Bancorp of New Jersey (BKJ) 10-K 16 Mar 18 2017 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2017	Mar. 02, 2018	Jun. 30, 2017
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, 2017
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	Accelerated Filer
Entity Public Float			$ 79,744,539
Entity Common Stock, Shares Outstanding		6,947,690
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	FY

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Assets
Cash and due from banks	$ 1,627	$ 2,628
Interest bearing deposits	90,540	73,896
Federal funds sold	452	452
Total cash and cash equivalents	92,619	76,976
Interest bearing time deposits	1,000	1,000
Securities available for sale	53,234	61,589
Securities held to maturity (fair value $6,058 and $7,343 at December 31, 2017 and December 31, 2016, respectively)	6,058	7,343
Restricted investment in bank stock, at cost	1,380	1,983
Loans receivable	721,191	660,571
Deferred loan fees and costs, net	(798)	(586)
Allowance for loan losses	(8,317)	(8,287)
Net loans	712,076	651,698
Premises and equipment, net	13,725	13,497
Accrued interest receivable	2,695	2,366
Other real estate owned	415	614
Other assets	4,205	5,374
Total assets	887,407	822,440
Deposits:
Noninterest-bearing demand deposits	133,661	137,564
Savings and interest bearing transaction accounts	307,583	287,682
Time deposits $250 and under	231,224	156,477
Time deposits over $250	115,825	136,265
Total deposits	788,293	717,988
Borrowed funds	13,385	25,008
Accrued expenses and other liabilities	2,420	2,300
Total liabilities	804,098	745,296
Stockholders' equity:
Common stock, no par value, authorized 20,000,000 shares; issued and outstanding 6,932,690 at December 31, 2017 and 6,316,291 at December 31, 2016	70,182	61,524
Retained earnings	13,482	15,813
Accumulated other comprehensive loss	(355)	(193)
Total stockholders’ equity	83,309	77,144
Total liabilities and stockholders’ equity	$ 887,407	$ 822,440

CONSOLIDATED BALANCE SHEET (Par

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED BALANCE SHEET
Securities held to maturity	$ 6,058	$ 7,343
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, authorized shares	20,000,000	20,000,000
Common stock, issued shares	6,932,690	6,316,291
Common stock, outstanding shares	6,932,690	6,316,291

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Interest income:
Loans, including fees	$ 30,707	$ 30,242
Securities	862	751
Interest-earning deposits in banks	1,065	412
Federal funds sold	7	5
Total interest income	32,641	31,410
Interest expense:
Savings and money markets	1,756	1,523
Time deposits	5,577	5,026
Borrowed funds	278	425
Total interest expense	7,611	6,974
Net interest income	25,030	24,436
Provision for loan losses	400	1,570
Net interest income after provision for loan losses	24,630	22,866
Non interest income
Fees and service charges on deposit accounts	448	491
Total non interest income	448	491
Non interest expense
Salaries and employee benefits	9,012	8,338
Occupancy and equipment expense	2,966	2,755
FDIC and state assessments	729	868
Legal fees	398	260
Other real estate owned related expenses	70	95
Professional fees	1,248	1,543
Data processing	1,433	1,201
Other operating expenses	1,975	2,162
Total non interest expenses	17,831	17,222
Income before income taxes	7,247	6,135
Income tax expense	3,673	2,134
Net income	$ 3,574	$ 4,001
Earnings per share:
Basic (in dollars per share)	$ 0.55	$ 0.64
Diluted (in dollars per share)	$ 0.54	$ 0.64

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 3,574	$ 4,001
Other comprehensive income
Unrealized holding gains (losses) on securities available for sale, net of deferred income tax expense of $69 and $62, respectively	(104)	103
Comprehensive income	$ 3,470	$ 4,104

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized holding gains (losses) on securities available for sale, deferred income tax expense	$ 69	$ 62

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, 2015	$ 60,509	$ 12,940	$ (296)	$ 73,153
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	730			730
Stock based compensation	285			285
Dividends on common stock		(1,128)		(1,128)
Net income		4,001		4,001
Other comprehensive income, net of tax			103	103
Balance at Dec. 31, 2016	61,524	15,813	(193)	77,144
Increase (Decrease) in Stockholders' Equity
Exercise of stock options	2,993			2,993
Stock based compensation	397			397
Dividends on common stock		(693)		(693)
Net income		3,574		3,574
5% Stock dividend (319,294 shares)	5,270	(5,270)
Dividends in lieu of fractional shares of stock dividend	(2)			(2)
Reclassification related to adoption of ASU 2018-02		58	(58)	58
Other comprehensive income, net of tax			(104)	(104)
Balance at Dec. 31, 2017	$ 70,182	$ 13,482	$ (355)	$ 83,309

CONSOLIDATED STATEMENTS OF STO8

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical)	12 Months Ended
	Dec. 31, 2017$ / sharesshares
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY
Exercise of stock options (in shares)	273,381
Dividends on common stock (in dollars per share) | $ / shares	$ 0.10
Dividends Declared (in percent)	5.00%
Stock dividend (in shares)	319,294

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net income	$ 3,574	$ 4,001
Adjustments to reconcile net income to net cash provided by Operating activities:
Provision for loan losses	400	1,570
Amortization of securities premiums	193	146
Deferred taxes	1,028	(483)
Depreciation	669	665
Stock based compensation	397	285
Accretion of net loan origination fees and costs	212	205
Gain on sale of other real estate owned	(18)
Write down of other real estate owned	41	56
Changes in operating assets and liabilities:
Increase in accrued interest receivable	(329)	(62)
Decrease in other assets	210	202
Increase (decrease) in accrued interest payable and other liabilities	121	(199)
NET CASH PROVIDED BY OPERATING ACTIVITIES	6,498	6,386
Cash flows from investing activities:
Purchases of securities available for sale	(15,064)	(47,000)
Purchases of securities held to maturity	(10,148)	(7,343)
Proceeds from maturities of securities held to maturity	11,433	5,829
Proceeds from calls, maturities and other principal payments of securities available for sale	23,052	50,180
Purchase of restricted investment in bank stock	(56)	(706)
Proceeds from calls of restricted investment of bank stock	659	743
Proceeds from sale of other real estate owned	176
Net increase in loans	(60,990)	(16,970)
Purchases of premises and equipment	(897)	(3,662)
NET CASH USED IN INVESTING ACTIVITIES	(51,835)	(18,929)
Cash flows from financing activities:
Net increase in deposits	70,305	17,249
Net decrease in borrowed funds	(11,623)	(1,521)
Dividends paid	(695)	(1,128)
Proceeds from exercise of stock options	2,993	730
NET CASH PROVIDED BY FINANCING ACTIVITIES	60,980	15,330
Increase in cash and cash equivalents	15,643	2,787
Cash and cash equivalents at beginning of year	76,976	74,189
CASH AND CASH EQUIVALENTS, END OF YEAR	92,619	76,976
Cash paid during the year for:
Interest	7,476	7,174
Taxes	$ 2,605	2,609
Supplemental disclosure of non-cash investing and financing transactions:
Loans transferred to other real estate owned		$ 158

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2017
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. Bancorp of New Jersey is incorporated under the laws of the State of New Jersey to serve as a holding company for the Bank. All significant inter-company accounts and transactions have been eliminated in consolidation. 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 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 nine branch offices in addition to its main office. During the second quarter of 2009, the Bank formed BONJ-New York Corporation. The New York subsidiary was engaged in the business of acquiring, managing and administering portions of Bank of New Jersey’s investment and loan portofolios. During 2014, the Bank formed BONJ-Delaware Investment Company and BONJ-New Jersey Investment Company to use to acquire, manage and administer portions of the Bank of New Jersey’s investments and loans. Also in 2014, the Bank formed BONJ-REIT, Inc. This company was formed to acquire, manage and administer portions of the Bank’s loans. BONJ-Reit, Inc. is owned by BONJ-Delaware Investment Company. Use of Estimates Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of the deferred tax asset and the determination of other-than-temporary impairment on securities. 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’s 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 accounting principles generally accepted in the United States of America (“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, which approximate fair value. 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 (“FRB”). Investment 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 Consolidated Statements of Income. 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 the Company’s premises and equipment range from 3 years for certain computer related equipment to 39 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. For all commercial loans receivable, the accrual of interest on loans 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 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. 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 general and unallocated components. 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. 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 concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDR”) and classified as impaired. All or part of the principal balance of a loan is charged-off 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 TDR agreement. Loans whose terms are modified are classified as TDRs if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR generally involve a temporary reduction in interest rate or 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 TDR 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 classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition 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. Management believes the level of the allowance for loan losses was adequate to absorb losses inherent in the loan portfolio as of December 31, 2017. 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 Accounting Standards Codification (“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 $397 thousand and $285 thousand during 2017 and 2016, respectively. At December 31, 2017, the Company had $132 thousand of unrecognized compensation expense related to stock options. At December 31, 2017, the Company had $324 thousand of unrecognized compensation expense related to unvested restricted stock. Income Taxes The Company uses the asset and liability method of accounting for income taxes. There are two components of the income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted law to the taxable income or excess of deductions and revenues. 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 for the current period and income, expenses, or gains and losses not included in the Consolidated Statements of Income and which are reported directly as a separate component of stockholders’ equity. Advertising The Company expenses advertising costs as incurred. Advertising expenses totaled $216 thousand and $308 thousand for 2017 and 2016, respectively and are included in other operating expenses. 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 Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity, 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 of New York (“FHLB”) of $1.28 million and Atlantic Community Bankers Bank, (“ACBB”) of $100 thousand respectively as of December 31, 2017. Federal law requires a member institution of the FHLB to hold stock according to a predetermined formula. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2017. 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 (“FRBNY”). At December 31, 2017 and 2016, these reserve balances amounted to $3.8 million and $5.9 million, respectively, and are reflected in interest bearing deposits in banks.

Securities

Securities	12 Months Ended
	Dec. 31, 2017
Securities
Securities	NOTE 2. Securities A summary of securities held to maturity and securities available for sale at December 31, 2017 and 2016 is as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair 2017 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ 6,058 $ — $ — $ 6,058 Total securities held to maturity 6,058 — — 6,058 Securities Available for Sale: U.S. Treasury securities 6,286 — (124) 6,162 Government sponsored enterprise obligations Agency backed 33,453 — (218) 33,235 Mortgage backed 13,986 — (149) 13,837 Total securities available for sale 53,725 — (491) 53,234 $ 59,783 $ — $ (491) $ 59,292 Gross Gross Amortized Unrealized Unrealized Fair 2016 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ 7,343 $ — $ — $ 7,343 Total securities held to maturity 7,343 — — 7,343 Securities Available for Sale: U.S. Treasury securities 6,400 — (132) 6,268 Government sponsored enterprise obligations 55,506 6 (191) 55,321 Total securities available for sale 61,906 6 (323) 61,589 $ 69,249 $ 6 $ (323) $ 68,932 For the year ended December 31, 2017 and 2016, the Company did not sell any securities from its available for sale portfolio and therefore no loss or gain was recognized. The Company did not sell any securities from its held to maturity portfolio in 2017 or 2016. 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, 2017 and 2016 are as follows (in thousands): Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized 2017 Value Losses Value Losses Value Losses Securities Available for Sale: U.S. Treasury securities — — 6,162 (124) 6,162 (124) Government sponsored enterprise obligations 23,691 (201) 23,381 (166) 47,072 (367) Total securities available for sale 23,691 (201) 29,543 (290) 53,234 (491) Total securities $ 23,691 $ (201) $ 29,543 $ (290) $ 53,234 $ (491) Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized 2016 Value Losses Value Losses Value Losses Securities Available for Sale: U.S. Treasury securities — — 6,268 (132) 6,268 (132) Government sponsored enterprise obligations 34,473 (158) 6,966 (33) 41,439 (191) Total securities available for sale 34,473 (158) 13,234 (165) 47,707 (323) Total securities $ 34,473 $ (158) $ 13,234 $ (165) $ 47,707 $ (323) Unrealized losses at December 31, 2017 consisted of losses on twelve investments in government sponsored enterprise obligations, and two in U. S. Treasury securities, all of which were caused by interest rate increases. Nine of the investments with unrealized losses at December 31, 2017 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, 2017. The following table sets forth as of December 31, 2017, the maturity distribution of the Company’s held to maturity and available for sale portfolios (in thousands): Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value One year or less $ 6,058 $ 6,058 $ 18,047 $ 17,933 After one to five years — — 21,692 21,465 Greater than five years — — 13,986 13,836 Total $ 6,058 $ 6,058 $ 53,725 $ 53,234

