - Total: Commercial and industrial $ 582 $ 1,237 $ 42 $ 705 $ 1,268 $ - Commercial mortgage 346 418 - 6 57 - Commercial construction - - - - - - Residential mortgage loans 637 637 140 637 637 47 Home equity lines of credit - - - 14 16 - Other consumer loans 3 3 - 51 80 - Total $ 1,568 $ 2,295 $ 182 $ 1,413 $ 2,058 $ 47 For the year ended December 31, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) With no related allowance recorded: Commercial and industrial $ 495 $ 4 $ 1,042 $ 9 Commercial mortgage 88 4 1,200 54 Commercial construction - - - - Residential mortgage loans - - 28 1 Home equity lines of credit - - 94 4 Other consumer loans 3 - 170 7 With an allowance recorded: Commercial and industrial $ 196 $ - $ 503 $ 19 Commercial mortgage 42 - 331 16 Commercial construction - - - - Residential mortgage loans 637 23 638 24 Home equity lines of credit - - - - Other consumer loans - - - - Total: Commercial and industrial $ 691 $ 4 $ 1,545 $ 28 Commercial mortgage 130 4 1,531 70 Commercial construction - - - - Residential mortgage loans 637 23 666 25 Home equity lines of credit - - 94 4 Other consumer loans 3 - 170 7 Total $ 1,461 $ 31 $ 4,006 $ 134 |
Non-accrual Loans by Classes of Loan Portfolio | The following table presents non-accrual loans by classes of the loan portfolio as of December 31, 2017 and 2016: December 31, 2017 2016 (Dollars in thousands) Commercial and industrial $ 435 $ 705 Commercial mortgage 200 6 Home equity lines of credit - 14 Other consumer loans 3 51 Total loans $ 638 $ 776 |
Classes of Loan Portfolio within Company's Internal Risk Rating System | The following tables present 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, 2017 and 2016: December 31, 2017 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial: Commercial and industrial $ 84,811 $ - $ 584 $ - $ 85,395 Commercial mortgage 235,114 - 832 - 235,946 Commercial construction 30,866 - - - 30,866 Residential mortgage loans 133,727 - - - 133,727 Consumer: Home equity lines of credit 19,295 - - - 19,295 Other consumer loans 13,780 - - - 13,780 Total $ 517,593 $ - $ 1,416 $ - $ 519,009 December 31, 2016 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Commercial: Commercial and industrial $ 88,503 $ - $ 1,122 $ - $ 89,625 Commercial mortgage 221,544 - 1,771 - 223,315 Commercial construction 22,408 - - - 22,408 Residential mortgage loans 110,538 - - - 110,538 Consumer: Home equity lines of credit 24,655 - 14 - 24,669 Other consumer loans 17,463 - 51 - 17,514 Total $ 485,111 $ - $ 2,958 $ - $ 488,069 |
Classes of Loan Portfolio Summarized by Past Due Status | The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of December 31, 2017 and 2016: December 31, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivables (Dollars in thousands) Commercial: Commercial and industrial $ 36 $ 284 $ 698 $ 1,018 $ 84,377 $ 85,395 Commercial mortgage 2,206 - 200 2,406 233,540 235,946 Commercial construction - - - - 30,866 30,866 Residential mortgage loans 329 - - 329 133,398 133,727 Consumer: Home equity lines of credit - - - - 19,295 19,295 Other consumer loans 33 65 3 101 13,679 13,780 Total $ 2,604 $ 349 $ 901 $ 3,854 $ 515,155 $ 519,009 December 31, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Total Loans Receivables (Dollars in thousands) Commercial: Commercial and industrial $ 293 $ 60 $ 632 $ 985 $ 88,640 $ 89,625 Commercial mortgage - - 6 6 223,309 223,315 Commercial construction - - - - 22,408 22,408 Residential mortgage loans - 104 - 104 110,434 110,538 Consumer: Home equity lines of credit - - - - 24,669 24,669 Other consumer loans 17 - 4 21 17,493 17,514 Total $ 310 $ 164 $ 642 $ 1,116 $ 486,953 $ 488,069 |
Summary of Information Regarding Troubled Debt Restructurings | The following table reflects information regarding TDR’s entered into by the Company for the period ended December 31, 2017. For the year ended December 31, 2017 Number of Contracts Pre-Modification Outstanding Recorded Investments Post-Modification Outstanding Recorded Investments (Dollars in thousands) Troubled debt restructurings: Commercial and industrial 2 $ 221 $ 206 Commercial mortgage 1 164 149 Total 3 $ 385 $ 355 The following tables summarize the balance of outstanding TDR’s at December 31, 2017 and December 31, 2016: Number of Loans Performing TDR's Non-Performing TDR's Total TDRs (Dollars in thousands) December 31, 2017 Commercial and Industrial 2 $ 147 $ 55 $ 202 Commercial mortgage loans 1 146 - 146 Residential mortgage loans 1 637 - 637 Total 4 $ 930 $ 55 $ 985 Number of Loans Performing TDR's Non-Performing TDR's Total TDRs (Dollars in thousands) December 31, 2016 Residential mortgage loans 1 $ 637 $ - $ 637 Home equity lines of credit 1 - 14 14 Other consumer loans 1 - 20 20 Total 3 $ 637 $ 34 $ 671 |
Transactions with Executive O34
Transactions with Executive Officers, Directors and Principal Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Loans with Related Parties | Activity of these loans is as follows: December 31, 2017 2016 (Dollars in thousands) Balance, beginning of year $ 5,466 $ 5,722 New loans 2,549 2,174 Loans of Retired Officers (773 ) - Repayments (1,686 ) (2,430 ) Balance at end of year $ 5,556 $ 5,466 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |
Components of Premises and Equipment | The components of premises and equipment at December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (Dollars in thousands) Buildings $ 1,143 $ 1,143 Leasehold improvements 1,424 1,422 Furniture, fixtures and equipment 799 818 Automobiles 20 24 Computer equipment and data processing software 765 736 4,151 4,143 Accumulated depreciation (2,544 ) (2,388 ) $ 1,607 $ 1,755 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |
Components of Deposits | The components of deposits at December 31, 2017 and 2016 are as follows: As of December 31, 2017 2016 (Dollars in thousands) Demand, non-interest bearing $ 65,634 $ 54,817 Demand, interest-bearing 29,918 57,168 Money market and savings accounts 145,355 113,655 Time, $100 and over 84,358 45,311 Time, other 197,885 196,737 $ 523,150 $ 467,688 |
Scheduled Maturities of Time Deposits | At December 31, 2017, the scheduled maturities of time deposits are as follows: December 31, 2017 (Dollars in thousands) 2018 $ 155,229 2019 76,431 2020 24,421 2021 17,942 2022 8,220 Thereafter - $ 282,243 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Borrowed Funds | The following table outlines First Priority’s various sources of short-term borrowed funds at or for the years ended December 31, 2017 and 2016. The maximum balance represents the highest indebtedness for each category of short-term borrowed funds at any month-end during each of the years shown. December 31, 2017 2016 (Dollars in thousands) Federal funds purchased: Balance at year end $ - $ - Weighted average rate at year end - - Maximum month-end balance $ 19 $ - Average daily balance during the year $ 3 $ 2 Weighted average rate during the year 1.52 % 0.76 % FHLB short-term borrowings: Balance at year end $ 15,625 $ 56,164 Weighted average rate at year end 1.54 % 0.74 % Maximum month-end balance $ 70,400 $ 60,688 Average daily balance during the year $ 26,446 $ 22,508 Weighted average rate during the year 1.15 % 0.61 % |
Scheduled Maturities of Long-term Borrowings with FHLB | At December 31, 2017, scheduled maturities of long-term borrowings with the FHLB are as follows: Balance Weighted Average Rate (Dollars in thousands) 2018 $ 3,000 1.31 % 2019 2,000 1.64 % 2020 4,000 1.75 % $ 9,000 1.58 % |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Leases [Abstract] | |
Future Minimum Lease Payments | Pursuant to the terms of non-cancellable lease agreements in effect at December 31, 2017, pertaining to premises, future minimum lease payments by year and in the aggregate, under these lease agreements, are as follows: |
Stock Compensation Program (Tab
Stock Compensation Program (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Stock Option Plan | A summary of the Stock Option Plan is presented below: For the Years Ended December 31, 2017 2016 Options to Purchase Common Shares Weighted Average Exercise Price Options to Purchase Common Shares (1) Weighted Average Exercise Price Outstanding at beginning of year 955,060 $6.35 970,193 $6.41 Granted during year 7,500 7.92 37,500 5.93 Forfeited/cancelled during the year (40,000) 6.19 (32,500) 5.91 Exercised - - (2,000) 5.73 Expired (114,690) 10.08 (18,133) 9.65 Outstanding at end of year 807,870 $5.84 955,060 $6.35 Exercisable at end of year 239,870 $6.62 354,560 $7.74 (1) Included in options outstanding and exercisable at December 31, 2016 are 100,000 organizer options, with an exercise price of $10.00 per share which expired on October 18, 2017. |
Weighted Average Assumption of Fair Value Option Grant | The fair value of each option grant is estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions: 2017 2016 Dividend yield 0.0% 0.0% Expected life 7 years 7 years Expected volatility 23% 26% Risk-free interest rate 2.04% 1.63% Weighted average fair value $2.34 $1.83 |
Summary of Restricted Stock Award Activity | A summary of restricted stock award activity is presented below for the years presented: For the Years Ended December 31, 2017 2016 Outstanding unvested shares at beginning of year 89,450 165,474 Shares granted during year 52,700 36,250 Shares forfeited/cancelled during year (4,450 ) (725 ) Vested Shares during this period (13,550 ) (111,549 ) Outstanding unvested shares at end of year 124,150 89,450 |
Federal Income Taxes (Tables)
Federal Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Net Deferred Tax Asset | The components of the net deferred tax asset at December 31, 2017 and 2016 are as follows: December 31, 2017 2016 (Dollars in thousands) Deferred tax assets: Allowance for loan losses $ 583 $ 701 Organization and start-up costs 35 75 Net operating loss carryforwards - 833 Net operating loss carryforwards--acquired 231 670 Contribution carryforward - 9 Non-qualified stock option expense 208 283 Other real estate owned deferred costs 18 215 Unrealized loss on investment securities 3 21 Alternative minimum tax carryforward - 199 Property and equipment 35 35 Unfunded loan commitment reserve 7 12 Total Deferred Tax Assets 1,120 3,053 Deferred tax liabilities: Acquisition accounting 66 135 Cash basis conversions 120 206 Discount accretion on investment securities 11 15 Total Deferred Tax Liabilities 197 356 Net Deferred Tax Asset $ 923 $ 2,697 |
Schedule of Income Tax Expense | The following table presents the income tax expense for the years ended December 31, 2017 and 2016. For the year ended December 31, 2017 2016 (Dollars in thousands) Current tax expense: Federal $ 227 $ 94 State 19 46 Deferred Income tax expense: Federal 1,755 988 Income tax expense $ 2,001 $ 1,128 |
Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense | Reconciliation of the statutory federal income tax expense computed at 34% to the income tax expense included in the consolidated statements of income is as follows: For the year ended December 31, 2017 2016 (Dollars in thousands) Federal income tax expense at statutory rate of 34%: $ 1,516 $ 1,165 Increase (decrease) in taxes resulting from: Tax exempt interest income, net (159 ) (109 ) Tax exempt income on bank owned life insurance (24 ) (26 ) Applicable state income taxes 13 30 Stock compensation adjustment for expired options (3 ) 30 Tax Cut and Jobs Act adjustment to deferred tax asset 571 - Other 87 38 Federal income tax expense $ 2,001 $ 1,128 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Banking And Thrift [Abstract] | |
Schedule of Bank's Capital Amounts and Ratios | The Bank’s capital amounts (dollars in thousands) and ratios at December 31, 2017 and 2016 are presented below: Actual Minimum Capital Requirement To be Well Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2017 Total capital (to risk-weighted assets) $ 59,886 12.15 % $ 39,434 >8.0 % $ >49,292 >10.0 % Tier 1 capital (to risk-weighted assets) 47,215 9.58 >29,575 >6.0 >39,434 >8.0 Tier 1 common equity capital (to risk-weighted assets) 47,215 9.58 >22,182 >4.5 >32,040 >6.5 Tier 1 capital (to total assets) 47,215 8.08 >23,384 >4.0 >29,230 >5.0 December 31, 2016 Total capital (to risk-weighted assets) $ 55,900 12.07 % $ >37,064 >8.0 % $ >46,330 >10.0 % Tier 1 capital (to risk-weighted assets) 43,328 9.35 >27,798 >6.0 >37,064 >8.0 Tier 1 common equity capital (to risk-weighted assets) 43,328 9.35 >20,848 >4.5 >30,114 >6.5 Tier 1 capital (to total assets) 43,328 7.87 >22,023 >4.0 >27,528 >5.0 |
Fair Value Measurements and F42
Fair Value Measurements and Fair Values of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets Measured at Fair Value on Recurring Basis | |
Summary of Estimated Fair Values of Company's Financial Instruments | At December 31, 2017 and 2016, the estimated fair values of the Company’s financial instruments were as follows: December 31, 2017 Carrying Amount Fair Value Level 1 Level 2 Level 3 (Dollars in thousands) Assets: Cash and cash equivalents $ 8,257 $ 8,257 $ 8,257 $ - $ - Securities available for sale 52,373 52,373 35 52,338 - Securities held to maturity 18,665 19,665 - 19,665 - Loans receivable, net 515,522 519,721 - - 519,721 Restricted stock 1,416 1,416 - 1,416 - Accrued interest receivable 2,007 2,007 - 2,007 - Liabilities: Deposits 523,150 521,922 - 521,922 - Federal Home Loan Bank of Pittsburgh advances 24,625 24,546 - 24,546 - Subordinated debt 9,231 9,539 - 9,539 - Accrued interest payable 844 844 - 844 - Off-balance sheet credit related instruments: Commitments to extend credit - - - - - |
Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis | For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and 2016 are as follows: Description Fair Value (Level 1) Quoted Prices in Active Markets for Identical Assets (Level 2) Significant Other Observable Inputs (Level 3) Significant Unobservable Inputs (Dollars in thousands) As of December 31, 2017: Impaired loans $ 1,119 $ - $ - $ 1,119 Other real estate owned 69 - - 69 Total assets measured at fair value on a nonrecurring basis $ 1,188 $ - $ - $ 1,188 As of December 31, 2016: Impaired loans $ 1,257 $ - $ - $ 1,257 Other real estate owned 679 - - 679 Total assets measured at fair value on a nonrecurring basis $ 1,936 $ - $ - $ 1,936 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative information about Level 3 fair value measurements at December 31, 2017 is included in the table below: Quantitative information about Level 3 fair value measurements at December 31, 2016 is included in the table below: Fair Value Valuation Techniques Unobservable Inputs (2) Estimated Ratings (Weighted Average) (3) (Dollars in thousands) Impaired loans $ 1,257 Appraisal of real estate collateral (1) Appraisal adjustments 0%-25% (4.87%) Valuation of business assets used as collateral(4) Valuation adjustments 0%-80% (75.32%) Liquidation expenses 0%-10% (8.01%) Other real estate owned $ 679 Appraisal of collateral(1) Appraisal adjustments 0% (0.00%) Liquidation expenses 5%-7% (6.94%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which include Level 3 inputs that are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. (3) The range and weighted average of qualitative factors such as economic conditions and estimated liquidation expenses are presented as a percent of the appraised value. (4) Fair value is generally determined based on specific customer’s business assets, such as accounts receivable, which have been used as collateral for loans. |
Parent Company Only Financial43
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | CONDENSED BALANCE SHEETS December 31, 2017 2016 (Dollars in thousands) Assets Cash and cash equivalents $ 27 $ 243 Investment in subsidiary 50,118 47,454 Deferred taxes 238 349 Receivable due from bank subsidiary 119 - Other assets 18 32 Total assets $ 50,520 $ 48,078 Liabilities and shareholders' equity Other liabilities $ 24 $ 32 Shareholders' equity 50,496 48,046 Total liabilities and shareholders' equity $ 50,520 $ 48,078 |
Schedule of Condensed Income Statements | CONDENSED INCOME STATEMENTS For the year ended December 31, 2017 2016 (Dollars in thousands) Dividend income from subsidiary, net of dividends paid by Bank $ 306 $ 407 Interest from subsidiary 1 2 Total income 307 409 Non-interest expenses 103 161 Income before taxes and equity in undistributed net income of subsidiary 204 248 Federal income tax expense (benefit) 112 (54 ) Income before equity in undistributed net income of subsidiary 92 302 Equity in undistributed net income of subsidiary 2,366 1,998 Net income $ 2,458 $ 2,300 |
Schedule of Statements of Comprehensive Income | STATEMENTS OF COMPREHENSIVE INCOME For the year ended December 31, 2017 2016 (Dollars in thousands) Net income $ 2,458 $ 2,300 Other comprehensive (loss) income: Securities available for sale: Change in unrealized gain on securities available for sale 484 405 Reclassification adjustment for realized gains included in net income (416 ) (795 ) Tax effect (23 ) 133 Net (losses) gains arising during the period 45 (257 ) Net unrealized holding losses on securities transferred between available for sale and held to maturity: Amortization of net unrealized holding losses to income during the period……………………………………..…….…………………………………… (14 ) (31 ) Tax effect 5 10 Net unrealized holding losses on securities transferred during the period (9 ) (21 ) Total other comprehensive (loss) income 36 (278 ) Total comprehensive income $ 2,494 $ 2,022 |
Schedule of Condensed Statements of Cash flows | CONDENSED STATEMENTS OF CASH FLOWS For the year ended December 31, 2017 2016 (Dollars in thousands) Operating activities: Net income $ 2,458 $ 2,300 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiary, net of dividends from Bank (2,628 ) (2,326 ) Stock based compensation distribution from Bank 262 328 Deferred income tax expense (benefit) 111 (54 ) Net increase in other assets (105 ) (4 ) Net (decrease) increase in other liabilities (8 ) 3 Net cash provided by operating activities 90 247 Financing activities: Redemptions of preferred stock - (6,000 ) Proceeds from the exercise of common stock options - 12 Cash dividends paid on preferred stock (306 ) (427 ) Net cash used in financing activities (306 ) (6,415 ) Net decrease in cash (216 ) (6,168 ) Cash and cash equivalents at beginning of the period 243 6,411 Cash and cash equivalents at end of period $ 27 $ 243 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2017USD ($)BranchLoanProductionSegment | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Entity date of formation | Feb. 13, 2007 | ||
Agreement of reorganization and merger date | May 11, 2007 | ||
Number of retail branch office locations | Branch | 7 | ||
Number of loan production office | LoanProduction | 1 | ||
Cash reserve balances | $ 1,700,000 | $ 1,900,000 | |
Loans receivable, payment terms | The accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan is currently performing. | ||
Threshold Period Past Due for Write-off of Financing Receivable | 90 days | ||
Purchased credit impairment loans | $ 55,000 | 215,000 | |
Credit impairment loans non-accretable discount difference | 352,000 | 362,000 | |
Portion of allowance for loan losses | $ 0 | ||
Residential mortgages amortization period, description | Residential mortgages have amortizations up to 30 years | ||
Home equity loans maturity period, description | Home equity loans have maturities of no more than 15 years. | ||
Expenses related to matching contributions | $ 155,000 | 149,000 | |
Amortization period of core deposit and other intangible assets | 10 years | ||
Number of reportable segments | Segment | 1 | ||
Uncertain tax positions | 0 | $ 0 | |
Stock based compensation expense | $ 262,000 | 328,000 | |
Tax benefit recognized related to stock-based compensation | $ 0 | 0 | |
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Commercial real estate percentage of loan to value ratio | 80.00% | ||
Residential mortgages amortization period | 30 years | ||
Home equity loans maturity period | 15 years | ||
Residential mortgages home equity percentage of loan to value ratio | 80.00% | ||
Estimated useful lives of related assets | 20 years | ||
Maximum [Member] | Buildings [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 20 years | ||
Maximum [Member] | Leasehold Improvements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 20 years | ||
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 10 years | ||
Maximum [Member] | Computer Equipment and Data Processing Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 10 years | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 1 year | ||
Minimum [Member] | Buildings [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 14 years | ||
Minimum [Member] | Leasehold Improvements [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 1 year | ||
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 2 years | ||
Minimum [Member] | Automobile [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 5 years | ||
Minimum [Member] | Computer Equipment and Data Processing Software [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful lives of related assets | 1 year | ||
Reserve For Off Balance Sheet Activities [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Reserve for unfunded lending commitments | $ 35,000 | $ 35,000 | |
First Priority Bank [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Entity date of formation | May 25, 2005 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Schedule of Total Reclassifications from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out Of Accumulated Other Comprehensive Income [Line Items] | ||
Gains on sale of Investment securities | $ (416) | $ (795) |
Interest and dividend Income on taxable securities | (24,053) | (21,246) |
Income Tax Expense | 2,001 | 1,128 |
Total reclassification | (284) | (545) |
Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out Of Accumulated Other Comprehensive Income [Line Items] | ||
Income Tax Expense | 146 | 281 |
Sale of Investment Securities Available for Sale | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out Of Accumulated Other Comprehensive Income [Line Items] | ||
Gains on sale of Investment securities | (416) | (795) |
