Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Mar. 23, 2016 | Jun. 30, 2015 | |
Document and Entity Information | |||
Entity Registrant Name | Bancorp of New Jersey, Inc. | ||
Entity Central Index Key | 1,390,312 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2015 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Public Float | $ 51,178,000 | ||
Entity Common Stock, Shares Outstanding | 6,240,241 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and due from banks | $ 2,238 | $ 1,218 |
Interest bearing deposits | 71,497 | 20,386 |
Federal funds sold | 454 | 456 |
Total cash and cash equivalents | 74,189 | 22,060 |
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 64,750 | 58,451 |
Securities held to maturity (fair value approximates $5,829 and $15,921 at December 31, 2015 and 2014, respectively) | 5,829 | 15,923 |
Restricted investment in bank stock, at cost | 2,020 | 2,162 |
Loans: | 645,062 | 633,958 |
Deferred loan fees and costs, net | (381) | (414) |
Allowance for loan losses | (8,020) | (7,192) |
Net loans | 636,661 | 626,352 |
Premises and equipment, net | 10,500 | 10,136 |
Accrued interest receivable | 2,305 | 2,441 |
Other real estate owned | 512 | 897 |
Other assets | 5,154 | 4,266 |
Total assets | 802,920 | 743,688 |
Deposits: | ||
Noninterest-bearing demand deposits | 117,919 | 89,510 |
Savings and interest bearing transaction accounts | 232,456 | 200,585 |
Time deposits under $250K | 192,560 | 175,250 |
Time deposits $250K and over | 157,804 | 183,629 |
Total deposits | 700,739 | 648,974 |
Borrowed funds | 26,529 | 32,950 |
Accrued expenses and other liabilities | 2,499 | 1,870 |
Total liabilities | $ 729,767 | $ 683,794 |
Commitments and Contingencies | ||
Stockholders' equity: | ||
Common stock, no par value, authorized 20,000,000 shares; issued and outstanding 6,240,241 at December 31, 2015 and 5,369,266 at December 31, 2014 | $ 60,509 | $ 50,998 |
Retained earnings | 12,940 | 9,635 |
Accumulated other comprehensive loss | (296) | (739) |
Total stockholders' equity | 73,153 | 59,894 |
Total liabilities and stockholders' equity | $ 802,920 | $ 743,688 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
CONSOLIDATED BALANCE SHEETS | ||
Securities held to maturity, fair value (in dollars) | $ 5,829 | $ 15,921 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, authorized shares | 20,000,000 | 20,000,000 |
Common stock, issued shares | 6,240,241 | 5,369,266 |
Common stock, outstanding shares | 6,240,241 | 5,369,266 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | ||
Loans, including fees | $ 30,451 | $ 26,879 |
Securities | 887 | 927 |
Interest-earning deposits in banks | 182 | 48 |
Federal funds sold | 6 | 5 |
Total interest income | 31,526 | 27,859 |
Interest expense: | ||
Savings and money markets | 1,244 | 999 |
Time deposits | 6,332 | 5,397 |
Borrowed funds | 465 | 215 |
Total interest expense | 8,041 | 6,611 |
Net interest income | 23,485 | 21,248 |
Provision for loan losses | 924 | 3,075 |
Net interest income after provision for loan losses | 22,561 | 18,173 |
Non interest income | ||
Fees and service charges on deposit accounts | 324 | 207 |
Losses on sale of securities | (15) | (16) |
Total non interest income | 309 | 191 |
Non interest expense | ||
Salaries and employee benefits | 7,634 | 6,503 |
Occupancy and equipment expense | 2,805 | 2,608 |
FDIC and state assessments | 911 | 399 |
Legal fees | 287 | 217 |
Other real estate owned related expenses | 226 | 54 |
Professional fees | 774 | 444 |
Data processing | 974 | 817 |
Other operating expenses | 1,916 | 1,411 |
Total non interest expenses | 15,527 | 12,453 |
Income before income taxes | 7,343 | 5,911 |
Income tax expense | 2,535 | 2,121 |
Net income | $ 4,808 | $ 3,790 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.79 | $ 0.71 |
Diluted (in dollars per share) | $ 0.79 | $ 0.70 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net income | $ 4,808 | $ 3,790 |
Other comprehensive income: | ||
Net unrealized holding gains on securities available for sale arising during the period, net of income tax expense of $253 and $600, respectively | 452 | 928 |
Reclassification adjustment for losses on sales of securities, net of income tax benefit of $6 and $6, respectively | (9) | (10) |
Other comprehensive income | 443 | 918 |
Comprehensive income | $ 5,251 | $ 4,708 |
CONSOLIDATED STATEMENTS OF COM6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||
Net unrealized holding gains on securities available for sale, income tax expense | $ 253 | $ 600 |
Reclassification adjustment for losses on sale of securities, income tax benefit | $ (6) | $ (6) |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive (Loss) | Total |
Balance at Dec. 31, 2013 | $ 50,475 | $ 7,132 | $ (1,657) | $ 55,950 |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (2,200 and 26,000 shares for the year ended 2015 and 2014 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, 2015 and 2014, respectively | (1,287) | (1,287) | ||
Net income | 3,790 | 3,790 | ||
Total other comprehensive income | 918 | 918 | ||
Balance at Dec. 31, 2014 | 50,998 | 9,635 | (739) | 59,894 |
Increase (Decrease) in Stockholders' Equity | ||||
Exercise of stock options (2,200 and 26,000 shares for the year ended 2015 and 2014 respectively | 20 | 20 | ||
Stock based compensation | 211 | 211 | ||
Dividends on common stock ($0.24 and $0.24 per share for the year ended December 31, 2015 and 2014, respectively | (1,503) | (1,503) | ||
Net income | 4,808 | 4,808 | ||
Sale of common stock through a private placement (868,057 shares issued) | 9,280 | 9,280 | ||
Total other comprehensive income | 443 | 443 | ||
Balance at Dec. 31, 2015 | $ 60,509 | $ 12,940 | $ (296) | $ 73,153 |
CONSOLIDATED STATEMENTS OF STO8
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY | ||
Exercise of stock options (in shares) | 2,200 | 26,000 |
Dividends on common stock per share (in dollars per share) | $ 0.24 | $ 0.24 |
Shares of common stock issued | 868,057 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 4,808 | $ 3,790 |
Adjustments to reconcile net income to net cash provided by Operating activities: | ||
Provision for loan losses | 924 | 3,075 |
Amortization of securities premiums | 112 | 109 |
Deferred tax benefit | (542) | (406) |
Depreciation and amortization | 615 | 570 |
Stock based compensation | 211 | 250 |
Accretion of net loan origination fees | (33) | 75 |
Loss on sale of securities | 15 | 16 |
Loss on sale of other real estate owned | 6 | 54 |
Write down of other real estate owned | 217 | |
Changes in operating assets and liabilities: | ||
Decrease (increase) in accrued interest receivable | 136 | (985) |
Decrease (increase) in other assets | (594) | 1,545 |
Increase in other liabilities | 629 | 349 |
Net cash provided by operating activities | 6,504 | 8,442 |
Cash flows from investing activities: | ||
Purchases of securities available for sale | (23,720) | |
Purchases of securities held to maturity | (5,829) | (11,923) |
Proceeds from maturities of securities held to maturity | 15,923 | 14,014 |
Proceeds from called or matured securities available for sale | 11,000 | |
Proceeds from sales of securities available for sale | 6,985 | 10,984 |
Purchase of restricted investment in bank stock | (170) | (1,370) |
Proceeds from calls of restricted investment of bank stock | 312 | |
Proceeds from sale of other real estate owned | 162 | 1,090 |
Net increase in loans | (11,200) | (164,229) |
Purchases of premises and equipment | (979) | (279) |
Net cash used in investing activities | (7,516) | (151,713) |
Cash flows from financing activities: | ||
Net increase in deposits | 51,765 | 95,654 |
Net (decrease) increase in borrowed funds | (6,421) | 32,950 |
Dividends paid | (1,503) | (1,287) |
Proceeds from the sale of common stock through the private placement | 9,280 | |
Proceeds from exercise of options | 20 | 273 |
Net cash provided by financing activities | 53,141 | 127,590 |
Increase (decrease) in cash and cash equivalents | 52,129 | (15,681) |
Cash and cash equivalents at beginning of year | 22,060 | 37,741 |
Cash and cash equivalents at end of year | 74,189 | 22,060 |
Cash paid during the period for: | ||
Interest | 8,083 | 6,488 |
Taxes | $ 3,173 | 2,464 |
Supplemental disclosure of non-cash investing and financing transactions: | ||
Loans transferred to other real estate owned | $ 1,077 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
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 (referred to herein as the “holding company reorganization”). The Company’s class of common stock has no par value and the Bank’s class of common stock had a par value of $10 per share. 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 eight 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. 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. 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 Company allowance for loan losses. These agencies may require the Company 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 The Company’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 applicable 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 maturity (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 gains and losses included in earnings 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 operations. Management evaluates securities for Other Than Temporary Impairment (OTTI) on at least 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 sheets. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. 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 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. Loans for which the terms have been modified resulting in a con cession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. 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 $211 thousand and $250 thousand during 2015 and 2014, respectively. At December 31, 2015, the Company had no unrecognized compensation expense related to stock options. At December 31, 2015, the Company had $451,000 of unrecognized compensation expense related to unvested restricted stock granted in 2015. Stockholders’ Equity and Related Transactions On March 2, 2015, the Company closed on a private placement of approximately $9.5 million (net of expenses, approximatley $9.3 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 was a member of the Company’s board of directors or related party. The Company contributed the proceeds of the private placement to the Bank. 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 $289 thousand and $245 thousand for 2015 and 2014, 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 $1.9 million and $2.1 million and Atlantic Community Bankers Bank, formerly Atlantic Central Bankers Bank (the “ACBB”) of $100 thousand and $100 thousand, as of December 31, 2015 and 2014, 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, 2015 and 2014. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2015. 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, 2015 and 2014, these reserve balances amounted to $3.4 million and $1.2 million, respectively, and are reflected in interest bearing deposits in banks. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2015 | |
Securities | |
