Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 17, 2015 | Jun. 30, 2014 | |
Document and Entity Information | |||
Entity Registrant Name | Bancorp of New Jersey, Inc. | ||
Entity Central Index Key | 1390312 | ||
Document Type | 10-K | ||
Document Period End Date | 31-Dec-14 | ||
Amendment Flag | FALSE | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $67,978,000 | ||
Entity Common Stock, Shares Outstanding | 6,238,041 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and due from banks | $1,218 | $2,115 |
Interest bearing deposits | 20,386 | 35,168 |
Federal funds sold | 456 | 458 |
Total cash and cash equivalents | 22,060 | 37,741 |
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 58,451 | 68,048 |
Securities held to maturity (fair value approximates $15,921 and $18,016, at December 31, 2014 and December 31, 2013, respectively) | 15,923 | 18,011 |
Restricted investment in bank stock, at cost | 2,162 | 792 |
Loans: | 633,958 | 472,465 |
Deferred loan fees and costs, net | -414 | -339 |
Allowance for loan losses | -7,192 | -5,775 |
Net loans | 626,352 | 466,351 |
Premises and equipment, net | 10,136 | 10,427 |
Accrued interest receivable | 2,441 | 1,456 |
Other real estate owned | 897 | 964 |
Other assets | 4,266 | 6,001 |
Total assets | 743,688 | 610,791 |
Deposits: | ||
Noninterest-bearing demand deposits | 89,510 | 69,620 |
Demand, savings, money market and time deposits | 254,981 | 219,145 |
Time deposits of $100 or more | 304,483 | 264,555 |
Total deposits | 648,974 | 553,320 |
Borrowed funds | 32,950 | |
Accrued expenses and other liabilities | 1,870 | 1,521 |
Total liabilities | 683,794 | 554,841 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Common stock, no par value, authorized 20,000,000 shares; issued and outstanding 5,369,984 at December 31, 2014 and 5,340,266 at December 31, 2013 | 50,998 | 50,475 |
Retained earnings | 9,635 | 7,132 |
Accumulated other comprehensive loss | -739 | -1,657 |
Total stockholders' equity | 59,894 | 55,950 |
Total liabilities and stockholders' equity | $743,688 | $610,791 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS | ||
Securities held to maturity, fair value (in dollars) | $15,921 | $18,016 |
Common stock, par value (in dollars per share) | $0 | $0 |
Common stock, authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 5,369,984 | 5,340,266 |
Common stock, outstanding shares | 5,369,984 | 5,340,266 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Interest income: | ||
Loans, including fees | $26,879 | $23,635 |
Securities | 927 | 1,083 |
Interest-earning deposits in banks | 48 | 70 |
Federal funds sold | 5 | 9 |
Total interest income | 27,859 | 24,797 |
Interest expense: | ||
Savings and money markets | 999 | 796 |
Time deposits | 5,397 | 5,303 |
Borrowed funds | 215 | |
Total interest expense | 6,611 | 6,099 |
Net interest income | 21,248 | 18,698 |
Provision for loan losses | 3,075 | 810 |
Net interest income after provision for loan losses | 18,173 | 17,888 |
Non interest income | ||
Fees and service charges on deposit accounts | 207 | 178 |
Fees earned from mortgage referrals | 6 | |
Gains (losses) on sale of securities | -16 | 195 |
Total non interest income | 191 | 379 |
Non interest expense | ||
Salaries and employee benefits | 6,503 | 5,495 |
Occupancy and equipment expense | 2,608 | 2,415 |
FDIC and state assessments | 399 | 360 |
Legal fees | 217 | 177 |
Other real estate owned related expenses | 54 | |
Professional fees | 444 | 330 |
Data processing | 817 | 747 |
Other operating expenses | 1,411 | 1,034 |
Total non interest expenses | 12,453 | 10,558 |
Income before income taxes | 5,911 | 7,709 |
Income tax expense | 2,121 | 3,055 |
Net income | $3,790 | $4,654 |
Earnings per share: | ||
Basic (in dollars per share) | $0.71 | $0.88 |
Diluted (in dollars per share) | $0.70 | $0.87 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $3,790 | $4,654 |
Other comprehensive income: | ||
Net unrealized holding gains (losses) on securities available for sale arising during the period, net of income tax expense (benefit) of $600 and ($1,251), respectively | 928 | -2,073 |
Reclassification adjustment for (losses) gains on sale of securities, net of income tax (benefit) expense of $(6) and $63, respectively | -10 | 132 |
Other comprehensive income (loss) | 918 | -1,941 |
Comprehensive income | $4,708 | $2,713 |
CONSOLIDATED_STATEMENTS_OF_COM1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net unrealized holding losses on securities available for sale arising during the period, income tax benefit | $600 | ($1,251) |
Reclassification adjustment for gain on sale of securities, tax expense | ($6) | $63 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) Income | Total |
In Thousands, unless otherwise specified | ||||
Balance at Dec. 31, 2012 | $49,689 | $3,747 | $284 | $53,720 |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (26,000 and 53,334 shares for the year ended 2014 and 2013 respectively | 614 | 614 | ||
Stock based compensation | 172 | 172 | ||
Dividends on common stock ($0.24 and $0.24 per share for the year ended December 31, 2014 and 2013 respectively) | -1,269 | -1,269 | ||
Net income | 4,654 | 4,654 | ||
Total other comprehensive income (loss) | -1,941 | -1,941 | ||
Balance at Dec. 31, 2013 | 50,475 | 7,132 | -1,657 | 55,950 |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (26,000 and 53,334 shares for the year ended 2014 and 2013 respectively | 273 | 273 | ||
Stock based compensation | 250 | 250 | ||
Dividends on common stock ($0.24 and $0.24 per share for the year ended December 31, 2014 and 2013 respectively) | -1,287 | -1,287 | ||
Net income | 3,790 | 3,790 | ||
Total other comprehensive income (loss) | 918 | 918 | ||
Balance at Dec. 31, 2014 | $50,998 | $9,635 | ($739) | $59,894 |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Exercise of stock options (in shares) | 26,000 | 53,334 |
Dividends on common stock per share (in dollars per share) | $0.24 | $0.24 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Cash flows from operating activities: | ||
Net income | $3,790 | $4,654 |
Adjustments to reconcile net income to net cash provided by Operating activities: | ||
Provision for loan losses | 3,075 | 810 |
Amortization of securities premiums | 109 | 88 |
Deferred tax benefit | -406 | -354 |
Depreciation and amortization | 570 | 520 |
Stock based compensation | 250 | 172 |
Accretion of net loan origination fees | 75 | 231 |
Loss (gain) on sale of securities | 16 | -195 |
Loss on sale of other real estate owned | 54 | |
Changes in operating assets and liabilities: | ||
Increase (decrease) in accrued interest receivable | -985 | 276 |
Decrease (increase) in other assets | 1,545 | -1,477 |
(Decrease) increase in other liabilities | 349 | -398 |
Net cash provided by operating activities | 8,442 | 4,327 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | -48,000 | |
Purchases of securities held to maturity | -11,923 | -24,008 |
Proceeds from maturities of securities held to maturity | 14,014 | 11,479 |
Proceeds from called or matured securities available for sale | 18,031 | |
Proceeds from sales of securities available for sale | 10,984 | 47,379 |
Purchase of interest bearing time deposits | -750 | |
Purchase of restricted investment in bank stock | -1,370 | -123 |
Proceeds from sale of other real estate owned | 1,090 | |
Net increase in loans | -164,229 | -37,879 |
Purchases of premises and equipment | -279 | -723 |
Net cash used in investing activities | -151,713 | -34,594 |
Cash flows from financing activities: | ||
Net increase in deposits | 95,654 | 37,585 |
Net increase in borrowed funds | 32,950 | |
Dividends paid | -1,287 | -1,269 |
Proceeds from exercise of options | 273 | 614 |
Net cash provided by financing activities | 127,590 | 36,930 |
(Decrease) increase in cash and cash equivalents | -15,681 | 6,663 |
Cash and cash equivalents at beginning of year | 37,741 | 31,078 |
Cash and cash equivalents at end of year | 22,060 | 37,741 |
Cash paid during the period for: | ||
Interest | 6,488 | 6,142 |
Taxes | 2,464 | 3,680 |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Loans transferred to other real estate owned | $1,077 | $964 |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary of Significant Accounting Policies | ||||
Summary of Significant Accounting Policies | ||||
NOTE 1.Summary of Significant Accounting Policies | ||||
Basis of Financial Statement Presentation | ||||
The accompanying consolidated financial statements include the accounts of Bancorp of New Jersey, Inc. (together with its consolidated subsidiary, the “Company”), and its direct wholly-owned subsidiary, Bank of New Jersey (the “Bank”) and the Bank’s wholly-owned subsidiaries, BONJ-New York Corp., BONJ-New Jersey Investment Company, BONJ- Delaware Investment Company, and BONJ REIT Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||||
The Company was incorporated under the laws of the State of New Jersey to serve as a holding company for the Bank and to acquire all the capital stock of the Bank. | ||||
Certain amounts in the prior period’s financial statements have been reclassified to conform to the December 31, 2014 presentation. These reclassifications did not have an impact on income, stockholders’ equity or cash flows as previously reported. | ||||
Nature of Operations | ||||
The Company’s primary business is ownership and supervision of the Bank. The Bank commenced operations as of May 10, 2006. The Company, through the Bank, conducts a traditional commercial banking business, accepting deposits from the general public, including individuals, businesses, non-profit organizations, and governmental units. The Bank makes commercial loans, consumer loans, and both residential and commercial real estate loans. In addition, the Bank provides other customer services and makes investments in securities, as permitted by law. | ||||
Since opening in May, 2006, the Bank has established seven branch offices in addition to its main office. The Bank expects to continue to seek additional strategically located branch locations within Bergen County. Particular emphasis will be placed on presenting an alternative banking culture in communities which are dominated by non-local competitors and where no community banking approach exists or in locations which the Company perceives to be economically emerging. | ||||
During the second quarter of 2009, the Bank formed BONJ-New York Corporation. The New York subsidiary is engaged in the business of acquiring, managing and administering portions of Bank of New Jersey’s investment and loan portofolios. During 2014, the Bank formed BONJ-Delaware Investment Company and BONJ-New Jersey Investment Company to use to acquire, manage and administer portions of the Bank of New Jersey’s investments and loans. Also in 2014, the Bank formed BONJ-REIT, Inc. This company was formed to acquire, manage and administer portions of the Bank’s loans. BONJ-Reit, Inc. is owned by BONJ-Delaware Investment Company. | ||||
Use of Estimates | ||||
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of the deferred tax asset, the determination of other-than-temporary impairment on securities, and the potential impairment of restricted stock. While management uses available information to recognize estimated losses on loans, future additions may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. These agencies may require the Bank to recognize additions to the allowance based on their judgements of information available to them at the time of their examination. | ||||
The financial statements have been prepared in conformity with U.S. GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period indicated. Actual results could differ significantly from those estimates. | ||||
Significant Group of Concentration of Credit Risk | ||||
Bancorp of New Jersey, Inc.’s activities are, primarily, with customers located within Bergen County, New Jersey. The Company does not have any significant concentration to any one industry or customers within its primary service area. Note 3 describes the types of lending in which the Company engages. Although the Company actively manages the diversification of the loan portfolio, a substantial portion of the debtors’ ability to honor their contracts is dependent on the strength of the local economy. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents include cash and due from banks, interest-bearing deposits in banks, and federal funds sold, which are generally sold for one-day periods. | ||||
Interest-bearing deposits in banks | ||||
Interest-bearing deposits in banks are carried at cost. | ||||
Regulators | ||||
The Bank is subject to federal and New Jersey statutes aplicable to banks chartered under the New Jersey banking laws. The Bank’s deposits are insured by the Federal Deposit Insurance Corporation (“FDIC”). Accordingly, the Bank is subject to regulation, supervision, and examination by the New Jersey State Department of Banking and Insurance and the FDIC. The Company is subject to regulation, supervision and examination by the Board of Governors of the Federal Reserve System. | ||||
Securities | ||||
The Company reports investment securities in one of the following categories: (i) held to matruity (management has the intent and ability to hold to maturity), which are reported at amortized cost; (ii) trading (held for current resale), which are reported at fair value, with unrealized gaines and losses included in earngings; and (iii) available for sale, which are reported at fair value, with unrealized gains and lossess excluded from earnings and reported as a separate component of stockholders’ equity. The Company has classified all of its holdings of investment securities as either held to matruity or available for sale. At the time a security is purchased, a determination is made as to the approproiate classification. | ||||
Premiums and discounts on investment securities are amortized as expense and accreted as income over the estimated life of the respective security using a method that generally approximates the level-yield method. Gains and losses on the sales of investment securities are recognized upon realization, using the specific identification method and shown separately in the consolidate statements of income. | ||||
Management evaluates securities for Other-than-temporary impairment (“OTTI”) on at aleast a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirment to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the statement of income and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | ||||
Premises and Equipment | ||||
Premises and equipment are stated at historical cost, less accumulated depreciation and amortization. Depreciation of fixed assets is accumulated on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease. The estimated lives of our premises and equipment range from 3 years for certain computer related equipment to 30 years for building costs associated with newly constructed buildings. Maintenance and repairs are charged to expense in the year incurred. | ||||
Loans and Allowance for Loan Losses | ||||
Loans 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) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. | ||||
The loans receivable portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial (“commercial”) and commercial real estate which includes commercial construction loans. Consumer loans consist of residential mortgage loans, home equity loans and other consumer loans. | ||||
For all classes of loans receivable, 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, including impaired loans, generally is 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 (generally six months) 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. | ||||
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet. 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. Non-residential consumer loans are generally charged off no later than 180 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. 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 credit losses is maintained at a level considered adequate to provide for losses that are probable and reasonable to estimate. 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 loan portfolio and unfunded commitments, 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 for loan losses 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 | Experience, ability, and depth of lending management and staff. | |||
5 | Volume and severity of past due, classified and nonaccrual loans as well as and other loan modifications. | |||
6 | Quality of the Company’s loan review system, and the degree of oversight by the Company’s board of directors. | |||
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. | ||||
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 for commercial loans, commercial real estate loans and commercial construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. | ||||
An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. | ||||
For commercial loans secured by real estate, estimated fair values are determined primarily through third-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 are 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 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. | ||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | ||||
Loans whose terms are modified are classified as troubled debt restructurings (“TDRs”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Loans classified as TDRs are designated as impaired and evaluated for impairment until they are ultimately repaid in full or foreclosed and sold. Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. | ||||
The Company’s methodology for the determination of the allowance for loan losses 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 mentions 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 to the Company’s methodology, 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 was adequate. | ||||
Other Real Estate Owned | ||||
Other real estate owned consists of real estate acquired by foreclosure and is initially recorded at fair value, less estimated selling costs. Subsequent to foreclosure, revenues are included in non-interest income and expenses from operations and lower of cost or market changes in the valuation are included in non-interest expenses. | ||||
Stock-Based Compensation | ||||
ASC Topic 718 Compensation-Stock Compensation addresses the accounting for share-based payment transactions in which an enterprise receives employee service in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. Guidance requires an entity to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees within the income statement using a fair-value-based method. The Company accounts for stock options under these recognition and measurement principles. | ||||
The Company recorded stock-based compensation expense of $250 thousand and $172 thousand during 2014 and 2013, respectively. At December 31, 2014, the Company had no unrecognized compensation expense related to stock options. At December 31, 2014, the Company had $664,000 of unrecognized compensation expense related to unvested restricted stock granted in 2013. | ||||
Income Taxes | ||||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||
As required by ASC Topic 740, Income Taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Bank applied ASC Topic 740 to all tax positions for which the statute of limitations remained open. There was no material effect on the Company’s consolidated financial position or results of operations and no adjustment to retained earnings. | ||||
The Company recognizes interest and penalties on income taxes as a component of income tax. | ||||
Earnings Per Share | ||||
Basic earnings per share excludes dilution and represents the effect of earnings upon the weighted average number of shares outstanding for the period. Diluted earnings per share reflects the effect of earnings upon weighted average shares including the potential dilution that could occur if securities or contracts to issue common stock were converted or exercised, utilizing the treasury stock method. | ||||
Comprehensive Income | ||||
Comprehensive income consists of net income or loss for the current period and income, expenses, or gains and losses not included in the income statement and which are reported directly as a separate component of equity. The Company includes the required disclosures in the statements of comprehensive income. | ||||
Advertising | ||||
The Company expenses advertising costs as incurred. Advertising expenses totaled $245 thousand and $109 thousand for 2014 and 2013, respectively. | ||||
Transfer 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 Bank, (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 Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity, or the ability to unilaterally cause the holder to return specific assets. | ||||
Restricted Investment in Bank Stock | ||||
Restricted investment in bank stocks which represent required investments in the common stock of correspondent banks, is carried at cost and consists of the common stock of the Federal Home Loan Bank (the “FHLB”) of $2.1 million and $692 thousand and Atlantic Community Bankers Bank, formerly Atlantic Central Bankers Bank (the “ACBB”) of $100 thousand and $100 thousand, as of December 31, 2014 and 2013, respectively. Federal law requires a member institution of the Federal Home Loan Bank to hold stock according to a predetermined formula. All restricted stock is recorded at cost as of December 31, 2014 and 2013. | ||||
Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2014. | ||||