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	12 Months Ended
	Dec. 31, 2017
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	NOTE 3. Loans and Allowance for Loan Losses Loans at December 31, 2017 and 2016, are summarized as follows (in thousands): December 31, 2017 December 31, 2016 Commercial real estate $ 573,941 $ 492,296 Residential mortgages 66,497 78,961 Commercial and industrial 27,237 30,259 Home equity 53,199 58,399 Consumer 317 656 $ 721,191 $ 660,571 The Company grants loans primarily to residents and businesses within its local New Jersey 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’s lien on the property. Such factors are dependent upon various economic conditions and individual circumstances beyond the Company’s control; the Company is therefore subject to risk of loss. The Company believes its lending policies and procedures adequately manage the potential exposure to such risks and an allowance for loan losses is provided for management’s best estimate of probable loan losses. 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, 2017 (in thousands): Commercial Residential Commercial Real Estate Mortgages & Industrial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ 5,925 $ 554 $ 809 $ 425 $ 6 $ 568 $ 8,287 Charge-offs — (49) (90) (171) (97) — (407) Recoveries 30 — 1 — 6 — 37 Provision (88) (133) (145) 149 135 482 400 Ending balance $ 5,867 $ 372 $ 575 $ 403 $ 50 $ 1,050 $ 8,317 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 5,867 $ 372 $ 575 $ 403 $ 50 $ 1,050 $ 8,317 Loan receivables: Ending balance $ 573,941 $ 66,497 $ 27,237 $ 53,199 $ 317 $ — $ 721,191 Ending balance: individually evaluated for impairment $ 11,554 $ 8,966 $ 2,957 $ 3,214 $ — $ — $ 26,691 Ending balance: collectively evaluated for impairment $ 562,387 $ 57,531 $ 24,280 $ 49,985 $ 317 $ — $ 694,500 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, 2016 (in thousands): Commercial Residential Commercial Real Estate Mortgages & Industrial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ 5,566 $ 572 $ 1,066 $ 573 $ 39 $ 204 $ 8,020 Charge-offs — (158) (1,026) (155) (1) — (1,340) Recoveries 35 — 2 — — — 37 Provision 324 140 767 7 (32) 364 1,570 Ending balance $ 5,925 $ 554 $ 809 $ 425 $ 6 $ 568 $ 8,287 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 5,925 $ 554 $ 809 $ 425 $ 6 $ 568 $ 8,287 Loan receivables: Ending balance $ 492,296 $ 78,961 $ 30,259 $ 58,399 $ 656 $ — $ Ending balance: individually evaluated for impairment $ 10,485 $ 9,731 $ 3,257 $ 4,543 $ — $ — $ 28,016 Ending balance: collectively evaluated for impairment $ 481,811 $ 69,230 $ 27,002 $ 53,856 $ 656 $ — $ 632,555 The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the past due status as of December 31, 2017 and 2016 (in thousands): 30-59 Days 60-89 Days 90+ Days Total Past Total Loans Nonaccrual 2017 Past Due Past Due Past Due Due Current Receivables Loans Commercial real estate $ 209 $ — $ 3,344 $ 3,553 $ 570,388 $ 573,941 $ 3,344 Residential mortgages 2,463 974 9,052 12,489 54,008 66,497 9,052 Commercial and industrial — 25 2,957 2,982 24,255 27,237 2,957 Home equity 1,823 775 3,073 5,671 47,528 53,199 3,073 Consumer — — — — 317 317 — $ 4,495 $ 1,774 $ 18,426 $ 24,695 $ 696,496 $ 721,191 $ 18,426 30-59 Days 60-89 Days Greater than Total Past Total Loans Nonaccrual 2016 Past Due Past Due 90 Days Due Current Receivables Loans Commercial real estate $ 2,744 $ — $ 5,992 $ 8,736 $ 483,560 $ 492,296 $ 5,992 Residential mortgages — — 3,907 3,907 75,054 78,961 3,907 Commercial and industrial — — 3,257 3,257 27,002 30,259 3,257 Home equity 1,590 — 5,597 7,187 51,212 58,399 5,597 Consumer — — — — 656 656 — $ 4,334 $ — $ 18,753 $ 23,087 $ 637,484 $ 660,571 $ 18,753 The following tables present the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2017 and 2016 (in thousands): Commercial Residential Commercial 2017 Real Estate Mortgages & Industrial Home Equity Consumer Total Pass $ 562,387 $ 56,407 $ 24,051 $ 49,985 $ 317 $ 693,147 Special Mention — 1,124 229 — — 1,353 Substandard 11,554 8,966 2,957 3,214 — 26,691 Doubtful — — — — — — $ 573,941 $ 66,497 $ 27,237 $ 53,199 $ 317 $ 721,191 Commercial Residential Commercial 2016 Real Estate Mortgages & Industrial Home Equity Consumer Total Pass $ $ $ $ $ $ Special Mention 600 2,026 — — Substandard 9,731 — Doubtful — — — — — — $ $ $ $ $ $ As of December 31, 2017 and 2016 the Company had no accruing loans greater than 90 days delinquent. The following tables provide information about the Company’s impaired loans as of and for the years ended December 31, 2017 and 2016 (in thousands): Unpaid Recorded Principal Related 2017 Investment Balance Allowance Commercial real estate $ 11,554 $ 11,578 $ — Residential mortgages 8,966 10,287 — Commercial and industrial 2,957 3,057 — Home equity 3,214 3,509 — Total impaired loans $ 26,691 $ 28,431 $ — Unpaid Recorded Principal Related 2016 Investment Balance Allowance Commercial real estate $ 10,485 $ 10,509 $ — Residential mortgages 9,731 10,804 — Commercial and industrial 3,257 3,257 — Home equity 4,543 4,675 — Total impaired loans $ $ $ — Year Ended Year Ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Received Investment Received Impaired loans with no specific reserves: Commercial real estate 10,232 — 15,031 — Residential mortgages 9,360 — 4,429 — Commercial and industrial 3,149 — 3,256 — Home equity 3,205 — 4,834 — Consumer — — — — $ 25,946 $ — $ 27,550 $ — If interest had been accrued on these non-accrual loans, the interest income recognized would have been approximately $636 thousand and $354 thousand for the years ended December 31, 2017 and 2016 respectively. The following table presents TDR loans (all of which are classified as impaired loans) as of December 31, 2017 and 2016 (in thousands): Accrual Number of Nonaccrual Number of 2017 Status Loans Status Loans Total Commercial real estate $ — — $ 338 1 $ 338 Residential mortgages 637 3 7,446 10 8,083 Home equity — — 2,959 8 2,959 $ 637 3 $ 10,743 19 $ 11,380 Accrual Number of Nonaccrual Number of 2016 Status Loans Status Loans Total Commercial real estate $ — — $ 338 1 $ 338 Residential mortgages 521 2 3,477 5 3,998 Home equity 103 2 3,441 7 3,544 $ 624 4 $ 7,256 13 $ 7,880 The following table summarizes information in regards to troubled debt restructurings that occurred during the year ended December 31, 2017 and 2016 (in thousands): Post- Pre-Modification Modification Outstanding Outstanding Number of Recorded Recorded 2017 Loans Investments Investments Residential mortgages 4 $ 3,695 $ 3,695 Home equity 1 320 320 5 $ 4,015 $ 4,015 Post- Pre-Modification Modification Outstanding Outstanding Number of Recorded Recorded 2016 Loans Investments Investments Residential mortgages 2 $ 543 $ 304 Home equity 6 2,730 2,631 8 $ 3,273 $ 2,935 The following table displays the nature of modifications during the year ended December 31, 2017 (in thousands): Rate Term Interest Only Payment Combination Total 2017 Modification Modification Modification Modification Modification Modifications Pre-modification outstanding recorded investment: Residential mortgages $ — $ 3,695 $ — $ — $ — $ 3,695 Home equity — 320 — — — 320 $ — $ 4,015 $ — $ — $ — $ 4,015 During the years ended December 31, 2017 and 2016, the Company had no loans meeting the definition of a TDR which were placed on default status. The Company may obtain physical possession of real estate collateralizing loans via foreclosure or an in-substance repossession into other real estate owned. As of December 31, 2017 and 2016, the Company has no foreclosed residential real estate properties. In addition, as of December 31, 2017 and 2016, the Company had loans with a carrying value of $2.6 million and $1.7 million respectively, 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, 2017
Premises and Equipment
Premises and Equipment	NOTE 4. Premises and Equipment At December 31, 2017 and 2016, premises and equipment consists of the following (in thousands): 2017 2016 Land $ 4,828 $ 4,828 Building 10,468 10,038 Furniture and fixtures 1,309 1,131 Equipment 2,512 2,223 19,117 18,220 Less accumulated depreciation and amortization 5,392 4,723 Total premises and equipment, net $ 13,725 $ 13,497 Depreciation expense amounted to $669 thousand and $665 thousand for the years ended December 31, 2017 and 2016, respectively.

Deposits

Deposits	12 Months Ended
	Dec. 31, 2017
Deposits
Deposits	NOTE 5. Deposits At December 31, 2017 and 2016, 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): 2017 2016 3 months or less $ 43,535 $ 59,889 Over 3 months through 12 months 95,818 92,044 Over 1 year through 2 years 62,356 51,818 Over 2 years through 3 years 29,110 31,135 Over 3 years through 4 years 40,250 9,976 Over 4 years through 5 years 75,980 47,880 $ 347,049 $ 292,742 At December 31, 2017 and 2016, the Company’s brokered deposits are as follows: 2017 2016 CDARS* Public Funds Reciprocal $ 8,191 $ 7,311 Non-Public Funds Reciprocal 15,186 14,898 FTN** Non-Reciprocal Funds 2,063 4,991 25,440 27,200 *Certificate of Deposit Account Registry Service **First Tennessee National Bank At December 31, 2017 and 2016, deposits of certain municipalities and local government agencies were collateralized by a Municipal Letter of Credit from FHLB in the amount of $40 million and $30 million and securities with a fair value of $20.0 million and $37.2 million, respectively.

Borrowed Funds

Borrowed Funds	12 Months Ended
	Dec. 31, 2017
Borrowed Funds.
Borrowed Funds	NOTE 6. Borrowed Funds Borrowings may consist of fixed rate advances from the FHLB as well as short term borrowings through lines of credit with other financial institutions. Information concerning long-term borrowings at December 31, 2017 and 2016 is as follows (in thousands): 2017 Original Amount Rate Term (years) Maturity Fixed Rate Amortizing Note 1,624 1.50 % June 2019 Fixed Rate Amortizing Note 2,563 1.51 % July 2019 Fixed Rate Amortizing Note 2,511 1.51 % August 2019 Fixed Rate Amortizing Note 2,766 2.02 % August 2021 Fixed Rate Amortizing Note 3,921 1.48 % October 2019 $ 13,385 1.61 % 2016 Original Amount Rate Term (years) Maturity Fixed Rate Medium Note $ 5,000 0.98 % 1 April 2017 Fixed Rate Amortizing Note 2,630 1.50 % 5 June 2019 Fixed Rate Amortizing Note 4,070 1.51 % 5 July 2019 Fixed Rate Amortizing Note 3,916 1.51 % 5 August 2019 Fixed Rate Amortizing Note 3,469 2.02 % 7 August 2021 Fixed Rate Amortizing Note 5,923 1.48 % 5 October 2019 $ 25,008 1.47 % At December 31, 2017 and 2016, loans with a carrying value of approximately $149.3 million and $86.2 million and securities with a fair value of $11.0 million and $11.1 million, respectively, were pledged to secure advances from FHLB. The Company has a $5.0 million line of credit with the Atlantic Community Bankers Bank. In addition, the Bank has a $16.0 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. Additionally, the Bank is a member of the FHLB. The FHLB relationship provides additional borrowing capacity. There were no outstanding borrowings on any of the lines of credit at December 31, 2017 and December 31, 2016.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2017
Income Taxes
Income Taxes	NOTE 7. Income Taxes The current and deferred amounts of the provision for income taxes expense (benefit) for the years ended December 31, 2017 and 2016 is as follows (in thousands): 2017 2016 Current tax expense: Federal $ 2,259 $ 2,455 State 268 162 Deferred income tax benefit: Federal (218) (383) Re-measurement of deferred taxes due to Tax Cuts and Jobs Act 1,393 — State (29) (100) $ 3,673 $ 2,134 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, 2017 and 2016 are as follows (in thousands): 2017 2016 Deferred tax assets: Start up expenses $ 82 $ 152 Allowance for loan losses 2,488 3,541 Accrued expenses 224 299 Stock compensation plans 129 451 Unrealized losses on securities available for sale 135 124 Other 728 605 Total 3,786 5,172 Deferred tax liabilities: Deferred loan costs (52) (83) Prepaid expenses (133) (120) Depreciation (191) (424) Total (376) (627) Net deferred tax asset $ 3,410 $ 4,545 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 2017 and 2016, 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 Sheets. The Tax Cut and Jobs Act that was signed into law on December 22, 2017 resulted in re-measurement of the Company’s deferred tax assets and liabilities at the new 21% federal tax rate compared to a 34% federal tax rate in 2016. The impact of the re-measurement is recorded as a component of income tax expense in the Consolidated Statements of Income for the year ended December 31, 2017. Deferred tax assets related to securities available for sale losses that were revalued as of December 31, 2017 created a “stranded tax effect” in Accumulated Other Comprehensive Income (AOCI) due to the enactment of the Tax Cuts and Jobs Act. The issue arose due to the nature of U.S GAAP recognition of the effect on tax rate changes on the deferred tax assets related to securities available for sale. As mentioned above, the entirety of the revaluation was recorded as an adjustment to income tax provision. There was no corresponding impact to AOCI. In January 2018, the FASB issued ASU 2018-02 (see Note 18). The company early adopted the provisions of the ASU 2018-02 and recorded a one-time reclassification of $58 thousand from AOCI to retained earnings for stranded tax effects resulting from the newly enacted corporate tax rate. The amount of the reclassificaiton was the difference between the 34% historical corporate tax rate and the newly enacted 21% corporate tax rate. See Statement of Changes in Stockholders’ Equity for details of the reclassification. A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 34% is shown below (in thousands): 2017 2016 Federal income tax expense at statutory rate $ 2,464 $ 2,086 Increase (decrease) in taxes resulting from: State taxes, net of federal income tax expense 158 41 Tax exempt income (20) (13) Stock-based compensation (317) 21 Meals and entertainment 4 10 Re-measurement of deferred taxes due to Tax Cuts and Jobs Act 1,393 — Other (9) (11) Effective Income Tax $ 3,673 $ 2,134 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.

Leases

Leases	12 Months Ended
	Dec. 31, 2017
Leases
Leases	NOTE 8. Leases The Company leases 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, for the years ended December 31, 2017 and December 31, 2016, respectively. 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, 2017 (in thousands): Year ending December 31, 2018 $ 1,396 2019 1,174 2020 879 2021 648 2022 369 Thereafter 863 $ 5,329

Related-party Transactions

Related-party Transactions	12 Months Ended
	Dec. 31, 2017
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 those loans were nonaccrual, past due, or restructures at December 31, 2017 while five of such loans were nonaccrual at December 31, 2016. The borrower of these five loans is no longer a related party, effective January 13, 2017 and the reduction in total related-party loan balances is reflected in the table below. Related party deposit balances were $34.9 million and $55.5 million at December 31, 2017 and 2016, respectively. The following table represents a summary of related-party loan activity during the years ended December 31, 2017 and 2016 (in thousands): 2017 2016 Outstanding loans at beginning of the year $ 22,994 $ 26,791 Advances 7,039 4,098 Repayments (5,314) (7,895) Former director (7,473) — Outstanding loans at end of the year $ 17,246 $ 22,994 Two of the Company’s directors have acted as the Company’s legal counsel on several loan closings. During 2017 and 2016 the total cost of such work has been reimbursed by the respective loan customers and totals $119 thousand and $158 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 $15 thousand and $7 thousand for the years ended December 31, 2017 and 2016, 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 the Company’s directors is the president. Gross insurance premiums paid to carriers through this agency was approximately $220 thousand for the years ended December 31, 2017 and 2016, respectively. The Bank rents office space from entities related to two of the Company’s directors. The total amount of rent expense to these entities was $226 thousand and $443 thousand for the years ended December 31, 2017 and 2016, respectively. The Audit Committee of the Board of Directors or the disinterested directors have reviewed all transactions and relationships with the directors and 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, 2017
Earnings Per Share
Earnings Per Share	NOTE 10. Earnings Per Share The Company’s calculation of earnings per share is as follows: For the year ended December 31, (In thousands except per share data) 2017 2016 Net income available to common stockholders $ 3,574 $ 4,001 Weighted average number of common shares outstanding - basic 6,556 6,274 Basic earnings per share $ 0.55 $ 0.64 Net income available to common stockholders $ 3,574 $ 4,001 Weighted average number of common shares outstanding 6,556 6,274 Effect of dilutive options 16 — Weighted average number of common shares outstanding- diluted 6,572 6,274 Diluted earnings per share $ 0.54 $ 0.64 Non-qualified options to purchase 97,453 shares of common stock at a weighted average price of $11.62 were included in the computation of diluted earnings per share for the year ended December 31, 2017. Non-qualified options to purchase 310,000 shares of common stock at a weighted average price of $11.50; and incentive stock options to purchase 30,000 shares of common stock at a weighted average price of $11.50; non-qualified stock options to purchase 10,000 shares of common stock at a weighted average price of $11.23; and 28,000 unvested shares of restricted stock were included in the computation of diluted earnings per share for the year ended December 31, 2016.