Securities | NOTE 2. Securities A summary of securities held to maturity and securities available for sale at December 31, 2015 and 2014 is as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair 2015 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ $ — $ — $ U.S. Treasury obligations — — — — Total securities held to maturity — — Securities Available for Sale: U.S. Treasury obligations — ) Government sponsored enterprise obligations — ) Total securities available for sale — ) $ $ — $ ) $ Gross Gross Amortized Unrealized Unrealized Fair 2014 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ $ — $ — $ U.S. Treasury obligations — ) Total securities held to maturity — ) Securities Available for Sale: U.S. Treasury obligations — ) Government sponsored enterprise obligations — ) Total securities available for sale — ) $ $ — $ ) $ Securities with an amortized cost of $31.3 million and a fair value of $31.0 million, respectively, were pledged to secure public funds on deposit at December 31, 2015. In addition, securities with an amortized cost of $11.2 million and a fair value of $11.1 million were pledged to secure borrowings with the Federal Home Loan Bank of New York (“FHLBNY”) as of December 31, 2015. 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. Securities with an amortized cost of $17.2 million and a fair value of $16.9 million were pledged to secure borrowings with the (FHLB) as of December 31, 2014. For the year ended December 31, 2015, the Company sold three securities from its available for sale portfolio. The Company recognized a loss of approximately $15 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, 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 those securities. The Company did not sell any securities from its held to maturity portfolio in 2014. 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, 2015 and 2014 are as follows (in thousands): Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized 2015 Value Losses Value Losses Value Losses Securities Available for Sale: U.S. Treasury obligation — — ) ) Government Sponsored Enterprise obligations ) ) ) Total securities available for sale ) ) ) $ $ ) $ $ ) $ $ ) 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 $ — $ — $ $ ) $ $ ) Securities Available for Sale: U.S. Treasury obligation — — ) ) Government Sponsored Enterprise obligations ) ) ) Total securities available for sale ) ) ) $ $ ) $ $ ) $ $ ) Unrealized losses at December 31, 2015 consisted of losses on sixteen investments in government sponsored enterprise obligations, and two in U. S. Treasury securities, all of which were caused by interest rate increases. Thirteen of the investments with unrealized losses at December 31, 2015 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, 2015. The following table sets forth as of December 31, 2015, the maturity distribution of the Company’s held to maturity and available for sale portfolios (in thousands): 2015 Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value 1 year or less $ $ $ $ After 1 year to 5 years — — $ $ $ $ |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | NOTE 3. Loans and Allowance for Loan Losses Loans at December 31, 2015 and 2014, are summarized as follows (in thousands): 2015 2014 Commercial real estate $ $ Residential mortgages Commercial Home equity Consumer $ $ The Company 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 Company lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the Company control; the Bank is therefore subject to risk of loss. The Company 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, 2015 (in thousands): Commercial Real Estate Residential Mortgages Commercial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ $ $ $ $ $ $ Charge-offs ) ) — — — — ) Recoveries — — — — Provision ) Ending balance $ $ $ $ $ $ $ Ending balance: individually evaluated for impairment $ — $ $ — $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ Loan receivables: Ending balance $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ — $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ — $ 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 Real Estate Residential Mortgages Commercial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) — ) Recoveries — — — — — Reclassification — — — — — ) ) Provision ) Ending balance $ $ $ $ $ $ $ Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ Loan receivables: Ending balance $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ — $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ — $ 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, 2015 and 2014 (in thousands): 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivables Nonaccrual Loans Commercial real estate $ $ — $ $ $ $ $ Residential mortgages — Commercial — — — — — Home equity — Consumer — — — — — $ $ $ $ $ $ $ 2014 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivables Nonaccrual Loans Commercial real estate $ — $ $ — $ $ $ $ Residential mortgages — Commercial — — — — — Home equity — Consumer — — — — — $ $ $ $ $ $ $ As of December 31, 2015 and 2014 the Company 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 Company’s internal risk rating system as of December 31, 2015 and 2014 (in thousands): 2015 Commercial Real Estate Residential Mortgages Commercial Home Equity Consumer Total Pass $ $ $ $ $ $ Special Mention — — Substandard — — Doubtful — — — — — — $ $ $ $ $ $ 2014 Commercial Real Estate Residential Mortgages Commercial Home Equity Consumer Total Pass $ $ $ $ $ $ Special Mention — — Substandard — Doubtful — — — — — — $ $ $ $ $ $ The following tables provide information about the Company’s impaired loans as of and for the years ended December 31, 2015 and 2014 (in thousands): Unpaid Recorded Principal Related 2015 Investment Balance Allowance Impaired loans with specific reserves: Residential mortgages $ $ $ Home equity Impaired loans with no specific reserves: Commercial real estate — Residential mortgages — Home equity — — $ $ $ Unpaid Recorded Principal Related 2014 Investment Balance Allowance Impaired loans with no specific reserves: Commercial real estate $ $ $ — Residential mortgages — Home equity — $ $ $ — Year Ended Year Ended December 31, 2015 December 31, 2014 Average Interest Average Interest Recorded Income Recorded Income Investment Received Investment Received Impaired loans with specific reserves: Commercial real estate $ — $ — $ $ — Residential mortgages — — Commercial — — — Home equity — — Impaired loans with no specific reserves: Commercial real estate — Residential mortgages Commercial — Home equity Consumer — — — $ $ $ $ If interest had been accrued on these non-accrual loans, the interest income recognized would have been approximately $267 thousand and $544 thousand for the years ended December 31, 2015 and 2014 respectively. The following table presents TDR loans as of December 31, 2015 and 2014 (in thousands): 2015 Accrual Status Number of Loans Nonaccrual Status Number of Loans Total Residential mortgages $ $ $ Commercial real estate — — Home equity $ $ $ 2014 Accrual Status Number of Loans Nonaccrual Status Number of Loans Total Residential mortgages $ $ $ Commercial real estate — — Home equity $ $ $ There were no new troubled debt restructuring loans that occurred during 2015. The following table summarizes information in regards to troubled debt restructurings that occurred during the year ended December 31, 2014 (in thousands): Pre-Modification Post- Modification Outstanding Outstanding Number of Recorded Recorded 2014 Loans Investments Investments Residential mortgages $ $ Home equity $ $ The following table displays the nature of modifications during the year ended December 31, 2014 (in thousands): 2014 Rate Modification Term Modification Interest Only Modification Payment Modification Combination Modification Total Modifications Pre-modification outstanding recorded investment: Residential mortgages $ $ — $ — $ — $ — $ Home equity — — — — $ $ — $ — $ — $ — $ During the the years ended December 31, 2015 and 2014, the Bank had no loans meeting the definition of a TDR which had a payment default. We may obtain physical possession of real estate collateralizing a residential mortgage loan or home equity loan via foreclosure or an in-substance repossession. As of December 31, 2015, we have no foreclosed residential real estate properties as a result of obtaining physical possession. In addition, as of December 31, 2015, we had residential mortgage loans and home equity loans with a carrying value of $2.3 million collateralized by residential real estate property for which formal foreclosure proceedings were in process. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment | |
Premises and Equipment | NOTE 4. Premises and Equipment At December 31, 2015 and 2014, premises and equipment consists of the following (in thousands): 2015 2014 Land $ $ Building Furniture and fixtures Equipment Less accumulated depreciation and amortization Total premises and equipment, net $ $ Depreciation expense amounted to $615 thousand and $570 thousand for the years ended December 31, 2015 and 2014, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2015 | |
Deposits | |
Deposits | NOTE 5. Deposits At December 31, 2015 and 2014, 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): 2015 2014 3 months or less $ $ Over 3 months through 12 months Over 1 year through 2 years Over 2 years through 3 years Over 3 years through 4 years Over 4 years through 5 years $ $ At December 31, 2015 and 2014, the Company’s brokered deposits are as follows: 2015 2014 CDARS* Public Funds Reciprocal $ $ — Non-Public Funds Reciprocal — FTN** Non-Reciprocal Funds — — *Certificate of Deposit Account Registry Service **First Tennessee National |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 is as follows (in thousands): 2015 Original Amount Rate Term (years) Maturity Fixed Rate Amortizing Note $ % June 2019 Fixed Rate Amortizing Note % July 2019 Fixed Rate Amortizing Note % August 2019 Fixed Rate Amortizing Note % August 2021 Fixed Rate Amortizing Note % October 2019 $ % 2014 Original Amount Rate Term(years) Maturity Fixed Rate Amortizing Note $ % June 2019 Fixed Rate Amortizing Note % July 2019 Fixed Rate Amortizing Note % August 2019 Fixed Rate Amortizing Note % August 2021 Fixed Rate Amortizing Note % October 2019 $ % The Bank has a $16 million overnight line of credit facility available with Zions First National Bank, a $12.0 million overnight line of credit facility available with First Tennessee Bank and a $10.0 million overnight line of credit with Atlantic Community Bankers Bank for the purchase of federal funds in the event that temporary liquidity needs arise. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Income Taxes | NOTE 7. Income Taxes Income tax expense from operations for the years ended December 31, 2015 and 2014 is as follows (in thousands): 2015 2014 Current tax expense: Federal $ $ State Deferred income tax benefit: Federal ) ) State ) ) $ $ 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, 2015 and 2014 are as follows (in thousands): 2015 2014 Deferred tax assets: Start up expenses $ $ Allowance for loan losses Accrued expenses Stock compensation plans Unrealized losses on available for sale securities Other Total gross deferred tax assets Deferred tax liabilities: Deferred loan costs ) ) Prepaid expenses ) ) Depreciation ) ) Total gross deferred tax liabilities ) ) $ $ 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 2015 and 2014, 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): 2015 2014 Computed “expected” tax expense $ $ Increase (decrease) in taxes resulting from: State taxes, net of federal income tax expense Tax exempt income ) ) Stock-based compensation ) Meals and entertainment Other $ $ 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 2012 through 2015 remain open to examination by taxing authorities. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2015 | |
Leases | |
Leases | NOTE 8. Leases The Company leases banking facilities under operating leases which expire at various dates through December 31, 2026. These leases do contain certain options to renew the leases. Rental expense amounted to $1.4 million and $1.3 million, respectively, for the years ended December 31, 2015 and December 31, 2014. 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, 2015 (in thousands): Year ending December 31, 2016 $ 2017 2018 2019 2020 Thereafter $ |
Related-party Transactions
Related-party Transactions | 12 Months Ended |
Dec. 31, 2015 | |
Related-party Transactions | |
Related-party Transactions | NOTE 9. Related-party Transactions The Company 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 Company’s board of directors. None of such loans at December 31, 2015 and 2014, respectively, 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. Related party deposit balances were $53.6 million and $41.7 million at December 31, 2015 and 2014 respectively. The following table represents a summary of related-party loan activity during the years ended December 31, 2015 and 2014 (in thousands): 2015 2014 Outstanding loans at beginning of the year $ $ Advances Repayments ) ) Outstanding loans at end of the year $ $ Two of our directors have acted as the Company’s counsel on several loan closings. During 2015 and 2014 the total cost of such work has been reimbursed by the respective loan customers and totals $259 thousand and $453 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 $11 thousand and $30 thousand for the years ended December 31, 2015 and 2014, 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 $230 thousand and $165 thousand for the years ended December 31, 2015 and 2014, respectively. The Bank rents office space from entities related to some of the Company’s directors. The total amount of rent expense to these entities was $435 thousand and $372 thousand for the years ended December 31, 2015 and 2014, 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, 2015 | |