Restrictions on Cash and Amounts Due From Banks | ||||
The Bank is required to maintain average balances on hand or with the Federal Reserve Bank of New York. At December 31, 2014 and 2013, these reserve balances amounted to $1.2 million and $634 thousand, respectively, and are reflected in interest bearing deposits in banks. | ||||
Securities
Securities | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Securities | ||||||||||||||||||||
Securities | ||||||||||||||||||||
NOTE 2.Securities | ||||||||||||||||||||
A summary of securities held to maturity and securities available for sale at December 31, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
2014 | Cost | Gains | Losses | Value | ||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 11,923 | $ | — | $ | — | $ | 11,923 | ||||||||||||
U.S. Treasury obligations | 4,000 | — | (2 | ) | 3,998 | |||||||||||||||
Total securities held to maturity | 15,923 | — | (2 | ) | 15,921 | |||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligations | 6,623 | — | (221 | ) | 6,402 | |||||||||||||||
Government sponsored enterprise obligations | 53,000 | — | (951 | ) | 52,049 | |||||||||||||||
Total securities available for sale | 59,623 | — | (1,172 | ) | 58,451 | |||||||||||||||
$ | 75,546 | $ | — | $ | (1,174 | ) | $ | 74,372 | ||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
2013 | Cost | Gains | Losses | Value | ||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 10,014 | $ | — | $ | — | $ | 10,014 | ||||||||||||
Government sponsored enterprise obligations | 3,998 | 10 | — | 4,008 | ||||||||||||||||
U.S. Treasury obligations | 3,999 | — | (5 | ) | 3,994 | |||||||||||||||
Total securities held to maturity | 18,011 | 10 | (5 | ) | 18,016 | |||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligations | 6,733 | — | (414 | ) | 6,319 | |||||||||||||||
Government sponsored enterprise obligations | 64,000 | — | (2,271 | ) | 61,729 | |||||||||||||||
Total securities available for sale | 70,733 | — | (2,685 | ) | 68,048 | |||||||||||||||
$ | 88,744 | $ | 10 | $ | (2,690 | ) | $ | 86,064 | ||||||||||||
Securities with an amortized cost of $10.4 million and a fair value of $10.1 million, respectively, were pledged to secure public funds on deposit at December 31, 2014. In addition, securities with an amortized cost of $17.2 million and a fair value of $16.9 million were pledged to secure borrowings with the Federal Home Loan Bank of New York (“FHLBNY”) as of December 31, 2014. Securities with an amortized cost of $8.4 million and a fair value of $8.1 million, respectively, were pledged to secure public funds on deposit at December 31, 2013. | ||||||||||||||||||||
For the year ended December 31, 2014, the Company sold five securities from its available for sale portfolio. The Company recognized a loss of approximately $16 thousand from the sale of these securities. The Company did not sell any securities from its held to maturity portfolio in 2014. For the year ended December 31, 2013, the Company sold sixteen securities from its available for sale portfolio. The Company recognized a gain of approximately $541 thousand from the sale of seven securities, a loss of approximately $346 thousand from the sale of eight securities and no gain or loss from the sale of one security, resulting in net gains of approximately $195 thousand from the transactions. The Company did not sell any securities from its held to maturity portfolio in 2013. . | ||||||||||||||||||||
The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities available for sale at December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
2014 | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
U.S. Treasury obligations | $ | — | $ | — | $ | 3,998 | $ | (2 | ) | $ | 3,998 | $ | (2 | ) | ||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligation | — | — | 6,402 | (221 | ) | 6,402 | (221 | ) | ||||||||||||
Government Sponsored | ||||||||||||||||||||
Enterprise obligations | 2,994 | (6 | ) | 49,055 | (945 | ) | 52,049 | (951 | ) | |||||||||||
Total securities available for sale | 2,994 | (6 | ) | 55,457 | (1,166 | ) | 58,451 | (1,172 | ) | |||||||||||
$ | 2,994 | $ | (6 | ) | $ | 59,455 | $ | (1,168 | ) | $ | 62,449 | $ | (1,174 | ) | ||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
2013 | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
U.S. Treasury obligations | $ | 3,994 | $ | (5 | ) | $ | — | $ | — | $ | 3,994 | $ | (5 | ) | ||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligation | — | — | 6,319 | (414 | ) | 6,319 | (414 | ) | ||||||||||||
Government Sponsored | ||||||||||||||||||||
Enterprise obligations | 41,757 | (1,243 | ) | 16,972 | (1,028 | ) | 58,729 | (2,271 | ) | |||||||||||
Total securities available for sale | 41,757 | (1,243 | ) | 23,291 | (1,442 | ) | 65,048 | (2,685 | ) | |||||||||||
$ | 45,751 | $ | (1,248 | ) | $ | 23,291 | $ | (1,442 | ) | $ | 69,042 | $ | (2,690 | ) | ||||||
Unrealized losses at December 31, 2014 consisted of losses on twenty one investments in government sponsored enterprise obligations, and three in U. S. Treasury securities, all of which were caused by interest rate increases. Twenty three of the investments with unrealized losses at December 31, 2014 were in a loss position for more than twelve months. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2014. | ||||||||||||||||||||
The following table sets forth as of December 31, 2014, the maturity distribution of the Company’s held to maturity and available for sale portfolios (in thousands): | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Securities Held to Maturity | Securities Available for Sale | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||
1 year or less | $ | 15,923 | $ | 15,921 | $ | 3,000 | $ | 2,994 | ||||||||||||
After 1 year to 5 years | — | — | 43,000 | 42,231 | ||||||||||||||||
After 5 years to 10 years | — | — | 13,623 | 13,226 | ||||||||||||||||
$ | 15,923 | $ | 15,921 | $ | 59,623 | $ | 58,451 | |||||||||||||
Loans_and_Allowance_for_Loan_L
Loans and Allowance for Loan Losses | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||
NOTE 3.Loans and Allowance for Loan Losses | |||||||||||||||||||||||
Loans at December 31, 2014 and 2013, are summarized as follows (in thousands): | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Commercial real estate | $ | 431,727 | $ | 298,548 | |||||||||||||||||||
Residential mortgages | 56,079 | 53,601 | |||||||||||||||||||||
Commercial | 75,174 | 57,634 | |||||||||||||||||||||
Home equity | 69,631 | 61,204 | |||||||||||||||||||||
Consumer | 1,347 | 1,478 | |||||||||||||||||||||
$ | 633,958 | $ | 472,465 | ||||||||||||||||||||
The Bank grants loans primarily to New Jersey residents and businesses within its local market area. Its borrowers’ abilities to repay their obligations are dependent upon various factors, including the borrowers’ income and net worth, cash flows generated by the underlying collateral, value of the underlying collateral and priority of the Bank’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the Bank’s control; the Bank is therefore subject to risk of loss. The Bank designs its lending policies and procedures to manage the exposure to such risks and that the allowance for loan losses is maintained at a level which is believed to be adequate to provide for losses known and inherent in our loan portfolio that are both probable and reasonable to estimate. | |||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses and recorded investment in loan receivables as of and for the year ended December 31, 2014 (in thousands): | |||||||||||||||||||||||
Commercial | Residential | Commercial | Home Equity | Consumer | Unallocated | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Beginning Balance | $ | 3,707 | $ | 325 | $ | 969 | $ | 593 | $ | 26 | $ | 155 | $ | 5,775 | |||||||||
Charge-offs | (940 | ) | (32 | ) | (327 | ) | (72 | ) | (93 | ) | — | (1,464 | ) | ||||||||||
Recoveries | — | — | 4 | — | — | — | 4 | ||||||||||||||||
Reclassification | — | — | — | — | — | (198 | ) | (198 | ) | ||||||||||||||
Provision | 2,183 | 55 | 482 | (21 | ) | 91 | 285 | 3,075 | |||||||||||||||
Ending balance | $ | 4,950 | $ | 348 | $ | 1,128 | $ | 500 | $ | 24 | $ | 242 | $ | 7,192 | |||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Ending balance: collectively evaluated for impairment | $ | 4,950 | $ | 348 | $ | 1,128 | $ | 500 | $ | 24 | $ | 242 | $ | 7,192 | |||||||||
Loan receivables: | |||||||||||||||||||||||
Ending balance | $ | 431,727 | $ | 56,079 | $ | 75,174 | $ | 69,631 | $ | 1,347 | $ | — | $ | 633,958 | |||||||||
Ending balance: individually evaluated for impairment | $ | 1,787 | $ | 4,455 | $ | — | $ | 2,512 | $ | — | $ | — | $ | 8,754 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 429,940 | $ | 51,624 | $ | 75,174 | $ | 67,119 | $ | 1,347 | $ | — | $ | 625,204 | |||||||||
The following table presents the activity in the allowance for loan losses and recorded investment in loan receivables as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||||||||||
Commercial | Residential | Commercial | Home Equity | Consumer | Unallocated | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Beginning Balance | $ | 3,150 | $ | 322 | $ | 1,033 | $ | 383 | $ | 24 | $ | 160 | $ | 5,072 | |||||||||
Charge-offs | (89 | ) | — | — | — | (22 | ) | — | (111 | ) | |||||||||||||
Recoveries | — | — | 4 | — | — | — | 4 | ||||||||||||||||
Provision | 646 | 3 | (68 | ) | 210 | 24 | (5 | ) | 810 | ||||||||||||||
Ending balance | $ | 3,707 | $ | 325 | $ | 969 | $ | 593 | $ | 26 | $ | 155 | $ | 5,775 | |||||||||
Ending balance: individually evaluated for impairment | $ | 237 | $ | 56 | $ | 50 | $ | 261 | $ | — | $ | — | $ | 604 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 3,470 | $ | 269 | $ | 919 | $ | 332 | $ | 26 | $ | 155 | $ | 5,171 | |||||||||
Loan receivables: | |||||||||||||||||||||||
Ending balance | $ | 298,548 | $ | 53,601 | $ | 57,634 | $ | 61,204 | $ | 1,478 | $ | — | $ | 472,465 | |||||||||
Ending balance: individually evaluated for impairment | $ | 4,204 | $ | 5,661 | $ | 50 | $ | 1,733 | $ | — | $ | — | $ | 11,648 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 294,344 | $ | 47,940 | $ | 57,584 | $ | 59,471 | $ | 1,478 | $ | — | $ | 460,817 | |||||||||
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, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | 30-59 Days | 60-89 Days | Greater than | Total Past | Current | Total Loans | Nonaccrual | ||||||||||||||||
Past Due | Past Due | 90 Days | Due | Receivables | Loans | ||||||||||||||||||
Commercial real estate | $ | — | $ | 377 | $ | — | $ | 377 | $ | 431,350 | $ | 431,727 | $ | 1,787 | |||||||||
Residential mortgages | 361 | — | 963 | 1,324 | 54,755 | 56,079 | 4,279 | ||||||||||||||||
Commercial | — | — | — | — | 75,174 | 75,174 | — | ||||||||||||||||
Home equity | — | 475 | 1,275 | 1,750 | 67,881 | 69,631 | 2,453 | ||||||||||||||||
Consumer | — | — | — | — | 1,347 | 1,347 | — | ||||||||||||||||
$ | 361 | $ | 852 | $ | 2,238 | $ | 3,451 | $ | 630,507 | $ | 633,958 | $ | 8,519 | ||||||||||
2013 | 30-59 Days | 60-89 Days | Greater than | Total Past | Current | Total Loans | Nonaccrual | ||||||||||||||||
Past Due | Past Due | 90 Days | Due | Receivables | Loans | ||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 1,700 | $ | 1,700 | $ | 296,848 | $ | 298,548 | $ | 1,700 | |||||||||
Residential mortgages | — | — | 2,608 | 2,608 | 50,993 | 53,601 | 2,608 | ||||||||||||||||
Commercial | — | — | 50 | 50 | 57,584 | 57,634 | 50 | ||||||||||||||||
Home equity | 160 | — | 673 | 833 | 60,371 | 61,204 | 673 | ||||||||||||||||
Consumer | — | 35 | — | 35 | 1,443 | 1,478 | — | ||||||||||||||||
$ | 160 | $ | 35 | $ | 5,031 | $ | 5,226 | $ | 467,239 | $ | 472,465 | $ | 5,031 | ||||||||||
As of December 31, 2014 and 2013 the Bank had no accruing loans greater than 90 days delinquent. | |||||||||||||||||||||||
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 Bank’s internal risk rating system as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | Commercial | Residential | Commercial | Home Equity | Consumer | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Pass | $ | 429,940 | $ | 47,700 | $ | 73,174 | $ | 66,878 | $ | 1,347 | $ | 619,039 | |||||||||||
Special Mention | — | 4,100 | 500 | 300 | — | 4,900 | |||||||||||||||||
Substandard | 1,787 | 4,279 | 1,500 | 2,453 | — | 10,019 | |||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||
$ | 431,727 | $ | 56,079 | $ | 75,174 | $ | 69,631 | $ | 1,347 | $ | 633,958 | ||||||||||||
2013 | Commercial | Residential | Commercial | Home Equity | Consumer | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Pass | $ | 294,741 | $ | 48,120 | $ | 56,084 | $ | 59,531 | $ | 1,478 | $ | 459,954 | |||||||||||
Special Mention | 2,107 | 2,873 | 1,500 | 1,000 | — | 7,480 | |||||||||||||||||
Substandard | 1,700 | 2,608 | 50 | 673 | — | 5,031 | |||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||
$ | 298,548 | $ | 53,601 | $ | 57,634 | $ | 61,204 | $ | 1,478 | $ | 472,465 | ||||||||||||
The following tables provide information about the Bank’s impaired loans as of and for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||
2014 | Investment | Balance | Allowance | ||||||||||||||||||||
Impaired loans with no specific reserves: | |||||||||||||||||||||||
Commercial real estate | 1,787 | 1,787 | — | ||||||||||||||||||||
Residential mortgages | 4,455 | 4,543 | — | ||||||||||||||||||||
Home equity | 2,512 | 2,613 | — | ||||||||||||||||||||
$ | 8,754 | $ | 8,943 | $ | — | ||||||||||||||||||
Unpaid | |||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||
2013 | Investment | Balance | Allowance | ||||||||||||||||||||
Impaired loans with specific reserves: | |||||||||||||||||||||||
Commercial real estate | $ | 957 | $ | 957 | $ | 237 | |||||||||||||||||
Residential mortgages | 974 | 1,185 | 56 | ||||||||||||||||||||
Commercial | 50 | 50 | 50 | ||||||||||||||||||||
Home equity | 1,594 | 1,594 | 261 | ||||||||||||||||||||
3,575 | 3,786 | 604 | |||||||||||||||||||||
Impaired loans with no specific reserves: | |||||||||||||||||||||||
Commercial real estate | 3,247 | 3,247 | — | ||||||||||||||||||||
Residential mortgages | 4,687 | 4,687 | — | ||||||||||||||||||||
Home equity | 139 | 240 | — | ||||||||||||||||||||
8,073 | 8,174 | — | |||||||||||||||||||||
$ | 11,648 | $ | 11,960 | $ | 604 | ||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Received | Investment | Received | ||||||||||||||||||||
Impaired loans with specific reserves: | |||||||||||||||||||||||
Commercial real estate | $ | 334 | $ | — | $ | 957 | $ | — | |||||||||||||||
Residential mortgages | 94 | — | 975 | — | |||||||||||||||||||
Commercial | 20 | — | 50 | — | |||||||||||||||||||
Home equity | 182 | — | 1,383 | 42 | |||||||||||||||||||
630 | — | 3,365 | 42 | ||||||||||||||||||||
Impaired loans with no specific reserves: | |||||||||||||||||||||||
Commercial real estate | 2,796 | 106 | 2,963 | 51 | |||||||||||||||||||
Residential mortgages | 4,561 | 11 | 4,107 | 164 | |||||||||||||||||||
Commercial | 24 | 5 | 165 | — | |||||||||||||||||||
Home equity | 2,097 | 27 | 711 | 3 | |||||||||||||||||||
Consumer | 19 | — | — | — | |||||||||||||||||||
9,497 | 149 | 7,946 | 218 | ||||||||||||||||||||
$ | 10,127 | $ | 149 | $ | 11,311 | $ | 260 | ||||||||||||||||
The following table presents TDR loans as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | Accrual | Number of | Nonaccrual | Number of | Total | ||||||||||||||||||
Status | Loans | Status | Loans | ||||||||||||||||||||
Residential mortgages | $ | 175 | 1 | $ | 4,008 | 5 | $ | 4,183 | |||||||||||||||
Commercial real estate | — | — | 377 | 1 | 377 | ||||||||||||||||||
Home equity | 60 | 1 | 954 | 2 | 1,014 | ||||||||||||||||||
$ | 235 | 2 | $ | 5,339 | 8 | $ | 5,574 | ||||||||||||||||
2013 | Accrual | Number of | Nonaccrual | Number of | Total | ||||||||||||||||||
Status | Loans | Status | Loans | ||||||||||||||||||||
Residential mortgages | $ | 3,053 | 2 | $ | 2,514 | 4 | $ | 5,567 | |||||||||||||||
Commercial real estate | 397 | 1 | 742 | 1 | 1,139 | ||||||||||||||||||
Home equity | 1,060 | 2 | — | — | 1,060 | ||||||||||||||||||
$ | 4,510 | 5 | $ | 3,256 | 5 | $ | 7,766 | ||||||||||||||||
The following table summarizes information in regards to troubled debt restructurings that occurred during the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
Pre-Modification | Post- | ||||||||||||||||||||||
Modification | |||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||
2014 | Loans | Investments | Investments | ||||||||||||||||||||
Residential mortgages | 2 | $ | 731 | $ | 741 | ||||||||||||||||||
Home equity | 1 | 46 | 44 | ||||||||||||||||||||
3 | $ | 777 | $ | 785 | |||||||||||||||||||
Pre-Modification | Post- | ||||||||||||||||||||||
Modification | |||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||
2013 | Loans | Investments | Investments | ||||||||||||||||||||
Residential mortgages | 1 | $ | 179 | $ | 179 | ||||||||||||||||||
Home equity | 1 | 60 | 60 | ||||||||||||||||||||
2 | $ | 239 | $ | 239 | |||||||||||||||||||
The following table displays the nature of modifications during the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | Rate | Term | Interest Only | Payment | Combination | Total | |||||||||||||||||
Modification | Modification | Modification | Modification | Modification | Modifications | ||||||||||||||||||
Pre-modification outstanding recorded investment: | |||||||||||||||||||||||
Residential mortgages | $ | 731 | $ | — | $ | — | $ | — | $ | — | $ | 731 | |||||||||||
Home equity | 46 | — | — | — | — | 46 | |||||||||||||||||
$ | 777 | $ | — | $ | — | $ | — | $ | — | $ | 777 | ||||||||||||
2013 | Rate | Term | Interest Only | Payment | Combination | Total | |||||||||||||||||
Modification | Modification | Modification | Modification | Modification | Modifications | ||||||||||||||||||
Pre-modification outstanding recorded investment: | |||||||||||||||||||||||
Residential mortgages | $ | 179 | $ | — | $ | — | $ | — | $ | — | $ | 179 | |||||||||||
Home equity | 60 | — | — | — | — | 60 | |||||||||||||||||
$ | 239 | $ | — | $ | — | $ | — | $ | — | $ | 239 | ||||||||||||
During the the year ended December 31, 2014, the Bank had no loans meeting the definition of a TDR which had a payment default. | |||||||||||||||||||||||
During the the year ended December 31, 2013, the Bank had one residential mortgage loan meeting the definition of a TDR which had a payment default. This loan had an accumulated unpaid principal balance of $250 thousand at December 31, 2013. This loan also had a total of $15 thousand of specific reserves. | |||||||||||||||||||||||
Premises_and_Equipment
Premises and Equipment | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Premises and Equipment | ||||||||
Premises and Equipment | ||||||||
NOTE 4.Premises and Equipment | ||||||||
At December 31, 2014 and 2013, premises and equipment consists of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Land | $ | 4,828 | $ | 4,828 | ||||
Building | 6,286 | 6,127 | ||||||
Furniture and fixtures | 787 | 765 | ||||||
Equipment | 1,712 | 1,595 | ||||||
13,613 | 13,315 | |||||||
Less accumulated depreciation and amortization | 3,477 | 2,888 | ||||||
Total premises and equipment, net | $ | 10,136 | $ | 10,427 | ||||
Depreciation expense amounted to $570 thousand and $520 thousand for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Deposits
Deposits | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits | ||||||||
Deposits | ||||||||
NOTE 5.Deposits | ||||||||
At December 31, 2014 and 2013, respectively, a summary of the maturity of time deposits (which includes certificates of deposit and individual retirement account (IRA) certificates) is as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
3 months or less | $ | 55,056 | $ | 61,181 | ||||
Over 3 months through 12 months | 151,655 | 99,778 | ||||||
Over 1 year through 2 years | 90,914 | 60,942 | ||||||
Over 2 years through 3 years | 27,695 | 54,493 | ||||||
Over 3 years through 4 years | 13,037 | 21,559 | ||||||
Over 4 years through 5 years | 20,522 | 16,864 | ||||||
$ | 358,879 | $ | 314,817 | |||||
In the Company’s December 31, 2014 balance of time deposits, $37.9 million are considered brokered deposits and $16.1 million were obtained through an internet listing service. | ||||||||
Borrowed_Funds
Borrowed Funds | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Borrowed Funds. | |||||||||||
Borrowed Funds | |||||||||||
NOTE 6.Borrowed Funds | |||||||||||
Borrowings may consist of long-term debt fixed rate advances from the FHLBNY as well as short term borrowings through lines of credit with other financial institutions. Information concerning long-term borrowings at December 31, 2014 is as follows (in thousands): | |||||||||||
Amount | Rate | Original | Maturity | ||||||||
Term (years) | |||||||||||
Fixed Rate Amortizing Note | $ | 4,598 | 1.50 | % | 5 | June 2019 | |||||
Fixed Rate Amortizing Note | 7,018 | 1.51 | % | 5 | July 2019 | ||||||
Fixed Rate Amortizing Note | 6,662 | 1.51 | % | 5 | August 2019 | ||||||
Fixed Rate Amortizing Note | 4,833 | 2.02 | % | 7 | August 2021 | ||||||
Fixed Rate Amortizing Note | 9,839 | 1.48 | % | 5 | October 2019 | ||||||
$ | 32,950 | 1.57 | % | ||||||||
The Bank had no borrowings at December 31, 2013. The Bank has an overnight line of credit with ACBB for $10.0 million and an overnight line of credit with First Tennessee Bank for $12.0 million for the purchase of federal funds in the event that temporary liquidity needs arise. | |||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Taxes | ||||||||
Income Taxes | ||||||||
NOTE 7.Income Taxes | ||||||||
Income tax expense from operations for the years ended December 31, 2014 and 2013 is as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