Amortization Of Unrealized Holding Gain (Losses) On Securities Transferred From Available For Sale To Held To Maturity [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) | ||
Reclassification Adjustment out Of Accumulated Other Comprehensive Income [Line Items] | ||
Interest and dividend Income on taxable securities | $ (14) | $ (31) |
Summary of Significant Accoun46
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net unrealized gain (loss) on available for sale securities | $ 485 | $ 405 |
Total | (6) | (42) |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net unrealized gain (loss) on available for sale securities | (4) | (50) |
Net unrealized holding gains on securities transferred from available for sale to held to maturity | (2) | 8 |
Total | $ (6) | $ (42) |
Recently Issued Accounting St47
Recently Issued Accounting Standards - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2017USD ($)Leaseshares | Dec. 31, 2016USD ($)shares | |
Item Effected [Line Items] | ||
Tax benefit recognized related to stock-based compensation | $ 0 | $ 0 |
Forfeited of restricted common stock , shares | shares | 4,450 | 725 |
Accounting Standards Update 2016-02 | ||
Item Effected [Line Items] | ||
Number of leases classified as operating leases | Lease | 9 | |
Estimated right-of-use asset and corresponding lease liability | $ 6,400,000 | |
Accounting Standards Update 2016-09 | ||
Item Effected [Line Items] | ||
Tax benefit recognized related to stock-based compensation | $ 10,000 | |
Forfeited of restricted common stock , shares | shares | 4,450 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive securities not included in the computation of diluted earnings per common share | 54,029 | 148,174 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Calculations of Basic and Diluted Earnings per Common Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Net income | $ 2,458 | $ 2,300 |
Less: preferred stock dividends | (306) | (407) |
Income to Common Shareholders | $ 2,152 | $ 1,893 |
Average basic common shares outstanding | 6,559 | 6,514 |
Effect of dilutive stock options | 226 | 56 |
Average number of common shares used to calculate diluted earnings per common share | 6,785 | 6,570 |
Basic earnings per common share | $ 0.33 | $ 0.29 |
Diluted earnings per common share | $ 0.32 | $ 0.29 |
Earnings Per Common Share - S50
Earnings Per Common Share - Schedule of Amount of Preferred Stock Dividends Related to Each Series of Preferred Stock (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Class Of Stock [Line Items] | ||
Preferred dividends | $ 306 | $ 407 |
Series A Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred dividends | 77 | |
Series B Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred dividends | 4 | |
Series C Preferred Stock [Member] | ||
Class Of Stock [Line Items] | ||
Preferred dividends | $ 306 | $ 326 |
Securities - Additional Informa
Securities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investments Debt And Equity Securities [Abstract] | ||
Net unrealized holding gains (losses) amortized adjustment related to debt securities, before taxes | $ 3 | $ 12 |
Gross gains on sale of available for sale securities | 416 | 795 |
Securities pledged to secure public fund deposits | 69,000 | 42,000 |
Securities pledged to secure borrowings | $ 20 | $ 40 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Value of Company's Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | $ 52,379 | $ 70,635 |
Gross Unrealized Gains | 267 | 117 |
Gross Unrealized Losses | (273) | (192) |
Fair Value | 52,373 | 70,560 |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 20,991 | 45,984 |
Gross Unrealized Gains | 8 | |
Gross Unrealized Losses | (20) | (5) |
Fair Value | 20,971 | 45,987 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 4,218 | 6,103 |
Gross Unrealized Gains | 168 | 46 |
Gross Unrealized Losses | (10) | |
Fair Value | 4,386 | 6,139 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 111 | 190 |
Gross Unrealized Losses | (2) | (1) |
Fair Value | 109 | 189 |
Other Debt Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 1,500 | 1,500 |
Gross Unrealized Gains | 83 | 30 |
Fair Value | 1,583 | 1,530 |
Federal Agency Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 25,524 | 13,863 |
Gross Unrealized Gains | 16 | 33 |
Gross Unrealized Losses | (251) | (176) |
Fair Value | 25,289 | 13,720 |
Money Market Mutual Fund [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost | 35 | 2,995 |
Fair Value | $ 35 | $ 2,995 |
Securities - Summary of Amort53
Securities - Summary of Amortized Cost, Unrealized Gains and Losses, and Estimated Fair Value of Company's Investment Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Held To Maturity Securities [Line Items] | ||
Amortized Cost | $ 18,665 | $ 19,043 |
Gross Unrealized Gains | 1,004 | 574 |
Gross Unrealized Losses | (4) | (33) |
Securities held to maturity, fair value | 19,665 | 19,584 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Amortized Cost | 18,183 | 18,561 |
Gross Unrealized Gains | 953 | 561 |
Gross Unrealized Losses | (4) | (33) |
Securities held to maturity, fair value | 19,132 | 19,089 |
Other Debt Securities [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Amortized Cost | 482 | 482 |
Gross Unrealized Gains | 51 | 13 |
Securities held to maturity, fair value | $ 533 | $ 495 |
Securities - Schedule of Aggreg
Securities - Schedule of Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities Available for Sale (Detail) $ in Thousands | Dec. 31, 2017USD ($)Positions | Dec. 31, 2016USD ($)Positions |
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Fair Value Less than 12 Months | $ 24,074 | $ 14,810 |
Available for Sale, Unrealized Losses Less than 12 Months | $ (179) | $ (181) |
Available for Sale, Count Less than 12 Months | Positions | 15 | 16 |
Available for Sale, Fair Value More than 12 Months | $ 5,521 | $ 911 |
Available for Sale, Unrealized Losses More than 12 Months | $ (94) | $ (11) |
Available for Sale, Count More than 12 Months | Positions | 7 | 2 |
Available for Sale, Total Fair Value | $ 29,595 | $ 15,721 |
Available for Sale, Total Unrealized Losses | $ (273) | $ (192) |
Available for Sale, Total Count | Positions | 22 | 18 |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Fair Value Less than 12 Months | $ 3,975 | $ 3,984 |
Available for Sale, Unrealized Losses Less than 12 Months | $ (17) | $ (5) |
Available for Sale, Count Less than 12 Months | Positions | 3 | 4 |
Available for Sale, Fair Value More than 12 Months | $ 1,996 | |
Available for Sale, Unrealized Losses More than 12 Months | $ (3) | |
Available for Sale, Count More than 12 Months | Positions | 2 | |
Available for Sale, Total Fair Value | $ 5,971 | $ 3,984 |
Available for Sale, Total Unrealized Losses | $ (20) | $ (5) |
Available for Sale, Total Count | Positions | 5 | 4 |
Federal Agency Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Fair Value Less than 12 Months | $ 20,099 | $ 10,667 |
Available for Sale, Unrealized Losses Less than 12 Months | $ (162) | $ (175) |
Available for Sale, Count Less than 12 Months | Positions | 12 | 11 |
Available for Sale, Fair Value More than 12 Months | $ 3,416 | $ 39 |
Available for Sale, Unrealized Losses More than 12 Months | $ (89) | $ (1) |
Available for Sale, Count More than 12 Months | Positions | 4 | 1 |
Available for Sale, Total Fair Value | $ 23,515 | $ 10,706 |
Available for Sale, Total Unrealized Losses | $ (251) | $ (176) |
Available for Sale, Total Count | Positions | 16 | 12 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Fair Value Less than 12 Months | $ 159 | |
Available for Sale, Unrealized Losses Less than 12 Months | $ (1) | |
Available for Sale, Count Less than 12 Months | Positions | 1 | |
Available for Sale, Fair Value More than 12 Months | $ 109 | |
Available for Sale, Unrealized Losses More than 12 Months | $ (2) | |
Available for Sale, Count More than 12 Months | Positions | 1 | |
Available for Sale, Total Fair Value | $ 109 | $ 159 |
Available for Sale, Total Unrealized Losses | $ (2) | $ (1) |
Available for Sale, Total Count | Positions | 1 | 1 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for Sale, Fair Value More than 12 Months | $ 872 | |
Available for Sale, Unrealized Losses More than 12 Months | $ (10) | |
Available for Sale, Count More than 12 Months | Positions | 1 | |
Available for Sale, Total Fair Value | $ 872 | |
Available for Sale, Total Unrealized Losses | $ (10) | |
Available for Sale, Total Count | Positions | 1 |
Securities - Schedule of Aggr55
Securities - Schedule of Aggregate Unrealized Losses and Aggregate Fair Value of Underlying Securities Held to Maturity (Detail) $ in Thousands | Dec. 31, 2017USD ($)Positions | Dec. 31, 2016USD ($)Positions |
Schedule Of Held To Maturity Securities [Line Items] | ||
Held to Maturity, Fair Value Less than 12 Months | $ 195 | $ 2,289 |
Held to Maturity, Unrealized Losses Less than 12 Months | $ (1) | $ (33) |
Held to Maturity, Count Less than 12 Months | Positions | 1 | 7 |
Held to Maturity, Fair Value More than 12 Months | $ 315 | |
Held to Maturity, Unrealized Losses More than 12 Months | $ (3) | |
Held to Maturity, Count More than 12 Months | Positions | 1 | |
Held to Maturity, Total Fair Value | $ 510 | $ 2,289 |
Held to Maturity, Total Unrealized Losses | $ (4) | $ (33) |
Held to Maturity, Total Count | Positions | 2 | 7 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule Of Held To Maturity Securities [Line Items] | ||
Held to Maturity, Fair Value Less than 12 Months | $ 195 | $ 2,289 |
Held to Maturity, Unrealized Losses Less than 12 Months | $ (1) | $ (33) |
Held to Maturity, Count Less than 12 Months | Positions | 1 | 7 |
Held to Maturity, Fair Value More than 12 Months | $ 315 | |
Held to Maturity, Unrealized Losses More than 12 Months | $ (3) | |
Held to Maturity, Count More than 12 Months | Positions | 1 | |
Held to Maturity, Total Fair Value | $ 510 | $ 2,289 |
Held to Maturity, Total Unrealized Losses | $ (4) | $ (33) |
Held to Maturity, Total Count | Positions | 2 | 7 |
Securities - Summary of Amort56
Securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Schedule Of Available For Sale Securities [Line Items] | ||
Amortized Cost, Due within one year, Available for Sale Securities | $ 18,997 | |
Amortized Cost, Due after one year through five years, Available for Sale Securities | 1,994 | |
Amortized Cost, Due after five years through ten years, Available for Sale Securities | 1,500 | |
Amortized Cost, Due after ten years, Available for Sale Securities | 4,218 | |
Total Amortized Cost, Available for Sale Securities | 26,709 | |
Securities available for sale, amortized cost | 52,379 | |
Fair Value, Due within one year, Available for Sale Securities | 18,993 | |
Fair Value, Due after one year through five years, Available for Sale Securities | 1,978 | |
Fair Value, Due after five years through ten years, Available for Sale Securities | 1,583 | |
Fair Value, Due after ten years, Available for Sale Securities | 4,386 | |
Total Fair Value, Available for Sale Securities | 26,940 | |
Fair Value | 52,373 | |
Amortized Cost, Due after one year through five years, Held to Maturity | 1,208 | |