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, 2015 and 2014 (in thousands except per share data): 2015 2014 Net income applicable to common stock $ $ Weighted average number of common shares outstanding - basic Basic earnings per share $ $ Net income applicable to common stock $ $ Weighted average number of common shares outstanding Effect of dilutive options Weighted average number of common shares outstanding- diluted Diluted earnings per share $ $ 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 84,700 shares of common stock at a weighted average price of $9.09; and 64,000 unvested shares of restricted stock were included in the computation of diluted earnings per share for the year ended December 31, 2015. 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. |
Stockholders' Equity and Divide
Stockholders' Equity and Dividend Restrictions | 12 Months Ended |
Dec. 31, 2015 | |
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 2015, 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, 2015, June 30, 2015, September 30, 2015 and December 31, 2015, respectively, and the Company expects that comparable quarterly cash dividends will continue to be declared and paid in the future. The cash dividends were paid from the retained earnings of the Company. 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. 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, regulatory requirements 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, liquidity asset quality and financial condition. As part of its supervisory authority, the FRB may impose informal or formal restrictions on the Company’s ability to pay dividends, including requiring the non-objection of the FRB to payment of any dividends. 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. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2015 | |
Benefit Plans | |
Benefit Plans | NOTE 12. Benefit Plans 2006 Stock Option Plan During 2006, the Company’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, 2015 incentive stock options to purchase 209,900 shares have been granted to employees of the Company. A summary of stock option activity under the 2006 Stock Option Plan during the year ended December 31, 2015 is presented below: Number of Shares Weighted Average Exercise Price per Share Aggregate Intrinsic Value (1) Weighted Average Remaining Contractual Term Outstanding at December 31, 2014 $ Granted — — Forfeited — — Exercised Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ (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, 2015. 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, 2015 and 2014. 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, 2015, non-qualified options to purchase 460,000 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 2015: Number of Shares Weighted Average Exercise Price per Share Aggregate Intrinsic Value (1) Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2014 $ Outstanding at December 31, 2015 $ $ — Exercisable at December 31, 2015 $ $ — (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, 2015. 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, 2015 and 2014. 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 non-vested restricted stock awards granted under the 2011 Plan: 2015 Weighted Average Number Grant Date of Shares Fair Value Non-vested resticted stock, beginning of year Granted — — Forfeited — — Vested ) Non-vested resticted stock, end of year $ Approximately $451 thousand remains to be expensed over the next 27 months. At December 31, 2015, 16,250 shares were vested. During the year ended December 31, 2015, there were no new issuance under the 2011 Plan. For the years ended December 31, 2015, and 2014, $211 thousand and $212 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 $100 thousand and $83 thousand during 2015 and 2014, respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2015 | |
Regulatory Capital Requirements | |
Regulatory Capital Requirements | NOTE 13. Regulatory Capital Requirements The Bank and the Company are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank and the Company must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank and the Company to maintain minimum amounts of Tier 1 leverage ratio, Common equity tier 1 risk-based, Capital Ratio Tier 1 risk-based capital Ratio and Total risk-based capital Ratio (as defined in the regulations). In July 2013, the Federal Deposit insurance Corporation and the other federal bank regulatory agencies issued a final rule that revised their leverage and risk-based capital requirements and the method for calculating riskweighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. The Final Capital Rules also revised the quantity and quality of required minimum risk-based and leverage capital requirements, consistent with the Reform Act and the Third Basel Accord adopted by the Basel Committee on Banking Supervision, or Basel III capital standards. The Common equity tier 1 risk-based Capital ratio and changes to the calculation of risk-weighted assets became effective for the Bank and Company on January 1, 2015. As of December 31, 2015 and 2014, management believes that the Company and the Bank meet all capital adequacy requirements to which they are subject. As of December 31, 2015, the most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank and the Company must maintain minimum Tier 1 leverage Capital, Common equity tier 1 Capital, Tier 1 risk-based capital and Total risk-based capital as set forth in the tables. There are no conditions or events since that notification that management believes have changed the Bank and the Company’s category. The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2015 compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution. The information presented as of December 31, 2014 reflect the requirements in effect at that time, as the Basel III requirements became effective on January 1, 2015: FDIC requirements Minimum Capital For Classification Bank actual Adequacy As Well Capitalized Amount Ratio Amount Ratio Amount Ratio 2015 Leverage (Tier 1) Capital Ratio $ % $ % $ % Risk-Based Capital : Common Equity Tier 1 Capital $ % $ % $ % Tier 1 Capital Ratio $ % $ % $ % Total Capital Ratio $ % $ % $ % 2014 Leverage (Tier 1) Capital Ratio $ % $ % $ % Risk-based capital: Tier 1 Capital Ration $ % $ % $ % Total Capital Ratio $ % $ % $ % The Company’s Capital amounts and Ratios are Similar to those of the Bank. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | NOTE 14. Financial Instruments with Off-Balance Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business 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 Company 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 Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company 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 $102.3 million and $120.3 million at December 31, 2015 and 2014. Most of the Company’s lending activity is with customers located in Bergen County, New Jersey. At December 31, 2015 and 2014, the Company had outstanding letters of credit to customers totaling $3.7 million and $2.3 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, 2015 and 2014, such amounts were deemed not material. |
Financial Information of Parent
Financial Information of Parent Company | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014, respectively, the statements of income for the twelve months ended December 31, 2015 and December 31, 2014, and the statements of cash flows for the twelve months ended December 31, 2015 and December 31, 2014 and should be read in conjunction with the notes to the consolidated financial statements. Balance Sheets (in thousands) December 31, 2015 2014 Assets: Investment in subsidiary, net $ $ Total assets $ $ Liabilities and stockholders’ equity: Stockholders’ equity $ $ $ $ Statements of Income and Comprehensive Income Years ended December 31, (in thousands) 2015 2014 Equity in undistributed earnings of subsidiary bank Net income Other comprehensive income — — Comprehensive Income $ $ 2015 2014 Cash flow from operating activities: Net income $ $ Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the subsidiary bank ) ) Net cash provided by operating activities: — — Cash flows from investing activites: Cash dividends received from subsidiary bank Net cash used in financing activities Cash flows from financing activities: Cash dividends paid ) ) Net cash provided by financing activities ) ) Net change in cash for the period — — Net cash at beginning of year — — Net cash at end of year $ — $ — |
Fair Value Measurement and Fair
Fair Value Measurement and Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and December 31, 2014, respectively, are as follows (in thousands): (Level 1) (Level 2) (Level 3) Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Securities available for sale: U.S. Treasury obligations $ $ — $ $ — Government sponsored enterprise obligations — — Total securities available for sale $ $ — $ $ — (Level 1) (Level 2) (Level 3) Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Securities available for sale: U.S. Treasury obligations $ $ — $ $ — Government sponsored enterprise obligations — — Total securities available for sale $ $ — $ $ — 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, 2015 and December 31, 2014, respectively, is as follows (in thousands): (Level 1) (Level 2) (Level 3) Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired loans $ $ — $ — $ (Level 1) (Level 2) (Level 3) Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired loans $ $ — $ — $ 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, 2015 Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) Impaired loans $ Appraisal of Collateral (1) Appriasal Adjustments (2) 0% - 1.0% (-0.5)% Liquidation Expenses (2) 0% - 48.1% (-33.8)% December 31, 2014 Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) Impaired loans $ Appraisal of Collateral (1) Appriasal Adjustments (2) 0% - 46.3% (-38.4)% Liquidation Expenses (2) 0% - 60.2% (-20.2)% (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, 2015 and 2014: Fair value estimates and assumptions are set forth below for the Company’s financial instruments at December 31, 2015 and 2014 (in thousands): (Level 1) (Level 2) (Level 3) December 31, 2015 Quoted Prices in Active Markets for Significant Other Significant Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ $ $ $ — $ — Interest bearing time deposits — — Securities available for sale — Securities held to maturity — Restricted investment in bank stock — — Net loans — — Accrued interest receivable — — Financial liabilities: Deposits — Borrowed funds — — Accrued interest payable — — December 31, 2014 Quoted Prices in Active Markets for Significant Other Significant Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ $ $ $ — $ — Interest bearing time deposits — — Securities available for sale — Securities held to maturity — Restricted investment in bank stock — — Net loans — — Accrued interest receivable — — Financial liabilities: Deposits — Borrowed funds — — Accrued interest payable — — 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 (based on independent third party appraisal) or discounted cash flows based upon the expected proceeds. 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, 2015 and 2014 based on pertinent market data and relevant information on the financial instruments. 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, 2015 and 2014, 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 Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |
Accumulated Other Comprehensive Income (Loss) | NOTE 17. Accumulated Other Comprehensive Income (Loss) Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2015 and 2014 are as follows (in thousands): Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statements of Income (Loss) Year ended December 31, 2015 Available for Sale Securities Realized losses on sale of securities $ ) Gains (losses) on sale of securities Income tax expense Total reclassifications $ ) Net of tax Year ended December 31, 2014 Available for Sale Securities Realized gains on sale of securities $ ) Gains (losses) on sale of securities Income tax expense Total reclassifications $ ) Net of tax |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2015 | |