Current tax expense: | ||||||||
Federal | $ | 2,257 | $ | 2,659 | ||||
State | 270 | 750 | ||||||
Deferred income tax benefit: | ||||||||
Federal | (291 | ) | (252 | ) | ||||
State | (115 | ) | (102 | ) | ||||
$ | 2,121 | $ | 3,055 | |||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Start up expenses | $ | 222 | $ | 257 | ||||
Allowance for loan losses | 2,948 | 2,248 | ||||||
Accrued expenses | 277 | 272 | ||||||
Stock compensation plans | 428 | 428 | ||||||
Unrealized losses on available for sale securities | 433 | 1,028 | ||||||
Other | 251 | 369 | ||||||
Total gross deferred tax assets | 4,559 | 4,602 | ||||||
Deferred tax liabilities: | ||||||||
Deferred loan costs | (97 | ) | (81 | ) | ||||
Prepaid expenses | (102 | ) | (78 | ) | ||||
Depreciation | (530 | ) | (424 | ) | ||||
Total gross deferred tax liabilities | (729 | ) | (583 | ) | ||||
$ | 3,830 | $ | 4,019 | |||||
The realizability of deferred tax assets is dependent upon a variety of factors, including the generation of future taxable income, the existence of taxes paid and recoverable, the reversal of deferred tax liabilities and tax planning strategies. During 2014 and 2013, the Company sustained continued profitability, continued to pay taxes, and recognized deferred tax benefits. Based upon these and other factors, management believes it is more likely than not that the Company will realize the benefits of these remaining deferred tax assets. The net deferred tax asset is included in other assets on the consolidated balance sheet. | ||||||||
Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to income taxes as a result of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Computed “expected” tax expense | $ | 2,010 | $ | 2,621 | ||||
Increase (decrease) in taxes resulting from: | ||||||||
State taxes, net of federal income tax expense | 102 | 428 | ||||||
Tax exempt income | (18 | ) | (16 | ) | ||||
Stock-based compensation | (1 | ) | 20 | |||||
Meals and entertainment | 9 | 7 | ||||||
Other | 19 | (5 | ) | |||||
$ | 2,121 | $ | 3,055 | |||||
The Company is subject to income taxes in the U.S. and various states. Tax regulations are subject to interpretation of the related tax laws and regulations and require significant judgment to apply. Corporate tax returns for the years 2011 through 2014 remain open to examination by taxing authorities. | ||||||||
Leases
Leases | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | |||||
Leases | |||||
NOTE 8.Leases | |||||
The Bank leases banking facilities under operating leases which expire at various dates through December 31, 2026. These leases contain certain options to renew the leases. Rental expense amounted to $1.3 million and $1.2 million, respectively, for the years ended December 31, 2014 and December 31, 2013. | |||||
The following is a schedule of future minimum lease payments (exclusive of payments for maintenance, insurance, taxes and any other costs associated with offices) for operating leases with initial or remaining terms in excess of one year from December 31, 2014 (in thousands): | |||||
Year ending December 31, | |||||
2015 | $ | 1,279 | |||
2016 | 1,242 | ||||
2017 | 951 | ||||
2018 | 870 | ||||
2019 | 578 | ||||
Thereafter | 1,740 | ||||
$ | 6,660 | ||||
Relatedparty_Transactions
Related-party Transactions | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related-party Transactions | ||||||||
Related-party Transactions | ||||||||
NOTE 9.Related-party Transactions | ||||||||
The Bank has made, and expects to continue to make, loans in the future to its directors and executive officers and their family members, and to firms, corporations, and other entities in which they and their family members maintain interests. All such loans require the prior approval of the Bank’s board of directors. None of such loans at December 31, 2014 and 2013, were nonaccrual, past due, or restructured, and all of such loans were made in the ordinary course of business, on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans with persons not related to the Company or the Bank, and did not involve more than the normal risk of collectibility or present other unfavorable features. | ||||||||
The following table represents a summary of related-party loan activity during the years ended December 31, 2014 and 2013 (in thousands): | ||||||||
2014 | 2013 | |||||||
Outstanding loans at beginning of the year | $ | 34,009 | $ | 31,701 | ||||
Advances | 9,665 | 6,947 | ||||||
Repayments | (7,883 | ) | (4,639 | ) | ||||
Outstanding loans at end of the year | $ | 35,791 | $ | 34,009 | ||||
Two of our directors have acted as the Bank’s counsel on several loan closings. During 2014 and 2013 the total cost of such work has been reimbursed by the respective loan customers and totals $453 thousand and $326 thousand respectively. Additionally, these directors have acted as legal counsel to the Bank on several matters. The total amount paid for legal fees, for non-loan related matters was approximately $30 thousand and $22 thousand for the years ended December 31, 2014 and 2013, respectively. | ||||||||
The Company’s or the Bank’s commercial insurance policy, as well as other policies, has been placed with various insurance carriers by an insurance agency of which one of our directors is the president. Gross insurance premiums paid to carriers through this agency was approximately $165 thousand and $153 thousand for the years ended December 31, 2014 and 2013, respectively. | ||||||||
The Bank rents office space from entitites related to some of the Company’s directors. The total amount of rent expense to these entities was $372 thousand and $312 thousand for the years ended December 31, 2014 and 2013, respectively. | ||||||||
Our audit committee or the disinterested directors have reviewed all transactions and relationships with directors and the businesses in which they maintain interests and have approved each such transaction and relationship. | ||||||||
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share | ||||||||
Earnings Per Share | ||||||||
NOTE 10.Earnings Per Share | ||||||||
The Company’s calculation of earnings per share is as follows for the years ended December 31, 2014 and 2013 (in thousands except per share data): | ||||||||
2014 | 2013 | |||||||
Net income applicable to common stock | $ | 3,790 | $ | 4,654 | ||||
Weighted average number of common | ||||||||
shares outstanding - basic | 5,362 | 5,289 | ||||||
Basic earnings per share | $ | 0.71 | $ | 0.88 | ||||
Net income applicable to common stock | $ | 3,790 | $ | 4,654 | ||||
Weighted average number of common | ||||||||
shares outstanding | 5,362 | 5,289 | ||||||
Effect of dilutive options | 48 | 79 | ||||||
Weighted average number of common | ||||||||
shares outstanding- diluted | 5,410 | 5,368 | ||||||
Diluted earnings per share | $ | 0.70 | $ | 0.87 | ||||
Non-qualified options to purchase 331,334 shares of common stock at a weighted average price of $11.50; and incentive stock options to purchase 75,000 shares of common stock at a weighted average price of $11.50; incentive stock options to purchase 86,900 shares of common stock at a weighted average price of $9.09; and 64,500 unvested shares of restricted stock were included in the computation of diluted earnings per share for the year ended December 31, 2014. Non-qualified options to purchase 331,334 shares of common stock at a weighted average price of $11.50; and incentive stock options to purchase 90,000 shares of common stock at a weighted average price of $11.50; incentive stock options to purchase 97,900 shares of common stock at a weighted average price of $9.09; and 80,000 unvested shares of restricted stock were included in the computation of diluted earnings per share for the year ended December 31, 2013. | ||||||||
Stockholders_Equity_and_Divide
Stockholders' Equity and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2014 | |
Stockholders' Equity and Dividend Restrictions | |
Stockholders' Equity and Dividend Restrictions | |
NOTE 11.Stockholders’ Equity and Dividend Restrictions | |
Under its initial stock offering which closed in 2005, the Bank sold 4,798,594 shares of common stock at $9.09 per share. The stock offering resulted in net proceeds of approximately $42.7 million. | |
In 2014, the Company declared four quarterly cash dividends in the amount of $0.06 per share. These cash dividends were paid to shareholders on March 31, 2014, June 30, 2014, September 30, 2014 and December 31, 2014, respectively, and the Company expects that comparable quarterly cash dividends will continue to be paid in the future. The cash dividends were paid from the retained earnings of the Company. | |
In 2013, the Company declared four quarterly cash dividends in the amount of $0.06 per share. These cash dividends were paid to shareholders on March 31, 2013, June 28, 2013, September 30, 2013 and December 31, 2013, respectively. | |
The decision to pay, as well as the timing and amount of any future dividends to be paid by the Company will be determined by the board of directors, giving consideration to the Company’s earnings, capital needs, financial condition, and other relevant factors. | |
Under applicable New Jersey law, the Company is permitted to pay dividends on its capital stock if, following the payment of the dividend, it is able to pay its debts as they become due in the usual course of business, or its total assets are greater than its total liabilities. Further, it is the policy of the FRB that bank holding companies should pay dividends only out of current earnings and only if future retained earnings would be consistent with the holding company’s capital, asset quality and financial condition. | |
Under the New Jersey Banking Act of 1948, as amended, the Bank may declare and pay dividends only if, after payment of the dividend, the capital stock of the Bank will be unimpaired and either the Bank will have a surplus of not less than 50% of its capital stock or the payment of the dividend will not reduce the Bank’s surplus. The FDIC prohibits payment of cash dividends if, as a result, the Bank would be undercapitalized. The Bank is in compliance with all regulatory requirements related to cash dividends. | |
Benefit_Plans
Benefit Plans | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Benefit Plans | ||||||||||||
Benefit Plans | ||||||||||||
NOTE 12.Benefit Plans | ||||||||||||
2006 Stock Option Plan | ||||||||||||
During 2006, the Bank’s stockholders approved the 2006 Stock Option Plan. At the time of the holding company reorganization, the 2006 Stock Option Plan was assumed by the Company. The plan allows directors and employees of the Company to purchase up to 239,984 shares of the Company’s common stock. The option price per share is the market value of the Company’s stock on the date of grant. As of December 31, 2014 incentive stock options to purchase 210,900 shares have been granted to employees of the Bank. | ||||||||||||
A summary of stock option activity under the 2006 Stock Option Plan during the year ended December 31, 2014 is presented below: | ||||||||||||
Number of | Weighted | Aggregate | Weighted | |||||||||
Shares | Average | Intrinsic Value | Average | |||||||||
Exercise Price | -1 | Remaining | ||||||||||
per Share | Contractual | |||||||||||
Term | ||||||||||||
Outstanding at December 31, 2013 | 187,900 | $ | 10.24 | |||||||||
Granted | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Exercised | 26,000 | 10.48 | ||||||||||
Outstanding at December 31, 2014 | 161,900 | $ | 10.21 | $ | 204,215 | 2.37 | ||||||
Exercisable at December 31, 2014 | 161,900 | $ | 10.21 | $ | 204,215 | 2.37 | ||||||
(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had they exercised their options on December 31, 2014. This amount changes based on the changes in the market value in the Company’s common stock. | ||||||||||||
Under the 2006 Stock Option Plan, there were no unvested options at December 31, 2014 and 2013. | ||||||||||||
2007 Director Plan | ||||||||||||
During 2007, the Bank’s stockholders approved the 2007 Non-Qualified Stock Option Plan for Directors. At the time of the holding company reorganization, the 2007 Non-Qualified Stock Option Plan was assumed by the Company. This plan provides for 480,000 options to purchase shares of the Company’s common stock to be issued to non-employee directors of the Company. The option price per share is the market value of the Company’s common stock on the date of grant. As of December 31, 2014, non-qualified options to purchase 331,334 shares of the Company’s stock have been granted to non-employee directors of the Company. | ||||||||||||
There has been no stock option activity under the 2007 Non-Qualified Stock Option Plan for the year ended 2014: | ||||||||||||
Number of | Weighted | Aggregate | Weighted | |||||||||
Shares | Average | Intrinsic Value | Average | |||||||||
Exercise Price | -1 | Remaining | ||||||||||
per Share | Contractual Life | |||||||||||
(Years) | ||||||||||||
Outstanding at December 31, 2013 | 331,334 | $ | 11.50 | |||||||||
Outstanding at December 31, 2014 | 331,334 | $ | 11.50 | $ | — | 2.81 | ||||||
Exercisable at December 31, 2014 | 331,334 | $ | 11.50 | $ | — | 2.81 | ||||||
(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had they exercised their options on December 31, 2014. This amount changes based on the changes in the market value in the Company’s common stock. | ||||||||||||
Under the 2007 Directors Stock Option Plan, there were no unvested options at December 31, 2014 and 2013. | ||||||||||||
2011 Equity Incentive Plan | ||||||||||||
During 2011, the shareholders of the Company approved the Bancorp of New Jersey, Inc. 2011 Equity Incentive Plan (the “2011 Plan”). This plan authorizes the issuance of up to 250,000 shares of the Company’s common stock, subject to adjustment in certain circumstances described in the 2011 Plan, pursuant to awards of incentive stock options or non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units or performance awards. Employees, directors, consultants, and other service providers of the Company and its affiliates (primarily the Bank) are eligible to receive awards under the 2011 Plan, provided, that only employees are eligible to receive incentive stock options. | ||||||||||||
The following is a summary of the status of the Companies non-vested restricted share awards granted under the 2011 Plan: | ||||||||||||
2014 | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Number | Grant Date | |||||||||||
of Shares | Fair Value | |||||||||||
Non-vested resticted stock, beginning of year | 80,000 | 13 | ||||||||||
Granted | 3,718 | 12.78 | ||||||||||
Forfeited | — | 13 | ||||||||||
Vested | (19,218 | ) | 13 | |||||||||
Non-vested resticted stock, end of year | 64,500 | $ | 12.99 | |||||||||
Approximately $659 thousand remains to be expensed over the next 39 months. For the years ended December 31, 2014, and 2013, $250 thousand and $172 thousand, respectively, was recorded as compensation expense. | ||||||||||||
Defined Contribution Plan | ||||||||||||
The Company currently offers a 401(k) profit sharing plan covering all full-time employees, wherein employees can invest up to 15% of their pretax earnings, up to the legal limit. The Company matches a percentage of employee contributions at the board’s discretion. The Company made a matching contribution of approximately $83 thousand and $69 thousand during 2014 and 2013, respectively. | ||||||||||||
Regulatory_Capital_Requirement
Regulatory Capital Requirements | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Regulatory Capital Requirements | |||||||||||||||||
Regulatory Capital Requirements | |||||||||||||||||
NOTE 13.Regulatory Capital Requirements | |||||||||||||||||
The Company and the Bank are subject to various capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory — and possible additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. | |||||||||||||||||
Quantitative measures established by regulations to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-wieghted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As of December 31, 2014 and 2013, management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject. | |||||||||||||||||
Further, the most recent FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification. | |||||||||||||||||
The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013, compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution (dollars in thousands): | |||||||||||||||||
FDIC requirements | |||||||||||||||||
Minimum Capital | For Classification | ||||||||||||||||
Bank actual | Adequacy | As Well Capitalized | |||||||||||||||
2014 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
Leverage (Tier 1) capital | $ | 60,045 | 8.16 | % | $ | 29,447 | 4.00 | % | $ | 36,808 | 5.00 | % | |||||
Risk-based capital: | |||||||||||||||||
Tier 1 | $ | 60,045 | 9.39 | % | $ | 25,580 | 4.00 | % | $ | 38,370 | 6.00 | % | |||||
Total | $ | 67,237 | 10.51 | % | $ | 51,160 | 8.00 | % | $ | 63,951 | 10.00 | % | |||||
2013 | |||||||||||||||||
Leverage (Tier 1) capital | $ | 57,607 | 9.45 | % | $ | 24,376 | 4.00 | % | $ | 30,470 | 5.00 | % | |||||
Risk-based capital: | |||||||||||||||||
Tier 1 | $ | 57,607 | 11.89 | % | $ | 19,386 | 4.00 | % | $ | 29,079 | 6.00 | % | |||||
Total | $ | 63,382 | 13.08 | % | $ | 38,773 | 8.00 | % | $ | 48,466 | 10.00 | % | |||||
The Company’s capital amounts and ratios are similar to those of the Bank. | |||||||||||||||||
See Note 19 for information regarding capital raised by a private placement of the Company in 2015. | |||||||||||||||||
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2014 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | |
NOTE 14.Financial Instruments with Off-Balance Sheet Risk | |
The Bank is a party to financial instruments with off-balance-sheet risk in the normal course of business in order to meet the financing needs of its customers. These financial instruments consist of commitments to extend credit and letters of credit and involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the accompanying consolidated balance sheets. | |
The Bank uses the same credit policies and collateral requirements in making commitments and conditional obligations as it does for on-balance-sheet loans. Commitments to extend credit are agreements to lend to customers as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness 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 of the borrower. Outstanding available loan commitments, primarily for commercial real estate, construction, and land development loans totaled $120.3 million and $104.2 million at December 31, 2014 and 2013. | |
Most of the Bank’s lending activity is with customers located in Bergen County, New Jersey. At December 31, 2014 and 2013, the Bank had outstanding letters of credit to customers totaling $2.3 million and $2.8 million, respectively, whereby the Bank guarantees performance to a third party. These letters of credit generally have fixed expiration dates of one year or less. The fair value of these letters of credits is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements. At December 31, 2014 and 2013, such amounts were deemed not material. | |
Financial_Information_of_Paren
Financial Information of Parent Company | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Information of Parent Company | ||||||||
Financial Information of Parent Company | ||||||||
NOTE 15.Financial Information of Parent Company | ||||||||
The parent company, Bancorp of New Jersey, Inc, was incorporated during November, 2006. The holding company reorganization with Bank of New Jersey was consummated on July 31, 2007. The following information represents the parent only balance sheets as of December 31, 2014 and 2013, the statements of income for the years ended December 31, 2014 and 2013, and the statements of cash flows for the years ended December 31, 2014 and 2013 and should be read in conjunction with the notes to the consolidated financial statements. | ||||||||
Balance Sheets | ||||||||
(in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets: | ||||||||
Investment in subsidiary, net | $ | 59,894 | $ | 55,950 | ||||
Total assets | $ | 59,894 | $ | 55,950 | ||||
Liabilities and stockholders’ equity: | ||||||||
Stockholders’ equity | $ | 59,894 | $ | 55,950 | ||||
$ | 59,894 | $ | 55,950 | |||||
Statements of Income | ||||||||
Years ended December 31, | ||||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Equity in undistributed earnings of subsidiary bank | $ | 3,790 | $ | 4,654 | ||||
Net income | $ | 3,790 | $ | 4,654 | ||||
Statements of Cash Flow | ||||||||
Years ended December 31, | ||||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 3,790 | $ | 4,654 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity in undistributed earnings of the subsidiary bank | (3,790 | ) | (4,654 | ) | ||||
Net cash provided by operating activities: | — | — | ||||||
Cash flows from investing activites: | ||||||||
Cash dividends received from subsidiary bank | 1,287 | 1,269 | ||||||
Net cash used in financing activities | 1,287 | 1,269 | ||||||
Cash flows from financing activities: | ||||||||
Cash dividends paid | (1,287 | ) | (1,269 | ) | ||||
Net cash provided by financing activities | (1,287 | ) | (1,269 | ) | ||||
Net change in cash for the period | — | — | ||||||
Net cash at beginning of year | — | — | ||||||
Net cash at end of year | $ | — | $ | — | ||||
Fair_Value_Measurement_and_Fai
Fair Value Measurement and Fair Value of Financial Instruments | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Fair Value Measurement and Fair Value of Financial Instruments | |||||||||||||||||