Stockholders' Equity and Divide

Stockholders' Equity and Dividend Restrictions	12 Months Ended
	Dec. 31, 2017
Stockholders' Equity and Dividend Restrictions
Stockholders' Equity and Dividend Restrictions	NOTE 11. Stockholders’ Equity and Dividend Restrictions In 2017, the Company declared a 5% stock dividend and a cash dividend in the amount of $0.10 per share. The stock dividend was paid to shareholders on August 1, 2017 and the cash dividend was paid to shareholders on December 27, 2017. In 2016, the Company declared three cash dividends in the amount of $0.06 per share. These cash dividends were paid to shareholders on March 31, 2016, June 30, 2016 and September 30, 2016. 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 for 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, 2017
Benefit Plans
Benefit Plans	NOTE 12. Benefit Plans Stock option and restricted share information, and the related activity, for the periods presented have been adjusted for a 5% stock dividend declared on June 26, 2017. 2006 Stock Option Plan During 2006, the Bank’s stockholders approved the 2006 Stock Option Plan. At the time of the holding company reorganization, the 2006 Stock Option Plan was assumed by the Company. The plan allows the Company to grant options to directors and employees of the Company to purchase up to 251,983 shares of the Company’s common stock. At December 31, 2017, stock options to purchase 220,659 shares, net of forfeitures have been issued to directors and employees of the Company under the 2006 Stock Option Plan, of which options to purchase 51,253 shares were outstanding. There are no shares available for grants under the 2006 Stock Options Plan as the plan has expired. During 2016, the Company granted 67,158 Non-Qualified Stock Options (“NQO”) to employees of the Company. The fair value of the NQOs granted was $2.63 per NQO on the date of grant. The fair value of the NQOs was determined using the Black-Scholes option pricing model. The following assumptions were used in determining the fair value of the NQOs granted: expected dividend yield of 2.149%, risk free interest rate of 1.57%, expected volatility of 26.54% and expected lives of 10 years. One third of the NQOs granted vest each on February 1, 2017, February 1, 2018 and February 1, 2019. Under the 2006 Stock Option Plan, there were 34,545 unvested options at December 31, 2017 and 59,283 unvested options at December 31, 2016. At December 31, 2017 there was $49 thousand of unrecognized compensation expense related to unvested options. For the three months and year ended December 31, 2017, $1 thousand and $49 thousand, respectively was recorded as expense for options that have been issued through the 2006 Plan. For the three months and year ended December 31, 2016, $29 thousand and $48 thousand, respectively was recorded as expense for options that have been issued through the 2006 Plan. During the year ended December 31, 2017 options to purchase 31,500 shares and 881 shares of common stock at a price of $10.95 and $10.64, respectively, per share were exercised for a total price of $354 thousand. A summary of stock option activity under the 2006 Stock Option Plan during the years ended December 31, 2016 and 2017 are presented below: Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2015 167,685 $ 9.73 Granted 67,158 10.64 Forfeited (59,745) 10.73 Exercised (84,315) 8.66 Outstanding at December 31, 2016 $ $ 191,552 Exercisable at December 31, 2016 $ $ 60,000 Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2016 90,783 $ 10.74 Forfeited (7,149) 10.64 Exercised (32,381) 10.94 Outstanding at December 31, 2017 $ $ 390,035 Exercisable at December 31, 2017 $ $ 127,148 (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, 2017. This amount changes based on the changes in the market value in the Company’s common stock. 2007 Director Plan During 2007, the Bank’s stockholders approved the 2007 Non-Qualified Stock Option Plan for Directors (the “2007 Director Plan”). At the time of the holding company reorganization, the 2007 Director Plan was assumed by the Company. This plan provides for 504,000 options to purchase shares of the Company’s common stock to be issued to non-employee directors of the Company. At December 31, 2017, stock options to purchase 404,600 shares, net of forfeitures, have been issued to non-employee directors of the Company under the 2007 Director Plan. No options to purchase shares were outstanding at December 31, 2017. There are no shares available for grants under the 2007 Non-Qualified Stock Option Plan as the plan has expired. Under the 2007 Directors Stock Option Plan, there were no unvested options and no unrecognized compensation expense at December 31, 2017 and 2016. In connection with the 2007 Director Plan, no share based compensation expense was recognized for the three months and year ended December 31, 2017. During the year ended December 31, 2017 options to purchase 241,000 shares of common stock at a price of $10.95 per share were exercised for a total price of $2.64 million. A summary of stock option activity under the 2007 Non-Qualified Stock Option Plan for Directors during the years ended December 31, 2016 and 2017 are presented below: Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Life Shares per Share (1) (Years) Outstanding at December 31, 2015 347,901 $ 10.95 Forfeited (22,401) 10.95 Outstanding at December 31, 2016 325,500 $ 10.95 $ 620,000 0.81 Exercisable at December 31, 2016 325,500 $ 10.95 $ 620,000 0.81 Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Life Shares per Share (1) (Years) Outstanding at December 31, 2016 325,500 $ 10.95 Expired (84,500) 10.95 — — Exercised (241,000) 10.95 — — Outstanding at December 31, 2017 — $ — $ — — Exercisable at December 31, 2017 — $ — $ — — (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, 2017. This amount changes based on the changes in the market value in the Company’s common stock. 2011 Equity Incentive Plan During 2011, the stockholders of the Company approved the Bancorp of New Jersey, Inc. 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan authorizes the issuance of up to 262,500 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. At December 31, 2017, there were 156,943 shares, net of forfeitures, issued to employees and directors of the Company under the 2011 Plan. The following is a summary of the non-vested restricted stock awards granted under the 2011 Plan: 2016 Weighted Average Number Grant Date of Shares Fair Value Outstanding, beginning of year 50,663 $ 12.37 Forfeited (4,463) 12.29 Vested (16,800) 12.38 Outstanding, end of year 29,400 $ 2017 Weighted Average Number Grant Date of Shares Fair Value Outstanding, beginning of year 29,400 $ 12.38 Granted 31,500 14.28 Forfeited (4,200) 12.38 Vested (24,150) 13.21 Outstanding, end of year 32,550 $ Approximately $324 thousand remains to be expensed over the next 24 months related to the unvested restricted stock. For the years ended December 31, 2017, and 2016, $287 thousand and $188 thousand, respectively, was recorded as compensation expense for restricted stock that had been issued through the 2011 Plan. During 2016, the Company granted 31,500 NQOs to an executive of the Company. The fair value of the 31,500 NQOs granted was $2.78 per NQO on the date of grant. The fair value of the NQOs was determined using the Black-Scholes option pricing model. The following assumptions were used in determining the fair value of the NQOs granted: expected dividend yield of 2.137%, risk free interest rate of 1.87%, expected volatility of 27.0% and expected lives of 10 years. One third of the NQOs granted vested immediately, with the remaining NQOs vesting over a two year period. In July 2017, the Company granted 14,700 NQOs to employees of the Company. The fair value of the NQOs granted was $6.95 per NQO on the date of grant. The fair value of the NQOs was determined using the Black-Scholes option pricing model. The following assumptions were used in determining the fair value of the NQOs granted: expected dividend yield of 0.00%, risk free interest rate of 2.31%, expected volatility of 26.81% and expected lives of 10 years. One third of the NQOs granted vest each on February 1, 2018, February 1, 2019 and February 1, 2020. Under the 2011 Plan, there were 25,200 unvested options at December 31, 2017 and 20,000 unvested options at December 31, 2016. At December 31, 2017 there was $83 thousand of unrecognized compensation expense related to unvested options. For the three months and year ended December 31, 2017, $24 thousand and $57 thousand, respectively were recorded as expense for options that have been issued through the 2011 Plan. For the three months and year ended December 31, 2016, $7 thousand and $49 thousand, respectively were recorded as expense for options that have been issued through the 2011 Plan. No options were exercised under the 2011 Plan during the years ended December 31, 2017 and 2016. A summary of stock option activity under the 2011 Plan during the years ended December 31, 2016 and 2017 are presented below: Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2015 — $ — Granted 31,500 Outstanding at December 31, 2016 $ $ 68,100 Exercisable at December 31, 2016 $ $ 22,700 Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2016 31,500 $ Granted 14,700 Outstanding at December 31, 2017 $ $ 255,465 Exercisable at December 31, 2017 $ $ 158,500 (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, 2017. This amount changes based on the changes in the market value in the Company’s common stock. Defined Contribution Plan The Company currently offers a Safe Harbor 401(k) Plan (“Plan”) covering eligible employees, wherein employees can invest eligible pretax and after tax earnings up to the Plan and legal limits. The Company makes safe harbor matching contributions equal to 100% of the employees’ earnings deferrals that do not exceed 4% of the employees’ compensation. The Company recorded matching contributions of approximately $216 thousand and $80 thousand during 2017 and 2016, respectively.

Regulatory Capital Requirements

Regulatory Capital Requirements	12 Months Ended
	Dec. 31, 2017
Regulatory Capital Requirements
Regulatory Capital Requirements	NOTE 13. Regulatory Capital Requirements The Bank is 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 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 to meet a minimum Tier 1 leverage ratio, Common equity tier 1 risk-based capital ratio, Tier 1 risk-based 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 risk-weighted 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 Dodd-Frank 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 on January 1, 2015. As of December 31, 2017 and 2016, management believes that the Bank meets all capital adequacy requirements to which it is subject. As of December 31, 2017, 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 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's category. The following is a summary of the Bank’s actual capital amounts and ratios as of December 31, 2017 and 2016 compared to the FDIC minimum capital adequacy requirements and the FDIC requirements for classification as a well-capitalized institution. FDIC requirements Minimum Capital Minimum Capital For Classification Bank actual Adequacy With Phase-in Buffer As Well Capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio 2017 Leverage (Tier 1) Capital Ratio $ 83,664 9.59 % $ 34,888 4.00 % $ N/A $ 43,610 5.00 % Risk-Based Capital: Common Equity Tier 1 Capital $ 83,664 10.84 % $ 34,746 4.50 % $ 44,397 5.75 % $ 50,188 6.50 % Tier 1 Capital Ratio $ 83,664 10.84 % $ 46,327 6.00 % $ 55,979 7.25 % $ 61,770 8.00 % Total Capital Ratio $ 92,265 11.95 % $ 61,770 8.00 % $ 71,421 9.25 % $ 77,212 10.00 % 2016 Leverage (Tier 1) Capital Ratio $ 77,337 9.02 % $ 33,293 4.00 % $ N/A $ 41,617 5.00 % Risk-based capital: Common Equity Tier 1 Capital $ 77,337 10.98 % $ 31,685 4.50 % $ 36,086 5.125 % $ 45,767 6.50 % Tier 1 Capital Ration $ 77,337 10.98 % $ 42,247 6.00 % $ 46,647 6.625 % $ 56,329 8.00 % Total Capital Ratio $ 85,993 12.21 % $ 56,329 8.00 % $ 60,730 8.625 % $ 70,411 10.00 % Since the Company has less than $1 billion in assets, it is not subject to minimum consolidated capital ratio requirements.

Financial Instruments with Off-

Financial Instruments with Off-Balance Sheet Risk	12 Months Ended
	Dec. 31, 2017
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 $83 million and $95.3 million at December 31, 2017 and 2016. At December 31, 2017 and 2016, the Company had outstanding letters of credit to customers totaling $3.4 million and $3.6 million, respectively, whereby the Company 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, 2017 and 2016, such amounts were deemed not material.

Financial Information of Parent

Financial Information of Parent Company	12 Months Ended
	Dec. 31, 2017
Financial Information of Parent Company
Financial Information of Parent Company	NOTE 15. Financial Information of Parent Company The following information represents Bancorp of New Jersey, Inc. only balance sheets as of December 31, 2017 and 2016, respectively, the statements of income for the years ended December 31, 2017 and December 31, 2016, and the statements of cash flows for the years December 31, 2017 and December 31, 2016 and should be read in conjunction with the notes to the consolidated financial statements. Balance Sheets (in thousands) December 31, 2017 2016 Assets: Investment in subsidiary, net $ 83,309 $ 77,144 Total assets $ 83,309 $ 77,144 Liabilities and stockholders’ equity: Stockholders’ equity $ 83,309 $ 77,144 $ 83,309 $ 77,144 Statements of Income and Comprehensive Income Years ended December 31, (in thousands) 2017 2016 Equity in undistributed earnings of subsidiary bank $ 3,574 $ 4,001 Net income 3,574 4,001 Other comprehensive (loss) income (162) 103 Comprehensive income $ 3,412 $ 4,104 Statements of Cash Flow Years ended December 31, (in thousands) 2017 2016 Cash flow from operating activities: Net income $ 3,574 $ 4,001 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the subsidiary bank (3,574) (4,001) Net cash provided by operating activities: — — Cash flows from investing activities: Cash dividends received from subsidiary bank 695 1,128 Net cash provided by investing activities 695 1,128 Cash flows from financing activities: Cash dividends paid (695) (1,128) Net cash provided by financing activities (695) (1,128) Net change in cash for the period — — Net cash at beginning of year — — Net cash at end of year $ — $ —