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 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 did not have a material impact on the Company’s financial position or results of operations. 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, 2017, 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, 2018) 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. The same three transition alternatives apply. The implementation of ASU 2014-09 should not have a material impact on the Company’s financial position or results of operations. 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. The implementation of ASU 2014-14 did not have a material impact on the Company’s financial position or results of operations. ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. In January 2015 the FASB issued ASU 2015-01, Income Statement - Extraordinary and Unusual Items (Subtopic 225-20) - Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. ASU 2015-01 eliminates from GAAP the concept of extraordinary items, which, among other things, requires an entity to segregate extraordinary items considered to be unusual and infrequent from the results of ordinary operations and show the item separately in the income statement, net of tax, after income from continuing operations. The ASU 2015-01 is effective for public business entities for annual periods, and interim periods within those periods beginning after December 1 5 , 2015 . The implementation of ASU 2015-01 did not have a material impact on the Company’s financial position or results of operations. ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. In April 2015 the FASB issued ASU 2015-05, Intangibles - Goodwill and Other - Internal-Use Software ( Subtopic 350-40) - Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement. ASU 2015-05 addresses accounting for fees paid by a customer in cloud computing arrangements such as software as a service; platform as a service; infrastructure as a service; and other similar hosting arrangements. ASU 2015-05 provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. The ASU 2015-05 will be effective for public business entities for annual periods, and interim periods within those periods beginning after December 1 5 , 2015 . The implementation of ASU 2015-01 did not have a material impact on the Company’s financial position or results of operations. ASU 2016-1, No. 2016-01, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. In January 2016 the FASB issued ASU 2016-1, Financial Instruments — Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU 2016-01 requires equity investments, with certain exceptions, to be measured at fair value with changes in fair value recognized in net income, simplifies the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment to identify impairment; eliminates the requirement for public business entities to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; requires an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset on the balance sheet or the accompanying notes to the financial statements; and clarifies that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale. ASU 2016- 0 1 will be effective for us on January 1, 2018 and is not expected to have a material impact on the Company’s financial position or results of operations. ASU 2016-02, Leases. ASU 2016-02, Leases . ASU 2016-02 amends existing lease accounting guidance to include the requirement to recognize most lease arrangements on the balance sheet. The adoption of this standard will require the Company to recognize the rights and obligations arising from operating leases as assets and liabilities. ASU 2016-02 will be effective for fiscal years beginning after December 15, 2018, early adoption is permitted. The Company is presently evaluating the potential impact of the adoption of this accounting pronouncement to its financial position or results of operations. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
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 (referred to herein as the “holding company reorganization”). The Company’s class of common stock has no par value and the Bank’s class of common stock had a par value of $10 per share. |
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 Company allowance for loan losses. These agencies may require the Company 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 The Company’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 maturity (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 gains and losses included in earnings 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 operations. Management evaluates securities for Other Than Temporary Impairment (OTTI) on at least 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 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 sheets. The allowance for loan losses is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. 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 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. Loans for which the terms have been modified resulting in a con cession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. 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 $211 thousand and $250 thousand during 2015 and 2014, respectively. At December 31, 2015, the Company had no unrecognized compensation expense related to stock options. At December 31, 2015, the Company had $451,000 of unrecognized compensation expense related to unvested restricted stock granted in 2015. |
Stockholders' Equity and Related Transactions | Stockholders’ Equity and Related Transactions On March 2, 2015, the Company closed on a private placement of approximately $9.5 million (net of expenses, approximatley $9.3 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 was a member of the Company’s board of directors or related party. The Company contributed the proceeds of the private placement to the Bank. |
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 $289 thousand and $245 thousand for 2015 and 2014, 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 $1.9 million and $2.1 million and Atlantic Community Bankers Bank, formerly Atlantic Central Bankers Bank (the “ACBB”) of $100 thousand and $100 thousand, as of December 31, 2015 and 2014, 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, 2015 and 2014. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2015. |
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, 2015 and 2014, these reserve balances amounted to $3.4 million and $1.2 million, respectively, and are reflected in interest bearing deposits in banks. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 is as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair 2015 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ $ — $ — $ U.S. Treasury obligations — — — — Total securities held to maturity — — Securities Available for Sale: U.S. Treasury obligations — ) Government sponsored enterprise obligations — ) Total securities available for sale — ) $ $ — $ ) $ Gross Gross Amortized Unrealized Unrealized Fair 2014 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ $ — $ — $ U.S. Treasury obligations — ) Total securities held to maturity — ) Securities Available for Sale: U.S. Treasury obligations — ) Government sponsored enterprise obligations — ) Total securities available for sale — ) $ $ — $ ) $ |
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, 2015 and 2014 are as follows (in thousands): Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized 2015 Value Losses Value Losses Value Losses Securities Available for Sale: U.S. Treasury obligation — — ) ) Government Sponsored Enterprise obligations ) ) ) Total securities available for sale ) ) ) $ $ ) $ $ ) $ $ ) 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 $ — $ — $ $ ) $ $ ) Securities Available for Sale: U.S. Treasury obligation — — ) ) Government Sponsored Enterprise obligations ) ) ) Total securities available for sale ) ) ) $ $ ) $ $ ) $ $ ) |
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, 2015, the maturity distribution of the Company’s held to maturity and available for sale portfolios (in thousands): 2015 Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value 1 year or less $ $ $ $ After 1 year to 5 years — — $ $ $ $ |
Loans and Allowances for Loan L
Loans and Allowances for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Loans and Allowance for Loan Losses | |
Summary of loans | Loans at December 31, 2015 and 2014, are summarized as follows (in thousands): 2015 2014 Commercial real estate $ $ Residential mortgages Commercial Home equity Consumer $ $ |
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, 2015 (in thousands): Commercial Real Estate Residential Mortgages Commercial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ $ $ $ $ $ $ Charge-offs ) ) — — — — ) Recoveries — — — — Provision ) Ending balance $ $ $ $ $ $ $ Ending balance: individually evaluated for impairment $ — $ $ — $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ Loan receivables: Ending balance $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ — $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ — $ 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 Real Estate Residential Mortgages Commercial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ $ $ $ $ $ $ Charge-offs ) ) ) ) ) — ) Recoveries — — — — — Reclassification — — — — — ) ) Provision ) Ending balance $ $ $ $ $ $ $ Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ $ $ $ $ $ $ Loan receivables: Ending balance $ $ $ $ $ $ — $ Ending balance: individually evaluated for impairment $ $ $ — $ $ — $ — $ Ending balance: collectively evaluated for impairment $ $ $ $ $ $ — $ |
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, 2015 and 2014 (in thousands): 2015 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivables Nonaccrual Loans Commercial real estate $ $ — $ $ $ $ $ Residential mortgages — Commercial — — — — — Home equity — Consumer — — — — — $ $ $ $ $ $ $ 2014 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivables Nonaccrual Loans Commercial real estate $ — $ $ — $ $ $ $ Residential mortgages — Commercial — — — — — Home equity — Consumer — — — — — $ $ $ $ $ $ $ |
Summary of loan portfolio by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system | The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2015 and 2014 (in thousands): 2015 Commercial Real Estate Residential Mortgages Commercial Home Equity Consumer Total Pass $ $ $ $ $ $ Special Mention — — Substandard — — Doubtful — — — — — — $ $ $ $ $ $ 2014 Commercial Real Estate Residential Mortgages Commercial Home Equity Consumer Total Pass $ $ $ $ $ $ Special Mention — — Substandard — Doubtful — — — — — — $ $ $ $ $ $ |
Schedule of information about Company's impaired loans | The following tables provide information about the Company’s impaired loans as of and for the years ended December 31, 2015 and 2014 (in thousands): Unpaid Recorded Principal Related 2015 Investment Balance Allowance Impaired loans with specific reserves: Residential mortgages $ $ $ Home equity Impaired loans with no specific reserves: Commercial real estate — Residential mortgages — Home equity — — $ $ $ Unpaid Recorded Principal Related 2014 Investment Balance Allowance Impaired loans with no specific reserves: Commercial real estate $ $ $ — Residential mortgages — Home equity — $ $ $ — Year Ended Year Ended December 31, 2015 December 31, 2014 Average Interest Average Interest Recorded Income Recorded Income Investment Received Investment Received Impaired loans with specific reserves: Commercial real estate $ — $ — $ $ — Residential mortgages — — Commercial — — — Home equity — — Impaired loans with no specific reserves: Commercial real estate — Residential mortgages Commercial — Home equity Consumer — — — $ $ $ $ |
Schedule of TDR loans | The following table presents TDR loans as of December 31, 2015 and 2014 (in thousands): 2015 Accrual Status Number of Loans Nonaccrual Status Number of Loans Total Residential mortgages $ $ $ Commercial real estate — — Home equity $ $ $ 2014 Accrual Status Number of Loans Nonaccrual Status Number of Loans Total Residential mortgages $ $ $ Commercial real estate — — Home equity $ $ $ |
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 year ended December 31, 2014 (in thousands): Pre-Modification Post- Modification Outstanding Outstanding Number of Recorded Recorded 2014 Loans Investments Investments Residential mortgages $ $ Home equity $ $ |