Fair Value Measurement and Fair Value of Financial Instruments | |||||||||||||||||
NOTE 16.Fair Value Measurement and Fair Value of Financial Instruments | |||||||||||||||||
U. S. GAAP establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). | |||||||||||||||||
The three levels of the fair value hierarchy are as follows: | |||||||||||||||||
· | Level 1 Inputs - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. | ||||||||||||||||
· | Level 2 Inputs - 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 Inputs - 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. | |||||||||||||||||
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, 2014 and December 31, 2013, respectively, are as follows (in thousands): | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
for Identical | Inputs | ||||||||||||||||
Assets | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury obligations | $ | 6,402 | $ | — | $ | 6,402 | $ | — | |||||||||
Government sponsored enterprise obligations | 52,049 | — | 52,049 | — | |||||||||||||
Total securities available for sale | $ | 58,451 | $ | — | $ | 58,451 | $ | — | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2013 | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
for Identical | Inputs | ||||||||||||||||
Assets | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury obligations | $ | 6,319 | $ | — | $ | 6,319 | $ | — | |||||||||
Government sponsored enterprise obligations | 61,729 | — | 61,729 | — | |||||||||||||
Total securities available for sale | $ | 68,048 | $ | — | $ | 68,048 | $ | — | |||||||||
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, 2013, is as follows (in thousands): | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | |||||||||||||||||
Impaired loans | $ | 1,723 | $ | — | $ | — | $ | 1,723 | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2013 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | |||||||||||||||||
Impaired loans | $ | 2,971 | $ | — | $ | — | $ | 2,971 | |||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value (in thousands): | |||||||||||||||||
December 31, 2014 | Fair Value | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||||||||
Estimate | |||||||||||||||||
Impaired loans | $ | 1,723 | Appraisal of Collateral (1) | Appriasal Adjustments (2) | 0% - 46.3% (-38.4%) | ||||||||||||
Liquidation Expenses (2) | 0% - 60.2% (-20.2%) | ||||||||||||||||
December 31, 2013 | Fair Value | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||||||||
Estimate | |||||||||||||||||
Impaired loans | $ | 2,971 | Appraisal of Collateral (1) | Appriasal Adjustments (2) | 0% - 28.1% (-15.8%) | ||||||||||||
Liquidation Expenses (2) | 0% - 41.8% (-21.2%) | ||||||||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. | ||||||||||||||||
-2 | Appriasals may be adjusted for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appriasal adjustments are presented as a percent of the appraisal. | ||||||||||||||||
Management uses its best judgment in estimating the fair value of the Company’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 sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period end 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 period end. | |||||||||||||||||
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 finanical instruments presented in the table below at December 31, 2014 and 2013: | |||||||||||||||||
Fair value estimates and assumptions are set forth below for the Company’s financial instruments at December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
December 31, 2014 | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Unobservable | ||||||||||||||||
Carrying amount | Estimated Fair Value | Identical Assets | Observable Inputs | Inputs | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 22,060 | $ | 22,060 | $ | 22,060 | $ | — | $ | — | |||||||
Interest bearing time deposits | 1,000 | 1,000 | — | 1,000 | — | ||||||||||||
Securities available for sale | 58,451 | 58,451 | — | 58,451 | |||||||||||||
Securities held to maturity | 15,923 | 15,921 | — | 15,921 | |||||||||||||
Restricted investment in bank stock | 2,162 | 2,162 | — | 2,162 | — | ||||||||||||
Net loans | 626,352 | 629,086 | — | — | 629,086 | ||||||||||||
Accrued interest receivable | 2,441 | 2,441 | — | 2,441 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 648,974 | 650,729 | 290,095 | 360,634 | — | ||||||||||||
Borrowed funds | 32,950 | 32,972 | — | 32,972 | — | ||||||||||||
Accrued interest payable | 758 | 758 | — | 758 | — | ||||||||||||
December 31, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Unobservable | ||||||||||||||||
Carrying amount | Estimated Fair Value | Identical Assets | Observable Inputs | Inputs | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 37,741 | $ | 37,741 | $ | 37,741 | $ | — | $ | — | |||||||
Interest bearing time deposits | 1,000 | 1,000 | — | 1,000 | — | ||||||||||||
Securities available for sale | 68,048 | 68,048 | — | 68,048 | |||||||||||||
Securities held to maturity | 18,011 | 18,016 | — | 18,016 | |||||||||||||
Restricted investment in bank stock | 792 | 792 | — | 792 | — | ||||||||||||
Net loans | 466,351 | 468,463 | — | — | 468,463 | ||||||||||||
Accrued interest receivable | 1,456 | 1,456 | — | 1,456 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 553,320 | 544,483 | 229,666 | 314,817 | — | ||||||||||||
Accrued interest payable | 635 | 635 | — | 635 | — | ||||||||||||
Cash and Cash Equivalents and Interest Bearing Time Deposits | |||||||||||||||||
The carrying amounts reported in the balance sheet for cash and cash equivalents 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 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. For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquiditiy and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3). In the absence of such evidence, management’s best estimate is used. Management’s best estimate consists of both internal and external support on certain Level 3 investments. Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) were used to support fair values of certain Level 3 investments. | |||||||||||||||||
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. | |||||||||||||||||
Loans Receivable | |||||||||||||||||
The fair value of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and the 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. Generally, for variable rate loans that re-price frequently and with no significant change in credit risk, fair values approximate carrying values. | |||||||||||||||||
Impaired loans | |||||||||||||||||
Impaired loans are those for which the Company has measured impairment generally based on the fair value of the loan’s collateral or discounted cash flows based upon the expected proceeds. Fair value is generally based upon independent third-party appraisals of the properties. These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. | |||||||||||||||||
Accrued Interest Receivable and Payable | |||||||||||||||||
The carrying amount of accrued interest receivable and accrued interest payable approximates fair value. | |||||||||||||||||
Other real estate owned | |||||||||||||||||
Other real estate owned assets are adjusted to fair value less estimated selling costs upon transfer of the loans to other real estate owned. The fair value of other real estate owned is based upon independent third party appraisal values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values. | |||||||||||||||||
Deposits | |||||||||||||||||
The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts). Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities of time deposits. | |||||||||||||||||
Limitation | |||||||||||||||||
The preceding fair value estimates were made at December 31, 2014 and 2013 based on pertinent market data and relevant information on the financial instrument. These estimates do not include any premium or discount that could result from an offer to sell at one time the Company’s entire holdings of a particular financial instrument or category thereof. Since no market exists for a substantial portion of the Company’s financial instruments, fair value estimates were necessarily based on judgments regarding future expected loss experience, current economic conditions, risk assessment of various financial instruments, and other factors. Given the innately subjective nature of these estimates, the uncertainties surrounding them and the matter of significant judgment that must be applied, these fair value estimates cannot be calculated with precision. Modifications in such assumptions could meaningfully alter these estimates. | |||||||||||||||||
Since these fair value approximations were made solely for on and off balance sheet financial instruments at December 31, 2014 and 2013, no attempt was made to estimate the value of anticipated future business. Furthermore, certain tax implications related to the realization of the unrealized gains and losses could have a substantial impact on these fair value estimates and have not been incorporated into the estimates. | |||||||||||||||||
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accumulated Other Comprehensive Income | |||||||
Accumulated Other Comprehensive Income (Loss) | |||||||
NOTE 17. Accumulated Other Comprehensive Income (Loss) | |||||||
Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2014 and 2013 are as follows (in thousands): | |||||||
Details About Accumulated Other | Amount Reclassified from | Affected Line Item in the Statements | |||||
Comprehensive Income (Loss) | Accumulated Other | of Income (Loss) | |||||
Components | Comprehensive Income | ||||||
(Loss) | |||||||
Year ended December 31, 2014 | |||||||
Available for Sale Securities | |||||||
Realized losses on sale of securities | $ | (16 | ) | Gains (losses) on sale of securities | |||
6 | Income tax expense | ||||||
Total reclassifications | $ | (10 | ) | Net of tax | |||
Year ended December 31, 2013 | |||||||
Available for Sale Securities | |||||||
Realized gains on sale of securities | $ | 195 | Gains (losses) on sale of securities | ||||
(63 | ) | Income tax expense | |||||
Total reclassifications | $ | 132 | Net of tax | ||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2014 | |
Recent Accounting Pronouncements | |
Recent Accounting Pronouncements | |
NOTE 18. Recent Accounting Pronouncements | |
This section provides a summary description of recent accounting standards that have significant implications (elected or required) within the consolidated financial statements, or that management expects may have a significant impact on financial statements issued in the near future. | |
ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists | |
In July, 2013, the Financial Accounting Standards Board (“FASB”) issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists. The amendments in this update require an entity with unrecognized tax benefits that is “not available” or not intended to be used at the reporting date to present the unrecognized tax benefit as a liability that should not be combined with deferred tax assets. Otherwise, the unrecognized tax benefit should be presented as a reduction of the related deferred tax asset. The assessment of whether a deferred tax asset is available is based on the unrecognized tax benefit and deferred tax asset that exist at the reporting date and should be made presuming disallowance of the tax position at the reporting date. For public entities the amendments in this ASU are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The implementation of ASU 2013-11 did not have a material impact on the Company’s financial position or results of operations. | |
ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure | |
In January, 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. This ASU clarifies that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. The ASU also requires additional related interim and annual disclosures. The guidance in this ASU is effective for annual and interim periods beginning after December 15, 2014. The implementation of ASU 2014-01 should not have a material impact on the Company’s financial position or results of operation. | |
ASU 2014-09, Revenue from Contracts with Customers (Topic 606) | |
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers. The amendments in this ASU establish a comprehensive revenue recognition standard for virtually all industries under U.S. GAAP, including those that previously followed industry-specific guidance such as the real estate, construction and software industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: i) identify the contract with the 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. Public entities will apply the new standard for annual periods beginning after December 15, 2016, including interim periods therein. Three basic transition methods are available — full retrospective, retrospective with certain practical expedients, and a cumulative effect approach. Under the third alternative, an entity would apply the new revenue standard only to contracts that are incomplete under legacy U.S. GAAP at the date of initial application (e.g. January 1, 2017) and recognize the cumulative effect of the new standard as an adjustment to the opening balance of retained earnings. That is, prior years would not be restated and additional disclosures would be required to enable users of the financial statements to understand the impact of adopting the new standard in the current year compared to prior years that are presented under legacy U.S. GAAP. Early adoption is prohibited under U.S. GAAP. Nonpublic entities have an additional year to adopt, i.e., the new standard applies for annual periods beginning after December 15, 2017. In addition, the new standard is effective for interim periods within annual periods that begin after December 15, 2018. The same three transition alternatives apply. Nonpublic entities are allowed to early adopt the new standard, but not any earlier than public entities. The implementation of ASU 2014-09 should not have a material impact on the Company’s financial position or results of operation. | |
ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures | |
In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this ASU require two accounting changes. First, repurchase-to-maturity transactions will be accounted for as secured borrowing transactions on the balance sheet, rather than sales. Second, for repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with (or in contemplation of) a repurchase agreement with the same counterparty, which also will generally result in secured borrowing accounting for the repurchase agreement. The ASU also introduces new disclosures to increase transparency about the types of collateral pledged for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions that are accounted for as secured borrowings. The ASU also requires a transferor to disclose information about transactions accounted for as a sale in which the transferor retains substantially all of the exposure to the economic return on the transferred financial assets through an agreement with the transferee. For public business entities, the accounting changes and disclosure for certain transactions accounted for as a sale are effective for the first interim or annual period beginning after December 15, 2014. The disclosure for transactions accounted for as secured borrowings is required for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The implementation of ASU 2014-11should not have a material impact on the Company’s financial position or results of operation. | |
ASU 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force | |
In August 2014 the FASB issued ASU 2014-14, Receivables — Troubled Debt Restructurings by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure (a consensus of the FASB Emerging Issues Task Force. The amendments in this ASU address a practice issue related to the classification of certain foreclosed residential and nonresidential mortgage loans that are either fully or partially guaranteed under government programs. Specifically, creditors should reclassify loans that meet certain conditions to “other receivables” upon foreclosure, rather than reclassifying them to other real estate owned (OREO). The separate other receivable recorded upon foreclosure is to be measured based on the amount of the loan balance (principal and interest) the creditor expects to recover from the guarantor. The ASU is effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. For all other entities, the amendments are effective for annual periods ending after December 15, 2015, and interim periods beginning after December 15, 2015. Early adoption is permitted, if the entity has already adopted ASU 2014-04, Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. Transition methods include a prospective method and a modified retrospective method; however, entities must apply the same transition method as elected under ASU 2014-04. The implementation of ASU 2014-14 should not have a material impact on the Company’s financial position or results of operation. | |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Events | |
NOTE 19. Subsequent Events | |
On March 2, 2015, the Company closed on a private placement of approximately $9.5 million, or 868,057 shares of its common stock at a price of $10.95 per share. The shares of common stock were offered and were sold in a private placement pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended. The shares have not been registered under the Securities Act, or the securities laws of any other jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. Each of the investors in the private placement is a member of the Company’s board of directors or related party. The Company has contributed the proceeds, net of costs associated with the private placement, to its banking subsidiary, Bank of New Jersey, to enhance its capital, fund future growth and for general working capital. | |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||
Dec. 31, 2014 | ||||
Summary of Significant Accounting Policies | ||||
Basis of Financial Statement Presentation | ||||
Basis of Financial Statement Presentation | ||||
The accompanying consolidated financial statements include the accounts of Bancorp of New Jersey, Inc. (together with its consolidated subsidiary, the “Company”), and its direct wholly-owned subsidiary, Bank of New Jersey (the “Bank”) and the Bank’s wholly-owned subsidiaries, BONJ-New York Corp., BONJ-New Jersey Investment Company, BONJ- Delaware Investment Company, and BONJ REIT Inc. All significant inter-company accounts and transactions have been eliminated in consolidation. | ||||
The Company was incorporated under the laws of the State of New Jersey to serve as a holding company for the Bank and to acquire all the capital stock of the Bank. | ||||
Certain amounts in the prior period’s financial statements have been reclassified to conform to the December 31, 2014 presentation. These reclassifications did not have an impact on income, stockholders’ equity or cash flows as previously reported. | ||||
Use of Estimates | ||||
Use of Estimates | ||||
Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of the deferred tax asset, the determination of other-than-temporary impairment on securities, and the potential impairment of restricted stock. While management uses available information to recognize estimated losses on loans, future additions may be necessary based on changes in economic conditions. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the Bank’s allowance for loan losses. These agencies may require the Bank to recognize additions to the allowance based on their judgements of information available to them at the time of their examination. | ||||
The financial statements have been prepared in conformity with U.S. GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period indicated. Actual results could differ significantly from those estimates. | ||||
Significant Group of Concentration of Credit Risk | ||||
Significant Group of Concentration of Credit Risk | ||||
Bancorp of New Jersey, Inc.’s activities are, primarily, with customers located within Bergen County, New Jersey. The Company does not have any significant concentration to any one industry or customers within its primary service area. Note 3 describes the types of lending in which the Company engages. Although the Company actively manages the diversification of the loan portfolio, a substantial portion of the debtors’ ability to honor their contracts is dependent on the strength of the local economy. | ||||
Cash and Cash Equivalents | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents include cash and due from banks, interest-bearing deposits in banks, and federal funds sold, which are generally sold for one-day periods. | ||||
Interest-bearing deposits in banks | ||||
Interest-bearing deposits in banks | ||||
Interest-bearing deposits in banks are carried at cost. | ||||
Securities | ||||
Securities | ||||
The Company reports investment securities in one of the following categories: (i) held to matruity (management has the intent and ability to hold to maturity), which are reported at amortized cost; (ii) trading (held for current resale), which are reported at fair value, with unrealized gaines and losses included in earngings; and (iii) available for sale, which are reported at fair value, with unrealized gains and lossess excluded from earnings and reported as a separate component of stockholders’ equity. The Company has classified all of its holdings of investment securities as either held to matruity or available for sale. At the time a security is purchased, a determination is made as to the approproiate classification. | ||||