Fair Value Measurements and Fai

Fair Value Measurements and Fair Value of Financial Instruments	12 Months Ended
	Dec. 31, 2017
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, 2017 and December 31, 2016, respectively, are as follows (in thousands): (Level 1) (Level 2) (Level 3) Quoted Prices in Active Markets Significant Other December 31, for Identical Observable Significant Description 2017 Assets Inputs Unobservable Inputs Securities available for sale: U.S. Treasury securities $ 6,162 $ — $ 6,162 $ — Government sponsored enterprise obligations: Agency backed 33,235 33,235 Mortgage backed 13,837 — 13,837 — Total securities available for sale $ 53,234 $ — $ 53,234 $ — (Level 1) (Level 2) (Level 3) Quoted Prices in Active Markets Significant Other December 31, for Identical Observable Significant Description 2016 Assets Inputs Unobservable Inputs Securities available for sale: U.S. Treasury securities $ 6,268 $ — $ 6,268 $ — Government sponsored enterprise obligations 55,321 — 55,321 — Total securities available for sale $ 61,589 $ — $ 61,589 $ — For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at December 31, 2017 and December 31, 2016, respectively, is as follows (in thousands): (Level 1) (Level 2) (Level 3) Quoted Prices in December 31, Active Markets for Significant Other Significant Description 2017 Identical Assets Observable Inputs Unobservable Inputs Other real estate owned $ 415 $ — $ — $ 415 (Level 1) (Level 2) (Level 3) Quoted Prices in December 31, Active Markets for Significant Other Significant Description 2016 Identical Assets Observable Inputs Unobservable Inputs Other real estate owned $ 614 $ — $ — $ 614 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): Fair Value Valuation Unobservable Range December 31, 2017 Estimate Techniques Input (Weighted Average) Other real estate owned $ 415 Appraisal of Collateral (1) Appraisal Adjustments (2) 21.8 Liquidation Expenses (2) 6.8 Fair Value Valuation Unobservable Range December 31, 2016 Estimate Techniques Input (Weighted Average) Other real estate owned $ 614 Appraisal of Collateral (1) Appraisal Adjustments (2) 11.5% - 48.40% (21.8)% Liquidation Expenses (2) 8.9% - 10.3% (9.3)% (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) Appraisals may be adjusted for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal 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. Fair value estimates for the Company’s financial instruments are as follows at December 31, 2017 and 2016 (in thousands): (Level 1) (Level 2) (Level 3) Quoted Prices in Significant December 31, 2017 Active Markets for Significant Other Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ 92,619 $ 92,619 $ 92,619 $ — $ — Interest bearing time deposits 1,000 1,000 — 1,000 — Securities available for sale 53,234 53,234 — 53,234 — Securities held to maturity 6,058 6,058 — 6,058 — Restricted investment in bank stock 1,380 1,380 — 1,380 — Net loans 712,076 703,901 — — 703,901 Accrued interest receivable 2,695 2,695 — 2,695 — Financial liabilities: Deposits 788,293 793,879 — 793,879 — Borrowed funds 13,385 13,307 — 13,307 — Accrued interest payable 651 651 — 651 — (Level 1) (Level 2) (Level 3) Quoted Prices in Significant December 31, 2016 Active Markets for Significant Other Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ 76,976 $ 76,976 $ 76,976 $ — $ — Interest bearing time deposits 1,000 1,000 — 1,000 — Securities available for sale 61,589 61,589 — 61,589 — Securities held to maturity 7,343 7,343 — 7,343 — Restricted investment in bank stock 1,983 1,983 — 1,983 — Net loans 651,698 659,084 — — 659,084 Accrued interest receivable 2,366 2,366 — 2,366 — Financial liabilities: Deposits 717,988 722,711 — 722,711 — Borrowed funds 25,008 24,933 — 24,933 — Accrued interest payable 516 516 — 516 — The following methods and assumptions were used to estimate the fair values of the Company’s financial instruments at December 31, 2017 and 2016. Cash and Cash Equivalents 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 may be adjusted to reflect illiquidity 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) would be used to support fair values of certain Level 3 investments, if applicable. 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 fair value 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. Borrowed Funds The fair value of borrowed funds is estimated using quoted market prices, if available, or by discounting future cash flows using current interest rates for similar financial instruments. Limitation The preceding fair value estimates were made at December 31, 2017 and 2016 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, 2017 and 2016, 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, 2017
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	NOTE 17. Accumulated Other Comprehensive Income (Loss) There were no reclassifications out of accumulated comprehensive income due to sale of securities for the years ended December 31, 2017 and 2016.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	12 Months Ended
	Dec. 31, 2017
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 2014-09, Revenue from Contracts with Customers (Topic 606) In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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 implementation of ASU 2014-09 should not have a material impact on the Company’s consolidated financial position or consolidated results of operations. However, the Company does believe the new standard will result in new disclosure requirements. The Company is currently in the process of reviewing contracts to assess the impact of the new guidance on our service offerings that are in the scope of the guidance, included in non-interest income such as service charges and payments processing fees. The Company is continuing to evaluate the effect of the new guidance on revenue sources other than financial instruments on its consolidated financial statements. ASU 2016-1, 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 2016-01 will be effective for the Company 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. In February 2016 the FASB issued 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. ASU 2016-13, Financial Instruments – Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses. ASU 2016-13 requires entities to report “expected” credit losses on financial instruments and other commitments to extend credit rather than the current “incurred loss” model. These expected credit losses for financial assets held at the reporting date are to be based on historical experience, current conditions, and reasonable and supportable forecasts. This ASU will also require enhanced disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an entity’s portfolio. These disclosures include qualitative and quantitative requirements that provide additional information about the amounts recorded in the financial statements. For public business entities that are U.S. Securities and Exchange Commission filers, the amendments are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For all other public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2020, and interim periods within fiscal years beginning after December 15, 2021. The Company is currently evaluating the impact the adoption of ASU 2016-13 will have on its consolidated financial statements and results of operations. ASU 2018-02, Income Statement – Reporting Comprehensive Income On February 2, 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 202) . The amendments in this ASU affect any entity that is required to apply the provisions of Topic 220, Income Statement—Reporting Comprehensive Income, and has items of other comprehensive income for which the related tax effects are presented in other comprehensive income as required by GAAP. The amendments in this ASU allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the 2017 Tax Reform Act; eliminates the stranded tax effects resulting from the 2017 Tax Reform Act. The amendments in this ASU are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this update is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued. The amendments in this ASU should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the 2017 Tax Reform Act is recognized. BONJ adopted the provision of ASU 2018-02 effective December 31, 2017. The effect of adoption at BONJ resulted in a reclassification of $58,000 from accumulated other comprehensive loss to retained earnings in the consolidated statements of stockholders' equity.

Significant Accounting Policies

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2017
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. Bancorp of New Jersey is incorporated under the laws of the State of New Jersey to serve as a holding company for the Bank. All significant inter-company accounts and transactions have been eliminated in consolidation.
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 and the determination of other-than-temporary impairment on securities. 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’s 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 accounting principles generally accepted in the United States of America (“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, which approximate fair value.
Regulators	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 (“FRB”).
Investment Securities	Investment 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 Consolidated Statements of Income. 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 the Company’s premises and equipment range from 3 years for certain computer related equipment to 39 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. For all commercial loans receivable, the accrual of interest on loans 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 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. 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 general and unallocated components. 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. 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 concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings (“TDR”) and classified as impaired. All or part of the principal balance of a loan is charged-off 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 TDR agreement. Loans whose terms are modified are classified as TDRs if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a TDR generally involve a temporary reduction in interest rate or 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 TDR 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 classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. In addition 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. Management believes the level of the allowance for loan losses was adequate to absorb losses inherent in the loan portfolio as of December 31, 2017.
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 Accounting Standards Codification (“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 $397 thousand and $285 thousand during 2017 and 2016, respectively. At December 31, 2017, the Company had $132 thousand of unrecognized compensation expense related to stock options. At December 31, 2017, the Company had $324 thousand of unrecognized compensation expense related to unvested restricted stock.
Income Taxes	Income Taxes The Company uses the asset and liability method of accounting for income taxes. There are two components of the income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted law to the taxable income or excess of deductions and revenues. 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 for the current period and income, expenses, or gains and losses not included in the Consolidated Statements of Income and which are reported directly as a separate component of stockholders’ equity.
Advertising	Advertising The Company expenses advertising costs as incurred. Advertising expenses totaled $216 thousand and $308 thousand for 2017 and 2016, respectively and are included in other operating expenses.
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 Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity, 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 of New York (“FHLB”) of $1.28 million and Atlantic Community Bankers Bank, (“ACBB”) of $100 thousand respectively as of December 31, 2017. Federal law requires a member institution of the FHLB to hold stock according to a predetermined formula. Management believes no impairment charge is necessary related to the FHLB or ACBB restricted stock as of December 31, 2017.
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 (“FRBNY”). At December 31, 2017 and 2016, these reserve balances amounted to $3.8 million and $5.9 million, respectively, and are reflected in interest bearing deposits in banks.

Securities (Tables)

Securities (Tables)	12 Months Ended
	Dec. 31, 2017
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, 2017 and 2016 is as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair 2017 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ 6,058 $ — $ — $ 6,058 Total securities held to maturity 6,058 — — 6,058 Securities Available for Sale: U.S. Treasury securities 6,286 — (124) 6,162 Government sponsored enterprise obligations Agency backed 33,453 — (218) 33,235 Mortgage backed 13,986 — (149) 13,837 Total securities available for sale 53,725 — (491) 53,234 $ 59,783 $ — $ (491) $ 59,292 Gross Gross Amortized Unrealized Unrealized Fair 2016 Cost Gains Losses Value Securities Held to Maturity: Obligations of states and political subdivisions $ 7,343 $ — $ — $ 7,343 Total securities held to maturity 7,343 — — 7,343 Securities Available for Sale: U.S. Treasury securities 6,400 — (132) 6,268 Government sponsored enterprise obligations 55,506 6 (191) 55,321 Total securities available for sale 61,906 6 (323) 61,589 $ 69,249 $ 6 $ (323) $ 68,932
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, 2017 and 2016 are as follows (in thousands): Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized 2017 Value Losses Value Losses Value Losses Securities Available for Sale: U.S. Treasury securities — — 6,162 (124) 6,162 (124) Government sponsored enterprise obligations 23,691 (201) 23,381 (166) 47,072 (367) Total securities available for sale 23,691 (201) 29,543 (290) 53,234 (491) Total securities $ 23,691 $ (201) $ 29,543 $ (290) $ 53,234 $ (491) Less than 12 Months More than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized 2016 Value Losses Value Losses Value Losses Securities Available for Sale: U.S. Treasury securities — — 6,268 (132) 6,268 (132) Government sponsored enterprise obligations 34,473 (158) 6,966 (33) 41,439 (191) Total securities available for sale 34,473 (158) 13,234 (165) 47,707 (323) Total securities $ 34,473 $ (158) $ 13,234 $ (165) $ 47,707 $ (323)
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, 2017, the maturity distribution of the Company’s held to maturity and available for sale portfolios (in thousands): Securities Held to Maturity Securities Available for Sale Amortized Fair Amortized Fair Cost Value Cost Value One year or less $ 6,058 $ 6,058 $ 18,047 $ 17,933 After one to five years — — 21,692 21,465 Greater than five years — — 13,986 13,836 Total $ 6,058 $ 6,058 $ 53,725 $ 53,234

Loans and Allowance for Loan 30

Loans and Allowance for Loan Losses (Tables)	12 Months Ended
	Dec. 31, 2017
Loans and Allowance for Loan Losses
Summary of loans	Loans at December 31, 2017 and 2016, are summarized as follows (in thousands): December 31, 2017 December 31, 2016 Commercial real estate $ 573,941 $ 492,296 Residential mortgages 66,497 78,961 Commercial and industrial 27,237 30,259 Home equity 53,199 58,399 Consumer 317 656 $ 721,191 $ 660,571
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, 2017 (in thousands): Commercial Residential Commercial Real Estate Mortgages & Industrial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ 5,925 $ 554 $ 809 $ 425 $ 6 $ 568 $ 8,287 Charge-offs — (49) (90) (171) (97) — (407) Recoveries 30 — 1 — 6 — 37 Provision (88) (133) (145) 149 135 482 400 Ending balance $ 5,867 $ 372 $ 575 $ 403 $ 50 $ 1,050 $ 8,317 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 5,867 $ 372 $ 575 $ 403 $ 50 $ 1,050 $ 8,317 Loan receivables: Ending balance $ 573,941 $ 66,497 $ 27,237 $ 53,199 $ 317 $ — $ 721,191 Ending balance: individually evaluated for impairment $ 11,554 $ 8,966 $ 2,957 $ 3,214 $ — $ — $ 26,691 Ending balance: collectively evaluated for impairment $ 562,387 $ 57,531 $ 24,280 $ 49,985 $ 317 $ — $ 694,500 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, 2016 (in thousands): Commercial Residential Commercial Real Estate Mortgages & Industrial Home Equity Consumer Unallocated Total Allowance for loan losses: Beginning Balance $ 5,566 $ 572 $ 1,066 $ 573 $ 39 $ 204 $ 8,020 Charge-offs — (158) (1,026) (155) (1) — (1,340) Recoveries 35 — 2 — — — 37 Provision 324 140 767 7 (32) 364 1,570 Ending balance $ 5,925 $ 554 $ 809 $ 425 $ 6 $ 568 $ 8,287 Ending balance: individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — Ending balance: collectively evaluated for impairment $ 5,925 $ 554 $ 809 $ 425 $ 6 $ 568 $ 8,287 Loan receivables: Ending balance $ 492,296 $ 78,961 $ 30,259 $ 58,399 $ 656 $ — $ Ending balance: individually evaluated for impairment $ 10,485 $ 9,731 $ 3,257 $ 4,543 $ — $ — $ 28,016 Ending balance: collectively evaluated for impairment $ 481,811 $ 69,230 $ 27,002 $ 53,856 $ 656 $ — $ 632,555
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, 2017 and 2016 (in thousands): 30-59 Days 60-89 Days 90+ Days Total Past Total Loans Nonaccrual 2017 Past Due Past Due Past Due Due Current Receivables Loans Commercial real estate $ 209 $ — $ 3,344 $ 3,553 $ 570,388 $ 573,941 $ 3,344 Residential mortgages 2,463 974 9,052 12,489 54,008 66,497 9,052 Commercial and industrial — 25 2,957 2,982 24,255 27,237 2,957 Home equity 1,823 775 3,073 5,671 47,528 53,199 3,073 Consumer — — — — 317 317 — $ 4,495 $ 1,774 $ 18,426 $ 24,695 $ 696,496 $ 721,191 $ 18,426 30-59 Days 60-89 Days Greater than Total Past Total Loans Nonaccrual 2016 Past Due Past Due 90 Days Due Current Receivables Loans Commercial real estate $ 2,744 $ — $ 5,992 $ 8,736 $ 483,560 $ 492,296 $ 5,992 Residential mortgages — — 3,907 3,907 75,054 78,961 3,907 Commercial and industrial — — 3,257 3,257 27,002 30,259 3,257 Home equity 1,590 — 5,597 7,187 51,212 58,399 5,597 Consumer — — — — 656 656 — $ 4,334 $ — $ 18,753 $ 23,087 $ 637,484 $ 660,571 $ 18,753
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, 2017 and 2016 (in thousands): Commercial Residential Commercial 2017 Real Estate Mortgages & Industrial Home Equity Consumer Total Pass $ 562,387 $ 56,407 $ 24,051 $ 49,985 $ 317 $ 693,147 Special Mention — 1,124 229 — — 1,353 Substandard 11,554 8,966 2,957 3,214 — 26,691 Doubtful — — — — — — $ 573,941 $ 66,497 $ 27,237 $ 53,199 $ 317 $ 721,191 Commercial Residential Commercial 2016 Real Estate Mortgages & Industrial Home Equity Consumer Total Pass $ $ $ $ $ $ Special Mention 600 2,026 — — Substandard 9,731 — 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, 2017 and 2016 (in thousands): Unpaid Recorded Principal Related 2017 Investment Balance Allowance Commercial real estate $ 11,554 $ 11,578 $ — Residential mortgages 8,966 10,287 — Commercial and industrial 2,957 3,057 — Home equity 3,214 3,509 — Total impaired loans $ 26,691 $ 28,431 $ — Unpaid Recorded Principal Related 2016 Investment Balance Allowance Commercial real estate $ 10,485 $ 10,509 $ — Residential mortgages 9,731 10,804 — Commercial and industrial 3,257 3,257 — Home equity 4,543 4,675 — Total impaired loans $ $ $ — Year Ended Year Ended December 31, 2017 December 31, 2016 Average Interest Average Interest Recorded Income Recorded Income Investment Received Investment Received Impaired loans with no specific reserves: Commercial real estate 10,232 — 15,031 — Residential mortgages 9,360 — 4,429 — Commercial and industrial 3,149 — 3,256 — Home equity 3,205 — 4,834 — Consumer — — — — $ 25,946 $ — $ 27,550 $ —
Schedule of TDR loans	The following table presents TDR loans (all of which are classified as impaired loans) as of December 31, 2017 and 2016 (in thousands): Accrual Number of Nonaccrual Number of 2017 Status Loans Status Loans Total Commercial real estate $ — — $ 338 1 $ 338 Residential mortgages 637 3 7,446 10 8,083 Home equity — — 2,959 8 2,959 $ 637 3 $ 10,743 19 $ 11,380 Accrual Number of Nonaccrual Number of 2016 Status Loans Status Loans Total Commercial real estate $ — — $ 338 1 $ 338 Residential mortgages 521 2 3,477 5 3,998 Home equity 103 2 3,441 7 3,544 $ 624 4 $ 7,256 13 $ 7,880
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, 2017 and 2016 (in thousands): Post- Pre-Modification Modification Outstanding Outstanding Number of Recorded Recorded 2017 Loans Investments Investments Residential mortgages 4 $ 3,695 $ 3,695 Home equity 1 320 320 5 $ 4,015 $ 4,015 Post- Pre-Modification Modification Outstanding Outstanding Number of Recorded Recorded 2016 Loans Investments Investments Residential mortgages 2 $ 543 $ 304 Home equity 6 2,730 2,631 8 $ 3,273 $ 2,935
Schedule of nature of modifications	The following table displays the nature of modifications during the year ended December 31, 2017 (in thousands): Rate Term Interest Only Payment Combination Total 2017 Modification Modification Modification Modification Modification Modifications Pre-modification outstanding recorded investment: Residential mortgages $ — $ 3,695 $ — $ — $ — $ 3,695 Home equity — 320 — — — 320 $ — $ 4,015 $ — $ — $ — $ 4,015