Schedule of nature of modifications | The following table displays the nature of modifications during the year ended December 31, 2014 (in thousands): 2014 Rate Modification Term Modification Interest Only Modification Payment Modification Combination Modification Total Modifications Pre-modification outstanding recorded investment: Residential mortgages $ $ — $ — $ — $ — $ Home equity — — — — $ $ — $ — $ — $ — $ |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Premises and Equipment | |
Schedule of premises and equipment | At December 31, 2015 and 2014, premises and equipment consists of the following (in thousands): 2015 2014 Land $ $ Building Furniture and fixtures Equipment Less accumulated depreciation and amortization Total premises and equipment, net $ $ |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Deposits | |
Summary of the maturity of time deposits (which includes certificates of deposit and individual retirement account (IRA) certificates) | At December 31, 2015 and 2014, 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): 2015 2014 3 months or less $ $ Over 3 months through 12 months Over 1 year through 2 years Over 2 years through 3 years Over 3 years through 4 years Over 4 years through 5 years $ $ |
Schedule of brokered deposits | 2015 2014 CDARS* Public Funds Reciprocal $ $ — Non-Public Funds Reciprocal — FTN** Non-Reciprocal Funds — — *Certificate of Deposit Account Registry Service **First Tennessee National |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Borrowed Funds. | |
Schedule of information concerning long-term borrowings | Information concerning long-term borrowings at December 31, 2015 and 2014 is as follows (in thousands): 2015 Original Amount Rate Term (years) Maturity Fixed Rate Amortizing Note $ % June 2019 Fixed Rate Amortizing Note % July 2019 Fixed Rate Amortizing Note % August 2019 Fixed Rate Amortizing Note % August 2021 Fixed Rate Amortizing Note % October 2019 $ % 2014 Original Amount Rate Term(years) Maturity Fixed Rate Amortizing Note $ % June 2019 Fixed Rate Amortizing Note % July 2019 Fixed Rate Amortizing Note % August 2019 Fixed Rate Amortizing Note % August 2021 Fixed Rate Amortizing Note % October 2019 $ % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Taxes | |
Schedule of income tax expense from operations | Income tax expense from operations for the years ended December 31, 2015 and 2014 is as follows (in thousands): 2015 2014 Current tax expense: Federal $ $ State Deferred income tax benefit: Federal ) ) State ) ) $ $ |
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, 2015 and 2014 are as follows (in thousands): 2015 2014 Deferred tax assets: Start up expenses $ $ Allowance for loan losses Accrued expenses Stock compensation plans Unrealized losses on available for sale securities Other Total gross deferred tax assets Deferred tax liabilities: Deferred loan costs ) ) Prepaid expenses ) ) Depreciation ) ) Total gross deferred tax liabilities ) ) $ $ |
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): 2015 2014 Computed “expected” tax expense $ $ Increase (decrease) in taxes resulting from: State taxes, net of federal income tax expense Tax exempt income ) ) Stock-based compensation ) Meals and entertainment Other $ $ |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 (in thousands): Year ending December 31, 2016 $ 2017 2018 2019 2020 Thereafter $ |
Related-party Transactions (Tab
Related-party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 (in thousands): 2015 2014 Outstanding loans at beginning of the year $ $ Advances Repayments ) ) Outstanding loans at end of the year $ $ |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and 2014 (in thousands except per share data): 2015 2014 Net income applicable to common stock $ $ Weighted average number of common shares outstanding - basic Basic earnings per share $ $ Net income applicable to common stock $ $ Weighted average number of common shares outstanding Effect of dilutive options Weighted average number of common shares outstanding- diluted Diluted earnings per share $ $ |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
2006 Stock Option Plan | |
Benefit Plans | |
Summary of stock option activity | Number of Shares Weighted Average Exercise Price per Share Aggregate Intrinsic Value (1) Weighted Average Remaining Contractual Term Outstanding at December 31, 2014 $ Granted — — Forfeited — — Exercised Outstanding at December 31, 2015 $ $ Exercisable at December 31, 2015 $ $ (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, 2015. 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 Shares Weighted Average Exercise Price per Share Aggregate Intrinsic Value (1) Weighted Average Remaining Contractual Life (Years) Outstanding at December 31, 2014 $ Outstanding at December 31, 2015 $ $ — Exercisable at December 31, 2015 $ $ — (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, 2015. This amount changes based on the changes in the market value in the Company’s common stock. |
2011 Equity Incentive Plan | |
Benefit Plans | |
Summery of the Companies non-vested restricted share awards | 2015 Weighted Average Number Grant Date of Shares Fair Value Non-vested resticted stock, beginning of year Granted — — Forfeited — — Vested ) Non-vested resticted stock, end of year $ |
Regulatory Capital Requiremen39
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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 | FDIC requirements Minimum Capital For Classification Bank actual Adequacy As Well Capitalized Amount Ratio Amount Ratio Amount Ratio 2015 Leverage (Tier 1) Capital Ratio $ % $ % $ % Risk-Based Capital : Common Equity Tier 1 Capital $ % $ % $ % Tier 1 Capital Ratio $ % $ % $ % Total Capital Ratio $ % $ % $ % 2014 Leverage (Tier 1) Capital Ratio $ % $ % $ % Risk-based capital: Tier 1 Capital Ration $ % $ % $ % Total Capital Ratio $ % $ % $ % |
Financial Information of Pare40
Financial Information of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Financial Information of Parent Company | |
Schedule of Balance Sheet of Parent Company | Balance Sheets (in thousands) December 31, 2015 2014 Assets: Investment in subsidiary, net $ $ Total assets $ $ Liabilities and stockholders’ equity: Stockholders’ equity $ $ $ $ |
Schedule of Statement of Income and Comprehensive Income | Statements of Income and Comprehensive Income Years ended December 31, (in thousands) 2015 2014 Equity in undistributed earnings of subsidiary bank Net income Other comprehensive income — — Comprehensive Income $ $ |
Schedule of Statement of Cash Flow of Parent Company | Statements of Cash Flow Years ended December 31, (in thousands) 2015 2014 Cash flow from operating activities: Net income $ $ Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the subsidiary bank ) ) Net cash provided by operating activities: — — Cash flows from investing activites: Cash dividends received from subsidiary bank Net cash used in financing activities Cash flows from financing activities: Cash dividends paid ) ) Net cash provided by financing activities ) ) Net change in cash for the period — — Net cash at beginning of year — — Net cash at end of year $ — $ — |
Fair Value Measurement and Fa41
Fair Value Measurement and Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
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, 2015 and December 31, 2014, respectively, are as follows (in thousands): (Level 1) (Level 2) (Level 3) Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Securities available for sale: U.S. Treasury obligations $ $ — $ $ — Government sponsored enterprise obligations — — Total securities available for sale $ $ — $ $ — (Level 1) (Level 2) (Level 3) Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Securities available for sale: U.S. Treasury obligations $ $ — $ $ — Government sponsored enterprise obligations — — Total securities available for sale $ $ — $ $ — |
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, 2015 and December 31, 2014, respectively, is as follows (in thousands): (Level 1) (Level 2) (Level 3) Description December 31, 2015 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired loans $ $ — $ — $ (Level 1) (Level 2) (Level 3) Description December 31, 2014 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired loans $ $ — $ — $ |
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, 2015 Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) Impaired loans $ Appraisal of Collateral (1) Appriasal Adjustments (2) 0% - 1.0% (-0.5)% Liquidation Expenses (2) 0% - 48.1% (-33.8)% December 31, 2014 Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) Impaired loans $ Appraisal of Collateral (1) Appriasal Adjustments (2) 0% - 46.3% (-38.4)% Liquidation Expenses (2) 0% - 60.2% (-20.2)% (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, 2015 and 2014 (in thousands): (Level 1) (Level 2) (Level 3) December 31, 2015 Quoted Prices in Active Markets for Significant Other Significant Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ $ $ $ — $ — Interest bearing time deposits — — Securities available for sale — Securities held to maturity — Restricted investment in bank stock — — Net loans — — Accrued interest receivable — — Financial liabilities: Deposits — Borrowed funds — — Accrued interest payable — — December 31, 2014 Quoted Prices in Active Markets for Significant Other Significant Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ $ $ $ — $ — Interest bearing time deposits — — Securities available for sale — Securities held to maturity — Restricted investment in bank stock — — Net loans — — Accrued interest receivable — — Financial liabilities: Deposits — Borrowed funds — — Accrued interest payable — — |
Accumulated Other Comprehensi42
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) | |
Schedule of Reclassifications out of accumulated other comprehensive income | Reclassifications out of accumulated other comprehensive loss for the years ended December 31, 2015 and 2014 are as follows (in thousands): Details About Accumulated Other Comprehensive Income (Loss) Components Amount Reclassified from Accumulated Other Comprehensive Income (Loss) Affected Line Item in the Statements of Income (Loss) Year ended December 31, 2015 Available for Sale Securities Realized losses on sale of securities $ ) Gains (losses) on sale of securities Income tax expense Total reclassifications $ ) Net of tax Year ended December 31, 2014 Available for Sale Securities Realized gains on sale of securities $ ) Gains (losses) on sale of securities Income tax expense Total reclassifications $ ) Net of tax |
Summary of Significant Accoun43
Summary of Significant Accounting Policies - Par Value and Branch Offices (Details) $ / shares in Units, $ in Millions | Mar. 02, 2015USD ($)$ / sharesshares | Dec. 31, 2015$ / sharesshares | Dec. 31, 2005$ / sharesshares | Dec. 31, 2014$ / shares | May. 31, 2006item |
Significant accounting policies. | |||||
Class of common stock par value (in dollars per share) | $ 0 | $ 0 | |||
Stockholders' Equity and Related Transactions | |||||
Shares of common stock issued | shares | 868,057 | 4,798,594 | |||
Sale price of common stock (in dollars per share) | $ 9.09 | ||||
Private Placement | |||||
Stockholders' Equity and Related Transactions | |||||
Gross proceeds from the sale of common stock through the private placement | $ | $ 9.5 | ||||
Shares of common stock issued | shares | 868,057 | ||||
Sale price of common stock (in dollars per share) | $ 10.95 | ||||
Bank | |||||
Significant accounting policies. | |||||
Class of common stock par value (in dollars per share) | $ 10 | ||||
Number of branch offices in addition to main office | item | 8 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($) | Mar. 02, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2005 |
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 | 211,000 | $ 250,000 | ||
Unrecognized compensation expenses related to unvested stock options | 0 | |||
Unrecognized compensation expense related to unvested restricted stock granted | 451,000 | |||
Stockholders' Equity and Related Transactions | ||||
Proceeds from the sale of common stock through the private placement | $ 9,280,000 | |||
Shares of common stock issued | 868,057 | 4,798,594 | ||
Sale price of common stock (in dollars per share) | $ 9.09 | |||
Advertising | ||||
Advertising expenses | $ 289,000 | $ 245,000 | ||
Private Placement | ||||
Stockholders' Equity and Related Transactions | ||||
Gross proceeds from the sale of common stock through the private placement | $ 9,500,000 | |||