Amortized Cost, Due after five years through ten years, Held to Maturity | 1,826 | |
Amortized Cost, Due after ten years, Held to Maturity | 15,631 | |
Total Amortized Cost, Held to Maturity | 18,665 | |
Held to Maturity, Amortized Cost | 18,665 | $ 19,043 |
Fair Value, Due after one year through five years, Held to Maturity | 1,225 | |
Fair Value, Due after five years through ten years, Held to Maturity | 1,890 | |
Fair Value, Due after ten years, Held to Maturity | 16,550 | |
Total Fair Value, Held to Maturity | 19,665 | |
Held to Maturity, Fair Value | 19,665 | $ 19,584 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 111 | |
Fair Value | 109 | |
Federal Agency Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 25,524 | |
Fair Value | 25,289 | |
Money Market Mutual Fund [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Securities available for sale, amortized cost | 35 | |
Fair Value | $ 35 |
Loans Receivable and Related 57
Loans Receivable and Related Allowance for Loan Losses - Summary of Loans Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Commercial: | |||
Commercial and industrial | $ 85,395 | $ 89,625 | |
Commercial mortgage | 235,946 | 223,315 | |
Commercial construction | 30,866 | 22,408 | |
Total commercial | 352,207 | 335,348 | |
Residential mortgage loans | 133,727 | 110,538 | |
Consumer: | |||
Home equity lines of credit | 19,295 | 24,669 | |
Other consumer loans | 13,780 | 17,514 | |
Total consumer | 33,075 | 42,183 | |
Total loans | 519,009 | 488,069 | |
Allowance for loan losses | (3,405) | (3,330) | $ (2,795) |
Net deferred loan cost (fees) | (82) | 174 | |
Net loans | $ 515,522 | $ 484,913 |
Loans Receivable and Related 58
Loans Receivable and Related Allowance for Loan Losses - Additional Information (Detail) | 1 Months Ended | 12 Months Ended | |||||
Jan. 31, 2018USD ($) | Dec. 31, 2017USD ($)loan | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) | Dec. 31, 2017USD ($)ContractBorrowerloan | Dec. 31, 2016USD ($)Contractloan | Aug. 31, 2016USD ($) | |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Purchase of performing commercial loans | $ 64,600,000 | ||||||
Purchased performing residential real estate loans | $ 9,000,000 | $ 7,000,000 | $ 12,700,000 | ||||
Non-accruing loans interest income not yet recognized | $ 72,000 | $ 93,000 | |||||
Loans past due 90 days or more and still accruing interest | 263,000 | $ 263,000 | $ 0 | ||||
Number of Contracts | Contract | 3 | 0 | |||||
Loss on payment modifications | $ 30,000 | ||||||
Number of Borrowers | Borrower | 1 | ||||||
Payment modification | $ 55,000 | $ 55,000 | |||||
Number of Loans | loan | 4 | 4 | 3 | ||||
Commitments to lend additional funds | $ 0 | $ 0 | $ 0 | ||||
Foreclosed residential real estate properties | 466,000 | $ 466,000 | |||||
Subsequent Event [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Loss on contracts | $ 0 | ||||||
Greater Than 90 Days [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of Contracts | Contract | 1 | ||||||
Commercial Loans [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Acquisition premiums | $ 197,000 | ||||||
TDR in default and non-accrual | $ 55,000 | $ 55,000 | |||||
Number of Loans | loan | 1 | 1 | |||||
Residential Mortgage Loans [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Acquisition premiums | $ 117,000 | $ 280,000 | $ 117,000 | ||||
Acquisition discount | $ 35,000 | ||||||
Number of Loans | loan | 1 | 1 | 1 | ||||
Foreclosed residential real estate properties | $ 0 | $ 0 | |||||
Commercial and Industrial [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of Contracts | Contract | 2 | ||||||
Commercial Mortgage [Member] | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Number of Contracts | Contract | 1 |
Loans Receivable and Related 59
Loans Receivable and Related Allowance for Loan Losses - Activity in Allowance for Loan Losses by Loan Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | $ 3,330 | $ 2,795 |
Allowance for Loan Losses, Charge-offs | (335) | (222) |
Allowance for Loan Losses, Recoveries | 25 | 47 |
Allowance for Loan Losses, Provision for loan losses | 385 | 710 |
Allowance for Loan Losses, Ending Balance | 3,405 | 3,330 |
Residential Mortgage Loans [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 452 | 259 |
Allowance for Loan Losses, Provision for loan losses | 172 | 193 |
Allowance for Loan Losses, Ending Balance | 624 | 452 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 188 | 167 |
Allowance for Loan Losses, Recoveries | 2 | 9 |
Allowance for Loan Losses, Provision for loan losses | (87) | 12 |
Allowance for Loan Losses, Ending Balance | 103 | 188 |
Commercial and Industrial [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 647 | 631 |
Allowance for Loan Losses, Charge-offs | (281) | (75) |
Allowance for Loan Losses, Recoveries | 4 | 21 |
Allowance for Loan Losses, Provision for loan losses | 296 | 70 |
Allowance for Loan Losses, Ending Balance | 666 | 647 |
Commercial Mortgage [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 1,051 | 831 |
Allowance for Loan Losses, Charge-offs | (30) | (72) |
Allowance for Loan Losses, Recoveries | 2 | |
Allowance for Loan Losses, Provision for loan losses | 57 | 290 |
Allowance for Loan Losses, Ending Balance | 1,078 | 1,051 |
Commercial Construction [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 113 | 56 |
Allowance for Loan Losses, Provision for loan losses | 34 | 57 |
Allowance for Loan Losses, Ending Balance | 147 | 113 |
Other Consumer Loans [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 97 | 84 |
Allowance for Loan Losses, Charge-offs | (24) | (75) |
Allowance for Loan Losses, Recoveries | 19 | 15 |
Allowance for Loan Losses, Provision for loan losses | (18) | 73 |
Allowance for Loan Losses, Ending Balance | 74 | 97 |
Unallocated [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Allowance for Loan Losses, Beginning Balance | 782 | 767 |
Allowance for Loan Losses, Provision for loan losses | (69) | 15 |
Allowance for Loan Losses, Ending Balance | $ 713 | $ 782 |
Loans Receivable and Related 60
Loans Receivable and Related Allowance for Loan Losses - Balance in Allowance for Loan Losses Disaggregated on Basis of Company's Impairment Method (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | $ 3,405 | $ 3,330 | $ 2,795 |
Allowance for Loan Losses, Ending Balance: Individually Evaluated for Impairment | 182 | 47 | |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 3,223 | 3,283 | |
Total loans | 519,009 | 488,069 | |
Loans Receivables, Ending Balance: Individually Evaluated for Impairment | 1,568 | 1,413 | |
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 517,441 | 486,656 | |
Residential Mortgage Loans [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 624 | 452 | 259 |
Allowance for Loan Losses, Ending Balance: Individually Evaluated for Impairment | 140 | 47 | |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 484 | 405 | |
Total loans | 133,727 | 110,538 | |
Loans Receivables, Ending Balance: Individually Evaluated for Impairment | 637 | 637 | |
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 133,090 | 109,901 | |
Home Equity Lines of Credit [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 103 | 188 | 167 |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 103 | 188 | |
Total loans | 19,295 | 24,669 | |
Loans Receivables, Ending Balance: Individually Evaluated for Impairment | 14 | ||
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 19,295 | 24,655 | |
Commercial and Industrial [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 666 | 647 | 631 |
Allowance for Loan Losses, Ending Balance: Individually Evaluated for Impairment | 42 | ||
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 624 | 647 | |
Total loans | 85,395 | 89,625 | |
Loans Receivables, Ending Balance: Individually Evaluated for Impairment | 582 | 705 | |
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 84,813 | 88,920 | |
Commercial Mortgage [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 1,078 | 1,051 | 831 |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 1,078 | 1,051 | |
Total loans | 235,946 | 223,315 | |
Loans Receivables, Ending Balance: Individually Evaluated for Impairment | 346 | 6 | |
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 235,600 | 223,309 | |
Commercial Construction [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 147 | 113 | 56 |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 147 | 113 | |
Total loans | 30,866 | 22,408 | |
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 30,866 | 22,408 | |
Other Consumer Loans [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 74 | 97 | 84 |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | 74 | 97 | |
Total loans | 13,780 | 17,514 | |
Loans Receivables, Ending Balance: Individually Evaluated for Impairment | 3 | 51 | |
Loans Receivables, Ending Balance: Collectively Evaluated for Impairment | 13,777 | 17,463 | |
Unallocated [Member] | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowance for Loan Losses, Ending Balance | 713 | 782 | $ 767 |
Allowance for Loan Losses, Ending Balance: Collectively Evaluated for Impairment | $ 713 | $ 782 |
Loans Receivable and Related 61
Loans Receivable and Related Allowance for Loan Losses - Summary of Impaired Loans by Loan Portfolio Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Impaired [Line Items] | ||
Total, Related Allowance | $ 182 | $ 47 |
Net recorded investment | 1,568 | 1,413 |
Total, Unpaid Principle Balance | 2,295 | 2,058 |
Total, Average Recorded Investment | 1,461 | 4,006 |
Total, Interest Income Recognized | 31 | 134 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 251 | 705 |
With no related allowance recorded, Unpaid Principle Balance | 906 | 1,268 |
Total, Related Allowance | 42 | |
With an allowance recorded, Recorded Investment | 331 | |
With an allowance recorded, Unpaid Principle Balance | 331 | |
Net recorded investment | 582 | 705 |
Total, Unpaid Principle Balance | 1,237 | 1,268 |
With no related allowance recorded, Average Recorded Investment | 495 | 1,042 |
With no related allowance recorded, Interest Income Recognized | 4 | 9 |
With an allowance recorded, Average Recorded Investment | 196 | 503 |
With an allowance recorded, Interest Income Recognized | 19 | |
Total, Average Recorded Investment | 691 | 1,545 |
Total, Interest Income Recognized | 4 | 28 |
Commercial Mortgage [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 346 | 6 |
With no related allowance recorded, Unpaid Principle Balance | 418 | 57 |
Net recorded investment | 346 | 6 |
Total, Unpaid Principle Balance | 418 | 57 |
With no related allowance recorded, Average Recorded Investment | 88 | 1,200 |
With no related allowance recorded, Interest Income Recognized | 4 | 54 |
With an allowance recorded, Average Recorded Investment | 42 | 331 |
With an allowance recorded, Interest Income Recognized | 16 | |
Total, Average Recorded Investment | 130 | 1,531 |
Total, Interest Income Recognized | 4 | 70 |
Other Consumer Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 3 | 51 |
With no related allowance recorded, Unpaid Principle Balance | 3 | 80 |