Premises and Equipment (Tables)

Premises and Equipment (Tables)	12 Months Ended
	Dec. 31, 2017
Premises and Equipment
Schedule of premises and equipment	At December 31, 2017 and 2016, premises and equipment consists of the following (in thousands): 2017 2016 Land $ 4,828 $ 4,828 Building 10,468 10,038 Furniture and fixtures 1,309 1,131 Equipment 2,512 2,223 19,117 18,220 Less accumulated depreciation and amortization 5,392 4,723 Total premises and equipment, net $ 13,725 $ 13,497

Deposits (Tables)

Deposits (Tables)	12 Months Ended
	Dec. 31, 2017
Deposits
Summary of the maturity of time deposits (which includes certificates of deposit and individual retirement account (IRA) certificates)	At December 31, 2017 and 2016, 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): 2017 2016 3 months or less $ 43,535 $ 59,889 Over 3 months through 12 months 95,818 92,044 Over 1 year through 2 years 62,356 51,818 Over 2 years through 3 years 29,110 31,135 Over 3 years through 4 years 40,250 9,976 Over 4 years through 5 years 75,980 47,880 $ 347,049 $ 292,742
Schedule of brokered deposits	At December 31, 2017 and 2016, the Company’s brokered deposits are as follows: 2017 2016 CDARS* Public Funds Reciprocal $ 8,191 $ 7,311 Non-Public Funds Reciprocal 15,186 14,898 FTN** Non-Reciprocal Funds 2,063 4,991 25,440 27,200 *Certificate of Deposit Account Registry Service **First Tennessee National Bank

Borrowed Funds (Tables)

Borrowed Funds (Tables)	12 Months Ended
	Dec. 31, 2017
Borrowed Funds.
Schedule of information concerning long-term borrowings	Information concerning long-term borrowings at December 31, 2017 and 2016 is as follows (in thousands): 2017 Original Amount Rate Term (years) Maturity Fixed Rate Amortizing Note 1,624 1.50 % June 2019 Fixed Rate Amortizing Note 2,563 1.51 % July 2019 Fixed Rate Amortizing Note 2,511 1.51 % August 2019 Fixed Rate Amortizing Note 2,766 2.02 % August 2021 Fixed Rate Amortizing Note 3,921 1.48 % October 2019 $ 13,385 1.61 % 2016 Original Amount Rate Term (years) Maturity Fixed Rate Medium Note $ 5,000 0.98 % 1 April 2017 Fixed Rate Amortizing Note 2,630 1.50 % 5 June 2019 Fixed Rate Amortizing Note 4,070 1.51 % 5 July 2019 Fixed Rate Amortizing Note 3,916 1.51 % 5 August 2019 Fixed Rate Amortizing Note 3,469 2.02 % 7 August 2021 Fixed Rate Amortizing Note 5,923 1.48 % 5 October 2019 $ 25,008 1.47 %

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2017
Income Taxes
Schedule of current and deferred amounts of the provision for income taxes expense (benefit)	The current and deferred amounts of the provision for income taxes expense (benefit) for the years ended December 31, 2017 and 2016 is as follows (in thousands): 2017 2016 Current tax expense: Federal $ 2,259 $ 2,455 State 268 162 Deferred income tax benefit: Federal (218) (383) Re-measurement of deferred taxes due to Tax Cuts and Jobs Act 1,393 — State (29) (100) $ 3,673 $ 2,134
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, 2017 and 2016 are as follows (in thousands): 2017 2016 Deferred tax assets: Start up expenses $ 82 $ 152 Allowance for loan losses 2,488 3,541 Accrued expenses 224 299 Stock compensation plans 129 451 Unrealized losses on securities available for sale 135 124 Other 728 605 Total 3,786 5,172 Deferred tax liabilities: Deferred loan costs (52) (83) Prepaid expenses (133) (120) Depreciation (191) (424) Total (376) (627) Net deferred tax asset $ 3,410 $ 4,545
A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate	A reconciliation between the amount of the effective income tax expense and the income tax expense that would have been provided at the federal statutory rate of 34% is shown below (in thousands): 2017 2016 Federal income tax expense at statutory rate $ 2,464 $ 2,086 Increase (decrease) in taxes resulting from: State taxes, net of federal income tax expense 158 41 Tax exempt income (20) (13) Stock-based compensation (317) 21 Meals and entertainment 4 10 Re-measurement of deferred taxes due to Tax Cuts and Jobs Act 1,393 — Other (9) (11) Effective Income Tax $ 3,673 $ 2,134

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2017
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, 2017 (in thousands): Year ending December 31, 2018 $ 1,396 2019 1,174 2020 879 2021 648 2022 369 Thereafter 863 $ 5,329

Related-party Transactions (Tab

Related-party Transactions (Tables)	12 Months Ended
	Dec. 31, 2017
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, 2017 and 2016 (in thousands): 2017 2016 Outstanding loans at beginning of the year $ 22,994 $ 26,791 Advances 7,039 4,098 Repayments (5,314) (7,895) Former director (7,473) — Outstanding loans at end of the year $ 17,246 $ 22,994

Earnings Per Share (Tables)

Earnings Per Share (Tables)	12 Months Ended
	Dec. 31, 2017
Earnings Per Share
Schedule showing earnings per share	For the year ended December 31, (In thousands except per share data) 2017 2016 Net income available to common stockholders $ 3,574 $ 4,001 Weighted average number of common shares outstanding - basic 6,556 6,274 Basic earnings per share $ 0.55 $ 0.64 Net income available to common stockholders $ 3,574 $ 4,001 Weighted average number of common shares outstanding 6,556 6,274 Effect of dilutive options 16 — Weighted average number of common shares outstanding- diluted 6,572 6,274 Diluted earnings per share $ 0.54 $ 0.64

Benefit Plans (Tables)

Benefit Plans (Tables)	12 Months Ended
	Dec. 31, 2017
2006 Stock Option Plan
Benefit Plans
Summary of stock option activity	Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2015 167,685 $ 9.73 Granted 67,158 10.64 Forfeited (59,745) 10.73 Exercised (84,315) 8.66 Outstanding at December 31, 2016 $ $ 191,552 Exercisable at December 31, 2016 $ $ 60,000 Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2016 90,783 $ 10.74 Forfeited (7,149) 10.64 Exercised (32,381) 10.94 Outstanding at December 31, 2017 $ $ 390,035 Exercisable at December 31, 2017 $ $ 127,148 (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, 2017. 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	Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Life Shares per Share (1) (Years) Outstanding at December 31, 2015 347,901 $ 10.95 Forfeited (22,401) 10.95 Outstanding at December 31, 2016 325,500 $ 10.95 $ 620,000 0.81 Exercisable at December 31, 2016 325,500 $ 10.95 $ 620,000 0.81 Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Life Shares per Share (1) (Years) Outstanding at December 31, 2016 325,500 $ 10.95 Expired (84,500) 10.95 — — Exercised (241,000) 10.95 — — Outstanding at December 31, 2017 — $ — $ — — Exercisable at December 31, 2017 — $ — $ — — (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, 2017. This amount changes based on the changes in the market value in the Company’s common stock.
2011 Equity Incentive Plan
Benefit Plans
Schedule of summary of the non-vested restricted stock awards	2016 Weighted Average Number Grant Date of Shares Fair Value Outstanding, beginning of year 50,663 $ 12.37 Forfeited (4,463) 12.29 Vested (16,800) 12.38 Outstanding, end of year 29,400 $ 2017 Weighted Average Number Grant Date of Shares Fair Value Outstanding, beginning of year 29,400 $ 12.38 Granted 31,500 14.28 Forfeited (4,200) 12.38 Vested (24,150) 13.21 Outstanding, end of year 32,550 $
2011 Equity Incentive Plan | Non-qualified options
Benefit Plans
Summary of stock option activity	Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2015 — $ — Granted 31,500 Outstanding at December 31, 2016 $ $ 68,100 Exercisable at December 31, 2016 $ $ 22,700 Weighted Weighted Average Average Aggregate Remaining Number of Exercise Price Intrinsic Value Contractual Shares per Share (1) Term Outstanding at December 31, 2016 31,500 $ Granted 14,700 Outstanding at December 31, 2017 $ $ 255,465 Exercisable at December 31, 2017 $ $ 158,500 (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, 2017. This amount changes based on the changes in the market value in the Company’s common stock.

Regulatory Capital Requiremen39

Regulatory Capital Requirements (Tables)	12 Months Ended
	Dec. 31, 2017
Regulatory Capital Requirements
Summary of the Bank's actual capital amounts and ratios compared to the applicable minimum required based on the phase-in provisions and the minimum required to be considered well capitalized	FDIC requirements Minimum Capital Minimum Capital For Classification Bank actual Adequacy With Phase-in Buffer As Well Capitalized Amount Ratio Amount Ratio Amount Ratio Amount Ratio 2017 Leverage (Tier 1) Capital Ratio $ 83,664 9.59 % $ 34,888 4.00 % $ N/A $ 43,610 5.00 % Risk-Based Capital: Common Equity Tier 1 Capital $ 83,664 10.84 % $ 34,746 4.50 % $ 44,397 5.75 % $ 50,188 6.50 % Tier 1 Capital Ratio $ 83,664 10.84 % $ 46,327 6.00 % $ 55,979 7.25 % $ 61,770 8.00 % Total Capital Ratio $ 92,265 11.95 % $ 61,770 8.00 % $ 71,421 9.25 % $ 77,212 10.00 % 2016 Leverage (Tier 1) Capital Ratio $ 77,337 9.02 % $ 33,293 4.00 % $ N/A $ 41,617 5.00 % Risk-based capital: Common Equity Tier 1 Capital $ 77,337 10.98 % $ 31,685 4.50 % $ 36,086 5.125 % $ 45,767 6.50 % Tier 1 Capital Ration $ 77,337 10.98 % $ 42,247 6.00 % $ 46,647 6.625 % $ 56,329 8.00 % Total Capital Ratio $ 85,993 12.21 % $ 56,329 8.00 % $ 60,730 8.625 % $ 70,411 10.00 %

Financial Information of Pare40

Financial Information of Parent Company (Tables)	12 Months Ended
	Dec. 31, 2017
Financial Information of Parent Company
Schedule of Balance Sheet of Parent Company	Balance Sheets (in thousands) December 31, 2017 2016 Assets: Investment in subsidiary, net $ 83,309 $ 77,144 Total assets $ 83,309 $ 77,144 Liabilities and stockholders’ equity: Stockholders’ equity $ 83,309 $ 77,144 $ 83,309 $ 77,144
Schedule of Statement of Income and Comprehensive Income of Parent Company	Statements of Income and Comprehensive Income Years ended December 31, (in thousands) 2017 2016 Equity in undistributed earnings of subsidiary bank $ 3,574 $ 4,001 Net income 3,574 4,001 Other comprehensive (loss) income (162) 103 Comprehensive income $ 3,412 $ 4,104
Schedule of Statement of Cash Flow of Parent Company	Statements of Cash Flow Years ended December 31, (in thousands) 2017 2016 Cash flow from operating activities: Net income $ 3,574 $ 4,001 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of the subsidiary bank (3,574) (4,001) Net cash provided by operating activities: — — Cash flows from investing activities: Cash dividends received from subsidiary bank 695 1,128 Net cash provided by investing activities 695 1,128 Cash flows from financing activities: Cash dividends paid (695) (1,128) Net cash provided by financing activities (695) (1,128) 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 (Tables)	12 Months Ended
	Dec. 31, 2017
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, 2017 and December 31, 2016, respectively, are as follows (in thousands): (Level 1) (Level 2) (Level 3) Quoted Prices in Active Markets Significant Other December 31, for Identical Observable Significant Description 2017 Assets Inputs Unobservable Inputs Securities available for sale: U.S. Treasury securities $ 6,162 $ — $ 6,162 $ — Government sponsored enterprise obligations: Agency backed 33,235 33,235 Mortgage backed 13,837 — 13,837 — Total securities available for sale $ 53,234 $ — $ 53,234 $ — (Level 1) (Level 2) (Level 3) Quoted Prices in Active Markets Significant Other December 31, for Identical Observable Significant Description 2016 Assets Inputs Unobservable Inputs Securities available for sale: U.S. Treasury securities $ 6,268 $ — $ 6,268 $ — Government sponsored enterprise obligations 55,321 — 55,321 — Total securities available for sale $ 61,589 $ — $ 61,589 $ —
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, 2017 and December 31, 2016, respectively, is as follows (in thousands): (Level 1) (Level 2) (Level 3) Quoted Prices in December 31, Active Markets for Significant Other Significant Description 2017 Identical Assets Observable Inputs Unobservable Inputs Other real estate owned $ 415 $ — $ — $ 415 (Level 1) (Level 2) (Level 3) Quoted Prices in December 31, Active Markets for Significant Other Significant Description 2016 Identical Assets Observable Inputs Unobservable Inputs Other real estate owned $ 614 $ — $ — $ 614
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): Fair Value Valuation Unobservable Range December 31, 2017 Estimate Techniques Input (Weighted Average) Other real estate owned $ 415 Appraisal of Collateral (1) Appraisal Adjustments (2) 21.8 Liquidation Expenses (2) 6.8 Fair Value Valuation Unobservable Range December 31, 2016 Estimate Techniques Input (Weighted Average) Other real estate owned $ 614 Appraisal of Collateral (1) Appraisal Adjustments (2) 11.5% - 48.40% (21.8)% Liquidation Expenses (2) 8.9% - 10.3% (9.3)% (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) Appraisals may be adjusted for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.
Schedule of fair value estimates of financial instruments	Fair value estimates for the Company’s financial instruments are as follows at December 31, 2017 and 2016 (in thousands): (Level 1) (Level 2) (Level 3) Quoted Prices in Significant December 31, 2017 Active Markets for Significant Other Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ 92,619 $ 92,619 $ 92,619 $ — $ — Interest bearing time deposits 1,000 1,000 — 1,000 — Securities available for sale 53,234 53,234 — 53,234 — Securities held to maturity 6,058 6,058 — 6,058 — Restricted investment in bank stock 1,380 1,380 — 1,380 — Net loans 712,076 703,901 — — 703,901 Accrued interest receivable 2,695 2,695 — 2,695 — Financial liabilities: Deposits 788,293 793,879 — 793,879 — Borrowed funds 13,385 13,307 — 13,307 — Accrued interest payable 651 651 — 651 — (Level 1) (Level 2) (Level 3) Quoted Prices in Significant December 31, 2016 Active Markets for Significant Other Unobservable Carrying amount Estimated Fair Value Identical Assets Observable Inputs Inputs Financial assets: Cash and cash equivalents $ 76,976 $ 76,976 $ 76,976 $ — $ — Interest bearing time deposits 1,000 1,000 — 1,000 — Securities available for sale 61,589 61,589 — 61,589 — Securities held to maturity 7,343 7,343 — 7,343 — Restricted investment in bank stock 1,983 1,983 — 1,983 — Net loans 651,698 659,084 — — 659,084 Accrued interest receivable 2,366 2,366 — 2,366 — Financial liabilities: Deposits 717,988 722,711 — 722,711 — Borrowed funds 25,008 24,933 — 24,933 — Accrued interest payable 516 516 — 516 —