Proceeds from the sale of common stock through the private placement | $ 9,300,000 | |||
Shares of common stock issued | 868,057 | |||
Sale price of common stock (in dollars per share) | $ 10.95 | |||
Computer related equipment | Minimum | ||||
Premises and equipment | ||||
Estimated lives | 3 years | |||
Building | Maximum | ||||
Premises and equipment | ||||
Estimated lives | 30 years |
Summary of Significant Accoun45
Summary of Significant Accounting Policies - Restrictions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restricted Investment in Bank Stock | ||
Restricted investment in bank stock | $ 2,020 | $ 2,162 |
Restrictions on Cash and Amounts Due From Banks | ||
Average balances on hand or with the Federal Reserve Bank of New York | 3,400 | 1,200 |
FHLB | ||
Restricted Investment in Bank Stock | ||
Restricted investment in bank stock | 1,900 | 2,100 |
ACBB | ||
Restricted Investment in Bank Stock | ||
Restricted investment in bank stock | 100 | $ 100 |
Impairment charge | $ 0 |
Securities - Summary (Details)
Securities - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Held to Maturity: | ||
Total | $ 5,829 | $ 15,923 |
Gross Unrealized Losses | (2) | |
Total | 5,829 | 15,921 |
Securities Available for Sale: | ||
Amortized Cost | 65,232 | 59,623 |
Gross Unrealized Losses | (482) | (1,172) |
Total | 64,750 | 58,451 |
Total securities | ||
Amortized Cost | 71,061 | 75,546 |
Gross Unrealized Losses | (482) | (1,174) |
Fair Value | 70,579 | 74,372 |
Obligations of states and political subdivisions | ||
Securities Held to Maturity: | ||
Total | 5,829 | 11,923 |
Total | 5,829 | 11,923 |
U.S. Treasury obligations | ||
Securities Held to Maturity: | ||
Total | 4,000 | |
Gross Unrealized Losses | (2) | |
Total | 3,998 | |
Securities Available for Sale: | ||
Amortized Cost | 6,512 | 6,623 |
Gross Unrealized Losses | (159) | (221) |
Total | 6,353 | 6,402 |
Government sponsored enterprise obligations | ||
Securities Available for Sale: | ||
Amortized Cost | 58,720 | 53,000 |
Gross Unrealized Losses | (323) | (951) |
Total | $ 58,397 | $ 52,049 |
Securities - Pledged Securities
Securities - Pledged Securities and Securities Sold (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($)item | |
Number of available for sale securities sold | item | 3 | 5 |
Recognized loss on sale of available for sale securities | $ (15) | $ (16) |
Public Funds on Deposits | ||
Amortized cost of securities pledged | 31,300 | 10,400 |
Fair value of securities pledged | 31,000 | 10,100 |
Federal Home Loan Bank of New York | ||
Amortized cost of securities pledged | 11,200 | 17,200 |
Fair value of securities pledged | $ 11,100 | $ 16,900 |
Securities - Unrealized Losses
Securities - Unrealized Losses and Fair Value (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)item | Dec. 31, 2014USD ($) | |
Securities Available for Sale - Fair Value | ||
Less than 12 Months | $ 15,707 | $ 2,994 |
More than 12 Months | 49,043 | 55,457 |
Total | 64,750 | 58,451 |
Securities Available for Sale - Unrealized Losses | ||
Less Than 12 Months | (12) | (6) |
More than 12 Months | (470) | (1,166) |
Total | (482) | (1,172) |
Total Securities - Fair Value | ||
Less than 12 Months | 15,707 | 2,994 |
More than 12 Months | 49,043 | 59,455 |
Total | 64,750 | 62,449 |
Total Securities - Unrealized Losses | ||
Less than 12 Months | (12) | (6) |
More than 12 Months | (470) | (1,168) |
Total | $ (482) | (1,174) |
Number of available for sale securities in unrealized loss position for more than twelve months | item | 13 | |
U.S. Treasury obligations | ||
Securities Held to Maturity - Fair Value | ||
More than 12 Months | 3,998 | |
Total | 3,998 | |
Securities Held to Maturity - Unrealized Losses | ||
More than 12 Months | (2) | |
Total | (2) | |
Securities Available for Sale - Fair Value | ||
More than 12 Months | $ 6,354 | 6,402 |
Total | 6,354 | 6,402 |
Securities Available for Sale - Unrealized Losses | ||
More than 12 Months | (159) | (221) |
Total | $ (159) | (221) |
Total Securities - Unrealized Losses | ||
Number of available for sale securities in unrealized loss position | item | 2 | |
Government sponsored enterprise obligations | ||
Securities Available for Sale - Fair Value | ||
Less than 12 Months | $ 15,707 | 2,994 |
More than 12 Months | 42,689 | 49,055 |
Total | 58,396 | 52,049 |
Securities Available for Sale - Unrealized Losses | ||
Less Than 12 Months | (12) | (6) |
More than 12 Months | (311) | (945) |
Total | $ (323) | $ (951) |
Total Securities - Unrealized Losses | ||
Number of available for sale securities in unrealized loss position | item | 16 |
Securities - Maturity Distribut
Securities - Maturity Distribution (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Securities Held to Maturity, Amortized Cost | ||
1 year or less | $ 5,829 | |
Total | 5,829 | $ 15,923 |
Securities Held to Maturity, Fair Value | ||
1 year or less | 5,829 | |
Total | 5,829 | 15,921 |
Securities Available for sale, Amortized Cost | ||
1 year or less | 15,720 | |
After 1 year to 5 years | 49,512 | |
Total | 65,232 | |
Securities Available for sale, Fair Value | ||
1 year or less | 15,707 | |
After 1 year to 5 years | 49,043 | |
Total | $ 64,750 | $ 58,451 |
Loans and Allowance for Loan 50
Loans and Allowance for Loan Losses - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loans | ||
Loans: | $ 645,062 | $ 633,958 |
Commercial Real Estate | ||
Loans | ||
Loans: | 460,396 | 431,727 |
Residential Mortgages | ||
Loans | ||
Loans: | 48,698 | 56,079 |
Commercial | ||
Loans | ||
Loans: | 69,855 | 75,174 |
Home Equity | ||
Loans | ||
Loans: | 63,308 | 69,631 |
Consumer | ||
Loans | ||
Loans: | $ 2,805 | $ 1,347 |
Loans and Allowance for Loan 51
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Allowance for loan losses: | ||
Beginning Balance | $ 7,192 | $ 5,775 |
Charge-offs | (324) | (1,464) |
Recoveries | 228 | 4 |
Reclassifications | (198) | |
Provisions | 924 | 3,075 |
Ending balance | 8,020 | 7,192 |
Ending balance: individually evaluated for impairment | 347 | |
Ending balance: collectively evaluated for impairment | 7,673 | 7,192 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Beginning Balance | 4,950 | 3,707 |
Charge-offs | (60) | (940) |
Recoveries | 226 | |
Provisions | 400 | 2,183 |
Ending balance | 5,516 | 4,950 |
Ending balance: collectively evaluated for impairment | 5,516 | 4,950 |
Residential Mortgages | ||
Allowance for loan losses: | ||
Beginning Balance | 348 | 325 |
Charge-offs | (264) | (32) |
Provisions | 483 | 55 |
Ending balance | 567 | 348 |
Ending balance: individually evaluated for impairment | 267 | |
Ending balance: collectively evaluated for impairment | 300 | 348 |
Commercial | ||
Allowance for loan losses: | ||
Beginning Balance | 1,128 | 969 |
Charge-offs | (327) | |
Recoveries | 2 | 4 |
Provisions | (106) | 482 |
Ending balance | 1,024 | 1,128 |
Ending balance: collectively evaluated for impairment | 1,024 | 1,128 |
Home Equity | ||
Allowance for loan losses: | ||
Beginning Balance | 500 | 593 |
Charge-offs | (72) | |
Provisions | 67 | (21) |
Ending balance | 567 | 500 |
Ending balance: individually evaluated for impairment | 80 | |
Ending balance: collectively evaluated for impairment | 487 | 500 |
Consumer | ||
Allowance for loan losses: | ||
Beginning Balance | 24 | 26 |
Charge-offs | (93) | |
Provisions | 13 | 91 |
Ending balance | 37 | 24 |
Ending balance: collectively evaluated for impairment | 37 | 24 |
Unallocated | ||
Allowance for loan losses: | ||
Beginning Balance | 242 | 155 |
Reclassifications | (198) | |
Provisions | 67 | 285 |
Ending balance | 309 | 242 |
Ending balance: collectively evaluated for impairment | $ 309 | $ 242 |
Loans and Allowance for Loan 52
Loans and Allowance for Loan Losses - Loan Receivables (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loan receivables: Ending balance | ||
Total Loans Receivable | $ 645,062 | $ 633,958 |
Ending balance: individually evaluated for impairment | 7,992 | 8,754 |
Ending balance: collectively evaluated for impairment | 637,070 | 625,204 |
Commercial Real Estate | ||
Loan receivables: Ending balance | ||
Total Loans Receivable | 460,396 | 431,727 |
Ending balance: individually evaluated for impairment | 843 | 1,787 |
Ending balance: collectively evaluated for impairment | 459,553 | 429,940 |
Residential Mortgages | ||
Loan receivables: Ending balance | ||
Total Loans Receivable | 48,698 | 56,079 |
Ending balance: individually evaluated for impairment | 4,523 | 4,455 |
Ending balance: collectively evaluated for impairment | 44,175 | 51,624 |
Commercial | ||
Loan receivables: Ending balance | ||
Total Loans Receivable | 69,855 | 75,174 |
Ending balance: collectively evaluated for impairment | 69,855 | 75,174 |
Home Equity | ||
Loan receivables: Ending balance | ||
Total Loans Receivable | 63,308 | 69,631 |
Ending balance: individually evaluated for impairment | 2,626 | 2,512 |
Ending balance: collectively evaluated for impairment | 60,682 | 67,119 |
Consumer | ||
Loan receivables: Ending balance | ||
Total Loans Receivable | 2,805 | 1,347 |
Ending balance: collectively evaluated for impairment | $ 2,805 | $ 1,347 |
Loans and Allowance for Loan 53
Loans and Allowance for Loan Losses - Past Due Status (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Past due receivable | ||
30-59 Days Past Due | $ 830 | $ 361 |
60-89 Days Past Due | 475 | 852 |
Greater than 90 Days | 7,356 | 2,238 |
Total Past Due | 8,661 | 3,451 |
Current | 636,401 | 630,507 |
Total Loans Receivable | 645,062 | 633,958 |
Nonaccrual loans | $ 7,356 | $ 8,519 |
Number of accruing loans greater than 90 days delinquent | loan | 0 | 0 |
Interest income that would have been recognized on nonaccrual loans | $ 267 | $ 544 |
Commercial Real Estate | ||
Past due receivable | ||
30-59 Days Past Due | 402 | |
60-89 Days Past Due | 377 | |
Greater than 90 Days | 842 | |
Total Past Due | 1,244 | 377 |
Current | 459,152 | 431,350 |
Total Loans Receivable | 460,396 | 431,727 |
Nonaccrual loans | 842 | 1,787 |
Residential Mortgages | ||
Past due receivable | ||
30-59 Days Past Due | 428 | 361 |
Greater than 90 Days | 3,992 | 963 |
Total Past Due | 4,420 | 1,324 |
Current | 44,278 | 54,755 |
Total Loans Receivable | 48,698 | 56,079 |
Nonaccrual loans | 3,992 | 4,279 |
Commercial | ||
Past due receivable | ||
Current | 69,855 | 75,174 |
Total Loans Receivable | 69,855 | 75,174 |
Home Equity | ||
Past due receivable | ||
60-89 Days Past Due | 475 | 475 |
Greater than 90 Days | 2,522 | 1,275 |
Total Past Due | 2,997 | 1,750 |
Current | 60,311 | 67,881 |
Total Loans Receivable | 63,308 | 69,631 |
Nonaccrual loans | 2,522 | 2,453 |
Consumer | ||
Past due receivable | ||
Current | 2,805 | 1,347 |
Total Loans Receivable | $ 2,805 | $ 1,347 |
Loans and Allowance for Loan 54
Loans and Allowance for Loan Losses - Ratings (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Loan portfolio by the aggregate pass rating | ||
Total | $ 645,062 | $ 633,958 |
Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 621,973 | 619,039 |
Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 15,963 | 4,900 |
Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 7,126 | 10,019 |
Commercial Real Estate | ||
Loan portfolio by the aggregate pass rating | ||
Total | 460,396 | 431,727 |
Commercial Real Estate | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 450,193 | 429,940 |
Commercial Real Estate | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 7,644 | |
Commercial Real Estate | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 2,559 | 1,787 |
Residential Mortgages | ||
Loan portfolio by the aggregate pass rating | ||
Total | 48,698 | 56,079 |
Residential Mortgages | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 48,698 | 47,700 |
Residential Mortgages | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 4,100 | |
Residential Mortgages | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 4,279 | |
Commercial | ||
Loan portfolio by the aggregate pass rating | ||
Total | 69,855 | 75,174 |
Commercial | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 62,367 | 73,174 |
Commercial | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 3,919 | 500 |
Commercial | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 3,569 | 1,500 |
Home Equity | ||
Loan portfolio by the aggregate pass rating | ||
Total | 63,308 | 69,631 |
Home Equity | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | 57,910 | 66,878 |
Home Equity | Special Mention | ||
Loan portfolio by the aggregate pass rating | ||