Premiums and discounts on investment securities are amortized as spense and accreted as income over the estimated life of the respective security using a method that generally approximates the level-yield method. Gains and losses on the sales of investment securities are recognized upon realization, using the specific identification method and shown separately in the consolidate statements of operations. | ||||
Management evaluates securities for OTTI on at aleast a quarterly basis, and more frequently when economic or market condictions warrant such an evaluation. For securities in an unrealized loss position, management considers the extend and duration of the unrealized loss and the financial condiction and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirment to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debit securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI is related to credit loss, which must be recognized in the statement of operations and 2) OTTI related to other factors, which is recognized in other comprehensive income (loss). The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings. | ||||
Premises and Equipment | ||||
Premises and Equipment | ||||
Premises and equipment are stated at historical cost, less accumulated depreciation and amortization. Depreciation of fixed assets is accumulated on a straight-line basis over the estimated useful lives of the related assets. Leasehold improvements are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the related lease. The estimated lives of our premises and equipment range from 3 years for certain computer related equipment to 30 years for building costs associated with newly constructed buildings. Maintenance and repairs are charged to expense in the year incurred. | ||||
Loans and Allowance for Loan Losses | ||||
Loans and Allowance for Loan Losses | ||||
Loans 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) of the related loans. The Company is generally amortizing these amounts over the contractual life of the loan. Premiums and discounts on purchased loans are amortized as adjustments to interest income using the effective yield method. | ||||
The loans receivable portfolio is segmented into commercial and consumer loans. Commercial loans consist of the following classes: commercial and industrial (“commercial”) and commercial real estate which includes commercial construction loans. Consumer loans consist of residential mortgage loans, home equity loans and other consumer loans. | ||||
For all classes of loans receivable, 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, including impaired loans, generally is 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 (generally six months) 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. | ||||
The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of losses inherent in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheet. 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. Non-residential consumer loans are generally charged off no later than 180 days past due on a contractual basis, earlier in the event of bankruptcy, or if there is an amount deemed uncollectible. 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 credit losses is maintained at a level considered adequate to provide for losses that are probable and reasonable to estimate. 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 loan portfolio and unfunded commitments, 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 for loan losses 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 | Experience, ability, and depth of lending management and staff. | |||
5 | Volume and severity of past due, classified and nonaccrual loans as well as and other loan modifications. | |||
6 | Quality of the Company’s loan review system, and the degree of oversight by the Company’s board of directors. | |||
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. | ||||
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 for commercial loans, commercial real estate loans and commercial construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. | ||||
An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. | ||||
For commercial loans secured by real estate, estimated fair values are determined primarily through third-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 are 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 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. | ||||
Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans, home equity loans and other consumer loans for impairment disclosures, unless such loans are the subject of a troubled debt restructuring agreement. | ||||
Loans whose terms are modified are classified as troubled debt restructurings (“TDRs”) if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally involve a temporary reduction in interest rate or an extension of a loan’s stated maturity date. Loans classified as TDRs are designated as impaired and evaluated for impairment until they are ultimately repaid in full or foreclosed and sold. Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. | ||||
The Company’s methodology for the determination of the allowance for loan losses 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 mentions 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 to the Company’s methodology, 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 was adequate. | ||||
Other Real Estate Owned | ||||
Other Real Estate Owned | ||||
Other real estate owned consists of real estate acquired by foreclosure and is initially recorded at fair value, less estimated selling costs. Subsequent to foreclosure, revenues are included in non-interest income and expenses from operations and lower of cost or market changes in the valuation are included in non-interest expenses. | ||||
Stock-Based Compensation | ||||
Stock-Based Compensation | ||||
ASC Topic 718 Compensation-Stock Compensation addresses the accounting for share-based payment transactions in which an enterprise receives employee service in exchange for (a) equity instruments of the enterprise or (b) liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. Guidance requires an entity to recognize the grant-date fair value of stock options and other equity-based compensation issued to employees within the income statement using a fair-value-based method. The Company accounts for stock options under these recognition and measurement principles. | ||||
The Company recorded stock-based compensation expense of $250 thousand and $172 thousand during 2014 and 2013, respectively. At December 31, 2014, the Company had no unrecognized compensation expense related to stock options. At December 31, 2014, the Company had $664,000 of unrecognized compensation expense related to unvested restricted stock granted in 2013. | ||||
Income Taxes | ||||
Income Taxes | ||||
The Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. | ||||
As required by ASC Topic 740, Income Taxes, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the relevant tax authority. The Bank applied ASC Topic 740 to all tax positions for which the statute of limitations remained open. There was no material effect on the Company’s consolidated financial position or results of operations and no adjustment to retained earnings. | ||||
The Company recognizes interest and penalties on income taxes as a component of income tax. | ||||
Earnings Per Share | ||||
Earnings Per Share | ||||
Basic earnings per share excludes dilution and represents the effect of earnings upon the weighted average number of shares outstanding for the period. Diluted earnings per share reflects the effect of earnings upon weighted average shares including the potential dilution that could occur if securities or contracts to issue common stock were converted or exercised, utilizing the treasury stock method. | ||||
Comprehensive Income | ||||
Comprehensive Income | ||||
Comprehensive income consists of net income or loss for the current period and income, expenses, or gains and losses not included in the income statement and which are reported directly as a separate component of equity. The Company includes the required disclosures in the statements of comprehensive income. | ||||
Advertising | ||||
Advertising | ||||
The Company expenses advertising costs as incurred. Advertising expenses totaled $245 thousand and $109 thousand for 2014 and 2013, respectively. | ||||
Transfer of Financial Assets | ||||
Transfer 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 Bank, (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 Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity, or the ability to unilaterally cause the holder to return specific assets. | ||||
Restricted Investment in Bank Stock | ||||
Restricted Investment in Bank Stock | ||||
Restricted investment in bank stocks which represent required investments in the common stock of correspondent banks, is carried at cost and consists of the common stock of the Federal Home Loan Bank (the “FHLB”) of $2.1 million and $692 thousand and Atlantic Community Bankers Bank, formerly Atlantic Central Bankers Bank (the “ACBB”) of $100 thousand and $100 thousand, as of December 31, 2014 and 2013, respectively. Federal law requires a member institution of the Federal Home Loan Bank to hold stock according to a predetermined formula. All restricted stock is recorded at cost as of December 31, 2014 and 2013. | ||||
Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2014. | ||||
Restrictions on Cash and Amounts Due From Banks | ||||
Restrictions on Cash and Amounts Due From Banks | ||||
The Bank is required to maintain average balances on hand or with the Federal Reserve Bank of New York. At December 31, 2014 and 2013, these reserve balances amounted to $1.2 million and $634 thousand, respectively, and are reflected in interest bearing deposits in banks. | ||||
Securities_Tables
Securities (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||
Securities | ||||||||||||||||||||
Summary of securities held to maturity and securities available for sale | ||||||||||||||||||||
A summary of securities held to maturity and securities available for sale at December 31, 2014 and 2013 is as follows (in thousands): | ||||||||||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
2014 | Cost | Gains | Losses | Value | ||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 11,923 | $ | — | $ | — | $ | 11,923 | ||||||||||||
U.S. Treasury obligations | 4,000 | — | (2 | ) | 3,998 | |||||||||||||||
Total securities held to maturity | 15,923 | — | (2 | ) | 15,921 | |||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligations | 6,623 | — | (221 | ) | 6,402 | |||||||||||||||
Government sponsored enterprise obligations | 53,000 | — | (951 | ) | 52,049 | |||||||||||||||
Total securities available for sale | 59,623 | — | (1,172 | ) | 58,451 | |||||||||||||||
$ | 75,546 | $ | — | $ | (1,174 | ) | $ | 74,372 | ||||||||||||
Gross | Gross | |||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | |||||||||||||||||
2013 | Cost | Gains | Losses | Value | ||||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
Obligations of states and political subdivisions | $ | 10,014 | $ | — | $ | — | $ | 10,014 | ||||||||||||
Government sponsored enterprise obligations | 3,998 | 10 | — | 4,008 | ||||||||||||||||
U.S. Treasury obligations | 3,999 | — | (5 | ) | 3,994 | |||||||||||||||
Total securities held to maturity | 18,011 | 10 | (5 | ) | 18,016 | |||||||||||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligations | 6,733 | — | (414 | ) | 6,319 | |||||||||||||||
Government sponsored enterprise obligations | 64,000 | — | (2,271 | ) | 61,729 | |||||||||||||||
Total securities available for sale | 70,733 | — | (2,685 | ) | 68,048 | |||||||||||||||
$ | 88,744 | $ | 10 | $ | (2,690 | ) | $ | 86,064 | ||||||||||||
Schedule of unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities | ||||||||||||||||||||
The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities available for sale at December 31, 2014 and 2013 are as follows (in thousands): | ||||||||||||||||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
2014 | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
U.S. Treasury obligations | $ | — | $ | — | $ | 3,998 | $ | (2 | ) | $ | 3,998 | $ | (2 | ) | ||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligation | — | — | 6,402 | (221 | ) | 6,402 | (221 | ) | ||||||||||||
Government Sponsored | ||||||||||||||||||||
Enterprise obligations | 2,994 | (6 | ) | 49,055 | (945 | ) | 52,049 | (951 | ) | |||||||||||
Total securities available for sale | 2,994 | (6 | ) | 55,457 | (1,166 | ) | 58,451 | (1,172 | ) | |||||||||||
$ | 2,994 | $ | (6 | ) | $ | 59,455 | $ | (1,168 | ) | $ | 62,449 | $ | (1,174 | ) | ||||||
Less than 12 Months | More than 12 Months | Total | ||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | |||||||||||||||
2013 | Value | Losses | Value | Losses | Value | Losses | ||||||||||||||
Securities Held to Maturity: | ||||||||||||||||||||
U.S. Treasury obligations | $ | 3,994 | $ | (5 | ) | $ | — | $ | — | $ | 3,994 | $ | (5 | ) | ||||||
Securities Available for Sale: | ||||||||||||||||||||
U.S. Treasury obligation | — | — | 6,319 | (414 | ) | 6,319 | (414 | ) | ||||||||||||
Government Sponsored | ||||||||||||||||||||
Enterprise obligations | 41,757 | (1,243 | ) | 16,972 | (1,028 | ) | 58,729 | (2,271 | ) | |||||||||||
Total securities available for sale | 41,757 | (1,243 | ) | 23,291 | (1,442 | ) | 65,048 | (2,685 | ) | |||||||||||
$ | 45,751 | $ | (1,248 | ) | $ | 23,291 | $ | (1,442 | ) | $ | 69,042 | $ | (2,690 | ) | ||||||
Schedule of maturity distribution of the Company's held to maturity and available for sale portfolios | ||||||||||||||||||||
The following table sets forth as of December 31, 2014, the maturity distribution of the Company’s held to maturity and available for sale portfolios (in thousands): | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Securities Held to Maturity | Securities Available for Sale | |||||||||||||||||||
Amortized | Fair | Amortized | Fair | |||||||||||||||||
Cost | Value | Cost | Value | |||||||||||||||||
1 year or less | $ | 15,923 | $ | 15,921 | $ | 3,000 | $ | 2,994 | ||||||||||||
After 1 year to 5 years | — | — | 43,000 | 42,231 | ||||||||||||||||
After 5 years to 10 years | — | — | 13,623 | 13,226 | ||||||||||||||||
$ | 15,923 | $ | 15,921 | $ | 59,623 | $ | 58,451 | |||||||||||||
Loans_and_Allowance_for_Loan_L1
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
Loans and Allowance for Loan Losses | |||||||||||||||||||||||
Summary of loans | |||||||||||||||||||||||
Loans at December 31, 2014 and 2013, are summarized as follows (in thousands): | |||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||
Commercial real estate | $ | 431,727 | $ | 298,548 | |||||||||||||||||||
Residential mortgages | 56,079 | 53,601 | |||||||||||||||||||||
Commercial | 75,174 | 57,634 | |||||||||||||||||||||
Home equity | 69,631 | 61,204 | |||||||||||||||||||||
Consumer | 1,347 | 1,478 | |||||||||||||||||||||
$ | 633,958 | $ | 472,465 | ||||||||||||||||||||
Schedule of activity in the allowance for loan losses and recorded investment in loan receivables | |||||||||||||||||||||||
The following table presents the activity in the allowance for loan losses and recorded investment in loan receivables as of and for the year ended December 31, 2014 (in thousands): | |||||||||||||||||||||||
Commercial | Residential | Commercial | Home Equity | Consumer | Unallocated | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Beginning Balance | $ | 3,707 | $ | 325 | $ | 969 | $ | 593 | $ | 26 | $ | 155 | $ | 5,775 | |||||||||
Charge-offs | (940 | ) | (32 | ) | (327 | ) | (72 | ) | (93 | ) | — | (1,464 | ) | ||||||||||
Recoveries | — | — | 4 | — | — | — | 4 | ||||||||||||||||
Reclassification | — | — | — | — | — | (198 | ) | (198 | ) | ||||||||||||||
Provision | 2,183 | 55 | 482 | (21 | ) | 91 | 285 | 3,075 | |||||||||||||||
Ending balance | $ | 4,950 | $ | 348 | $ | 1,128 | $ | 500 | $ | 24 | $ | 242 | $ | 7,192 | |||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||
Ending balance: collectively evaluated for impairment | $ | 4,950 | $ | 348 | $ | 1,128 | $ | 500 | $ | 24 | $ | 242 | $ | 7,192 | |||||||||
Loan receivables: | |||||||||||||||||||||||
Ending balance | $ | 431,727 | $ | 56,079 | $ | 75,174 | $ | 69,631 | $ | 1,347 | $ | — | $ | 633,958 | |||||||||
Ending balance: individually evaluated for impairment | $ | 1,787 | $ | 4,455 | $ | — | $ | 2,512 | $ | — | $ | — | $ | 8,754 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 429,940 | $ | 51,624 | $ | 75,174 | $ | 67,119 | $ | 1,347 | $ | — | $ | 625,204 | |||||||||
The following table presents the activity in the allowance for loan losses and recorded investment in loan receivables as of and for the year ended December 31, 2013 (in thousands): | |||||||||||||||||||||||
Commercial | Residential | Commercial | Home Equity | Consumer | Unallocated | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Allowance for loan losses: | |||||||||||||||||||||||
Beginning Balance | $ | 3,150 | $ | 322 | $ | 1,033 | $ | 383 | $ | 24 | $ | 160 | $ | 5,072 | |||||||||
Charge-offs | (89 | ) | — | — | — | (22 | ) | — | (111 | ) | |||||||||||||
Recoveries | — | — | 4 | — | — | — | 4 | ||||||||||||||||
Provision | 646 | 3 | (68 | ) | 210 | 24 | (5 | ) | 810 | ||||||||||||||
Ending balance | $ | 3,707 | $ | 325 | $ | 969 | $ | 593 | $ | 26 | $ | 155 | $ | 5,775 | |||||||||
Ending balance: individually evaluated for impairment | $ | 237 | $ | 56 | $ | 50 | $ | 261 | $ | — | $ | — | $ | 604 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 3,470 | $ | 269 | $ | 919 | $ | 332 | $ | 26 | $ | 155 | $ | 5,171 | |||||||||
Loan receivables: | |||||||||||||||||||||||
Ending balance | $ | 298,548 | $ | 53,601 | $ | 57,634 | $ | 61,204 | $ | 1,478 | $ | — | $ | 472,465 | |||||||||
Ending balance: individually evaluated for impairment | $ | 4,204 | $ | 5,661 | $ | 50 | $ | 1,733 | $ | — | $ | — | $ | 11,648 | |||||||||
Ending balance: collectively evaluated for impairment | $ | 294,344 | $ | 47,940 | $ | 57,584 | $ | 59,471 | $ | 1,478 | $ | — | $ | 460,817 | |||||||||
Schedule of classes of the loan portfolio summarized by the past due status | The following tables present the classes of the loan portfolio summarized by the past due status as of December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||
2014 | 30-59 Days | 60-89 Days | Greater than | Total Past | Current | Total Loans | Nonaccrual | ||||||||||||||||
Past Due | Past Due | 90 Days | Due | Receivables | Loans | ||||||||||||||||||
Commercial real estate | $ | — | $ | 377 | $ | — | $ | 377 | $ | 431,350 | $ | 431,727 | $ | 1,787 | |||||||||
Residential mortgages | 361 | — | 963 | 1,324 | 54,755 | 56,079 | 4,279 | ||||||||||||||||
Commercial | — | — | — | — | 75,174 | 75,174 | — | ||||||||||||||||
Home equity | — | 475 | 1,275 | 1,750 | 67,881 | 69,631 | 2,453 | ||||||||||||||||
Consumer | — | — | — | — | 1,347 | 1,347 | — | ||||||||||||||||
$ | 361 | $ | 852 | $ | 2,238 | $ | 3,451 | $ | 630,507 | $ | 633,958 | $ | 8,519 | ||||||||||
2013 | 30-59 Days | 60-89 Days | Greater than | Total Past | Current | Total Loans | Nonaccrual | ||||||||||||||||
Past Due | Past Due | 90 Days | Due | Receivables | Loans | ||||||||||||||||||
Commercial real estate | $ | — | $ | — | $ | 1,700 | $ | 1,700 | $ | 296,848 | $ | 298,548 | $ | 1,700 | |||||||||
Residential mortgages | — | — | 2,608 | 2,608 | 50,993 | 53,601 | 2,608 | ||||||||||||||||
Commercial | — | — | 50 | 50 | 57,584 | 57,634 | 50 | ||||||||||||||||
Home equity | 160 | — | 673 | 833 | 60,371 | 61,204 | 673 | ||||||||||||||||
Consumer | — | 35 | — | 35 | 1,443 | 1,478 | — | ||||||||||||||||
$ | 160 | $ | 35 | $ | 5,031 | $ | 5,226 | $ | 467,239 | $ | 472,465 | $ | 5,031 | ||||||||||
Summary of loan portfolio by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Bank'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 Bank’s internal risk rating system as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | Commercial | Residential | Commercial | Home Equity | Consumer | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Pass | $ | 429,940 | $ | 47,700 | $ | 73,174 | $ | 66,878 | $ | 1,347 | $ | 619,039 | |||||||||||
Special Mention | — | 4,100 | 500 | 300 | — | 4,900 | |||||||||||||||||
Substandard | 1,787 | 4,279 | 1,500 | 2,453 | — | 10,019 | |||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||
$ | 431,727 | $ | 56,079 | $ | 75,174 | $ | 69,631 | $ | 1,347 | $ | 633,958 | ||||||||||||
2013 | Commercial | Residential | Commercial | Home Equity | Consumer | Total | |||||||||||||||||
Real Estate | Mortgages | ||||||||||||||||||||||
Pass | $ | 294,741 | $ | 48,120 | $ | 56,084 | $ | 59,531 | $ | 1,478 | $ | 459,954 | |||||||||||
Special Mention | 2,107 | 2,873 | 1,500 | 1,000 | — | 7,480 | |||||||||||||||||
Substandard | 1,700 | 2,608 | 50 | 673 | — | 5,031 | |||||||||||||||||
Doubtful | — | — | — | — | — | — | |||||||||||||||||
$ | 298,548 | $ | 53,601 | $ | 57,634 | $ | 61,204 | $ | 1,478 | $ | 472,465 | ||||||||||||
Schedule of information about Bank's impaired loans | |||||||||||||||||||||||
The following tables provide information about the Bank’s impaired loans as of and for the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
Unpaid | |||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||
2014 | Investment | Balance | Allowance | ||||||||||||||||||||
Impaired loans with no specific reserves: | |||||||||||||||||||||||
Commercial real estate | 1,787 | 1,787 | — | ||||||||||||||||||||