Summary of Significant Accoun42

Summary of Significant Accounting Policies - Par Value and Branch Offices (Details)	Dec. 31, 2017item
Bank
Significant accounting policies.
Number of branch offices in addition to main office	9

Summary of Significant Accoun43

Summary of Significant Accounting Policies - Premises and Equipment (Details) - USD ($)	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
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
Portion of the allowance for loan losses restricted to any individual loan or groups of loans	$ 0
Stock-Based Compensation
Stock-based compensation expense	397,000	$ 285,000
Unrecognized compensation expenses related to unvested stock options	132,000
Unrecognized compensation expense related to unvested restricted stock granted	324,000
Advertising
Advertising expenses	$ 216,000	$ 308,000
Computer related equipment | Minimum
Premises and equipment
Estimated lives	3 years
Building | Maximum
Premises and equipment
Estimated lives	39 years

Summary of Significant Accoun44

Summary of Significant Accounting Policies - Restrictions (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Restricted Investment in Bank Stock
Restricted investment in bank stock	$ 1,380	$ 1,983
Federal Home Loan Bank of New York
Restricted Investment in Bank Stock
Restricted investment in bank stock	1,280
Atlantic Community Bankers Bank
Restricted Investment in Bank Stock
Restricted investment in bank stock	100
Federal Reserve Bank of New York
Restrictions on Cash and Amounts Due From Banks
Average balances on hand or with the Federal Reserve Bank of New York	$ 3,800	$ 5,900

Securities - Summary (Details)

Securities - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities Held to Maturity:
Amortized Cost	$ 6,058	$ 7,343
Total	6,058	7,343
Securities Available for Sale:
Amortized Cost	53,725	61,906
Gross Unrealized Gains		6
Gross Unrealized Losses	(491)	(323)
Total	53,234	61,589
Total securities
Amortized Cost	59,783	69,249
Gross Unrealized Gains		6
Gross Unrealized Losses	(491)	(323)
Fair Value	59,292	68,932
Obligations of states and political subdivisions
Securities Held to Maturity:
Amortized Cost	6,058	7,343
Total	6,058	7,343
U.S. Treasury securities
Securities Available for Sale:
Amortized Cost	6,286	6,400
Gross Unrealized Losses	(124)	(132)
Total	6,162	6,268
Government sponsored enterprise obligations
Securities Available for Sale:
Amortized Cost		55,506
Gross Unrealized Gains		6
Gross Unrealized Losses		(191)
Total		$ 55,321
Agency backed
Securities Available for Sale:
Amortized Cost	33,453
Gross Unrealized Losses	(218)
Total	33,235
Mortgage backed
Securities Available for Sale:
Amortized Cost	13,986
Gross Unrealized Losses	(149)
Total	$ 13,837

Securities - Pledged Securities

Securities - Pledged Securities and Securities Sold (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Securities
Recognized loss on sale of available for sale securities	$ 0	$ 0

Securities - Unrealized Losses

Securities - Unrealized Losses and Fair Value (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)item	Dec. 31, 2016USD ($)
Securities Available for Sale - Fair Value
Less than 12 Months	$ 23,691	$ 34,473
More than 12 Months	29,543	13,234
Total	53,234	47,707
Securities Available for Sale - Unrealized Losses
Less than 12 Months	(201)	(158)
More than 12 Months	(290)	(165)
Total	(491)	(323)
Total Securities - Fair Value
Less than 12 Months	23,691	34,473
More than 12 Months	29,543	13,234
Total	53,234	47,707
Total Securities - Unrealized Losses
Less than 12 Months	(201)	(158)
More than 12 Months	(290)	(165)
Total	$ (491)	(323)
Number of available for sale securities in unrealized loss position for more than twelve months | item	9
U.S. Treasury securities
Securities Available for Sale - Fair Value
More than 12 Months	$ 6,162	6,268
Total	6,162	6,268
Securities Available for Sale - Unrealized Losses
More than 12 Months	(124)	(132)
Total	$ (124)	(132)
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	$ 23,691	34,473
More than 12 Months	23,381	6,966
Total	47,072	41,439
Securities Available for Sale - Unrealized Losses
Less than 12 Months	(201)	(158)
More than 12 Months	(166)	(33)
Total	$ (367)	$ (191)
Total Securities - Unrealized Losses
Number of available for sale securities in unrealized loss position | item	12

Securities - Maturity Distribut

Securities - Maturity Distribution (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Securities Held to Maturity, Amortized Cost
One year or less	$ 6,058
Amortized Cost	6,058	$ 7,343
Securities Held to Maturity, Fair Value
One year or less	6,058
Total	6,058	7,343
Securities Available for sale, Amortized Cost
One year or less	18,047
After one to five years	21,692
Greater than five years	13,986
Total	53,725
Securities Available for sale, Fair Value
One year or less	17,933
After one to five years	21,465
Greater than five years	13,836
Total	$ 53,234	$ 61,589

Loans and Allowance for Loan 49

Loans and Allowance for Loan Losses - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Loans
Loans receivable	$ 721,191	$ 660,571
Commercial Real Estate
Loans
Loans receivable	573,941	492,296
Residential Mortgages
Loans
Loans receivable	66,497	78,961
Commercial and Industrial
Loans
Loans receivable	27,237	30,259
Home Equity
Loans
Loans receivable	53,199	58,399
Consumer
Loans
Loans receivable	$ 317	$ 656

Loans and Allowance for Loan 50

Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Allowance for loan losses:
Beginning Balance	$ 8,287	$ 8,020
Charge-offs	(407)	(1,340)
Recoveries	37	37
Provision for loan losses	400	1,570
Ending balance	8,287	8,020	$ 8,317	$ 8,287
Ending balance: collectively evaluated for impairment			8,317	8,287
Commercial Real Estate
Allowance for loan losses:
Beginning Balance	5,925	5,566
Recoveries	30	35
Provision for loan losses	(88)	324
Ending balance	5,925	5,566	5,867	5,925
Ending balance: collectively evaluated for impairment			5,867	5,925
Residential Mortgages
Allowance for loan losses:
Beginning Balance	554	572
Charge-offs	(49)	(158)
Provision for loan losses	(133)	140
Ending balance	554	572	372	554
Ending balance: collectively evaluated for impairment			372	554
Commercial and Industrial
Allowance for loan losses:
Beginning Balance	809	1,066
Charge-offs	(90)	(1,026)
Recoveries	1	2
Provision for loan losses	(145)	767
Ending balance	809	1,066	575	809
Ending balance: collectively evaluated for impairment			575	809
Home Equity
Allowance for loan losses:
Beginning Balance	425	573
Charge-offs	(171)	(155)
Provision for loan losses	149	7
Ending balance	425	573	403	425
Ending balance: collectively evaluated for impairment			403	425
Consumer
Allowance for loan losses:
Beginning Balance	6	39
Charge-offs	(97)	(1)
Recoveries	6
Provision for loan losses	135	(32)
Ending balance	6	39	50	6
Ending balance: collectively evaluated for impairment			50	6
Unallocated
Allowance for loan losses:
Beginning Balance	568	204
Provision for loan losses	482	364
Ending balance	$ 568	$ 204	1,050	568
Ending balance: collectively evaluated for impairment			$ 1,050	$ 568

Loans and Allowance for Loan 51

Loans and Allowance for Loan Losses - Loan Receivables (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Loan receivables: Ending balance
Total Loans Receivable	$ 721,191	$ 660,571
Ending balance: individually evaluated for impairment	26,691	28,016
Ending balance: collectively evaluated for impairment	694,500	632,555
Commercial Real Estate
Loan receivables: Ending balance
Total Loans Receivable	573,941	492,296
Ending balance: individually evaluated for impairment	11,554	10,485
Ending balance: collectively evaluated for impairment	562,387	481,811
Residential Mortgages
Loan receivables: Ending balance
Total Loans Receivable	66,497	78,961
Ending balance: individually evaluated for impairment	8,966	9,731
Ending balance: collectively evaluated for impairment	57,531	69,230
Commercial and Industrial
Loan receivables: Ending balance
Total Loans Receivable	27,237	30,259
Ending balance: individually evaluated for impairment	2,957	3,257
Ending balance: collectively evaluated for impairment	24,280	27,002
Home Equity
Loan receivables: Ending balance
Total Loans Receivable	53,199	58,399
Ending balance: individually evaluated for impairment	3,214	4,543
Ending balance: collectively evaluated for impairment	49,985	53,856
Consumer
Loan receivables: Ending balance
Total Loans Receivable	317	656
Ending balance: collectively evaluated for impairment	$ 317	$ 656

Loans and Allowance for Loan 52

Loans and Allowance for Loan Losses - Past Due Status (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Past due receivable
Total Past Due	$ 24,695	$ 23,087
Current	696,496	637,484
Total Loans Receivable	721,191	660,571
Nonaccrual loans	$ 18,426	$ 18,753
Number of accruing loans greater than 90 days delinquent and accruing interest | loan	0	0
Interest income that would have been recognized on nonaccrual loans	$ 636	$ 354
30 to 59 Days Past Due
Past due receivable
Total Past Due	4,495	4,334
60 to 89 Days Past Due
Past due receivable
Total Past Due	1,774
Greater than 90 Days
Past due receivable
Total Past Due	18,426	18,753
Commercial Real Estate
Past due receivable
Total Past Due	3,553	8,736
Current	570,388	483,560
Total Loans Receivable	573,941	492,296
Nonaccrual loans	3,344	5,992
Commercial Real Estate | 30 to 59 Days Past Due
Past due receivable
Total Past Due	209	2,744
Commercial Real Estate | Greater than 90 Days
Past due receivable
Total Past Due	3,344	5,992
Residential Mortgages
Past due receivable
Total Past Due	12,489	3,907
Current	54,008	75,054
Total Loans Receivable	66,497	78,961
Nonaccrual loans	9,052	3,907
Residential Mortgages | 30 to 59 Days Past Due
Past due receivable
Total Past Due	2,463
Residential Mortgages | 60 to 89 Days Past Due
Past due receivable
Total Past Due	974
Residential Mortgages | Greater than 90 Days
Past due receivable
Total Past Due	9,052	3,907
Commercial and Industrial
Past due receivable
Total Past Due	2,982	3,257
Current	24,255	27,002
Total Loans Receivable	27,237	30,259
Nonaccrual loans	2,957	3,257
Commercial and Industrial | 60 to 89 Days Past Due
Past due receivable
Total Past Due	25
Commercial and Industrial | Greater than 90 Days
Past due receivable
Total Past Due	2,957	3,257
Home Equity
Past due receivable
Total Past Due	5,671	7,187
Current	47,528	51,212
Total Loans Receivable	53,199	58,399
Nonaccrual loans	3,073	5,597
Home Equity | 30 to 59 Days Past Due
Past due receivable
Total Past Due	1,823	1,590
Home Equity | 60 to 89 Days Past Due
Past due receivable
Total Past Due	775
Home Equity | Greater than 90 Days
Past due receivable
Total Past Due	3,073	5,597
Consumer
Past due receivable
Current	317	656
Total Loans Receivable	$ 317	$ 656

Loans and Allowance for Loan 53

Loans and Allowance for Loan Losses - Ratings (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Loan portfolio by the aggregate pass rating
Total	$ 721,191	$ 660,571
Pass
Loan portfolio by the aggregate pass rating
Total	693,147	629,608
Special Mention
Loan portfolio by the aggregate pass rating
Total	1,353	2,947
Substandard
Loan portfolio by the aggregate pass rating
Total	26,691	28,016
Commercial Real Estate
Loan portfolio by the aggregate pass rating
Total	573,941	492,296
Commercial Real Estate | Pass
Loan portfolio by the aggregate pass rating
Total	562,387	481,211
Commercial Real Estate | Special Mention
Loan portfolio by the aggregate pass rating
Total		600
Commercial Real Estate | Substandard
Loan portfolio by the aggregate pass rating
Total	11,554	10,485
Residential Mortgages
Loan portfolio by the aggregate pass rating
Total	66,497	78,961
Residential Mortgages | Pass
Loan portfolio by the aggregate pass rating
Total	56,407	67,204
Residential Mortgages | Special Mention
Loan portfolio by the aggregate pass rating
Total	1,124	2,026
Residential Mortgages | Substandard
Loan portfolio by the aggregate pass rating
Total	8,966	9,731
Commercial and Industrial
Loan portfolio by the aggregate pass rating
Total	27,237	30,259
Commercial and Industrial | Pass
Loan portfolio by the aggregate pass rating
Total	24,051	26,681
Commercial and Industrial | Special Mention
Loan portfolio by the aggregate pass rating
Total	229	321
Commercial and Industrial | Substandard
Loan portfolio by the aggregate pass rating
Total	2,957	3,257
Home Equity
Loan portfolio by the aggregate pass rating
Total	53,199	58,399
Home Equity | Pass
Loan portfolio by the aggregate pass rating
Total	49,985	53,856
Home Equity | Substandard
Loan portfolio by the aggregate pass rating
Total	3,214	4,543
Consumer
Loan portfolio by the aggregate pass rating
Total	317	656
Consumer | Pass
Loan portfolio by the aggregate pass rating
Total	$ 317	$ 656