Total | 4,400 | 300 |
Home Equity | Substandard | ||
Loan portfolio by the aggregate pass rating | ||
Total | 998 | 2,453 |
Consumer | ||
Loan portfolio by the aggregate pass rating | ||
Total | 2,805 | 1,347 |
Consumer | Pass | ||
Loan portfolio by the aggregate pass rating | ||
Total | $ 2,805 | $ 1,347 |
Loans and Allowance for Loan 55
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Recorded Investment | ||
Loans with specific reserves | $ 3,846 | |
Loans with no specific reserves | 4,146 | $ 8,754 |
Total loans | 7,992 | |
Unpaid Principal Balance | ||
Loans with specific reserves | 425 | |
Loans with no specific reserves | 8,440 | 8,943 |
Total loans | 8,865 | |
Related Allowance | ||
Total loans | 347 | |
Average Recorded Investment | ||
Loans with specific reserves | 353 | 630 |
Loans with no specific reserves | 7,721 | 9,497 |
Total loans | 8,074 | 10,127 |
Interest Income Recognized | ||
Loans with specific reserves | 3 | |
Loans with no specific reserves | 14 | 149 |
Total loans | 17 | 149 |
Interest Income | ||
Interest income that would have been recognized on nonaccrual loans | 267 | 544 |
Commercial Real Estate | ||
Recorded Investment | ||
Loans with no specific reserves | 843 | 1,787 |
Unpaid Principal Balance | ||
Loans with no specific reserves | 867 | 1,787 |
Average Recorded Investment | ||
Loans with specific reserves | 334 | |
Loans with no specific reserves | 1,024 | 2,796 |
Interest Income Recognized | ||
Loans with no specific reserves | 106 | |
Residential Mortgages | ||
Recorded Investment | ||
Loans with specific reserves | 3,568 | |
Loans with no specific reserves | 956 | 4,455 |
Unpaid Principal Balance | ||
Loans with specific reserves | 250 | |
Loans with no specific reserves | 4,850 | 4,543 |
Related Allowance | ||
Total loans | 267 | |
Average Recorded Investment | ||
Loans with specific reserves | 248 | 94 |
Loans with no specific reserves | 4,212 | 4,561 |
Interest Income Recognized | ||
Loans with no specific reserves | 12 | 11 |
Commercial | ||
Average Recorded Investment | ||
Loans with specific reserves | 20 | |
Loans with no specific reserves | 3 | 24 |
Interest Income Recognized | ||
Loans with no specific reserves | 5 | |
Home Equity | ||
Recorded Investment | ||
Loans with specific reserves | 278 | |
Loans with no specific reserves | 2,347 | 2,512 |
Unpaid Principal Balance | ||
Loans with specific reserves | 175 | |
Loans with no specific reserves | 2,723 | 2,613 |
Related Allowance | ||
Total loans | 80 | |
Average Recorded Investment | ||
Loans with specific reserves | 105 | 182 |
Loans with no specific reserves | 2,482 | 2,097 |
Interest Income Recognized | ||
Loans with specific reserves | 3 | |
Loans with no specific reserves | $ 2 | 27 |
Consumer | ||
Average Recorded Investment | ||
Loans with no specific reserves | $ 19 |
Loans and Allowance for Loan 56
Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loan | Dec. 31, 2014USD ($)loan | |
Troubled debt restructuring | ||
Accrual Status | $ 636 | $ 235 |
Number of Loans | loan | 4 | 2 |
Nonaccrual Status | $ 4,694 | $ 5,339 |
Number of Loans | loan | 6 | 8 |
Total | $ 5,330 | $ 5,574 |
Number of Loans | loan | 3 | |
Pre-modification outstanding recorded investments | $ 777 | |
Post-modification outstanding recorded investments | 0 | 785 |
Foreclosed properties | ||
Foreclosed residential real estate properties held as a result of obtaining physical possession | 0 | |
Loans in formal foreclosure proceedings | 2,300 | |
Rate Modification | ||
Troubled debt restructuring | ||
Pre-modification outstanding recorded investments | 777 | |
Residential Mortgages | ||
Troubled debt restructuring | ||
Accrual Status | $ 532 | $ 175 |
Number of Loans | loan | 2 | 1 |
Nonaccrual Status | $ 3,468 | $ 4,008 |
Number of Loans | loan | 4 | 5 |
Total | $ 4,000 | $ 4,183 |
Number of Loans | loan | 2 | |
Pre-modification outstanding recorded investments | $ 731 | |
Post-modification outstanding recorded investments | $ 741 | |
Number of TDR Loan Contracts which had payment defaults | loan | 0 | 0 |
Residential Mortgages | Rate Modification | ||
Troubled debt restructuring | ||
Pre-modification outstanding recorded investments | $ 731 | |
Commercial Real Estate | ||
Troubled debt restructuring | ||
Nonaccrual Status | $ 367 | $ 377 |
Number of Loans | loan | 1 | 1 |
Total | $ 367 | $ 377 |
Home Equity | ||
Troubled debt restructuring | ||
Accrual Status | $ 104 | $ 60 |
Number of Loans | loan | 2 | 1 |
Nonaccrual Status | $ 859 | $ 954 |
Number of Loans | loan | 1 | 2 |
Total | $ 963 | $ 1,014 |
Number of Loans | loan | 1 | |
Pre-modification outstanding recorded investments | $ 46 | |
Post-modification outstanding recorded investments | 44 | |
Home Equity | Rate Modification | ||
Troubled debt restructuring | ||
Pre-modification outstanding recorded investments | $ 46 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Premises and equipment | ||
Total premises and equipment, gross | $ 14,592 | $ 13,613 |
Less accumulated depreciation and amortization | 4,092 | 3,477 |
Total premises and equipment, net | 10,500 | 10,136 |
Depreciation and amortization | 615 | 570 |
Land | ||
Premises and equipment | ||
Total premises and equipment, gross | 4,828 | 4,828 |
Building | ||
Premises and equipment | ||
Total premises and equipment, gross | 6,906 | 6,286 |
Furniture and fixtures | ||
Premises and equipment | ||
Total premises and equipment, gross | 855 | 787 |
Equipment | ||
Premises and equipment | ||
Total premises and equipment, gross | $ 2,003 | $ 1,712 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Maturity of Time Deposits | ||
3 months or less | $ 80,882 | $ 55,056 |
Over 3 months through 12 months | 153,638 | 151,655 |
Over 1 year through 2 years | 53,532 | 90,914 |
Over 2 years through 3 years | 26,831 | 27,695 |
Over 3 years through 4 years | 25,585 | 13,037 |
Over 4 years through 5 years | 9,895 | 20,522 |
Total time deposits | 350,363 | $ 358,879 |
Brokered Deposits | ||
Brokered deposits | 39,843 | |
Public Funds Reciprocal | ||
Brokered Deposits | ||
Brokered deposits | 6,050 | |
Non-Public Funds Reciprocal | ||
Brokered Deposits | ||
Brokered deposits | 17,125 | |
Non-Reciprocal Funds | ||
Brokered Deposits | ||
Brokered deposits | $ 16,668 |
Borrowed Funds (Details)
Borrowed Funds (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Federal Home Loan Bank of New York | ||
Borrowed Funds | ||
Amount | $ 26,529 | $ 32,950 |
Rate (as a percent) | 1.58% | 1.57% |
F H L B Advances 1.50 Percent Due 2019 June | ||
Borrowed Funds | ||
Amount | $ 3,621 | $ 4,598 |
Rate (as a percent) | 1.50% | 1.50% |
Original Term (years) | 5 years | 5 years |
F H L B Advances 1.51 Percent Due 2019 July | ||
Borrowed Funds | ||
Amount | $ 5,555 | $ 7,018 |
Rate (as a percent) | 1.51% | 1.51% |
Original Term (years) | 5 years | 5 years |
F H L B Advances 1.51 Percent Due 2019 August | ||
Borrowed Funds | ||
Amount | $ 5,299 | $ 6,662 |
Rate (as a percent) | 1.51% | 1.51% |
Original Term (years) | 5 years | 5 years |
F H L B Advances 2.02 Percent Due 2021 August | ||
Borrowed Funds | ||
Amount | $ 4,158 | $ 4,833 |
Rate (as a percent) | 2.02% | 2.02% |
Original Term (years) | 7 years | 7 years |
F H L B Advances 1.48 Percent Due 2019 October | ||
Borrowed Funds | ||
Amount | $ 7,896 | $ 9,839 |
Rate (as a percent) | 1.48% | 1.48% |
Original Term (years) | 5 years | 5 years |
Zions First National Bank | ||
Borrowed Funds | ||
Overnight line of credit facility available | $ 16,000 | |
First Tennessee Bank | ||
Borrowed Funds | ||
Overnight line of credit facility available | 12,000 | |
Atlantic Community Bankers Bank | ||
Borrowed Funds | ||
Overnight line of credit facility available | $ 10,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Current tax expense: | ||
Federal | $ 2,913 | $ 2,257 |
State | 164 | 270 |
Deferred income tax benefit: | ||
Federal | (425) | (291) |
State | (117) | (115) |
Income tax expense | 2,535 | 2,121 |
Deferred tax assets: | ||
Start up expenses | 187 | 222 |
Allowance for loan losses | 3,392 | 2,948 |
Accrued expenses | 340 | 277 |
Stock compensation plans | 429 | 428 |
Unrealized losses on available for sale securities | 185 | 433 |
Other | 357 | 251 |
Total gross deferred tax assets | 4,890 | 4,559 |
Deferred tax liabilities: | ||
Deferred loan costs | (100) | (97) |
Prepaid expenses | (165) | (102) |
Depreciation | (501) | (530) |
Total gross deferred tax liabilities | (766) | (729) |
Net deferred tax asset | $ 4,124 | 3,830 |
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 | $ 2,497 | 2,010 |
Increase (decrease) in taxes resulting from: | ||
State taxes, net of federal income tax expense | 31 | 102 |
Tax exempt income | (13) | (18) |
Stock-based compensation | 8 | (1) |
Meals and entertainment | 10 | 9 |
Other | 2 | 19 |
Income tax expense | $ 2,535 | $ 2,121 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Leases | ||
Rental expense | $ 1,400 | $ 1,300 |
Future minimum lease payments (exclusive of payments for maintenance, insurance, taxes and any other costs associated with offices) for operating leases | ||
2,016 | 1,299 | |
2,017 | 1,122 | |
2,018 | 1,040 | |
2,019 | 749 | |
2,020 | 525 | |
Thereafter | 1,499 | |
Total future minimum lease payments | $ 6,234 |
Related-party Transactions (Det
Related-party Transactions (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015USD ($)loanitem | Dec. 31, 2014USD ($)loan | |
Related party transactions | ||
Number of loans in nonaccrual, past due, or restructured status | loan | 0 | 0 |
Related party deposit balance | $ 53,600 | $ 41,700 |
Changes in related-party loans | ||
Legal fees, for non-loan related matters | 287 | 217 |
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 | 435 | 372 |
Bank | ||
Changes in related-party loans | ||
Outstanding loans at beginning of the year | 36,318 | 33,623 |
Advances | 6,606 | 10,979 |
Repayments | (16,133) | (8,284) |
Outstanding loans at end of the year | 26,791 | 36,318 |
Two directors | ||
Changes in related-party loans | ||
Legal fees, for non-loan related matters | $ 11 | 30 |
Two directors | Legal counsel on loan closings | ||
Changes in related-party loans | ||
Number of directors that participated in transaction | item | 2 | |
Loan reimbursement from third party customer | $ 259 | 453 |
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 | item | 1 | |
Insurance premiums paid to third party carrier | $ 230 | $ 165 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Basic earnings per share | ||
Net income applicable to common stock | $ 4,808 | $ 3,790 |
Weighted average number of common shares outstanding - basic | 6,097 | 5,362 |
Basic earnings per share (in dollars per share) | $ 0.79 | $ 0.71 |
Diluted earnings per share | ||
Net income applicable to common stock | $ 4,808 | $ 3,790 |
Weighted average number of common shares outstanding | 6,097 | 5,362 |
Effect of dilutive options (in shares) | 16 | 48 |
Weighted average number of common shares and common share equivalents- diluted | 6,113 | 5,410 |
Diluted earnings per share (in dollars per share) | $ 0.79 | $ 0.70 |
Earnings Per Share - Dilution (
Earnings Per Share - Dilution (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 16,000 | 48,000 |
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) | $ 11.50 | $ 11.50 |
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 | 75,000 |
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share) | $ 11.50 | $ 11.50 |
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 | 84,700 | 86,900 |
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share) | $ 9.09 | $ 9.09 |
Restricted stock | ||
Earnings Per Share | ||
Number of shares of common stock issued, upon exercise of incentive stock options | 64,000 | 64,500 |
Stockholders' Equity and Divi65
Stockholders' Equity and Dividend Restrictions (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2015item$ / sharesshares | Dec. 31, 2014item$ / shares | Dec. 31, 2005USD ($)$ / sharesshares | |
Stockholders' Equity and Dividend Restrictions | |||
Common stock sold (in shares) | shares | 868,057 | 4,798,594 | |
Sale price of common stock (in dollars per share) | $ 9.09 | ||
Net proceeds from stock offering | $ | $ 42.7 | ||
Number of quarterly cash dividends | item | 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 - 2006 Stock Opti
Benefit Plans - 2006 Stock Option Plan (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | ||
Exercise of stock options (in shares) | 2,200 | 26,000 |
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) | 161,900 | |