Net recorded investment | 3 | 51 |
Total, Unpaid Principle Balance | 3 | 80 |
With no related allowance recorded, Average Recorded Investment | 3 | 170 |
With no related allowance recorded, Interest Income Recognized | 7 | |
Total, Average Recorded Investment | 3 | 170 |
Total, Interest Income Recognized | 7 | |
Residential Mortgage Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Total, Related Allowance | 140 | 47 |
With an allowance recorded, Recorded Investment | 637 | 637 |
With an allowance recorded, Unpaid Principle Balance | 637 | 637 |
Net recorded investment | 637 | 637 |
Total, Unpaid Principle Balance | 637 | 637 |
With no related allowance recorded, Average Recorded Investment | 28 | |
With no related allowance recorded, Interest Income Recognized | 1 | |
With an allowance recorded, Average Recorded Investment | 637 | 638 |
With an allowance recorded, Interest Income Recognized | 23 | 24 |
Total, Average Recorded Investment | 637 | 666 |
Total, Interest Income Recognized | $ 23 | 25 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
With no related allowance recorded, Recorded Investment | 14 | |
With no related allowance recorded, Unpaid Principle Balance | 16 | |
Net recorded investment | 14 | |
Total, Unpaid Principle Balance | 16 | |
With no related allowance recorded, Average Recorded Investment | 94 | |
With no related allowance recorded, Interest Income Recognized | 4 | |
Total, Average Recorded Investment | 94 | |
Total, Interest Income Recognized | $ 4 |
Loans Receivable and Related 62
Loans Receivable and Related Allowance for Loan Losses - Non-accrual Loans by Classes of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | $ 638 | $ 776 |
Commercial and Industrial [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 435 | 705 |
Commercial Mortgage [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | 200 | 6 |
Other Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | $ 3 | 51 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Non-accrual loans | $ 14 |
Loans Receivable and Related 63
Loans Receivable and Related Allowance for Loan Losses - Classes of Loan Portfolio within Company's Internal Risk Rating System (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Commercial: | ||
Commercial and industrial | $ 85,395 | $ 89,625 |
Commercial mortgage | 235,946 | 223,315 |
Commercial construction | 30,866 | 22,408 |
Residential mortgage loans | 133,727 | 110,538 |
Consumer: | ||
Home equity lines of credit | 19,295 | 24,669 |
Other consumer loans | 13,780 | 17,514 |
Total loans | 519,009 | 488,069 |
Pass [Member] | ||
Commercial: | ||
Commercial and industrial | 84,811 | 88,503 |
Commercial mortgage | 235,114 | 221,544 |
Commercial construction | 30,866 | 22,408 |
Residential mortgage loans | 133,727 | 110,538 |
Consumer: | ||
Home equity lines of credit | 19,295 | 24,655 |
Other consumer loans | 13,780 | 17,463 |
Total loans | 517,593 | 485,111 |
Substandard [Member] | ||
Commercial: | ||
Commercial and industrial | 584 | 1,122 |
Commercial mortgage | 832 | 1,771 |
Consumer: | ||
Home equity lines of credit | 14 | |
Other consumer loans | 51 | |
Total loans | $ 1,416 | $ 2,958 |
Loans Receivable and Related 64
Loans Receivable and Related Allowance for Loan Losses - Classes of Loan Portfolio Summarized by Past Due Status (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 3,854 | $ 1,116 |
Current | 515,155 | 486,953 |
Total loans | 519,009 | 488,069 |
30-59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,604 | 310 |
60-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 349 | 164 |
Greater Than 90 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 901 | 642 |
Residential Mortgage Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 329 | 104 |
Current | 133,398 | 110,434 |
Total loans | 133,727 | 110,538 |
Residential Mortgage Loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 329 | |
Residential Mortgage Loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 104 | |
Home Equity Lines of Credit [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 19,295 | 24,669 |
Total loans | 19,295 | 24,669 |
Commercial and Industrial [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,018 | 985 |
Current | 84,377 | 88,640 |
Total loans | 85,395 | 89,625 |
Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 36 | 293 |
Commercial and Industrial [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 284 | 60 |
Commercial and Industrial [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 698 | 632 |
Commercial Mortgage [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,406 | 6 |
Current | 233,540 | 223,309 |
Total loans | 235,946 | 223,315 |
Commercial Mortgage [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 2,206 | |
Commercial Mortgage [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 200 | 6 |
Commercial Construction [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Current | 30,866 | 22,408 |
Total loans | 30,866 | 22,408 |
Other Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 101 | 21 |
Current | 13,679 | 17,493 |
Total loans | 13,780 | 17,514 |
Other Consumer Loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 33 | 17 |
Other Consumer Loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 65 | |
Other Consumer Loans [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 3 | $ 4 |
Loans Receivable and Related 65
Loans Receivable and Related Allowance for Loan Losses - Summary of Information Regarding Bank's Troubled Debt Restructurings (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)Contract | Dec. 31, 2016Contract | |
Financing Receivable Troubled Debt Restructurings [Line Items] | ||
Number of Contracts | Contract | 3 | 0 |
Pre-Modification Outstanding Recorded Investments | $ 385 | |
Post-Modification Outstanding Recorded Investments | $ 355 | |
Commercial and Industrial [Member] | ||
Financing Receivable Troubled Debt Restructurings [Line Items] | ||
Number of Contracts | Contract | 2 | |
Pre-Modification Outstanding Recorded Investments | $ 221 | |
Post-Modification Outstanding Recorded Investments | $ 206 | |
Commercial Mortgage [Member] | ||
Financing Receivable Troubled Debt Restructurings [Line Items] | ||
Number of Contracts | Contract | 1 | |
Pre-Modification Outstanding Recorded Investments | $ 164 | |
Post-Modification Outstanding Recorded Investments | $ 149 |
Loans Receivable and Related 66
Loans Receivable and Related Allowance for Loan Losses - Summary of Outstanding Troubled Debt Restructurings (Detail) $ in Thousands | Dec. 31, 2017USD ($)loan | Dec. 31, 2016USD ($)loan |
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 4 | 3 |
Total TDRs | $ 985 | $ 671 |
Commercial Mortgage [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Total TDRs | $ 146 | |
Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 2 | |
Total TDRs | $ 202 | |
Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Total TDRs | $ 20 | |
Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Total TDRs | $ 637 | $ 637 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans | loan | 1 | |
Total TDRs | $ 14 | |
Performing [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | 930 | 637 |
Performing [Member] | Commercial Mortgage [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | 146 | |
Performing [Member] | Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | 147 | |
Performing [Member] | Residential Mortgage Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | 637 | 637 |
Non-Performing [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | 55 | 34 |
Non-Performing [Member] | Commercial and Industrial [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | $ 55 | |
Non-Performing [Member] | Other Consumer Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | 20 | |
Non-Performing [Member] | Home Equity Lines of Credit [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Total TDRs | $ 14 |
Transactions with Executive O67
Transactions with Executive Officers, Directors and Principal Shareholders - Schedule of Loans with Related Parties (Detail) - Executive Officers, Directors and Principal Shareholders and affiliated companies - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Balance, beginning of year | $ 5,466 | $ 5,722 |
New loans | 2,549 | 2,174 |
Loans of Retired Officers | (773) | |
Repayments | (1,686) | (2,430) |
Balance at end of year | $ 5,556 | $ 5,466 |
Transactions with Executive O68
Transactions with Executive Officers, Directors and Principal Shareholders - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Executive Officers, Directors and Principal Shareholders and affiliated companies | ||
Related Party Transaction [Line Items] | ||
Deposits of related parties | $ 9.5 | $ 7.7 |
Premises and Equipment - Compon
Premises and Equipment - Components of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,151 | $ 4,143 |
Accumulated depreciation | (2,544) | (2,388) |
Premises and equipment, net | 1,607 | 1,755 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,143 | 1,143 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,424 | 1,422 |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 799 | 818 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 20 | 24 |
Computer Equipment and Data Processing Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 765 | $ 736 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 262 | $ 309 |
Deposits - Components of Deposi
Deposits - Components of Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Demand, non-interest bearing | $ 65,634 | $ 54,817 |
Demand, interest-bearing | 29,918 | 57,168 |
Money market and savings accounts | 145,355 | 113,655 |
Time, $100 and over | 84,358 | 45,311 |
Time, other | 197,885 | 196,737 |
Total deposits | $ 523,150 | $ 467,688 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Line Items] | ||
Brokered deposits | $ 120,200 | $ 138,800 |
FDIC insurance limit | 250 | 250 |
Time deposits in excess of FDIC Insurance limit | 32,100 | 8,000 |
Demand Deposits [Member] | ||
Deposits [Line Items] | ||
Aggregate amount of overdrafts that were reclassified as loans | $ 54 | $ 134 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Time Deposits Rolling Year Maturity [Abstract] | |
2,018 | $ 155,229 |
2,019 | 76,431 |
2,020 | 24,421 |
2,021 | 17,942 |
2,022 | 8,220 |
Total time deposits | $ 282,243 |
Borrowings - Additional Informa
Borrowings - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||
Borrowing facility with correspondent bank | $ 10,000,000 | $ 10,000,000 |
Restricted investments in FHLB stock held as collateral | 1,300,000 | 3,100,000 |
Borrowing capacity with the FHLB | 221,000,000 | 206,000,000 |
Advances outstanding | 24,625,000 | 68,164,000 |
Securities pledged to secure borrowings | 20,000 | 40,000 |
Long-term debt | 9,000,000 | |
FHLB Short-Term Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
Short-term borrowings | $ 15,625,000 | 56,164,000 |
Maximum [Member] | FHLB Short-Term Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
FHLB advances original maturity | 1 year | |
Unsecured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing facility with correspondent bank | $ 2,000,000 | 2,000,000 |