Residential mortgages | 4,455 | 4,543 | — | ||||||||||||||||||||
Home equity | 2,512 | 2,613 | — | ||||||||||||||||||||
$ | 8,754 | $ | 8,943 | $ | — | ||||||||||||||||||
Unpaid | |||||||||||||||||||||||
Recorded | Principal | Related | |||||||||||||||||||||
2013 | Investment | Balance | Allowance | ||||||||||||||||||||
Impaired loans with specific reserves: | |||||||||||||||||||||||
Commercial real estate | $ | 957 | $ | 957 | $ | 237 | |||||||||||||||||
Residential mortgages | 974 | 1,185 | 56 | ||||||||||||||||||||
Commercial | 50 | 50 | 50 | ||||||||||||||||||||
Home equity | 1,594 | 1,594 | 261 | ||||||||||||||||||||
3,575 | 3,786 | 604 | |||||||||||||||||||||
Impaired loans with no specific reserves: | |||||||||||||||||||||||
Commercial real estate | 3,247 | 3,247 | — | ||||||||||||||||||||
Residential mortgages | 4,687 | 4,687 | — | ||||||||||||||||||||
Home equity | 139 | 240 | — | ||||||||||||||||||||
8,073 | 8,174 | — | |||||||||||||||||||||
$ | 11,648 | $ | 11,960 | $ | 604 | ||||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | ||||||||||||||||||||||
Average | Interest | Average | Interest | ||||||||||||||||||||
Recorded | Income | Recorded | Income | ||||||||||||||||||||
Investment | Received | Investment | Received | ||||||||||||||||||||
Impaired loans with specific reserves: | |||||||||||||||||||||||
Commercial real estate | $ | 334 | $ | — | $ | 957 | $ | — | |||||||||||||||
Residential mortgages | 94 | — | 975 | — | |||||||||||||||||||
Commercial | 20 | — | 50 | — | |||||||||||||||||||
Home equity | 182 | — | 1,383 | 42 | |||||||||||||||||||
630 | — | 3,365 | 42 | ||||||||||||||||||||
Impaired loans with no specific reserves: | |||||||||||||||||||||||
Commercial real estate | 2,796 | 106 | 2,963 | 51 | |||||||||||||||||||
Residential mortgages | 4,561 | 11 | 4,107 | 164 | |||||||||||||||||||
Commercial | 24 | 5 | 165 | — | |||||||||||||||||||
Home equity | 2,097 | 27 | 711 | 3 | |||||||||||||||||||
Consumer | 19 | — | — | — | |||||||||||||||||||
9,497 | 149 | 7,946 | 218 | ||||||||||||||||||||
$ | 10,127 | $ | 149 | $ | 11,311 | $ | 260 | ||||||||||||||||
Schedule of TDR loans | |||||||||||||||||||||||
The following table presents TDR loans as of December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | Accrual | Number of | Nonaccrual | Number of | Total | ||||||||||||||||||
Status | Loans | Status | Loans | ||||||||||||||||||||
Residential mortgages | $ | 175 | 1 | $ | 4,008 | 5 | $ | 4,183 | |||||||||||||||
Commercial real estate | — | — | 377 | 1 | 377 | ||||||||||||||||||
Home equity | 60 | 1 | 954 | 2 | 1,014 | ||||||||||||||||||
$ | 235 | 2 | $ | 5,339 | 8 | $ | 5,574 | ||||||||||||||||
2013 | Accrual | Number of | Nonaccrual | Number of | Total | ||||||||||||||||||
Status | Loans | Status | Loans | ||||||||||||||||||||
Residential mortgages | $ | 3,053 | 2 | $ | 2,514 | 4 | $ | 5,567 | |||||||||||||||
Commercial real estate | 397 | 1 | 742 | 1 | 1,139 | ||||||||||||||||||
Home equity | 1,060 | 2 | — | — | 1,060 | ||||||||||||||||||
$ | 4,510 | 5 | $ | 3,256 | 5 | $ | 7,766 | ||||||||||||||||
Summary of pre and post modification troubled debt restructurings recorded investments | |||||||||||||||||||||||
The following table summarizes information in regards to troubled debt restructurings that occurred during the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
Pre-Modification | Post- | ||||||||||||||||||||||
Modification | |||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||
2014 | Loans | Investments | Investments | ||||||||||||||||||||
Residential mortgages | 2 | $ | 731 | $ | 741 | ||||||||||||||||||
Home equity | 1 | 46 | 44 | ||||||||||||||||||||
3 | $ | 777 | $ | 785 | |||||||||||||||||||
Pre-Modification | Post- | ||||||||||||||||||||||
Modification | |||||||||||||||||||||||
Outstanding | Outstanding | ||||||||||||||||||||||
Number of | Recorded | Recorded | |||||||||||||||||||||
2013 | Loans | Investments | Investments | ||||||||||||||||||||
Residential mortgages | 1 | $ | 179 | $ | 179 | ||||||||||||||||||
Home equity | 1 | 60 | 60 | ||||||||||||||||||||
2 | $ | 239 | $ | 239 | |||||||||||||||||||
Schedule of nature of modifications | |||||||||||||||||||||||
The following table displays the nature of modifications during the years ended December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||
2014 | Rate | Term | Interest Only | Payment | Combination | Total | |||||||||||||||||
Modification | Modification | Modification | Modification | Modification | Modifications | ||||||||||||||||||
Pre-modification outstanding recorded investment: | |||||||||||||||||||||||
Residential mortgages | $ | 731 | $ | — | $ | — | $ | — | $ | — | $ | 731 | |||||||||||
Home equity | 46 | — | — | — | — | 46 | |||||||||||||||||
$ | 777 | $ | — | $ | — | $ | — | $ | — | $ | 777 | ||||||||||||
2013 | Rate | Term | Interest Only | Payment | Combination | Total | |||||||||||||||||
Modification | Modification | Modification | Modification | Modification | Modifications | ||||||||||||||||||
Pre-modification outstanding recorded investment: | |||||||||||||||||||||||
Residential mortgages | $ | 179 | $ | — | $ | — | $ | — | $ | — | $ | 179 | |||||||||||
Home equity | 60 | — | — | — | — | 60 | |||||||||||||||||
$ | 239 | $ | — | $ | — | $ | — | $ | — | $ | 239 | ||||||||||||
Premises_and_Equipment_Tables
Premises and Equipment (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Premises and Equipment | ||||||||
Schedule of premises and equipment | ||||||||
At December 31, 2014 and 2013, premises and equipment consists of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Land | $ | 4,828 | $ | 4,828 | ||||
Building | 6,286 | 6,127 | ||||||
Furniture and fixtures | 787 | 765 | ||||||
Equipment | 1,712 | 1,595 | ||||||
13,613 | 13,315 | |||||||
Less accumulated depreciation and amortization | 3,477 | 2,888 | ||||||
Total premises and equipment, net | $ | 10,136 | $ | 10,427 | ||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Deposits | ||||||||
Summary of the maturity of time deposits (which includes certificates of deposit and individual retirement account (IRA) certificates) | ||||||||
At December 31, 2014 and 2013, respectively, a summary of the maturity of time deposits (which includes certificates of deposit and individual retirement account (IRA) certificates) is as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
3 months or less | $ | 55,056 | $ | 61,181 | ||||
Over 3 months through 12 months | 151,655 | 99,778 | ||||||
Over 1 year through 2 years | 90,914 | 60,942 | ||||||
Over 2 years through 3 years | 27,695 | 54,493 | ||||||
Over 3 years through 4 years | 13,037 | 21,559 | ||||||
Over 4 years through 5 years | 20,522 | 16,864 | ||||||
$ | 358,879 | $ | 314,817 | |||||
In the Company’s December 31, 2014 balance of time deposits, $37.9 million are considered brokered deposits and $16.1 million were obtained through an internet listing service. | ||||||||
Borrowed_Funds_Tables
Borrowed Funds (Tables) | 12 Months Ended | ||||||||||
Dec. 31, 2014 | |||||||||||
Borrowed Funds. | |||||||||||
Schedule of information concerning long-term borrowings | Information concerning long-term borrowings at December 31, 2014 is as follows (in thousands): | ||||||||||
Amount | Rate | Original | Maturity | ||||||||
Term (years) | |||||||||||
Fixed Rate Amortizing Note | $ | 4,598 | 1.50 | % | 5 | June 2019 | |||||
Fixed Rate Amortizing Note | 7,018 | 1.51 | % | 5 | July 2019 | ||||||
Fixed Rate Amortizing Note | 6,662 | 1.51 | % | 5 | August 2019 | ||||||
Fixed Rate Amortizing Note | 4,833 | 2.02 | % | 7 | August 2021 | ||||||
Fixed Rate Amortizing Note | 9,839 | 1.48 | % | 5 | October 2019 | ||||||
$ | 32,950 | 1.57 | % | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Income Taxes | ||||||||
Schedule of income tax expense from operations | ||||||||
Income tax expense from operations for the years ended December 31, 2014 and 2013 is as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
Current tax expense: | ||||||||
Federal | $ | 2,257 | $ | 2,659 | ||||
State | 270 | 750 | ||||||
Deferred income tax benefit: | ||||||||
Federal | (291 | ) | (252 | ) | ||||
State | (115 | ) | (102 | ) | ||||
$ | 2,121 | $ | 3,055 | |||||
Schedule of significant portions of the deferred tax assets and deferred tax liabilities | ||||||||
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2014 and 2013 are as follows (in thousands): | ||||||||
2014 | 2013 | |||||||
Deferred tax assets: | ||||||||
Start up expenses | $ | 222 | $ | 257 | ||||
Allowance for loan losses | 2,948 | 2,248 | ||||||
Accrued expenses | 277 | 272 | ||||||
Stock compensation plans | 428 | 428 | ||||||
Unrealized losses on available for sale securities | 433 | 1,028 | ||||||
Other | 251 | 369 | ||||||
Total gross deferred tax assets | 4,559 | 4,602 | ||||||
Deferred tax liabilities: | ||||||||
Deferred loan costs | (97 | ) | (81 | ) | ||||
Prepaid expenses | (102 | ) | (78 | ) | ||||
Depreciation | (530 | ) | (424 | ) | ||||
Total gross deferred tax liabilities | (729 | ) | (583 | ) | ||||
$ | 3,830 | $ | 4,019 | |||||
Schedule of difference in income tax expense from the amounts computed by applying the U.S. federal income tax rate | ||||||||
Income tax expense differed from the amounts computed by applying the U.S. federal income tax rate of 34% to income taxes as a result of the following (in thousands): | ||||||||
2014 | 2013 | |||||||
Computed “expected” tax expense | $ | 2,010 | $ | 2,621 | ||||
Increase (decrease) in taxes resulting from: | ||||||||
State taxes, net of federal income tax expense | 102 | 428 | ||||||
Tax exempt income | (18 | ) | (16 | ) | ||||
Stock-based compensation | (1 | ) | 20 | |||||
Meals and entertainment | 9 | 7 | ||||||
Other | 19 | (5 | ) | |||||
$ | 2,121 | $ | 3,055 | |||||
Leases_Tables
Leases (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Leases | |||||
Schedule of future minimum lease payments (exclusive of payments for maintenance, insurance, taxes and any other costs associated with offices) for operating leases | |||||
The following is a schedule of future minimum lease payments (exclusive of payments for maintenance, insurance, taxes and any other costs associated with offices) for operating leases with initial or remaining terms in excess of one year from December 31, 2014 (in thousands): | |||||
Year ending December 31, | |||||
2015 | $ | 1,279 | |||
2016 | 1,242 | ||||
2017 | 951 | ||||
2018 | 870 | ||||
2019 | 578 | ||||
Thereafter | 1,740 | ||||
$ | 6,660 | ||||
Relatedparty_Transactions_Tabl
Related-party Transactions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Related-party Transactions | ||||||||
Summary of related-party loan activity | ||||||||
The following table represents a summary of related-party loan activity during the years ended December 31, 2014 and 2013 (in thousands): | ||||||||
2014 | 2013 | |||||||
Outstanding loans at beginning of the year | $ | 34,009 | $ | 31,701 | ||||
Advances | 9,665 | 6,947 | ||||||
Repayments | (7,883 | ) | (4,639 | ) | ||||
Outstanding loans at end of the year | $ | 35,791 | $ | 34,009 | ||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share | ||||||||
Schedule showing earnings per share | ||||||||
The Company’s calculation of earnings per share is as follows for the years ended December 31, 2014 and 2013 (in thousands except per share data): | ||||||||
2014 | 2013 | |||||||
Net income applicable to common stock | $ | 3,790 | $ | 4,654 | ||||
Weighted average number of common | ||||||||
shares outstanding - basic | 5,362 | 5,289 | ||||||
Basic earnings per share | $ | 0.71 | $ | 0.88 | ||||
Net income applicable to common stock | $ | 3,790 | $ | 4,654 | ||||
Weighted average number of common | ||||||||
shares outstanding | 5,362 | 5,289 | ||||||
Effect of dilutive options | 48 | 79 | ||||||
Weighted average number of common | ||||||||
shares outstanding- diluted | 5,410 | 5,368 | ||||||
Diluted earnings per share | $ | 0.70 | $ | 0.87 | ||||
Benefit_Plans_Tables
Benefit Plans (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
Benefit Plans | ||||||||||||
Summery of the Companies non-vested restricted share awards | ||||||||||||
2014 | ||||||||||||
Weighted | ||||||||||||
Average | ||||||||||||
Number | Grant Date | |||||||||||
of Shares | Fair Value | |||||||||||
Non-vested resticted stock, beginning of year | 80,000 | 13 | ||||||||||
Granted | 3,718 | 12.78 | ||||||||||
Forfeited | — | 13 | ||||||||||
Vested | (19,218 | ) | 13 | |||||||||
Non-vested resticted stock, end of year | 64,500 | $ | 12.99 | |||||||||
2006 Stock Option Plan | ||||||||||||
Benefit Plans | ||||||||||||
Summary of stock option activity | ||||||||||||
Number of | Weighted | Aggregate | Weighted | |||||||||
Shares | Average | Intrinsic Value | Average | |||||||||
Exercise Price | -1 | Remaining | ||||||||||
per Share | Contractual | |||||||||||
Term | ||||||||||||
Outstanding at December 31, 2013 | 187,900 | $ | 10.24 | |||||||||
Granted | — | — | ||||||||||
Forfeited | — | — | ||||||||||
Exercised | 26,000 | 10.48 | ||||||||||
Outstanding at December 31, 2014 | 161,900 | $ | 10.21 | $ | 204,215 | 2.37 | ||||||
Exercisable at December 31, 2014 | 161,900 | $ | 10.21 | $ | 204,215 | 2.37 | ||||||
(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had they exercised their options on December 31, 2014. This amount changes based on the changes in the market value in the Company’s common stock. | ||||||||||||
2007 Director Plan | ||||||||||||
Benefit Plans | ||||||||||||
Summary of stock option activity | ||||||||||||
Number of | Weighted | Aggregate | Weighted | |||||||||
Shares | Average | Intrinsic Value | Average | |||||||||
Exercise Price | -1 | Remaining | ||||||||||
per Share | Contractual Life | |||||||||||
(Years) | ||||||||||||
Outstanding at December 31, 2013 | 331,334 | $ | 11.50 | |||||||||
Outstanding at December 31, 2014 | 331,334 | $ | 11.50 | $ | — | 2.81 | ||||||
Exercisable at December 31, 2014 | 331,334 | $ | 11.50 | $ | — | 2.81 | ||||||
(1) The aggregate intrinsic value of a stock option in the table above represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had they exercised their options on December 31, 2014. This amount changes based on the changes in the market value in the Company’s common stock. | ||||||||||||
Regulatory_Capital_Requirement1
Regulatory Capital Requirements (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Regulatory Capital Requirements | |||||||||||||||||
Summary of the Bank's actual capital amounts and ratios compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution | |||||||||||||||||
The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2014 and 2013, compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution (dollars in thousands): | |||||||||||||||||
FDIC requirements | |||||||||||||||||
Minimum Capital | For Classification | ||||||||||||||||
Bank actual | Adequacy | As Well Capitalized | |||||||||||||||
2014 | Amount | Ratio | Amount | Ratio | Amount | Ratio | |||||||||||
Leverage (Tier 1) capital | $ | 60,045 | 8.16 | % | $ | 29,447 | 4.00 | % | $ | 36,808 | 5.00 | % | |||||
Risk-based capital: | |||||||||||||||||
Tier 1 | $ | 60,045 | 9.39 | % | $ | 25,580 | 4.00 | % | $ | 38,370 | 6.00 | % | |||||
Total | $ | 67,237 | 10.51 | % | $ | 51,160 | 8.00 | % | $ | 63,951 | 10.00 | % | |||||
2013 | |||||||||||||||||
Leverage (Tier 1) capital | $ | 57,607 | 9.45 | % | $ | 24,376 | 4.00 | % | $ | 30,470 | 5.00 | % | |||||
Risk-based capital: | |||||||||||||||||
Tier 1 | $ | 57,607 | 11.89 | % | $ | 19,386 | 4.00 | % | $ | 29,079 | 6.00 | % | |||||
Total | $ | 63,382 | 13.08 | % | $ | 38,773 | 8.00 | % | $ | 48,466 | 10.00 | % | |||||
Financial_Information_of_Paren1
Financial Information of Parent Company (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Financial Information of Parent Company | ||||||||
Schedule of Balance Sheet of Parent Company | ||||||||
Balance Sheets | ||||||||
(in thousands) | ||||||||
December 31, | ||||||||
2014 | 2013 | |||||||
Assets: | ||||||||
Investment in subsidiary, net | $ | 59,894 | $ | 55,950 | ||||
Total assets | $ | 59,894 | $ | 55,950 | ||||
Liabilities and stockholders’ equity: | ||||||||
Stockholders’ equity | $ | 59,894 | $ | 55,950 | ||||
$ | 59,894 | $ | 55,950 | |||||
Schedule of statement of Income of Parent Company | ||||||||
Statements of Income | ||||||||
Years ended December 31, | ||||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Equity in undistributed earnings of subsidiary bank | $ | 3,790 | $ | 4,654 | ||||
Net income | $ | 3,790 | $ | 4,654 | ||||
Schedule of statement of Cash Flow of Parent Company | ||||||||
Statements of Cash Flow | ||||||||
Years ended December 31, | ||||||||
(in thousands) | ||||||||
2014 | 2013 | |||||||
Cash flow from operating activities: | ||||||||
Net income | $ | 3,790 | $ | 4,654 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Equity in undistributed earnings of the subsidiary bank | (3,790 | ) | (4,654 | ) | ||||
Net cash provided by operating activities: | — | — | ||||||
Cash flows from investing activites: | ||||||||
Cash dividends received from subsidiary bank | 1,287 | 1,269 | ||||||
Net cash used in financing activities | 1,287 | 1,269 | ||||||
Cash flows from financing activities: | ||||||||
Cash dividends paid | (1,287 | ) | (1,269 | ) | ||||
Net cash provided by financing activities | (1,287 | ) | (1,269 | ) | ||||
Net change in cash for the period | — | — | ||||||
Net cash at beginning of year | — | — | ||||||
Net cash at end of year | $ | — | $ | — | ||||
Fair_Value_Measurement_and_Fai1
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Fair Value Measurement and Fair Value of Financial Instruments | |||||||||||||||||
Schedule of financial assets measured at fair value on a recurring basis | |||||||||||||||||
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, 2014 and December 31, 2013, respectively, are as follows (in thousands): | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
for Identical | Inputs | ||||||||||||||||
Assets | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury obligations | $ | 6,402 | $ | — | $ | 6,402 | $ | — | |||||||||
Government sponsored enterprise obligations | 52,049 | — | 52,049 | — | |||||||||||||
Total securities available for sale | $ | 58,451 | $ | — | $ | 58,451 | $ | — | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2013 | Active Markets | Observable | Unobservable Inputs | ||||||||||||||
for Identical | Inputs | ||||||||||||||||
Assets | |||||||||||||||||
Securities available for sale: | |||||||||||||||||
U.S. Treasury obligations | $ | 6,319 | $ | — | $ | 6,319 | $ | — | |||||||||
Government sponsored enterprise obligations | 61,729 | — | 61,729 | — | |||||||||||||
Total securities available for sale | $ | 68,048 | $ | — | $ | 68,048 | $ | — | |||||||||
Schedule of financial assets measured at fair value on a 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, 2013, is as follows (in thousands): | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2014 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | |||||||||||||||||
Impaired loans | $ | 1,723 | $ | — | $ | — | $ | 1,723 | |||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
Description | December 31, | Quoted Prices in | Significant Other | Significant | |||||||||||||
2013 | Active Markets for | Observable Inputs | Unobservable Inputs | ||||||||||||||
Identical Assets | |||||||||||||||||
Impaired loans | $ | 2,971 | $ | — | $ | — | $ | 2,971 | |||||||||
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company utilized Level 3 inputs to determine fair value | |||||||||||||||||
The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value (in thousands): | |||||||||||||||||
December 31, 2014 | Fair Value | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||||||||
Estimate | |||||||||||||||||
Impaired loans | $ | 1,723 | Appraisal of Collateral (1) | Appriasal Adjustments (2) | 0% - 46.3% (-38.4%) | ||||||||||||
Liquidation Expenses (2) | 0% - 60.2% (-20.2%) | ||||||||||||||||
December 31, 2013 | Fair Value | Valuation Techniques | Unobservable Input | Range (Weighted Average) | |||||||||||||
Estimate | |||||||||||||||||
Impaired loans | $ | 2,971 | Appraisal of Collateral (1) | Appriasal Adjustments (2) | 0% - 28.1% (-15.8%) | ||||||||||||
Liquidation Expenses (2) | 0% - 41.8% (-21.2%) | ||||||||||||||||
-1 | Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. | ||||||||||||||||
-2 | Appriasals may be adjusted for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appriasal adjustments are presented as a percent of the appraisal. | ||||||||||||||||
Schedule of fair value estimates and assumptions of financial instruments | |||||||||||||||||
Fair value estimates and assumptions are set forth below for the Company’s financial instruments at December 31, 2014 and 2013 (in thousands): | |||||||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
December 31, 2014 | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Unobservable | ||||||||||||||||
Carrying amount | Estimated Fair Value | Identical Assets | Observable Inputs | Inputs | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 22,060 | $ | 22,060 | $ | 22,060 | $ | — | $ | — | |||||||
Interest bearing time deposits | 1,000 | 1,000 | — | 1,000 | — | ||||||||||||
Securities available for sale | 58,451 | 58,451 | — | 58,451 | |||||||||||||
Securities held to maturity | 15,923 | 15,921 | — | 15,921 | |||||||||||||
Restricted investment in bank stock | 2,162 | 2,162 | — | 2,162 | — | ||||||||||||
Net loans | 626,352 | 629,086 | — | — | 629,086 | ||||||||||||
Accrued interest receivable | 2,441 | 2,441 | — | 2,441 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 648,974 | 650,729 | 290,095 | 360,634 | — | ||||||||||||
Borrowed funds | 32,950 | 32,972 | — | 32,972 | — | ||||||||||||