Exercise of stock options (in shares) | 2,200 | |
Outstanding at the end of the period (in shares) | 159,700 | 161,900 |
Exercisable at the end of the period (in shares) | 159,700 | |
Aggregate number of incentive stock options issued (in shares) | 209,900 | |
Weighted Average Exercise Price per Share | ||
Outstanding at the beginning of the period (in dollars per share) | $ 10.21 | |
Exercised (in dollars per share) | 9.09 | |
Outstanding at the end of the period (in dollars per share) | 10.22 | $ 10.21 |
Exercisable at the end of the period (in dollars per share) | $ 10.22 | |
Aggregate Intrinsic Value | ||
Aggregate intrinsic value of options outstanding | $ 172,788 | |
Exercisable at the end of the period (in dollars) | $ 172,788 | |
Weighted Average Remaining Contractual Term | ||
Outstanding at the end of the period | 1 year 4 months 2 days | |
Exercisable at the end of the period | 1 year 4 months 2 days |
Benefit Plans - 2007 Director P
Benefit Plans - 2007 Director Plan (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Shares | ||
Exercise of stock options (in shares) | 2,200 | 26,000 |
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 | 331,334 |
Exercisable at the end of the period (in shares) | 331,334 | |
Aggregate number of incentive stock options issued (in shares) | 460,000 | |
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 | $ 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 | 1 year 9 months 22 days | |
Exercisable at the end of the period | 1 year 9 months 22 days |
Benefit Plans - 2011 Equity Inc
Benefit Plans - 2011 Equity Incentive Plan (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2005 | |
Benefit Plans and Stock-Based Compensation | |||
Unrecognized compensation expenses | $ 451,000 | ||
Share based compensation expense | $ 211,000 | $ 250,000 | |
Number of Shares | |||
Shares of common stock issued | 868,057 | 4,798,594 | |
2011 Equity Incentive Plan | |||
Benefit Plans and Stock-Based Compensation | |||
Maximum number of shares authorized to be purchased | 250,000 | ||
Share based compensation expense | $ 211,000 | $ 212,000 | |
Number of Shares | |||
Shares of common stock issued | 0 | ||
2011 Equity Incentive Plan | Restricted stock | |||
Benefit Plans and Stock-Based Compensation | |||
Unrecognized compensation expenses | $ 451,000 | ||
Period over which unrecognized compensation expense is expected to be recognized | 27 months | ||
Restricted shares, Number of Shares | |||
Non-vested restricted stock, beginning of year (in shares) | 64,500 | ||
Vested (in shares) | (16,250) | ||
Non-vested restricted stock, end of year (in shares) | 48,250 | 64,500 | |
Restricted shares, Weighted Average Grant Date Fair Value | |||
Non-vested restricted stock, beginning of year (in dollars per shares) | $ 12.99 | ||
Vested (in dollars per shares) | 12.97 | ||
Non-vested restricted stock, end of year (in dollars per shares) | $ 12.99 | $ 12.99 |
Benefit Plans - Defined Contrib
Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 100 | $ 83 |
Regulatory Capital Requiremen70
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Leverage (Tier 1) Capital Ratio | ||
Bank actual Amount | $ 73,449 | $ 60,045 |
Bank actual Ratio (as a percent) | 9.02% | 8.16% |
FDIC requirements, Minimum Capital Adequacy Amount | $ 32,565 | $ 29,447 |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 4.00% | 4.00% |
FDIC requirements, For Classification As Well Capitalized Amount | $ 40,707 | $ 36,808 |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 5.00% | 5.00% |
Risk-Based Capital: Common Equity Tier 1 Capital | ||
Bank actual Amount | $ 73,449 | |
Bank actual Ratio (as a percent) | 10.95% | |
FDIC requirements, Minimum Capital Adequacy Amount | $ 30,186 | |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 4.50% | |
FDIC requirements, For Classification As Well Capitalized Amount | $ 43,602 | |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 6.50% | |
Risk-Based Capital: Tier 1 Capital Ratio | ||
Bank actual Amount | $ 73,449 | $ 60,045 |
Bank actual Ratio (as a percent) | 10.95% | 9.39% |
FDIC requirements, Minimum Capital Adequacy Amount | $ 40,248 | $ 25,580 |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 6.00% | 4.00% |
FDIC requirements, For Classification As Well Capitalized Amount | $ 53,664 | $ 38,370 |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 8.00% | 6.00% |
Risk-Based Capital: Total Capital Ratio | ||
Bank actual Amount | $ 81,790 | $ 67,237 |
Bank actual Ratio (as a percent) | 12.19% | 10.51% |
FDIC requirements, Minimum Capital Adequacy Amount | $ 53,664 | $ 51,160 |
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent) | 8.00% | 8.00% |
FDIC requirements, For Classification As Well Capitalized Amount | $ 67,080 | $ 63,951 |
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent) | 10.00% | 10.00% |
Financial Instruments with Of71
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Bank | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Outstanding available loan commitments | $ 102.3 | $ 120.3 |
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 | $ 3.7 | $ 2.3 |
Financial Information of Pare72
Financial Information of Parent Company - Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | |||
Total assets | $ 802,920 | $ 743,688 | |
Liabilities and stockholders' equity: | |||
Stockholders' equity | 73,153 | 59,894 | $ 55,950 |
Total liabilities and stockholders' equity | 802,920 | 743,688 | |
Bancorp of New Jersey, Inc | |||
Assets | |||
Investment in subsidiary, net | 73,152 | 59,894 | |
Total assets | 73,152 | 59,894 | |
Liabilities and stockholders' equity: | |||
Stockholders' equity | 73,152 | 59,894 | |
Total liabilities and stockholders' equity | $ 73,152 | $ 59,894 |
Financial Information of Pare73
Financial Information of Parent Company - Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Financial Statements | ||
Net income | $ 4,808 | $ 3,790 |
Other comprehensive income (loss) | 443 | 918 |
Comprehensive income | 5,251 | 4,708 |
Bancorp of New Jersey, Inc | ||
Condensed Financial Statements | ||
Equity in undistributed earnings of subsidiary bank | 4,808 | 3,790 |
Net income | 4,808 | 3,790 |
Comprehensive income | $ 4,808 | $ 3,790 |
Financial Information of Pare74
Financial Information of Parent Company - Statement of Cash Flow (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flow from operating activities: | ||
Net income | $ 4,808 | $ 3,790 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net cash provided by operating activities | 6,504 | 8,442 |
Cash flows from investing activities: | ||
Net cash used in investing activities | (7,516) | (151,713) |
Cash flows from financing activities: | ||
Cash dividends paid | (1,503) | (1,287) |
Net cash provided by financing activities | 53,141 | 127,590 |
Net increase (decrease) in cash and cash equivalents | 52,129 | (15,681) |
Cash and cash equivalents at beginning of year | 22,060 | 37,741 |
Cash and cash equivalents at end of year | 74,189 | 22,060 |
Bancorp of New Jersey, Inc | ||
Cash flow from operating activities: | ||
Net income | 4,808 | 3,790 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed earnings of the subsidiary bank | (4,808) | (3,790) |
Cash flows from investing activities: | ||
Cash dividends received from subsidiary bank | 1,498 | 1,287 |
Net cash used in investing activities | 1,498 | 1,287 |
Cash flows from financing activities: | ||
Cash dividends paid | (1,498) | (1,287) |
Net cash provided by financing activities | $ (1,498) | $ (1,287) |
Fair Value Measurements and Fai
Fair Value Measurements and Fair Value of Financial Instruments - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Fair value measurements | ||
Securities available for sale | $ 64,750 | $ 58,451 |
Significant Other Observable Inputs (Level 2) | ||
Fair value measurements | ||
Securities available for sale | 64,750 | 58,451 |
Fair Value | ||
Fair value measurements | ||
Securities available for sale | 64,750 | 58,451 |
Recurring basis | Significant Other Observable Inputs (Level 2) | ||
Fair value measurements | ||
Securities available for sale | 64,750 | 58,451 |
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury obligations | ||
Fair value measurements | ||
Securities available for sale | 6,353 | 6,402 |
Recurring basis | Significant Other Observable Inputs (Level 2) | Government sponsored enterprise obligations | ||
Fair value measurements | ||
Securities available for sale | 58,397 | 52,049 |
Recurring basis | Fair Value | ||
Fair value measurements | ||
Securities available for sale | 64,750 | 58,451 |
Recurring basis | Fair Value | U.S. Treasury obligations | ||
Fair value measurements | ||
Securities available for sale | 6,353 | 6,402 |
Recurring basis | Fair Value | Government sponsored enterprise obligations | ||
Fair value measurements | ||
Securities available for sale | 58,397 | 52,049 |
Nonrecurring basis | Significant Unobservable Inputs (Level 3) | ||
Fair value measurements | ||
Impaired loans, portion valued at fair value | 258 | 1,723 |
Nonrecurring basis | Fair Value | ||
Fair value measurements | ||
Impaired loans, portion valued at fair value | $ 258 | $ 1,723 |
Fair Value Measurements and F76
Fair Value Measurements and Fair Value of Financial Instruments - Level 3 Information (Details) - Nonrecurring basis - Significant Unobservable Inputs (Level 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
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 | $ 258 | $ 1,723 |
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) | 1.00% | 46.30% |
Liquidation Expenses (as a percent) | 48.10% | 60.20% |
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) | (0.50%) | (38.40%) |
Liquidation Expenses (as a percent) | (33.80%) | (20.20%) |
Fair Value Measurements and F77
Fair Value Measurements and Fair Value of Financial Instruments - Carrying Amount (Details) - USD ($) $ in Thousands | Dec. 31, 2015 | Dec. 31, 2014 |
Financial assets: | ||
Interest bearing time deposits | $ 1,000 | $ 1,000 |
Securities available for sale | 64,750 | 58,451 |
Securities held to maturity, fair value (in dollars) | 5,829 | 15,921 |
Restricted investment in bank stock, at cost | 2,020 | 2,162 |
Accrued interest receivable | 2,305 | 2,441 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial assets: | ||
Cash and cash equivalents | 74,189 | 22,060 |
Financial liabilities: | ||
Deposits | 350,375 | 290,095 |
Significant Other Observable Inputs (Level 2) | ||
Financial assets: | ||
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 64,750 | 58,451 |
Securities held to maturity, fair value (in dollars) | 5,829 | 15,921 |
Restricted investment in bank stock, at cost | 2,020 | 2,162 |
Accrued interest receivable | 2,305 | 2,441 |
Financial liabilities: | ||
Deposits | 352,218 | 360,634 |
Borrowed funds | 26,517 | 32,972 |
Accrued interest payable | 716 | 758 |
Significant Unobservable Inputs (Level 3) | ||
Financial assets: | ||
Loans receivable, net | 639,525 | 629,086 |
Carrying amount | ||
Financial assets: | ||
Cash and cash equivalents | 74,189 | 22,060 |
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 64,750 | 58,451 |
Securities held to maturity, fair value (in dollars) | 5,829 | 15,923 |
Restricted investment in bank stock, at cost | 2,020 | 2,162 |
Loans receivable, net | 636,661 | 626,352 |
Accrued interest receivable | 2,305 | 2,441 |
Financial liabilities: | ||
Deposits | 700,739 | 648,974 |
Borrowed funds | 26,529 | 32,950 |
Accrued interest payable | 716 | 758 |
Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 74,189 | 22,060 |
Interest bearing time deposits | 1,000 | 1,000 |
Securities available for sale | 64,750 | 58,451 |
Securities held to maturity, fair value (in dollars) | 5,829 | 15,921 |
Restricted investment in bank stock, at cost | 2,020 | 2,162 |
Loans receivable, net | 639,525 | 629,086 |
Accrued interest receivable | 2,305 | 2,441 |
Financial liabilities: | ||
Deposits | 702,593 | 650,729 |
Borrowed funds | 26,517 | 32,972 |
Accrued interest payable | $ 716 | $ 758 |
Accumulated Other Comprehensi78
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Accumulated other comprehensive income (loss) | ||
Losses on sale of securities | $ (15) | $ (16) |
Income tax expense | (2,535) | (2,121) |
Available for Sale Securities | Amount Reclassified from Accumulated Other Comprehensive Income (Loss) | ||
Accumulated other comprehensive income (loss) | ||
Losses on sale of securities | (15) | (16) |
Income tax expense | 6 | 6 |
Net of tax | $ (9) | $ (10) |