Secured Line of Credit [Member] | ||
Debt Instrument [Line Items] | ||
Borrowing facility with correspondent bank | $ 8,000,000 | 8,000,000 |
FHLB Long-Term Borrowings [Member] | ||
Debt Instrument [Line Items] | ||
FHLB advances original maturity | 1 year | |
Long-term debt | $ 9,000,000 | 12,000,000 |
Average balances outstanding | $ 10,900,000 | $ 14,100,000 |
Average cost of borrowings | 1.30% | 1.12% |
Borrowings - Schedule of Short-
Borrowings - Schedule of Short-term Borrowed Funds (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Short-term Debt [Line Items] | ||
2018, Balance | $ 3,000 | |
2019, Balance | 2,000 | |
2020, Balance | 4,000 | |
Total Balance | $ 9,000 | |
2018, Weighted Average Rate | 1.31% | |
2019, Weighted Average Rate | 1.64% | |
2020, Weighted Average Rate | 1.75% | |
Weighted Average Rate | 1.58% | |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Maximum month-end balance | $ 19 | |
Average daily balance during the year | $ 3 | $ 2 |
Weighted average rate during the year | 1.52% | 0.76% |
FHLB Short-Term Borrowings [Member] | ||
Short-term Debt [Line Items] | ||
Balance at year end | $ 15,625 | $ 56,164 |
Weighted average rate at year end | 1.54% | 0.74% |
Maximum month-end balance | $ 70,400 | $ 60,688 |
Average daily balance during the year | $ 26,446 | $ 22,508 |
Weighted average rate during the year | 1.15% | 0.61% |
Subordinated Debt - Additional
Subordinated Debt - Additional Information (Detail) - Subordinated Note [Member] | $ in Thousands | Nov. 13, 2015USD ($)Investor |
Debt Instrument [Line Items] | |
Number of accredited investors | Investor | 5 |
Net proceeds after issuance cost | $ 9,200 |
Issuance costs | 318 |
Subordinated Debt Due November Thirty Twenty Twenty Five [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, value | $ 9,500 |
Maturity date | Nov. 30, 2025 |
Debt instrument, interest rate | 7.00% |
Debt instrument, non-callable period | 5 years |
Subordinated Debt Due November Thirty Twenty Twenty Five [Member] | Minimum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption pricing | 100.50% |
Subordinated Debt Due November Thirty Twenty Twenty Five [Member] | Maximum [Member] | |
Debt Instrument [Line Items] | |
Debt instrument, redemption pricing | 101.50% |
Lease Commitments - Future Mini
Lease Commitments - Future Minimum Lease Payments (Detail) $ in Thousands | Dec. 31, 2017USD ($) |
Minimum Lease Payments | |
2,018 | $ 1,246 |
2,019 | 1,266 |
2,020 | 1,172 |
2,021 | 971 |
2,022 | 878 |
Thereafter | 2,832 |
Minimum Lease Payments | $ 8,365 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Leases [Abstract] | ||
Lease expense | $ 1,090 | $ 1,130 |
Severance and Employment Agre79
Severance and Employment Agreements - Additional Information (Detail) - $ / shares | Dec. 19, 2013 | Dec. 31, 2017 | Dec. 31, 2016 |
Severance And Employment Agreements [Line Items] | |||
Employment Termination Period | 1 year | ||
Contractual term | 10 years | 3 years 18 days | 2 years 11 months 23 days |
Options, Granted, Weighted Average Exercise Price | $ 5.25 | $ 7.92 | $ 5.93 |
Options granted, Shares | 355,000 | ||
Number of restricted stock issued during period | 89,500 | ||
Restricted stock vesting period | 4 years | ||
President [Member] | |||
Severance And Employment Agreements [Line Items] | |||
Term of employment agreement | 3 years | ||
Post termination benefits | An amount equal to three (3) times the sum of (i) the highest salary paid to him in the year of termination or prior two calendar years and (ii) the highest bonus paid to him in one of the three calendar years prior to termination and (iii) an adjustment for benefits. | ||
Restricted Stock [Member] | |||
Severance And Employment Agreements [Line Items] | |||
Number of restricted stock issued during period | 52,700 | 36,250 | |
Restricted stock vesting period | 3 years | ||
Minimum [Member] | |||
Severance And Employment Agreements [Line Items] | |||
Length of severance payments period | 6 months | ||
Minimum [Member] | President [Member] | |||
Severance And Employment Agreements [Line Items] | |||
Employment agreement, Non-renewal notice period | 60 days | ||
Maximum [Member] | |||
Severance And Employment Agreements [Line Items] | |||
Length of severance payments period | 18 months |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | Jan. 22, 2016 | Dec. 31, 2017 | Dec. 31, 2016 | May 04, 2016 | Dec. 31, 2015 |
Class Of Stock [Line Items] | |||||
Common stock, shares authorized | 20,000,000 | 20,000,000 | 20,000,000 | 10,000,000 | |
Common stock, par value | $ 1 | $ 1 | $ 1 | ||
Preferred stock, shares outstanding | 3,404 | 3,404 | |||
Preferred stock, value outstanding | $ 3,400 | $ 3,400 | |||
Preferred stock, dividend rate | 9.00% | 9.00% | |||
Preferred Stock, redemption amount | $ 6,000 | $ 6,000 | |||
Preferred Stock, redemption price per share | $ 1,016.75 | ||||
Series A Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred Stock, redemption price per share | $ 1,000 | ||||
Preferred stock, shares redeemed | 4,579 | ||||
Series B Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred Stock, redemption price per share | $ 1,000 | ||||
Preferred stock, shares redeemed | 229 | ||||
Series C Preferred Stock [Member] | |||||
Class Of Stock [Line Items] | |||||
Preferred stock, shares outstanding | 3,404 | 3,404 | |||
Preferred stock, dividend rate | 9.00% | 9.00% | |||
Preferred stock, shares redeemed | 1,192 | ||||
Preferred stock pro rata percentage shares redeemed | 25.90% | ||||
Preferred stock, shares issued | 4,596 | 3,404 | 3,404 | ||
Preferred stock, par value | $ 1,000 | $ 100 | $ 100 |
Stock Compensation Program - Ad
Stock Compensation Program - Additional Information (Detail) - USD ($) | Dec. 19, 2013 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock Compensation Program, aggregate maximum number of share to grant | 1,207,957 | |||
Vesting period of granted stock options | 4 years | |||
Description of options termination from the date of grant | Terminate ten years from the date of the grant | |||
Weighted average remaining contractual life, outstanding stock options | 5 years 5 months 15 days | 5 years 10 months 2 days | ||
Weighted average remaining contractual life, exercisable stock options | 10 years | 3 years 18 days | 2 years 11 months 23 days | |
Options outstanding, intrinsic value | $ 2,500,000 | $ 705,000 | ||
Options exercisable, intrinsic value | $ 586,000 | 150,000 | ||
Forfeiture rate percentage | 10.00% | |||
Unrecognized compensation cost | $ 146,000 | |||
Weighted average period for cost is expected to be recognized | 1 year 8 months 19 days | |||
Tax benefit recognized related to stock-based compensation | $ 0 | $ 0 | ||
Stock options issued under Severance Plan | 355,000 | |||
Unrecognized Compensation Cost for Shares Issued and Restricted under the Severance Plan | $ 576,000 | |||
Shares issued to various employees is included in options granted | 7,500 | 37,500 | ||
Options, cancelled, Shares | 40,000 | 32,500 | ||
Stock options outstanding | 807,870 | 955,060 | 970,193 | |
Unrecognized compensation cost amortized period | Jul. 31, 2021 | |||
Performance Options [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares issued to various employees is included in options granted | 99,000 | |||
Options, cancelled, Shares | 82,500 | 82,500 | ||
Stock options outstanding | 16,500 | |||
Restricted Stock [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period of granted stock options | 3 years | |||
Unrecognized compensation cost related to restricted stock | $ 520,000 | |||
Restricted Stock [Member] | Employee [Member] | Minimum [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Vesting period of granted stock options | 3 years | |||
Affinity Bancorp, Inc [Member] | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Shares authorized for grant | 382,957 |
Stock Compensation Program - Su
Stock Compensation Program - Summary of Stock Option Plan (Detail) - $ / shares | Dec. 19, 2013 | Dec. 31, 2017 | Dec. 31, 2016 |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Options, Beginning balance, Options to Purchase Common Shares | 955,060 | 970,193 | |
Options, Granted, Options to Purchase Common Shares | 7,500 | 37,500 | |
Options, Forfeited/cancelled, Options to Purchase Common Shares | (40,000) | (32,500) | |
Options, Exercised, Options to Purchase Common Shares | (2,000) | ||
Options, expired, Options to Purchase Common Shares | (114,690) | (18,133) | |
Options, Ending balance, Options to Purchase Common Shares | 807,870 | 955,060 | |
Options, Exercisable, Options to Purchase Common Shares | 239,870 | 354,560 | |
Options, Beginning balance, Weighted Average Exercise Price | $ 6.35 | $ 6.41 | |
Options, Granted, Weighted Average Exercise Price | $ 5.25 | 7.92 | 5.93 |
Options, Forfeited/cancelled, Weighted Average Exercise Price | 6.19 | 5.91 | |
Options, Exercised, Weighted Average Exercise Price | 5.73 | ||
Options, Expired, Weighted Average Exercise Price | 10.08 | 9.65 | |
Options, Ending balance, Weighted Average Exercise Price | 5.84 | 6.35 | |
Options, Exercisable, Weighted Average Exercise Price | $ 6.62 | $ 7.74 |
Stock Compensation Program - 83
Stock Compensation Program - Summary of Stock Option Plan (Parenthetical) (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2017 | Dec. 31, 2015 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options outstanding | 955,060 | 807,870 | 970,193 |
Options, Exercisable, Options to Purchase Common Shares | 354,560 | 239,870 | |
Options, Exercisable, Weighted Average Exercise Price | $ 7.74 | $ 6.62 | |
Options outstanding, exercise price | $ 6.35 | $ 5.84 | $ 6.41 |
Organizer Options [Member] | 2008 Acquisition of Prestige [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Stock options outstanding | 100,000 | ||
Options, Exercisable, Options to Purchase Common Shares | 100,000 | ||
Options, Exercisable, Weighted Average Exercise Price | $ 10 | ||
Options outstanding, exercise price | $ 10 | ||
Options, expiration date | Oct. 18, 2017 |
Stock Compensation Program - We
Stock Compensation Program - Weighted Average Assumption of Fair Value Option Grant (Detail) - $ / shares | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Dividend yield | 0.00% | 0.00% |
Expected life | 7 years | 7 years |
Expected volatility | 23.00% | 26.00% |
Risk-free interest rate | 2.04% | 1.63% |
Weighted average fair value | $ 2.34 | $ 1.83 |
Stock Compensation Program - 85
Stock Compensation Program - Summary of Restricted Stock Award Activity (Detail) - shares | Dec. 19, 2013 | Dec. 31, 2017 | Dec. 31, 2016 |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock award, granted, Shares | 89,500 | ||
Restricted Stock [Member] | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Restricted stock award, Beginning balance, Unvested shares | 89,450 | 165,474 | |
Restricted stock award, granted, Shares | 52,700 | 36,250 | |
Restricted stock award, forfeited/cancelled, Shares | (4,450) | (725) | |
Restricted stock award, Vested, Shares | (13,550) | (111,549) | |
Restricted stock award, Ending balance, Unvested shares | 124,150 | 89,450 |