Loans and Allowance for Loan 54

Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Recorded Investment
Total loans	$ 26,691	$ 28,016
Unpaid Principal Balance
Total loans	28,431	29,245
Average Recorded Investment
Total loans	25,946	27,550
Commercial Real Estate
Recorded Investment
Loans with no specific reserves	11,554	10,485
Unpaid Principal Balance
Loans with no specific reserves	11,578	10,509
Average Recorded Investment
Loans with no specific reserves	10,232	15,031
Residential Mortgages
Recorded Investment
Loans with no specific reserves	8,966	9,731
Unpaid Principal Balance
Loans with no specific reserves	10,287	10,804
Average Recorded Investment
Loans with no specific reserves	9,360	4,429
Commercial and Industrial
Recorded Investment
Loans with no specific reserves	2,957	3,257
Unpaid Principal Balance
Loans with no specific reserves	3,057	3,257
Average Recorded Investment
Loans with no specific reserves	3,149	3,256
Home Equity
Recorded Investment
Loans with no specific reserves	3,214	4,543
Unpaid Principal Balance
Loans with no specific reserves	3,509	4,675
Average Recorded Investment
Loans with no specific reserves	$ 3,205	$ 4,834

Loans and Allowance for Loan 55

Loans and Allowance for Loan Losses - Troubled Debt Restructuring (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)loan	Dec. 31, 2016USD ($)loan
Troubled debt restructuring
Accrual Status	$ 637	$ 624
Number of Loans | loan	3	4
Nonaccrual Status	$ 10,743	$ 7,256
Number of Loans | loan	19	13
Total	$ 11,380	$ 7,880
Number of new TDRs | loan	5	8
Pre-modification outstanding recorded investments	$ 4,015	$ 3,273
Post-modification outstanding recorded investments	$ 4,015	$ 2,935
Number of TDR loan contracts which had payment defaults | loan	0	0
Foreclosed properties
Foreclosed residential real estate properties held as a result of obtaining physical possession	$ 0	$ 0
Loans in formal foreclosure proceedings	2,600	1,700
Term Modification
Troubled debt restructuring
Pre-modification outstanding recorded investments	4,015
Residential Mortgages
Troubled debt restructuring
Accrual Status	$ 637	$ 521
Number of Loans | loan	3	2
Nonaccrual Status	$ 7,446	$ 3,477
Number of Loans | loan	10	5
Total	$ 8,083	$ 3,998
Number of new TDRs | loan	4	2
Pre-modification outstanding recorded investments	$ 3,695	$ 543
Post-modification outstanding recorded investments	3,695	304
Residential Mortgages | Term Modification
Troubled debt restructuring
Pre-modification outstanding recorded investments	3,695
Commercial Real Estate
Troubled debt restructuring
Nonaccrual Status	$ 338	$ 338
Number of Loans | loan	1	1
Total	$ 338	$ 338
Home Equity
Troubled debt restructuring
Accrual Status		$ 103
Number of Loans | loan		2
Nonaccrual Status	$ 2,959	$ 3,441
Number of Loans | loan	8	7
Total	$ 2,959	$ 3,544
Number of new TDRs | loan	1	6
Pre-modification outstanding recorded investments	$ 320	$ 2,730
Post-modification outstanding recorded investments	320	$ 2,631
Home Equity | Term Modification
Troubled debt restructuring
Pre-modification outstanding recorded investments	$ 320

Premises and Equipment (Details

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Premises and equipment
Total premises and equipment, gross	$ 19,117	$ 18,220
Less accumulated depreciation and amortization	5,392	4,723
Total premises and equipment, net	13,725	13,497
Depreciation and amortization	669	665
Land
Premises and equipment
Total premises and equipment, gross	4,828	4,828
Building
Premises and equipment
Total premises and equipment, gross	10,468	10,038
Furniture and fixtures
Premises and equipment
Total premises and equipment, gross	1,309	1,131
Equipment
Premises and equipment
Total premises and equipment, gross	$ 2,512	$ 2,223

Deposits (Details)

Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Maturity of Time Deposits
3 months or less	$ 43,535	$ 59,889
Over 3 months through 12 months	95,818	92,044
Over 1 year through 2 years	62,356	51,818
Over 2 years through 3 years	29,110	31,135
Over 3 years through 4 years	40,250	9,976
Over 4 years through 5 years	75,980	47,880
Total time deposits	347,049	292,742
Brokered Deposits
Brokered deposits	25,440	27,200
Public Funds Reciprocal
Brokered Deposits
Brokered deposits	8,191	7,311
Non-Public Funds Reciprocal
Brokered Deposits
Brokered deposits	15,186	14,898
Non-Reciprocal Funds
Brokered Deposits
Brokered deposits	2,063	4,991
Certain municipalities and local government agencies
Brokered Deposits
Municipal Letter of Credit from FHLB that is used to collateralize for deposits of certain municipalities and local government agencies	40,000	30,000
Fair value of securities pledged for deposits from certain municipalities and local government agencies	$ 20,000	$ 37,200

Borrowed Funds (Details)

Borrowed Funds (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Borrowed Funds
Amount outstanding under line of credit facility	$ 0	$ 0
Carrying value of loans was pledged to secure advances from FHLB	149,300	86,200
Securities were pledged to secure advances from FHLB	11,000	11,100
Federal Home Loan Bank of New York
Borrowed Funds
Amount	$ 13,385	$ 25,008
Rate (as a percent)	1.61%	1.47%
F H L B Advances 0.98 Percent Due 2017 April
Borrowed Funds
Amount		$ 5,000
Rate (as a percent)		0.98%
Original Term (years)		1 year
F H L B Advances 1.50 Percent Due 2019 June
Borrowed Funds
Amount	$ 1,624	$ 2,630
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	$ 2,563	$ 4,070
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	$ 2,511	$ 3,916
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	$ 2,766	$ 3,469
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	$ 3,921	$ 5,923
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
Amount outstanding under line of credit facility	$ 5,000

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2016
Current tax expense:
Federal		$ 2,259	$ 2,455
State		268	162
Deferred income tax benefit:
Federal		(218)	(383)
Re-measurement of deferred taxes due to Tax Cuts and Jobs Act		1,393
State		(29)	(100)
Income tax expense		3,673	2,134
Deferred tax assets:
Start up expenses		82	152
Allowance for loan losses		2,488	3,541
Accrued expenses		224	299
Stock compensation plans		129	451
Unrealized losses on securities available for sale		135	124
Other		728	605
Total		3,786	5,172
Deferred tax liabilities:
Deferred loan costs		(52)	(83)
Prepaid expenses		(133)	(120)
Depreciation		(191)	(424)
Total		(376)	(627)
Net deferred tax asset		$ 3,410	$ 4,545
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%	34.00%
Reclassification related to adoption of ASU 2018-02		$ 58
Federal income tax expense at statutory rate		2,464	$ 2,086
Increase (decrease) in taxes resulting from:
State taxes, net of federal income tax expense		158	41
Tax exempt income		(20)	(13)
Stock-based compensation		(317)	21
Meals and entertainment		4	10
Re-measurement of deferred taxes due to Tax Cuts and Jobs Act		1,393
Other		(9)	(11)
Income tax expense		$ 3,673	$ 2,134
Forecast
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)	21.00%

Leases (Details)

Leases (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Leases
Rental expense	$ 1,400	$ 1,400
Future minimum lease payments (exclusive of payments for maintenance, insurance, taxes and any other costs associated with offices) for operating leases
2,018	1,396
2,019	1,174
2,020	879
2,021	648
2,022	369
Thereafter	863
Total future minimum lease payments	$ 5,329

Related-party Transactions (Det

Related-party Transactions (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2017USD ($)itemloan	Dec. 31, 2016USD ($)loan
Related party transactions
Number of loans in nonaccrual, past due, or restructured status | loan	0	5
Related party deposit balance	$ 34,900	$ 55,500
Number of directors related to office space renting entities where the company rents | item	2
Changes in related-party loans
Legal fees, for non-loan related matters	$ 398	260
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	226	443
Bank
Changes in related-party loans
Outstanding loans at beginning of the year	22,994	26,791
Advances	7,039	4,098
Repayments	(5,314)	(7,895)
Former director	(7,473)
Outstanding loans at end of the year	17,246	22,994
Two directors
Changes in related-party loans
Legal fees, for non-loan related matters	$ 15	7
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	$ 119	158
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	$ 220	$ 220

Earnings Per Share - Calculatio

Earnings Per Share - Calculation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Basic earnings per share
Net income available to common stockholders	$ 3,574	$ 4,001
Weighted average number of common shares outstanding - basic	6,556	6,274
Basic earnings per share (in dollars per share)	$ 0.55	$ 0.64
Diluted earnings per share
Net income available to common stockholders	$ 3,574	$ 4,001
Weighted average number of common shares outstanding	6,556	6,274
Effect of dilutive options (in shares)	16
Weighted average number of common shares and common share equivalents- diluted	6,572	6,274
Diluted earnings per share (in dollars per share)	$ 0.54	$ 0.64

Earnings Per Share - Dilution (

Earnings Per Share - Dilution (Details) - $ / shares	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Earnings Per Share
Effect of dilutive options (in shares)	16,000
Incentive stock options at a weighted average price of $11.50
Earnings Per Share
Effect of dilutive options (in shares)		30,000
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share)		$ 11.50
Restricted stock
Earnings Per Share
Effect of dilutive options (in shares)		28,000
Non-qualified stock options at a weighted average price of $11.62
Earnings Per Share
Effect of dilutive options (in shares)	97,453
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share)	$ 11.62
Non-qualified stock options at a weighted average price of $11.50
Earnings Per Share
Effect of dilutive options (in shares)		310,000
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share)		$ 11.50
Nonqualified stock options at a weighted average Price of $11.23
Earnings Per Share
Effect of dilutive options (in shares)		10,000
Weighted average price of incentive stock options included in computation of diluted earnings per share (in dollars per share)		$ 11.23

Stockholders' Equity and Divi64

Stockholders' Equity and Dividend Restrictions (Details)	Jun. 26, 2017	Dec. 31, 2017$ / shares	Dec. 31, 2016item$ / shares
Stockholders' Equity and Dividend Restrictions
Dividends Declared (in percent)	5.00%	5.00%
Cash dividend declared (in dollars per share)		$ 0.10	$ 0.18
Number of quarterly cash dividends | item			3
Quarterly cash dividend declared (in dollars per share)			$ 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 ($)	Jun. 26, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Benefit Plans and Stock-Based Compensation
Dividends Declared (in percent)	5.00%			5.00%
Unrecognized compensation expenses related to unvested stock options						$ 132,000
Share based compensation expense				$ 397,000	$ 285,000
Number of Shares
Exercised (in shares)				(273,381)	(80,300)
Total value of exercised stock options				$ 2,993,000	$ 730,000
2006 Stock Option Plan
Benefit Plans and Stock-Based Compensation
Number of shares available for grants						0
Number of unvested options outstanding						34,545	59,283
Maximum number of shares authorized to be purchased						251,983
Unrecognized compensation expenses related to unvested stock options						$ 49,000
Share based compensation expense		$ 1,000	$ 29,000	$ 49,000	$ 48,000
2006 Stock Option Plan | Incentive stock options
Benefit Plans and Stock-Based Compensation
Aggregate number of incentive stock options issued (in shares)						220,659
Number of shares outstanding under the plan		51,253	90,783	51,253	90,783	51,253	90,783	167,685
Number of Shares
Number of shares outstanding under the plan		51,253	90,783	51,253	90,783	51,253	90,783	167,685
Granted (in shares)					67,158
Forfeited (in shares)				(7,149)	(59,745)
Exercised (in shares)				(32,381)	(84,315)
Outstanding at the end of the period (in shares)		51,253	90,783	51,253	90,783
Exercisable at the end of the period (in shares)						16,708	31,500
Total value of exercised stock options				$ 354,000
Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share)				$ 10.74	$ 9.73
Granted (in dollars per share)					10.64
Forfeited (in dollars per share)				10.64	10.73
Exercised (in dollars per share)				10.94	8.66
Outstanding at the end of the period (in dollars per share)		$ 10.63	$ 10.74	$ 10.63	$ 10.74
Exercisable at the end of the period (in dollars per share)						$ 10.63	$ 10.85
Aggregate Intrinsic Value
Aggregate intrinsic value of options outstanding						$ 390,035	$ 191,552
Exercisable at the end of the period (in dollars)						$ 127,148	$ 60,000
Weighted Average Remaining Contractual Term
Outstanding at the end of the period				8 years 6 months 22 days	6 years 6 months 22 days
Exercisable at the end of the period				8 years 6 months 22 days	11 months 1 day
2006 Stock Option Plan | Non-qualified options
Number of Shares
Expected dividend yield (as a percent)				2.149%
Risk free interest rate (as a percent)				1.57%
Expected volatility rate (as a percent)				26.54%
Expected life (in years)				10 years
2006 Stock Option Plan | Non-qualified options | Executive
Benefit Plans and Stock-Based Compensation
Fair value of grant (in dollars per NQO)					$ 2.63
Number of Shares
Granted (in shares)					67,158
Vesting on February 1, 2017, February 1, 2018 and February 1, 2019 | 2006 Stock Option Plan | Non-qualified options
Number of Shares
Vesting percentage				33.33%
Share Based Compensation Exercise Price One Member | 2006 Stock Option Plan | Incentive stock options
Number of Shares
Exercised (in shares)				(31,500)
Weighted Average Exercise Price per Share
Exercised (in dollars per share)				$ 10.95
Share Based Compensation Exercise Price Two Member
Number of Shares
Exercised (in shares)				(881)
Share Based Compensation Exercise Price Two Member | 2006 Stock Option Plan | Incentive stock options
Weighted Average Exercise Price per Share
Exercised (in dollars per share)				$ 10.64