Accrued interest payable | 758 | 758 | — | 758 | — | ||||||||||||
December 31, 2013 | Quoted Prices in | Significant Other | Significant | ||||||||||||||
Active Markets for | Unobservable | ||||||||||||||||
Carrying amount | Estimated Fair Value | Identical Assets | Observable Inputs | Inputs | |||||||||||||
Financial assets: | |||||||||||||||||
Cash and cash equivalents | $ | 37,741 | $ | 37,741 | $ | 37,741 | $ | — | $ | — | |||||||
Interest bearing time deposits | 1,000 | 1,000 | — | 1,000 | — | ||||||||||||
Securities available for sale | 68,048 | 68,048 | — | 68,048 | |||||||||||||
Securities held to maturity | 18,011 | 18,016 | — | 18,016 | |||||||||||||
Restricted investment in bank stock | 792 | 792 | — | 792 | — | ||||||||||||
Net loans | 466,351 | 468,463 | — | — | 468,463 | ||||||||||||
Accrued interest receivable | 1,456 | 1,456 | — | 1,456 | — | ||||||||||||
Financial liabilities: | |||||||||||||||||
Deposits | 553,320 | 544,483 | 229,666 | 314,817 | — | ||||||||||||
Accrued interest payable | 635 | 635 | — | 635 | — | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended | ||||||
Dec. 31, 2014 | |||||||
Accumulated Other Comprehensive Income | |||||||
Schedule of Reclassifications out of accumulated other comprehensive income | |||||||
Reclassifications out of accumulated other comprehensive income for the years ended December 31, 2014 and 2013 are as follows (in thousands): | |||||||
Details About Accumulated Other | Amount Reclassified from | Affected Line Item in the Statements | |||||
Comprehensive Income (Loss) | Accumulated Other | of Income (Loss) | |||||
Components | Comprehensive Income | ||||||
(Loss) | |||||||
Year ended December 31, 2014 | |||||||
Available for Sale Securities | |||||||
Realized losses on sale of securities | $ | (16 | ) | Gains (losses) on sale of securities | |||
6 | Income tax expense | ||||||
Total reclassifications | $ | (10 | ) | Net of tax | |||
Year ended December 31, 2013 | |||||||
Available for Sale Securities | |||||||
Realized gains on sale of securities | $ | 195 | Gains (losses) on sale of securities | ||||
(63 | ) | Income tax expense | |||||
Total reclassifications | $ | 132 | Net of tax | ||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Details 1) (Bancorp of New Jersey, Inc) | 31-May-06 |
item | |
Bancorp of New Jersey, Inc | |
Organization Consolidation and Presentation of Financial Statements and Significant Accounting Policies [Line Items] | |
Number of branch offices in addition to main office | 7 |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Loans and Allowance for Loan Losses | ||
Past due period after which accrual of interest is discontinued | 90 days | |
Reasonable period for restoration of loans to accrual status | 6 months | |
Maximum past due period after which non-residential consumer loans are charged off | 180 days | |
Portion of the allowance for loan losses restricted to any individual loan or groups of loans | $0 | |
Stock-Based Compensation | ||
Stock-based compensation expense | 250,000 | 172,000 |
Unrecognized compensation expenses related to unvested stock options | 0 | |
Unrecognized compensation expense related to unvested restricted stock granted | 664,000 | |
Advertising | ||
Advertising expenses | $245,000 | $109,000 |
Computer related equipment | Minimum | ||
Premises and equipment | ||
Estimated lives | 3 years | |
Building | Maximum | ||
Premises and equipment | ||
Estimated lives | 30 years |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 3) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Restricted Investment in Bank Stock | ||
Restricted investment in bank stock | $2,162,000 | $792,000 |
Restrictions on Cash and Amounts Due From Banks | ||
Average balances on hand or with the Federal Reserve Bank of New York | 1,200,000 | 634,000,000 |
FHLB | ||
Restricted Investment in Bank Stock | ||
Restricted investment in bank stock | 2,100,000 | 692,000 |
Impairment charge | 0 | |
ACBB | ||
Restricted Investment in Bank Stock | ||
Restricted investment in bank stock | 100,000 | 100,000 |
Impairment charge | $0 |
Securities_Details
Securities (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Securities Held to Maturity: | ||
Amortized Cost | $15,923 | $18,011 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | -2 | -5 |
Total | 15,921 | 18,016 |
Securities Available for Sale: | ||
Amortized Cost | 59,623 | 70,733 |
Gross Unrealized Losses | -1,172 | -2,685 |
Total | 58,451 | 68,048 |
Total securities | ||
Amortized Cost | 75,546 | 88,744 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | -1,174 | -2,690 |
Fair Value | 74,372 | 86,064 |
Obligations of states and political subdivisions | ||
Securities Held to Maturity: | ||
Amortized Cost | 11,923 | 10,014 |
Total | 11,923 | 10,014 |
U.S. Treasury obligations | ||
Securities Held to Maturity: | ||
Amortized Cost | 4,000 | 3,999 |
Gross Unrealized Losses | -2 | -5 |
Total | 3,998 | 3,994 |
Securities Available for Sale: | ||
Amortized Cost | 6,623 | 6,733 |
Gross Unrealized Losses | -221 | -414 |
Total | 6,402 | 6,319 |
Government sponsored enterprise obligations | ||
Securities Held to Maturity: | ||
Amortized Cost | 3,998 | |
Gross Unrealized Gains | 10 | |
Total | 4,008 | |
Securities Available for Sale: | ||
Amortized Cost | 53,000 | 64,000 |
Gross Unrealized Losses | -951 | -2,271 |
Total | $52,049 | $61,729 |
Securities_Details_2
Securities (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value | ||
Less than 12 Months | $2,994 | $41,757 |
More than 12 Months | 55,457 | 23,291 |
Total | 58,451 | 65,048 |
Unrealized Losses | ||
Less than 12 Months | -6 | -1,243 |
More than 12 Months | -1,166 | -1,442 |
Total | -1,172 | -2,685 |
Fair Value | ||
Less than 12 Months | 2,994 | 45,751 |
More than 12 Months | 59,455 | 23,291 |
Total | 62,449 | 69,042 |
Unrealized Losses | ||
Less than 12 Months | -6 | -1,248 |
More than 12 Months | -1,168 | -1,442 |
Total | -1,174 | -2,690 |
Government sponsored enterprise obligations | ||
Fair Value | ||
Less than 12 Months | 2,994 | 41,757 |
More than 12 Months | 49,055 | 16,972 |
Total | 52,049 | 58,729 |
Unrealized Losses | ||
Less than 12 Months | -6 | -1,243 |
More than 12 Months | -945 | -1,028 |
Total | -951 | -2,271 |
Unrealized Losses | ||
Number of available for sale securities in unrealized loss position | 21 | |
U.S. Treasury obligations | ||
Fair Value | ||
Less than 12 Months | 3,994 | |
more than 12 months | 3,998 | |
Total | 3,998 | 3,994 |
Unrealized Losses | ||
Less than 12 Months | -5 | |
more than 12 months | 2 | |
Total | -2 | -5 |
Fair Value | ||
More than 12 Months | 6,402 | 6,319 |
Total | 6,402 | 6,319 |
Unrealized Losses | ||
More than 12 Months | -221 | -414 |
Total | ($221) | ($414) |
Unrealized Losses | ||
Number of available for sale securities in unrealized loss position | 3 |
Securities_Details_3
Securities (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2014 |
item | ||
Securities Held to Maturity, Amortized Cost | ||
1 year or less | $15,923 | |
Total | 18,011 | 15,923 |
Securities Held to Maturity, Fair Value | ||
1 year or less | 15,921 | |
Total | 18,016 | 15,921 |
Securities Available for sale, Amortized Cost | ||
1 year or less | 3,000 | |
After 1 year to 5 years | 43,000 | |
After 5 years to 10 years | 13,623 | |
Total | 59,623 | |
Securities Available for sale, Fair Value | ||
1 year or less | 2,994 | |
After 1 year to 5 years | 42,231 | |
After 5 years to 10 years | 13,226 | |
Total | 68,048 | 58,451 |
Recognized gains loss on sale of one available-for-sale security | $0 | |
Number of available for sale securities sold for no gain or loss | 1 |
Securities_Details_4
Securities (Details 4) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
item | item | |
Securities Held to Maturity, Amortized Cost | ||
1 year or less | $15,923,000 | |
Total | 15,923,000 | 18,011,000 |
Securities Held to Maturity, Fair Value | ||
1 year or less | 15,921,000 | |
Total | 15,921,000 | 18,016,000 |
Securities Available for sale, Amortized Cost | ||
1 year or less | 3,000,000 | |
After 1 year to 5 years | 43,000,000 | |
After 5 years to 10 years | 13,623,000 | |
Total | 59,623,000 | |
Securities Available for sale, Fair Value | ||
1 year or less | 2,994,000 | |
After 1 year to 5 years | 42,231,000 | |
After 5 years to 10 years | 13,226,000 | |
Total | 58,451,000 | 68,048,000 |
Number of available for sale securities | 5 | 16 |
Recognized gain (loss) on sale of available for sale securities | 16,000 | 541,000 |
Number of available for sale securities sold for gains | 7 | |
Recognized loss on sale of available for sale securities | 346,000 | |
Number of available for sale securities sold for loss | 8 | |
Recognized net gains on sale of available-for-sale securities | 195,000 | |
Public Funds on Deposits | ||
Securities Available for sale, Fair Value | ||
Amortized cost of securities pledged | 10,400,000 | 8,400,000 |
Fair value of securities pledged | 10,100,000 | 8,100,000 |
Federal Home Loan Bank of New York | ||
Securities Available for sale, Fair Value | ||
Amortized cost of securities pledged | 17,200,000 | |
Fair value of securities pledged | 16,900,000 | |
Government sponsored enterprise obligations | ||
Securities Held to Maturity, Amortized Cost | ||
Total | 3,998,000 | |
Securities Held to Maturity, Fair Value | ||
Total | 4,008,000 | |
Securities Available for sale, Fair Value | ||
Total | $52,049,000 | $61,729,000 |
Number of available for sale securities in unrealized loss position for more than twelve months | 23 |
Loans_and_Allowance_for_Loan_L2
Loans and Allowance for Loan Losses (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loans | ||
Loans: | $633,958 | $472,465 |
Commercial Real Estate | ||
Loans | ||
Loans: | 431,727 | 298,548 |
Residential Mortgages | ||
Loans | ||
Loans: | 56,079 | 53,601 |
Commercial | ||
Loans | ||
Loans: | 75,174 | 57,634 |
Home Equity | ||
Loans | ||
Loans: | 69,631 | 61,204 |
Consumer | ||
Loans | ||
Loans: | $1,347 | $1,478 |
Loans_and_Allowance_for_Loan_L3
Loans and Allowance for Loan Losses (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Allowance for loan losses: | ||
Beginning Balance | $5,775 | $5,072 |
Charge-offs | -1,464 | -111 |
Recoveries | 4 | 4 |
Reclassifications | -198 | |
Provisions | 3,075 | 810 |
Ending balance | 7,192 | 5,775 |
Ending balance: individually evaluated for impairment | 604 | |
Ending balance: collectively evaluated for impairment | 7,192 | 5,171 |
Loan receivables: Ending balance | ||
Ending balance | 633,958 | 472,465 |
Ending balance: individually evaluated for impairment | 8,754 | 11,648 |
Ending balance: collectively evaluated for impairment | 625,204 | 460,817 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Beginning Balance | 3,707 | 3,150 |
Charge-offs | -940 | -89 |
Provisions | 2,183 | 646 |
Ending balance | 4,950 | 3,707 |
Ending balance: individually evaluated for impairment | 237 | |
Ending balance: collectively evaluated for impairment | 4,950 | 3,470 |
Loan receivables: Ending balance | ||
Ending balance | 431,727 | 298,548 |
Ending balance: individually evaluated for impairment | 1,787 | 4,204 |
Ending balance: collectively evaluated for impairment | 429,940 | 294,344 |
Residential Mortgages | ||
Allowance for loan losses: | ||
Beginning Balance | 325 | 322 |
Charge-offs | -32 | |
Provisions | 55 | 3 |
Ending balance | 348 | 325 |
Ending balance: individually evaluated for impairment | 56 | |
Ending balance: collectively evaluated for impairment | 348 | 269 |
Loan receivables: Ending balance | ||
Ending balance | 56,079 | 53,601 |
Ending balance: individually evaluated for impairment | 4,455 | 5,661 |
Ending balance: collectively evaluated for impairment | 51,624 | 47,940 |
Commercial | ||
Allowance for loan losses: | ||
Beginning Balance | 969 | 1,033 |
Charge-offs | -327 | |
Recoveries | 4 | 4 |
Provisions | 482 | -68 |
Ending balance | 1,128 | 969 |
Ending balance: individually evaluated for impairment | 50 | |
Ending balance: collectively evaluated for impairment | 1,128 | 919 |
Loan receivables: Ending balance | ||
Ending balance | 75,174 | 57,634 |
Ending balance: individually evaluated for impairment | 50 | |
Ending balance: collectively evaluated for impairment | 75,174 | 57,584 |
Home Equity | ||
Allowance for loan losses: | ||
Beginning Balance | 593 | 383 |
Charge-offs | -72 | |
Provisions | -21 | 210 |
Ending balance | 500 | 593 |
Ending balance: individually evaluated for impairment | 261 | |
Ending balance: collectively evaluated for impairment | 500 | 332 |
Loan receivables: Ending balance | ||
Ending balance | 69,631 | 61,204 |
Ending balance: individually evaluated for impairment | 2,512 | 1,733 |
Ending balance: collectively evaluated for impairment | 67,119 | 59,471 |
Consumer | ||
Allowance for loan losses: | ||
Beginning Balance | 26 | 24 |
Charge-offs | -93 | -22 |
Provisions | 91 | 24 |
Ending balance | 24 | 26 |
Ending balance: collectively evaluated for impairment | 24 | 26 |
Loan receivables: Ending balance | ||
Ending balance | 1,347 | 1,478 |
Ending balance: collectively evaluated for impairment | 1,347 | 1,478 |
Unallocated | ||
Allowance for loan losses: | ||
Beginning Balance | 155 | 160 |
Reclassifications | -198 | |
Provisions | 285 | -5 |
Ending balance | 242 | 155 |
Ending balance: collectively evaluated for impairment | $242 | $155 |
Loans_and_Allowance_for_Loan_L4
Loans and Allowance for Loan Losses (Details 3) (USD $) | 24 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | ||
Past due receivable | ||
30-59 Days Past Due | $361 | $160 |
60-89 Days Past Due | 852 | 35 |
Greater than 90 Days | 2,238 | 5,031 |
Total Past Due | 3,451 | 5,226 |
Current | 630,507 | 467,239 |
Total Loans Receivable | 633,958 | 472,465 |
Nonaccrual loans | 8,519 | 5,031 |
Number of accruing loans greater than 90 days delinquent | 0 | |
Commercial Real Estate | ||
Past due receivable | ||
60-89 Days Past Due | 377 | |
Greater than 90 Days | 1,700 | |
Total Past Due | 377 | 1,700 |
Current | 431,350 | 296,848 |
Total Loans Receivable | 431,727 | 298,548 |
Nonaccrual loans | 1,787 | 1,700 |
Residential Mortgages | ||
Past due receivable | ||
30-59 Days Past Due | 361 | |
Greater than 90 Days | 963 | 2,608 |
Total Past Due | 1,324 | 2,608 |
Current | 54,755 | 50,993 |
Total Loans Receivable | 56,079 | 53,601 |
Nonaccrual loans | 4,279 | 2,608 |
Commercial | ||
Past due receivable | ||
Greater than 90 Days | 50 | |
Total Past Due | 50 | |
Current | 75,174 | 57,584 |
Total Loans Receivable | 75,174 | 57,634 |
Nonaccrual loans | 50 | |
Home Equity | ||
Past due receivable | ||
30-59 Days Past Due | 160 | |
60-89 Days Past Due | 475 | |
Greater than 90 Days | 1,275 | 673 |
Total Past Due | 1,750 | 833 |
Current | 67,881 | 60,371 |
Total Loans Receivable | 69,631 | 61,204 |
Nonaccrual loans | 2,453 | 673 |
Consumer | ||
Past due receivable | ||
60-89 Days Past Due | 35 | |
Total Past Due | 35 | |
Current | 1,347 | 1,443 |
Total Loans Receivable | $1,347 | $1,478 |
Loans_and_Allowance_for_Loan_L5
Loans and Allowance for Loan Losses (Details 4) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Loan portfolio by the aggregate pass rating | ||
Total | $633,958 | $472,465 |
Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 619,039 | 459,954 |
Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 4,900 | 7,480 |
Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 10,019 | 5,031 |
Commercial Real Estate | ||
Loan portfolio by the aggregate pass rating | ||
Total | 431,727 | 298,548 |
Commercial Real Estate | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 429,940 | 294,741 |
Commercial Real Estate | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 2,107 | |
Commercial Real Estate | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 1,787 | 1,700 |
Residential Mortgages | ||
Loan portfolio by the aggregate pass rating | ||
Total | 56,079 | 53,601 |
Residential Mortgages | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 47,700 | 48,120 |
Residential Mortgages | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 4,100 | 2,873 |
Residential Mortgages | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 4,279 | 2,608 |
Commercial | ||
Loan portfolio by the aggregate pass rating | ||
Total | 75,174 | 57,634 |
Commercial | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 73,174 | 56,084 |
Commercial | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 500 | 1,500 |
Commercial | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 1,500 | 50 |
Home Equity | ||
Loan portfolio by the aggregate pass rating | ||
Total | 69,631 | 61,204 |
Home Equity | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 66,878 | 59,531 |
Home Equity | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 300 | 1,000 |
Home Equity | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 2,453 | 673 |
Consumer | ||
Loan portfolio by the aggregate pass rating | ||
Total | 1,347 | 1,478 |
Consumer | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | $1,347 | $1,478 |
Loans_and_Allowance_for_Loan_L6
Loans and Allowance for Loan Losses (Details 5) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Recorded Investment | ||
Loans with specific reserves | $3,575 | |
Loans with no specific reserves | 8,073 | |
Total loans | 8,754 | 11,648 |
Unpaid Principal Balance | ||
Loans with specific reserves | 3,786 | |
Loans with no specific reserves | 8,174 | |
Total loans | 8,943 | 11,960 |
Related Allowance | ||
Total loans | 604 | |
Average Recorded Investment | ||
Loans with specific reserves | 630 | 3,365 |
Loans with no specific reserves | 9,497 | 7,946 |
Total loans | 10,127 | 11,311 |
Interest Income Recognized | ||
Loans with specific reserves | 42 | |
Loans with no specific reserves | 149 | 218 |
Total loans | 149 | 260 |
Commercial Real Estate | ||
Recorded Investment | ||
Loans with specific reserves | 957 | |
Loans with no specific reserves | 1,787 | 3,247 |
Unpaid Principal Balance | ||
Loans with specific reserves | 957 | |
Loans with no specific reserves | 1,787 | 3,247 |
Related Allowance | ||
Total loans | 237 | |
Average Recorded Investment | ||
Loans with specific reserves | 334 | 957 |
Loans with no specific reserves | 2,796 | 2,963 |
Interest Income Recognized | ||
Loans with no specific reserves | 106 | 51 |
Residential Mortgages | ||
Recorded Investment | ||
Loans with specific reserves | 974 | |
Loans with no specific reserves | 4,455 | 4,687 |
Unpaid Principal Balance | ||
Loans with specific reserves | 1,185 | |
Loans with no specific reserves | 4,543 | 4,687 |
Related Allowance | ||
Total loans | 56 | |
Average Recorded Investment | ||
Loans with specific reserves | 94 | 975 |
Loans with no specific reserves | 4,561 | 4,107 |
Interest Income Recognized | ||
Loans with no specific reserves | 11 | 164 |
Commercial | ||
Recorded Investment | ||
Loans with specific reserves | 50 | |
Unpaid Principal Balance | ||
Loans with specific reserves | 50 | |
Related Allowance | ||
Total loans | 50 | |
Average Recorded Investment | ||
Loans with specific reserves | 20 | 50 |
Loans with no specific reserves | 24 | 165 |
Interest Income Recognized | ||
Loans with no specific reserves | 5 | |
Home Equity | ||
Recorded Investment | ||
Loans with specific reserves | 1,594 | |
Loans with no specific reserves | 2,512 | 139 |
Unpaid Principal Balance | ||
Loans with specific reserves | 1,594 | |
Loans with no specific reserves | 2,613 | 240 |
Related Allowance | ||
Total loans | 261 | |
Average Recorded Investment | ||
Loans with specific reserves | 182 | 1,383 |
Loans with no specific reserves | 2,097 | 711 |
Interest Income Recognized | ||
Loans with specific reserves | 42 | |
Loans with no specific reserves | 27 | 3 |
Consumer | ||
Average Recorded Investment | ||
Loans with no specific reserves | $19 |
Loans_and_Allowance_for_Loan_L7
Loans and Allowance for Loan Losses (Details 6) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Troubled debt restructuring | ||
Accrual Status | $235 | $4,510 |
Number of Loans | 2 | 5 |
Nonaccrual Status | 5,339 | 3,256 |
Number of Loans | 8 | 5 |
Total | 5,574 | 7,766 |
Number of Loans | 3 | 2 |
Pre-modification outstanding recorded investment | 777 | 239 |
Post-modification outstanding recorded investment | 785 | 239 |
Rate Modification | ||
Troubled debt restructuring | ||
Pre-modification outstanding recorded investment | 777 | 239 |
Residential Mortgages | ||
Troubled debt restructuring | ||
Accrual Status | 175 | 3,053 |
Number of Loans | 1 | 2 |
Nonaccrual Status | 4,008 | 2,514 |
Number of Loans | 5 | 4 |
Total | 4,183 | 5,567 |
Number of Loans | 2 | 1 |
Pre-modification outstanding recorded investment | 731 | 179 |
Post-modification outstanding recorded investment | 741 | 179 |
Number of TDR Loan Contracts which had payment defaults | 0 | 1 |
Unpaid principal balance of defaulted TDR | 250 | |
Specific reserve for loans | 15 | |
Residential Mortgages | Rate Modification | ||
Troubled debt restructuring | ||
Pre-modification outstanding recorded investment | 731 | 179 |
Commercial Real Estate | ||
Troubled debt restructuring | ||
Accrual Status | 397 | |
Number of Loans | 1 | |
Nonaccrual Status | 377 | 742 |
Number of Loans | 1 | 1 |
Total | 377 | 1,139 |
Home Equity | ||
Troubled debt restructuring | ||
Accrual Status | 60 | 1,060 |
Number of Loans | 1 | 2 |
Nonaccrual Status | 954 | |
Number of Loans | 2 | |
Total | 1,014 | 1,060 |
Number of Loans | 1 | 1 |
Pre-modification outstanding recorded investment | 46 | 60 |
Post-modification outstanding recorded investment | 44 | 60 |
Home Equity | Rate Modification | ||
Troubled debt restructuring | ||
Pre-modification outstanding recorded investment | $46 | $60 |
Premises_and_Equipment_Details
Premises and Equipment (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Premises and equipment | ||