Federal Income Taxes - Schedule
Federal Income Taxes - Schedule of Components of Net Deferred Tax Asset (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Deferred tax assets: | ||
Allowance for loan losses | $ 583,000 | $ 701,000 |
Organization and start-up costs | 35,000 | 75,000 |
Net operating loss carry forwards | 833,000 | |
Net operating loss carry forwards--acquired | 231,000 | 670,000 |
Contribution carry forward | 9,000 | |
Non-qualified stock option expense | 208,000 | 283,000 |
Other real estate owned deferred costs | 18,000 | 215,000 |
Unrealized loss on investment securities | 3,000 | 21,000 |
Alternative minimum tax carry forward | 199,000 | |
Property and equipment | 35,000 | 35,000 |
Unfunded loan commitment reserve | 7,000 | 12,000 |
Total Deferred Tax Assets | 1,120,000 | 3,053,000 |
Deferred tax liabilities: | ||
Acquisition accounting | 66,000 | 135,000 |
Cash basis conversions | 120,000 | 206,000 |
Discount accretion on investment securities | 11,000 | 15,000 |
Total Deferred Tax Liabilities | 197,000 | 356,000 |
Net Deferred Tax Asset | $ 923,000 | $ 2,697,000 |
Federal Income Taxes - Addition
Federal Income Taxes - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Investments Owned Federal Income Tax Note [Line Items] | |||
Operating loss carryforwards | $ 1,100,000 | ||
Statutory federal income tax rate | 34.00% | 34.00% | |
Net deferred tax asset included in provision for income tax expense | $ 571,000 | ||
Accrued interest and penalties | 0 | $ 0 | |
Scenario Plan [Member] | |||
Investments Owned Federal Income Tax Note [Line Items] | |||
Statutory federal income tax rate | 21.00% | ||
Prestige Community Bank [Member] | |||
Investments Owned Federal Income Tax Note [Line Items] | |||
Operating loss carryforwards | $ 231,000 | ||
Net operating loss carryforward expiry period, Description | 2,028 | ||
Affinity Bancorp, Inc [Member] | |||
Investments Owned Federal Income Tax Note [Line Items] | |||
Net operating loss carryforward expiry period, Description | 2,032 |
Federal Income Taxes - Schedu88
Federal Income Taxes - Schedule of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Current tax expense: | ||
Federal | $ 227 | $ 94 |
State | 19 | 46 |
Deferred Income tax expense: | ||
Federal | 1,755 | 988 |
Federal income tax expense | $ 2,001 | $ 1,128 |
Federal Income Taxes - Schedu89
Federal Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Federal income tax expense at statutory rate of 34%: | $ 1,516 | $ 1,165 |
Increase (decrease) in taxes resulting from: | ||
Tax exempt interest income, net | (159) | (109) |
Tax exempt income on bank owned life insurance | (24) | (26) |
Applicable state income taxes | 13 | 30 |
Stock compensation adjustment for expired options | (3) | 30 |
Tax Cut and Jobs Act adjustment to deferred tax asset | 571 | |
Other | 87 | 38 |
Federal income tax expense | $ 2,001 | $ 1,128 |
Federal Income Taxes - Schedu90
Federal Income Taxes - Schedule of Reconciliation of Statutory Federal Income Tax Expense to Income Tax Expense (Parenthetical) (Detail) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | ||
Statutory federal income tax rate | 34.00% | 34.00% |
Financial Instruments with Of91
Financial Instruments with Off-Balance Sheet Risk - Additional Information (Detail) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank of Pittsburgh [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit | $ 0 | $ 16,000,000 |
Financial Standby Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit | 1,700,000 | 1,700,000 |
Lines of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments issued under lines of credit | 115,200,000 | 98,200,000 |
Performance Standby Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Letters of credit | $ 2,300,000 | $ 958,000 |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Bank's Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Banking And Thrift [Abstract] | ||
Total capital (to risk-weighted assets), Actual Amount | $ 59,886 | $ 55,900 |
Tier 1 capital (to risk-weighted assets), Actual Amount | 47,215 | 43,328 |
Tier 1 common equity capital (to risk-weighted assets), Actual Amount | 47,215 | 43,328 |
Tier 1 capital (to total assets), Actual Amount | $ 47,215 | $ 43,328 |
Total capital (to risk-weighted assets), Actual Ratio | 12.15% | 12.07% |
Tier 1 capital (to risk-weighted assets), Actual Ratio | 9.58% | 9.35% |
Tier 1 common equity capital (to risk-weighted assets), Actual Ratio | 9.58% | 9.35% |
Tier 1 capital (to total assets), Actual Ratio | 8.08% | 7.87% |
Total capital (to risk-weighted assets), Minimum Capital Requirement Amount | $ 39,434 | $ 37,064 |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement Amount | 29,575 | 27,798 |
Tier 1 common equity capital (to risk-weighted assets), Minimum Capital Requirement Amount | 22,182 | 20,848 |
Tier 1 capital (to total assets), Minimum Capital Requirement Amount | $ 23,384 | $ 22,023 |
Total capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 6.00% | 6.00% |
Tier 1 common equity capital (to risk-weighted assets), Minimum Capital Requirement Ratio | 4.50% | 4.50% |
Tier 1 capital (to total assets), Minimum Capital Requirement Ratio | 4.00% | 4.00% |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 49,292 | $ 46,330 |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions Amount | 39,434 | 37,064 |
Tier 1 common equity capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions Amount | 32,040 | 30,114 |
Tier 1 capital (to total assets), To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 29,230 | $ 27,528 |
Total capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Tier 1 common equity capital (to risk-weighted assets), To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 capital (to total assets), To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | Jan. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 risk based capital required capital conservation buffer ratio | 1.25% | 0.625% | ||
Tier 1 common equity capital ratio minimum requirement | 5.75% | 5.125% | ||
Tier 1 capital ratio minimum requirement | 7.25% | 6.625% | ||
Tier 1 total capital ratio minimum requirement | 9.25% | 8.625% | ||
Scenario, Forecast [Member] | ||||
Compliance With Regulatory Capital Requirements Under Banking Regulations [Line Items] | ||||
Tier 1 risk based capital required capital conservation buffer ratio | 1.875% | |||
Tier 1 common equity capital ratio | 7.00% | |||
Tier 1 capital ratio | 8.50% | |||
Tier 1 total capital ratio | 10.50% |
Fair Value Measurements and F94
Fair Value Measurements and Fair Values of Financial Instruments - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair value measurements changes in methodologies description | During the years ended December 31, 2017 and 2016 there were no changes in methodologies for determining fair value measurements | |
Fair value assets transfers between fair value hierarchy levels from 1 to 2 | $ 0 | $ 0 |
Fair value assets transfers between fair value hierarchy levels from 2 to 1 | 0 | 0 |
Fair value liabilities transfers between fair value hierarchy levels from 1 to 2 | 0 | 0 |
Fair value liabilities transfers between fair value hierarchy levels from 2 to 1 | 0 | 0 |
Fair value assets transfers between fair value hierarchy levels into 3 | 0 | 0 |
Fair value assets transfers between fair value hierarchy levels out of 3 | 0 | 0 |
Fair value liabilities transfers between fair value hierarchy levels into 3 | 0 | 0 |
Fair value liabilities transfers between fair value hierarchy levels out of 3 | 0 | 0 |
Other real estate owned | 550,000 | 1,486,000 |
Impaired loan balances | 1,568,000 | 1,413,000 |
Total, Related Allowance | 182,000 | 47,000 |
Impaired Loans Fair Value with Allowance Recorded [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Impaired loan balances | 968,000 | 637,000 |
Total, Related Allowance | 182,000 | 46,000 |
Impaired Loans Fair Value with no Related Allowance Recorded [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Impaired loan balances | 529,000 | 862,000 |
Net of partial charge-offs | 196,000 | 196,000 |
Portion at Fair Value Measurement [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Other real estate owned | 69,000 | 1,200,000 |
Other Real Estate Owned [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Valuation allowance | $ 38,000 | $ 520,000 |
Fair Value Measurements and F95
Fair Value Measurements and Fair Values of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | $ 52,373 | $ 70,560 |
Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 20,971 | 45,987 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 4,386 | 6,139 |
Federal Agency Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 25,289 | 13,720 |
Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 109 | 189 |
Other Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 1,583 | 1,530 |
Money Market Mutual Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 35 | 2,995 |
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 35 | 2,995 |
(Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | Money Market Mutual Fund [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 35 | 2,995 |
(Level 2) Significant Other Observable Inputs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 52,338 | 67,565 |
(Level 2) Significant Other Observable Inputs [Member] | Obligations of U.S. Government Agencies and Corporations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 20,971 | 45,987 |
(Level 2) Significant Other Observable Inputs [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 4,386 | 6,139 |
(Level 2) Significant Other Observable Inputs [Member] | Federal Agency Mortgage-Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 25,289 | 13,720 |
(Level 2) Significant Other Observable Inputs [Member] | Federal Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | 109 | 189 |
(Level 2) Significant Other Observable Inputs [Member] | Other Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a recurring basis | $ 1,583 | $ 1,530 |
Fair Value Measurements and F96
Fair Value Measurements and Fair Values of Financial Instruments - Summary of Financial Assets Measured at Fair Value on Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | $ 1,188 | $ 1,936 |
Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 1,119 | 1,257 |
Other Real Estate Owned [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 69 | 679 |
(Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 1,188 | 1,936 |
(Level 3) Significant Unobservable Inputs [Member] | Impaired Loans [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | 1,119 | 1,257 |
(Level 3) Significant Unobservable Inputs [Member] | Other Real Estate Owned [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value on a nonrecurring basis | $ 69 | $ 679 |
Fair Value Measurements and F97
Fair Value Measurements and Fair Values of Financial Instruments - Quantitative Information about Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Asset at fair Value | $ 1,188 | $ 1,936 |
(Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Asset at fair Value | 1,188 | 1,936 |
Impaired Loans [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Asset at fair Value | $ 1,119 | $ 1,257 |
Impaired Loans [Member] | (Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated Ratings, maximum | 10.00% | 10.00% |
Estimated Ratings Weighted Average, Liquidation expenses | 8.47% | 8.01% |
Asset at fair Value | $ 1,119 | $ 1,257 |
Unobservable Inputs | Liquidation expenses | |
Estimated Ratings, minimum | 0.00% | 0.00% |
Impaired Loans [Member] | Appraisal of Real Estate Collateral [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Valuation Techniques | Appraisal of real estate collateral | |
Impaired Loans [Member] | Appraisal of Real Estate Collateral [Member] | (Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated Ratings, maximum | 75.00% | 25.00% |
Estimated Ratings Weighted Average, Appraisal adjustments | 12.19% | 4.87% |
Unobservable Inputs | Appraisal adjustments | |
Estimated Ratings, minimum | 0.00% | 0.00% |
Impaired Loans [Member] | Valuation of Business Assets Used as Collateral [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Valuation Techniques | 2016: Valuation of business assets used as collateral | |
Impaired Loans [Member] | Valuation of Business Assets Used as Collateral [Member] | (Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Unobservable Inputs | 2016: Valuation adjustments | |
Estimated Ratings, maximum | 80.00% | |
Estimated Ratings Weighted Average, Valuation adjustments | 75.32% | |
Estimated Ratings, minimum | 0.00% | |
Other Real Estate Owned [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Asset at fair Value | $ 69 | $ 679 |
Other Real Estate Owned [Member] | (Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated Ratings, maximum | 8.00% | 7.00% |
Estimated Ratings Weighted Average, Liquidation expenses | 8.00% | 6.94% |
Asset at fair Value | $ 69 | $ 679 |
Unobservable Inputs | Liquidation expenses | |
Estimated Ratings, minimum | 5.00% | |
Other Real Estate Owned [Member] | Appraisal of Collateral [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Valuation Techniques | Appraisal of collateral | |
Other Real Estate Owned [Member] | Appraisal of Collateral [Member] | (Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Inputs Assets Quantitative Information [Line Items] | ||
Estimated Ratings, maximum | 0.00% | 0.00% |
Estimated Ratings Weighted Average, Appraisal adjustments | 0.00% | 0.00% |
Unobservable Inputs | Appraisal adjustments |
Fair Value Measurements and F98
Fair Value Measurements and Fair Values of Financial Instruments - Summary of Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | $ 52,373 | $ 70,560 |
Held to Maturity, Fair Value | 19,665 | 19,584 |
Carrying Amount [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 8,257 | 4,761 |
Fair Value | 52,373 | 70,560 |
Held to Maturity, Fair Value | 18,665 | 19,043 |
Loans receivable, net | 515,522 | 484,913 |
Restricted stock | 1,416 | 3,257 |
Accrued interest receivable | 2,007 | 1,817 |
Deposits | 523,150 | 467,688 |
Subordinated debt | 9,231 | 9,207 |
Accrued interest payable | 844 | 510 |
Carrying Amount [Member] | Federal Home Loan Bank of Pittsburgh advances [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Federal Home Loan Bank of Pittsburgh advances | 24,625 | 68,164 |
Portion at Fair Value Measurement [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 8,257 | 4,761 |
Fair Value | 52,373 | 70,560 |
Held to Maturity, Fair Value | 19,665 | 19,584 |
Loans receivable, net | 519,721 | 490,890 |
Restricted stock | 1,416 | 3,257 |
Accrued interest receivable | 2,007 | 1,817 |
Deposits | 521,922 | 467,616 |
Subordinated debt | 9,539 | 9,273 |
Accrued interest payable | 844 | 510 |
Portion at Fair Value Measurement [Member] | (Level 1) Quoted Prices in Active Markets for Identical Assets [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 8,257 | 4,761 |
Fair Value | 35 | 2,995 |
Portion at Fair Value Measurement [Member] | (Level 2) Significant Other Observable Inputs [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Fair Value | 52,338 | 67,565 |
Held to Maturity, Fair Value | 19,665 | 19,584 |
Restricted stock | 1,416 | 3,257 |
Accrued interest receivable | 2,007 | 1,817 |
Deposits | 521,922 | 467,616 |
Subordinated debt | 9,539 | 9,273 |
Accrued interest payable | 844 | 510 |
Portion at Fair Value Measurement [Member] | (Level 3) Significant Unobservable Inputs [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Loans receivable, net | 519,721 | 490,890 |
Portion at Fair Value Measurement [Member] | Federal Home Loan Bank of Pittsburgh advances [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Federal Home Loan Bank of Pittsburgh advances | 24,546 | 68,157 |
Portion at Fair Value Measurement [Member] | Federal Home Loan Bank of Pittsburgh advances [Member] | (Level 2) Significant Other Observable Inputs [Member] | ||
Fair Value Balance Sheet Grouping Financial Statement Captions [Line Items] | ||
Federal Home Loan Bank of Pittsburgh advances | $ 24,546 | $ 68,157 |
Parent Company Only Financial99
Parent Company Only Financial Information - Schedule of Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | |||
Cash and cash equivalents | $ 8,257 | $ 4,761 | $ 5,909 |
Deferred taxes | 923 | 2,697 | |
Other assets | 2,402 | 1,290 | |
Total Assets | 609,942 | 597,795 | |
Liabilities and Shareholders’ Equity | |||
Other liabilities | 1,596 | 4,180 | |
Shareholders' equity | 50,496 | 48,046 | 52,091 |
Total Liabilities and Shareholders’ Equity | 609,942 | 597,795 | |
First Priority Financial Corp. [Member] | |||
Assets | |||
Cash and cash equivalents | 27 | 243 | $ 6,411 |
Investment in subsidiary | 50,118 | 47,454 | |
Deferred taxes | 238 | 349 | |
Receivable due from bank subsidiary | 119 | ||
Other assets | 18 | 32 | |
Total Assets | 50,520 | 48,078 | |
Liabilities and Shareholders’ Equity | |||
Other liabilities | 24 | 32 | |
Shareholders' equity | 50,496 | 48,046 | |
Total Liabilities and Shareholders’ Equity | $ 50,520 | $ 48,078 |
Parent Company Only Financia100
Parent Company Only Financial Information - Schedule of Condensed Income Statements (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Income Statements, Captions [Line Items] | ||
Interest from subsidiary | $ 18,204 | $ 16,716 |
Non-interest expenses | 14,401 | 14,123 |
Income Tax Expense | 2,001 | 1,128 |
Net Income | 2,458 | 2,300 |
First Priority Financial Corp. [Member] | ||
Condensed Income Statements, Captions [Line Items] | ||
Dividend income from subsidiary, net of dividends paid by Bank | 306 | 407 |
Interest from subsidiary | 1 | 2 |
Total income | 307 | 409 |
Non-interest expenses | 103 | 161 |
Income before taxes and equity in undistributed net income of subsidiary | 204 | 248 |
Income Tax Expense | 112 | (54) |
Income before equity in undistributed net income of subsidiary | 92 | 302 |
Equity in undistributed net income of subsidiary | 2,366 | 1,998 |
Net Income | $ 2,458 | $ 2,300 |
Parent Company Only Financia101
Parent Company Only Financial Information - Schedule of Statements of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Condensed Statement Of Income Captions [Line Items] | ||
Net income | $ 2,458 | $ 2,300 |
Securities available for sale: | ||
Change in unrealized gain on securities available for sale | 485 | 405 |
Reclassification adjustment for realized gains included in net income | (416) | (795) |
Tax effect | (24) | 133 |
Net gains (losses) arising during the period | 45 | (257) |
Net unrealized holding losses on securities transferred between available for sale and held to maturity: | ||
Amortization of net unrealized holding losses to income during the period | (15) | (31) |
Tax effect | 6 | 10 |
Net unrealized holding losses on securities transferred during the period | (9) | (21) |
Total other comprehensive income (loss) | 36 | (278) |
Total comprehensive income | 2,494 | 2,022 |
First Priority Financial Corp. [Member] | ||
Condensed Statement Of Income Captions [Line Items] | ||
Net income | 2,458 | 2,300 |
Securities available for sale: | ||
Change in unrealized gain on securities available for sale | 484 | 405 |
Reclassification adjustment for realized gains included in net income | (416) | (795) |
Tax effect | (23) | 133 |
Net gains (losses) arising during the period | 45 | (257) |
Net unrealized holding losses on securities transferred between available for sale and held to maturity: | ||
Amortization of net unrealized holding losses to income during the period | (14) | (31) |
Tax effect | 5 | 10 |
Net unrealized holding losses on securities transferred during the period | (9) | (21) |
Total other comprehensive income (loss) | 36 | (278) |
Total comprehensive income | $ 2,494 | $ 2,022 |
Parent Company Only Financia102
Parent Company Only Financial Information - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | Jan. 22, 2016 | Dec. 31, 2017 | Dec. 31, 2016 |
Operating activities: | |||
Net income | $ 2,458 | $ 2,300 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock based compensation distribution from Bank | 262 | 328 | |
Net increase in other assets | (272) | (20) | |
Net (decrease) increase in other liabilities | 115 | 2,813 | |
Financing activities: | |||
Redemption of preferred stock | $ (6,000) | (6,000) | |
Proceeds from the exercise of common stock options | 12 | ||
Cash dividends paid on preferred stock | (306) | (427) | |
Cash and Cash Equivalents—Beginning | 4,761 | 5,909 | |
Cash and Cash Equivalents—Ending | 8,257 | 4,761 | |
First Priority Financial Corp. [Member] | |||
Operating activities: | |||
Net income | 2,458 | 2,300 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed net income of subsidiary, net of dividends from Bank | (2,628) | (2,326) | |
Stock based compensation distribution from Bank | 262 | 328 | |
Deferred income tax expense (benefit) | 111 | (54) | |
Net increase in other assets | (105) | (4) | |
Net (decrease) increase in other liabilities | (8) | 3 | |
Net cash provided by operating activities | 90 | 247 | |
Financing activities: | |||
Redemption of preferred stock | (6,000) | ||
Proceeds from the exercise of common stock options | 12 | ||
Cash dividends paid on preferred stock | (306) | (427) | |
Net cash used in financing activities | (306) | (6,415) | |
Net decrease in cash | (216) | (6,168) | |
Cash and Cash Equivalents—Beginning | 243 | 6,411 | |
Cash and Cash Equivalents—Ending | $ 27 | $ 243 |
Subsequent Event - Additional I
Subsequent Event - Additional Information (Details) - Mid Penn Bancorp, Inc. [Member] $ in Millions | Jan. 16, 2018 | Jan. 08, 2018 | Dec. 31, 2017USD ($)LocationCountryshares |
Subsequent Event [Line Items] | |||
Business acquisition, proforma assets | $ 2,200 | ||
Business acquisition, proforma loans | 1,600 | ||
Business acquisition, proforma deposits | 1,800 | ||
Business acquisition, proforma equity capital | $ 170 | ||
Shares of acquirer ratio of common stock | shares | 0.3481 | ||
Number of retail locations | Location | 37 | ||
Number of serving counties | Country | 12 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Plan of merger agreement, date | Jan. 16, 2018 | ||
Scottdale Bank & Trust [Member] | Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Acquisition date | Jan. 8, 2018 |