Total premises and equipment, gross | $13,613 | $13,315 |
Less accumulated depreciation and amortization | 3,477 | 2,888 |
Total premises and equipment, net | 10,136 | 10,427 |
Depreciation and amortization | 570 | 520 |
Land | ||
Premises and equipment | ||
Total premises and equipment, gross | 4,828 | 4,828 |
Building | ||
Premises and equipment | ||
Total premises and equipment, gross | 6,286 | 6,127 |
Furniture and fixtures | ||
Premises and equipment | ||
Total premises and equipment, gross | 787 | 765 |
Equipment | ||
Premises and equipment | ||
Total premises and equipment, gross | $1,712 | $1,595 |
Deposits_Details
Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Deposits | ||
3 months or less | $55,056,000 | $61,181,000 |
Over 3 months through 12 months | 151,655,000 | 99,778,000 |
Over 1 year through 2 years | 90,914,000 | 60,942,000 |
Over 2 years through 3 years | 27,695,000 | 54,493,000 |
Over 3 years through 4 years | 13,037,000 | 21,559,000 |
Over 4 years through 5 years | 20,522,000 | 16,864,000 |
Total time deposits | 358,879,000 | 314,817,000 |
Brokered deposits | 37,900,000 | |
Deposits obtained through an internet listing service | $16,100,000 |
Borrowed_Funds_Details
Borrowed Funds (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Borrowed Funds | ||
Borrowings | $0 | |
Federal Home Loan Bank of New York | ||
Borrowed Funds | ||
Amount | 32,950,000 | |
Rate (as a percent) | 1.57% | |
F H L B Advances 1.50 Percent Due 2019 June | ||
Borrowed Funds | ||
Amount | 4,598,000 | |
Rate (as a percent) | 1.50% | |
Original Term (years) | 5 years | |
F H L B Advances 1.51 Percent Due 2019 July | ||
Borrowed Funds | ||
Amount | 7,018,000 | |
Rate (as a percent) | 1.51% | |
Original Term (years) | 5 years | |
F H L B Advances 1.51 Percent Due 2019 August | ||
Borrowed Funds | ||
Amount | 6,662,000 | |
Rate (as a percent) | 1.51% | |
Original Term (years) | 5 years | |
F H L B Advances 2.02 Percent Due 2021 August | ||
Borrowed Funds | ||
Amount | 4,833,000 | |
Rate (as a percent) | 2.02% | |
Original Term (years) | 7 years | |
F H L B Advances 1.48 Percent Due 2019 October | ||
Borrowed Funds | ||
Amount | 9,839,000 | |
Rate (as a percent) | 1.48% | |
Original Term (years) | 5 years | |
ACBB | ||
Borrowed Funds | ||
Overnight line of credit facility available | 10,000,000 | |
First Tennessee Bank | ||
Borrowed Funds | ||
Overnight line of credit facility available | $12,000,000 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Current tax expense: | ||
Federal | $2,257 | $2,659 |
State | 270 | 750 |
Deferred income tax benefit: | ||
Federal | -291 | -252 |
State | -115 | -102 |
Income tax expense | 2,121 | 3,055 |
Deferred tax assets: | ||
Start up expenses | 222 | 257 |
Allowance for loan losses | 2,948 | 2,248 |
Accrued expenses | 277 | 272 |
Stock compensation plans | 428 | 428 |
Unrealized losses on available for sale securities | 433 | 1,028 |
Other | 251 | 369 |
Total gross deferred tax assets | 4,559 | 4,602 |
Deferred tax liabilities: | ||
Deferred loan costs | -97 | -81 |
Prepaid expenses | -102 | -78 |
Depreciation | -530 | -424 |
Total gross deferred tax liabilities | -729 | -583 |
Net deferred tax asset | 3,830 | 4,019 |
Income tax expense differs from the amounts computed by applying the U.S. federal income tax rate | ||
U.S. federal income tax rate (as a percent) | 34.00% | |
Computed "expected" tax expense | 2,010 | 2,621 |
Increase (decrease) in taxes resulting from: | ||
State taxes, net of federal income tax expense | 102 | 428 |
Tax exempt income | -18 | -16 |
Stock-based compensation | -1 | 20 |
Meals and entertainment | 9 | 7 |
Other | 19 | -5 |
Income tax expense | $2,121 | $3,055 |
Leases_Details
Leases (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Leases | ||
Rental expense | $1,300,000 | $1,200,000 |
Future minimum lease payments (exclusive of payments for maintenance, insurance, taxes and any other costs associated with offices) for operating leases | ||
2015 | 1,279,000 | |
2016 | 1,242,000 | |
2017 | 951,000 | |
2018 | 870,000 | |
2019 | 578,000 | |
Thereafter | 1,740,000 | |
Total future minimum lease payments | $6,660,000 |
Relatedparty_Transactions_Deta
Related-party Transactions (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
loan | loan | |
Related party transactions | ||
Number of loans in nonaccrual, past due, or restructured status | 0 | 0 |
Changes in related-party loans | ||
Legal fees, for non-loan related matters | $217 | $177 |
Director serving as a related party of a company where office space is rented | ||
Changes in related-party loans | ||
Rent paid to third party entity | 372 | 312 |
Bank | ||
Changes in related-party loans | ||
Outstanding loans at beginning of the year | 34,009 | 31,701 |
Advances | 9,665 | 6,947 |
Repayments | -7,883 | -4,639 |
Outstanding loans at end of the year | 35,791 | 34,009 |
Two directors | ||
Changes in related-party loans | ||
Legal fees, for non-loan related matters | 30 | 22 |
Two directors | Legal counsel on loan closings | ||
Changes in related-party loans | ||
Number of directors that participated in transaction | 2 | |
Loan reimbursement from third party customer | 453 | 326 |
Management of Third Party Company | Director serving as president of insurance company where policy held | ||
Changes in related-party loans | ||
Number of directors that participated in transaction | 1 | |
Insurance premiums paid to third party carrier | $165 | $153 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 12 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Basic earnings per share | ||
Net income applicable to common stock | $3,790 | $4,654 |
Weighted average number of common shares outstanding - basic | 5,362 | 5,289 |
Basic earnings per share (in dollars per share) | $0.71 | $0.88 |
Diluted earnings per share | ||
Net income applicable to common stock | $3,790 | $4,654 |
Weighted average number of common shares outstanding | 5,362 | 5,289 |
Effect of dilutive options (in shares) | 48 | 79 |
Weighted average number of common shares and common share equivalents- diluted | 5,410 | 5,368 |
Diluted earnings per share (in dollars per share) | $0.70 | $0.87 |
Earnings_Per_Share_Details_2
Earnings Per Share (Details 2) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 48,000 | 79,000 |
Non-qualified options | ||
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 331,334 | 331,334 |
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share) | 11.5 | 11.5 |
Incentive stock options at a weighted average price of $9.09 | ||
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 86,900 | 97,900 |
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share) | 9.09 | 9.09 |
Incentive stock options at a weighted average price of $11.50 | ||
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 75,000 | 90,000 |
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share) | 11.5 | 11.5 |
Restricted stock | ||
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 64,500 | 80,000 |
Stockholders_Equity_and_Divide1
Stockholders' Equity and Dividend Restrictions (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2005 |
item | item | ||
Stockholders' Equity and Dividend Restrictions | |||
Common stock sold (in shares) | 4,798,594 | ||
Sale price of common stock (in dollars per share) | $9.09 | ||
Net proceeds from stock offering | $42.70 | ||
Number of quarterly cash dividends | 4 | 4 | |
Quarterly cash dividend declared (in dollars per share) | $0.06 | $0.06 | |
Minimum percentage of surplus on capital stock to declare and pay dividends | 50.00% |
Benefit_Plans_Details
Benefit Plans (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2005 | Dec. 31, 2007 | |
Benefit Plans and Stock-Based Compensation | ||||
Unrecognized compensation expenses related to unvested stock options | $0 | |||
Shares of common stock issued | 4,798,594 | |||
Number of Shares | ||||
Exercised (in shares) | -26,000 | -53,334 | ||
Share based compensation expense | 250,000 | 172,000 | ||
Restricted shares, Weighted Average Grant Date Fair Value | ||||
Unrecognized compensation expenses | 664,000 | |||
Certain members of management | ||||
Number of Shares | ||||
Share based compensation expense | 250,000 | 172,000 | ||
2006 Stock Option Plan | ||||
Benefit Plans and Stock-Based Compensation | ||||
Maximum number of shares authorized to be purchased | 239,984 | |||
Number of Shares | ||||
Number of unvested options (in shares) | 0 | 0 | ||
2006 Stock Option Plan | Incentive stock options | ||||
Number of Shares | ||||
Outstanding at the beginning of the period (in shares) | 187,900 | |||
Exercised (in shares) | -26,000 | |||
Outstanding at the end of the period (in shares) | 161,900 | |||
Exercisable at the end of the period (in shares) | 161,900 | |||
Weighted Average Exercise Price per Share | ||||
Outstanding at the beginning of the period (in dollars per share) | $10.24 | |||
Exercised (in dollars per share) | $10.48 | |||
Outstanding at the end of the period (in dollars per share) | $10.21 | |||
Exercisable at the end of the period (in dollars per share) | $10.21 | |||
Aggregate Intrinsic Value | ||||
Aggregate intrinsic value of options outstanding | 204,215 | |||
Exercisable at the end of the period (in dollars) | 204,215 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at the end of the period | 2 years 4 months 13 days | |||
Exercisable at the end of the period | 2 years 4 months 13 days | |||
Restricted shares, Weighted Average Grant Date Fair Value | ||||
Aggregate number of incentive stock options issued (in shares) | 210,900 | |||
2007 Director Plan | ||||
Number of Shares | ||||
Number of unvested options (in shares) | 0 | 0 | ||
2007 Director Plan | Non-qualified options | ||||
Benefit Plans and Stock-Based Compensation | ||||
Maximum number of shares authorized to be purchased | 480,000 | |||
Number of Shares | ||||
Outstanding at the beginning of the period (in shares) | 331,334 | |||
Outstanding at the end of the period (in shares) | 331,334 | |||
Exercisable at the end of the period (in shares) | 331,334 | |||
Weighted Average Exercise Price per Share | ||||
Outstanding at the beginning of the period (in dollars per share) | $11.50 | |||
Outstanding at the end of the period (in dollars per share) | $11.50 | |||
Exercisable at the end of the period (in dollars per share) | $11.50 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding at the end of the period | 2 years 9 months 22 days | |||
Exercisable at the end of the period | 2 years 9 months 22 days | |||
Restricted shares, Weighted Average Grant Date Fair Value | ||||
Aggregate number of incentive stock options issued (in shares) | 331,334 | |||
2011 Equity Incentive Plan | ||||
Benefit Plans and Stock-Based Compensation | ||||
Maximum number of shares authorized to be purchased | 250,000 | |||
2011 Equity Incentive Plan | Restricted stock | ||||
Number of Shares | ||||
Number of shares of restricted stock vested | 19,218 | |||
Restricted shares, Number of Shares | ||||
Non-vested restricted stock, beginning of year (in shares) | 80,000 | |||
Granted (in shares) | 3,718 | |||
Vested (in shares) | -19,218 | |||
Non-vested restricted stock, end of year (in shares) | 64,500 | |||
Restricted shares, Weighted Average Grant Date Fair Value | ||||
Non-vested restricted stock, beginning of year (in dollars per shares) | $13 | |||
Granted (in dollars per shares) | $12.78 | |||
Forfeited (in dollars per shares) | $13 | |||
Vested (in dollars per shares) | $13 | |||
Non-vested restricted stock, end of year (in dollars per shares) | $12.99 | |||
2011 Equity Incentive Plan | Restricted stock | Executive officers and directors | ||||
Restricted shares, Weighted Average Grant Date Fair Value | ||||
Period over which unrecognized compensation expense is expected to be recognized | 39 months | |||
Unrecognized compensation expenses | $659,000 |
Benefit_Plans_Details_2
Benefit Plans (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Benefit Plans | ||
Employees investment percentage on pretax earnings under the 401(k) profit sharing plan | 15.00% | |
Matching contributions under the 401(k) profit sharing plan | $83 | $69 |
Regulatory_Capital_Requirement2
Regulatory Capital Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Leverage (Tier 1) capital | ||
Bank actual Amount | $60,045 | $57,607 |
Bank actual Ratio (as a percent) | 8.16% | 9.45% |
FDIC requirements, Minimum Capital Adequacy Amount | 29,447 | 24,376 |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 4.00% | 4.00% |
FDIC requirements, For Classification As Well Capitalized Amount | 36,808 | 30,470 |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 5.00% | 5.00% |
Risk-based capital: Tier 1 | ||
Bank actual Amount | 60,045 | 57,607 |
Bank actual Ratio (as a percent) | 9.39% | 11.89% |
FDIC requirements, Minimum Capital Adequacy Amount | 25,580 | 19,386 |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 4.00% | 4.00% |
FDIC requirements, For Classification As Well Capitalized Amount | 38,370 | 29,079 |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 6.00% | 6.00% |
Risk-based capital: Total | ||
Bank actual Amount | 67,237 | 63,382 |
Bank actual Ratio (as a percent) | 10.51% | 13.08% |
FDIC requirements, Minimum Capital Adequacy Amount | 51,160 | 38,773 |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 8.00% | 8.00% |
FDIC requirements, For Classification As Well Capitalized Amount | $63,951 | $48,466 |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 10.00% | 10.00% |
Financial_Instruments_with_Off1
Financial Instruments with Off-Balance Sheet Risk (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Bank | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Outstanding available loan commitments | 120.3 | $104.20 |
Standby letters of credit | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Expiration period of letters of credit, maximum | 1 year | |
Standby letters of credit | Bank | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Outstanding letters of credit | 2.3 | $2.80 |
Financial_Information_of_Paren2
Financial Information of Parent Company (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
Assets | |||
Total assets | $743,688 | $610,791 | |
Liabilities and stockholders' equity: | |||
Stockholders' equity | 59,894 | 55,950 | 53,720 |
Total liabilities and stockholders' equity | 743,688 | 610,791 | |
Bancorp of New Jersey, Inc | |||
Assets | |||
Investment in subsidiary, net | 59,894 | 55,950 | |
Total assets | 59,894 | 55,950 | |
Liabilities and stockholders' equity: | |||
Stockholders' equity | 59,894 | 55,950 | |
Total liabilities and stockholders' equity | $59,894 | $55,950 |
Financial_Information_of_Paren3
Financial Information of Parent Company (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Condensed Financial Statements | ||
Net income | $3,790 | $4,654 |
Bancorp of New Jersey, Inc | ||
Condensed Financial Statements | ||
Equity in undistributed earnings of subsidiary bank | 3,790 | 4,654 |
Net income | $3,790 | $4,654 |
Financial_Information_of_Paren4
Financial Information of Parent Company (Details 3) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flow from operating activities: | |||
Net income | $3,790 | $4,654 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net cash provided by operating activities | 8,442 | 4,327 | |
Cash flows from investing activities: | |||
Net cash used in investing activities | -151,713 | -34,594 | |
Cash flows from financing activities: | |||
Cash dividends paid | -1,287 | -1,269 | |
Net cash provided by financing activities | 127,590 | 36,930 | |
Net change in cash for the period | -15,681 | 6,663 | |
Net cash at beginning of year | 22,060 | 37,741 | 31,078 |
Net cash at end of year | 22,060 | 37,741 | 31,078 |
Bancorp of New Jersey, Inc | |||
Cash flow from operating activities: | |||
Net income | 3,790 | 4,654 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Equity in undistributed earnings of the subsidiary bank | -3,790 | -4,654 | |
Cash flows from investing activities: | |||
Cash dividends received from subsidiary bank | 1,287 | 1,269 | |
Net cash used in investing activities | 1,287 | 1,269 | |
Cash flows from financing activities: | |||
Cash dividends paid | -1,287 | -1,269 | |
Net cash provided by financing activities | ($1,287) | ($1,269) |
Fair_Value_Measurements_and_Fa
Fair Value Measurements and Fair Value of Financial Instruments (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair value measurements | ||
Securities available for sale | $58,451 | $68,048 |
Significant Other Observable Inputs (Level 2) | ||
Fair value measurements | ||
Securities available for sale | 58,451 | 68,048 |
Recurring basis | Estimated Fair Value | ||
Fair value measurements | ||
Securities available for sale | 58,451 | 68,048 |
Recurring basis | Estimated Fair Value | U.S. Treasury obligations | ||
Fair value measurements | ||
Securities available for sale | 6,402 | 6,319 |
Recurring basis | Estimated Fair Value | Government sponsored enterprise obligations | ||
Fair value measurements | ||
Securities available for sale | 52,049 | 61,729 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair value measurements | ||
Securities available for sale | 58,451 | 68,048 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations | ||
Fair value measurements | ||
Securities available for sale | 6,402 | 6,319 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government sponsored enterprise obligations | ||
Fair value measurements | ||
Securities available for sale | 52,049 | 61,729 |
Nonrecurring basis | Estimated Fair Value | ||
Fair value measurements | ||
Impaired loans, portion valued at fair value | 1,723 | 2,971 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair value measurements | ||
Impaired loans, portion valued at fair value | $1,723 | $2,971 |
Fair_Value_Measurements_and_Fa1
Fair Value Measurements and Fair Value of Financial Instruments (Details 2) (Nonrecurring basis, Significant Unobservable Inputs (Level 3), USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company utilized Level 3 inputs to determine fair value | ||
Impaired loans, portion valued at fair value | 1,723 | 2,971 |
Appraisal of collateral | Minimum | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company utilized Level 3 inputs to determine fair value | ||
Appraisal Adjustments (as a percent) | 0.00% | 0.00% |
Liquidation Expenses (as a percent) | 0.00% | 0.00% |
Appraisal of collateral | Maximum | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company utilized Level 3 inputs to determine fair value | ||
Appraisal Adjustments (as a percent) | 46.30% | 28.10% |
Liquidation Expenses (as a percent) | 60.20% | 41.80% |
Appraisal of collateral | Weighted average | ||
Additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Company utilized Level 3 inputs to determine fair value | ||
Appraisal Adjustments (as a percent) | -38.40% | -15.80% |
Liquidation Expenses (as a percent) | -20.20% | -21.20% |
Fair_Value_Measurements_and_Fa2
Fair Value Measurements and Fair Value of Financial Instruments (Details 3) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ||
Interest bearing time deposits | $1,000 | $1,000 |
Securities available for sale | 58,451 | 68,048 |
Securities held to maturity | 15,921 | 18,016 |
Restricted investment in bank stock | 2,162 | 792 |
Accrued interest receivable | 2,441 | 1,456 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 22,060 | 37,741 |
Financial liabilities: | ||
Deposits | 290,095 | 229,666 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 58,451 | 68,048 |
Securities held to maturity | 15,921 | 18,016 |
Restricted investment in bank stock | 2,162 | 792 |
Accrued interest receivable | 2,441 | 1,456 |
Financial liabilities: | ||
Deposits | 360,634 | 314,817 |
Borrowed funds | 32,972 | |
Accrued interest payable | 758 | 635 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Net loans | 629,086 | 468,463 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 22,060 | 37,741 |
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 58,451 | 68,048 |
Securities held to maturity | 15,923 | 18,011 |
Restricted investment in bank stock | 2,162 | 792 |
Net loans | 626,352 | 466,351 |
Accrued interest receivable | 2,441 | 1,456 |
Financial liabilities: | ||
Deposits | 648,974 | 553,320 |
Borrowed funds | 32,950 | |
Accrued interest payable | 758 | 635 |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 22,060 | 37,741 |
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 58,451 | 68,048 |
Securities held to maturity | 15,921 | 18,016 |
Restricted investment in bank stock | 2,162 | 792 |
Net loans | 629,086 | 468,463 |
Accrued interest receivable | 2,441 | 1,456 |
Financial liabilities: | ||
Deposits | 650,729 | 544,483 |
Borrowed funds | 32,972 | |
Accrued interest payable | $758 | $635 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Accumulated other comprehensive income | ||
Gain on sale of securities | ($16) | $195 |
Income tax benefit | -2,121 | -3,055 |
Available for Sale Securities | Amount Reclassified from Accumulated Other Comprehensive Income | ||
Accumulated other comprehensive income | ||
Gain on sale of securities | -16 | 195 |
Income tax benefit | 6 | -63 |
Net of tax | ($10) | $132 |
Subsequent_Events_Details
Subsequent Events (Details) (USD $) | 12 Months Ended | 0 Months Ended |
In Millions, except Share data, unless otherwise specified | Dec. 31, 2005 | Mar. 02, 2015 |
Subsequent Event [Line Items] | ||
Shares of common stock issued | 4,798,594 | |
Share Price | $9.09 | |
Subsequent Event | Private Placement | ||
Subsequent Event [Line Items] | ||
Proceeds from issuance of shares | $9.50 | |
Shares of common stock issued | 868,057 | |
Share Price | $10.95 |