Benefit Plans - 2007 Director P

Benefit Plans - 2007 Director Plan (Details)	3 Months Ended	12 Months Ended
	Dec. 31, 2017USD ($)shares	Dec. 31, 2017USD ($)$ / sharesshares	Dec. 31, 2016USD ($)$ / sharesshares
Benefit Plans and Stock-Based Compensation
Unrecognized compensation expenses related to unvested stock options | $	$ 132,000	$ 132,000
Share based compensation expense | $		397,000	$ 285,000
Total value of exercised stock options | $		$ 2,993,000	$ 730,000
Number of Shares
Exercised (in shares)		(273,381)	(80,300)
2007 Director Plan
Benefit Plans and Stock-Based Compensation
Number of unvested options outstanding	0	0	0
2007 Director Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Number of shares available for grants	0	0
Maximum number of shares authorized to be purchased	504,000	504,000
Aggregate number of incentive stock options issued (in shares)	404,600	404,600
Unrecognized compensation expenses related to unvested stock options | $	$ 0	$ 0	$ 0
Share based compensation expense | $	$ 0	$ 0
Exercise price of options (in dollars per share) | $ / shares		$ 10.95
Total value of exercised stock options | $		$ 2,640,000
Number of Shares
Outstanding at the beginning of the period (in shares)		325,500	347,901
Forfeited (in shares)		(84,500)	(22,401)
Exercised (in shares)		(241,000)
Outstanding at the end of the period (in shares)			325,500
Exercisable at the end of the period (in shares)			325,500
Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share) | $ / shares		$ 10.95	$ 10.95
Forfeited (in dollars per share) | $ / shares		10.95	10.95
Exercised (in dollars per share) | $ / shares		$ 10.95
Outstanding at the end of the period (in dollars per share) | $ / shares			10.95
Exercisable at the end of the period (in dollars per share) | $ / shares			$ 10.95
Aggregate Intrinsic Value
Aggregate intrinsic value of options outstanding | $			$ 620,000
Exercisable at the end of the period (in dollars) | $			$ 620,000
Weighted Average Remaining Contractual Term
Outstanding at the end of the period			9 months 22 days
Exercisable at the end of the period			9 months 22 days
Share Based Compensation Exercise Price Two Member
Number of Shares
Exercised (in shares)		(881)

Benefit Plans - 2011 Equity Inc

Benefit Plans - 2011 Equity Incentive Plan (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 31, 2017	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2017	Dec. 31, 2016
Benefit Plans and Stock-Based Compensation
Unrecognized compensation expenses		$ 324,000		$ 324,000
Share based compensation expense				$ 397,000	$ 285,000
Exercised (in shares)				273,381	80,300
Unrecognized compensation expenses related to unvested stock options		$ 132,000		$ 132,000
2011 Equity Incentive Plan
Benefit Plans and Stock-Based Compensation
Number of unvested options outstanding		25,200		25,200
Maximum number of shares authorized to be purchased		262,500		262,500
Aggregate number of incentive stock options issued (in shares)		156,943		156,943
Exercised (in shares)				0	0
2011 Equity Incentive Plan | Incentive stock options
Benefit Plans and Stock-Based Compensation
Number of unvested options outstanding			20,000		20,000
Share based compensation expense		$ 24,000	$ 7,000	$ 57,000	$ 49,000
Unrecognized compensation expenses related to unvested stock options		$ 83,000		$ 83,000
2011 Equity Incentive Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Expected dividend yield (as a percent)	0.00%				2.137%
Risk free interest rate (as a percent)	2.31%				1.87%
Expected volatility rate (as a percent)	26.81%				27.00%
Expected life (in years)	10 years				10 years
Number of Shares
Outstanding at the beginning of the period (in shares)				31,500
Granted (in shares)				14,700	31,500
Outstanding at the end of the period (in shares)		46,200	31,500	46,200	31,500
Exercisable at the end of the period (in shares)		21,000	10,500	21,000	10,500
Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share)				$ 10.70
Granted (in dollars per share)				17.05	$ 10.70
Outstanding at the end of the period (in dollars per share)		$ 12.72	$ 10.70	12.72	10.70
Exercisable at the end of the period (in dollars per share)		$ 10.70	$ 10.70	$ 10.70	$ 10.70
Aggregate Intrinsic Value
Aggregate intrinsic value of options outstanding		$ 255,465,000	$ 68,100,000	$ 255,465,000	$ 68,100,000
Exercisable at the end of the period (in dollars)		158,500,000	$ 22,700,000	$ 158,500,000	$ 22,700,000
Weighted Average Remaining Contractual Term
Outstanding at the end of the period				8 years 8 months 9 days	9 years 3 months 22 days
Exercisable at the end of the period				8 years 3 months 22 days	9 years 3 months 22 days
2011 Equity Incentive Plan | Non-qualified options | Executive
Benefit Plans and Stock-Based Compensation
Fair value of grant (in dollars per NQO)	$ 6.95				$ 2.78
Number of Shares
Granted (in shares)	14,700				31,500
2011 Equity Incentive Plan | Restricted stock
Benefit Plans and Stock-Based Compensation
Unrecognized compensation expenses		$ 324,000		$ 324,000
Period over which unrecognized compensation expense is expected to be recognized				24 months
Share based compensation expense				$ 287,000	$ 188,000
Restricted Stock, Number of Shares
Non-vested restricted stock, Outstanding, beginning of year (in shares)				29,400	50,663
Granted (in shares)				31,500
Forfeited (in shares)				(4,200)	(4,463)
Vested (in shares)				(24,150)	(16,800)
Non-vested restricted stock, Outstanding, end of year (in shares)		32,550	29,400	32,550	29,400
Restricted Stock, Weighted Average Grant Date Fair Value
Non-vested restricted stock, Outstanding, beginning of year (in dollars per share)				$ 12.38	$ 12.37
Granted (in dollars per share)				14.28
Forfeited (in dollars per share)				12.38	12.29
Vested (in dollars per share)				13.21	12.38
Non-vested restricted stock, Outstanding, end of year (in dollars per share)		$ 13.61	$ 12.38	$ 13.61	$ 12.38
2006 Stock Option Plan
Benefit Plans and Stock-Based Compensation
Number of unvested options outstanding		34,545	59,283	34,545	59,283
Maximum number of shares authorized to be purchased		251,983		251,983
Share based compensation expense		$ 1,000	$ 29,000	$ 49,000	$ 48,000
Unrecognized compensation expenses related to unvested stock options		$ 49,000		$ 49,000
2006 Stock Option Plan | Incentive stock options
Benefit Plans and Stock-Based Compensation
Aggregate number of incentive stock options issued (in shares)		220,659		220,659
Exercised (in shares)				32,381	84,315
Forfeited (in shares)				(7,149)	(59,745)
Number of Shares
Outstanding at the beginning of the period (in shares)				90,783	167,685
Granted (in shares)					67,158
Outstanding at the end of the period (in shares)		51,253	90,783	51,253	90,783
Exercisable at the end of the period (in shares)		16,708	31,500	16,708	31,500
Weighted Average Exercise Price per Share
Outstanding at the beginning of the period (in dollars per share)				$ 10.74	$ 9.73
Granted (in dollars per share)					10.64
Outstanding at the end of the period (in dollars per share)		$ 10.63	$ 10.74	10.63	10.74
Exercisable at the end of the period (in dollars per share)		$ 10.63	$ 10.85	$ 10.63	$ 10.85
Aggregate Intrinsic Value
Aggregate intrinsic value of options outstanding		$ 390,035	$ 191,552	$ 390,035	$ 191,552
Exercisable at the end of the period (in dollars)		$ 127,148	$ 60,000	$ 127,148	$ 60,000
Weighted Average Remaining Contractual Term
Outstanding at the end of the period				8 years 6 months 22 days	6 years 6 months 22 days
Exercisable at the end of the period				8 years 6 months 22 days	11 months 1 day
2006 Stock Option Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Expected dividend yield (as a percent)				2.149%
Risk free interest rate (as a percent)				1.57%
Expected volatility rate (as a percent)				26.54%
Expected life (in years)				10 years
2006 Stock Option Plan | Non-qualified options | Executive
Benefit Plans and Stock-Based Compensation
Fair value of grant (in dollars per NQO)					$ 2.63
Number of Shares
Granted (in shares)					67,158
Vesting immediately | 2011 Equity Incentive Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Vesting percentage					33.33%
Vesting over two years | 2011 Equity Incentive Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Vesting term					2 years
Vesting on February 1, 2017, February 1, 2018 and February 1, 2019 | 2011 Equity Incentive Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Vesting percentage	33.33%
Vesting on February 1, 2017, February 1, 2018 and February 1, 2019 | 2006 Stock Option Plan | Non-qualified options
Benefit Plans and Stock-Based Compensation
Vesting percentage				33.33%

Benefit Plans - Defined Contrib

Benefit Plans - Defined Contribution Plan (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Employer safe harbor matching contributions (as a percent)	100.00%
Matching contributions under the 401(k) profit sharing plan	$ 216	$ 80
Maximum
Percentage of contribution by employer on employees' compensation	4.00%

Regulatory Capital Requiremen69

Regulatory Capital Requirements (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Leverage (Tier 1) Capital Ratio
Bank actual Amount	$ 83,664	$ 77,337
Bank actual Ratio (as a percent)	9.59%	9.02%
FDIC requirements, Minimum Capital Adequacy Amount	$ 34,888	$ 33,293
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent)	4.00%	4.00%
FDIC requirements, For Classification As Well Capitalized Amount	$ 43,610	$ 41,617
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	$ 83,664	$ 77,337
Bank actual, Ratio (as a percent)	10.84%	10.98%
FDIC requirements, Minimum Capital Adequacy, Amount	$ 34,746	$ 31,685
FDIC requirements, Minimum Capital Adequacy, Ratio (as a percent)	4.50%	4.50%
FDIC requirements, Minimum Capital With Phase-in Buffer, Amount	$ 44,397	$ 36,086
FDIC requirements, Minimum Capital With Phase-in Buffer Ratio (as a percent)	5.75	5.125
FDIC requirements, For Classification As Well Capitalized Amount	$ 50,188	$ 45,767
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent)	6.50%	6.50%
Risk-Based Capital: Tier 1 Capital Ratio
Bank actual Amount	$ 83,664	$ 77,337
Bank actual Ratio (as a percent)	10.84%	10.98%
FDIC requirements, Minimum Capital Adequacy Amount	$ 46,327	$ 42,247
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent)	6.00%	6.00%
FDIC requirements, Minimum Capital With Phase-in Buffer, Amount	$ 55,979	$ 46,647
FDIC requirements, Minimum Capital With Phase-in Buffer, Ratio	7.25%	6.625%
FDIC requirements, For Classification As Well Capitalized Amount	$ 61,770	$ 56,329
FDIC requirements, For Classification As Well Capitalized Ratio (as a percent)	8.00%	8.00%
Risk-Based Capital: Total Capital Ratio
Bank actual Amount	$ 92,265	$ 85,993
Bank actual Ratio (as a percent)	11.95%	12.21%
FDIC requirements, Minimum Capital Adequacy Amount	$ 61,770	$ 56,329
FDIC requirements, Minimum Capital Adequacy Ratio (as a percent)	8.00%	8.00%
FDIC requirements, Minimum Capital With Phase-in Buffer, Amount	$ 71,421	$ 60,730
FDIC Requirements, Minimum Capital With Phase-in Buffer, Ratio (as a percent)	9.25%	8.625%
FDIC requirements, For Classification As Well Capitalized Amount	$ 77,212	$ 70,411
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00%	10.00%
Assets	$ 887,407	$ 822,440
Maximum
Risk-Based Capital: Total Capital Ratio
Assets	1,000,000
Bancorp of New Jersey, Inc
Risk-Based Capital: Total Capital Ratio
Assets	$ 83,309	$ 77,144

Financial Instruments with Of70

Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Bank
Financial Instruments with Off-Balance Sheet Risk
Outstanding available loan commitments	$ 83	$ 95.3
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	$ 3.4	$ 3.6

Financial Information of Pare71

Financial Information of Parent Company - Balance Sheet (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016	Dec. 31, 2015
Assets:
Total assets	$ 887,407	$ 822,440
Liabilities and stockholders' equity:
Stockholders' equity	83,309	77,144	$ 73,153
Total liabilities and stockholders’ equity	887,407	822,440
Bancorp of New Jersey, Inc
Assets:
Investment in subsidiary, net	83,309	77,144
Total assets	83,309	77,144
Liabilities and stockholders' equity:
Stockholders' equity	83,309	77,144
Total liabilities and stockholders’ equity	$ 83,309	$ 77,144

Financial Information of Pare72

Financial Information of Parent Company - Statements of Income and Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Condensed Financial Statements of Parent Company
Net income	$ 3,574	$ 4,001
Other comprehensive (loss) income	(104)	103
Comprehensive income	3,470	4,104
Bancorp of New Jersey, Inc
Condensed Financial Statements of Parent Company
Equity in undistributed earnings of subsidiary bank	3,574	4,001
Net income	3,574	4,001
Other comprehensive (loss) income	(162)	103
Comprehensive income	$ 3,412	$ 4,104

Financial Information of Pare73

Financial Information of Parent Company - Statement of Cash Flow (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flow from operating activities:
Net income	$ 3,574	$ 4,001
Adjustments to reconcile net income to net cash provided by operating activities:
NET CASH PROVIDED BY OPERATING ACTIVITIES	6,498	6,386
Cash flows from investing activities:
NET CASH USED IN INVESTING ACTIVITIES	(51,835)	(18,929)
Cash flows from financing activities:
Cash dividends paid	(695)	(1,128)
NET CASH PROVIDED BY FINANCING ACTIVITIES	60,980	15,330
Increase in cash and cash equivalents	15,643	2,787
Bancorp of New Jersey, Inc
Cash flow from operating activities:
Net income	3,574	4,001
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in undistributed earnings of the subsidiary bank	(3,574)	(4,001)
Cash flows from investing activities:
Cash dividends received from subsidiary bank	695	1,128
NET CASH USED IN INVESTING ACTIVITIES	695	1,128
Cash flows from financing activities:
Cash dividends paid	(695)	(1,128)
NET CASH PROVIDED BY FINANCING ACTIVITIES	(695)	(1,128)
Net cash at beginning of year	0	0
Net cash at end of year	$ 0	$ 0

Fair Value Measurement and Fa74

Fair Value Measurement and Fair Value of Financial Instruments - Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Fair value measurements
Securities available for sale	$ 53,234	$ 61,589
Significant Other Observable Inputs (Level 2)
Fair value measurements
Securities available for sale	53,234	61,589
Recurring basis
Fair value measurements
Securities available for sale	53,234	61,589
Recurring basis | U.S. Treasury securities
Fair value measurements
Securities available for sale	6,162	6,268
Recurring basis | Government sponsored enterprise obligations
Fair value measurements
Securities available for sale		55,321
Recurring basis | Agency backed
Fair value measurements
Securities available for sale	33,235
Recurring basis | Mortgage backed
Fair value measurements
Securities available for sale	13,837
Recurring basis | Significant Other Observable Inputs (Level 2)
Fair value measurements
Securities available for sale	53,234	61,589
Recurring basis | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities
Fair value measurements
Securities available for sale	6,162	6,268
Recurring basis | Significant Other Observable Inputs (Level 2) | Government sponsored enterprise obligations
Fair value measurements
Securities available for sale		55,321
Recurring basis | Significant Other Observable Inputs (Level 2) | Agency backed
Fair value measurements
Securities available for sale	33,235
Recurring basis | Significant Other Observable Inputs (Level 2) | Mortgage backed
Fair value measurements
Securities available for sale	13,837
Nonrecurring basis | Significant Unobservable Inputs (Level 3)
Fair value measurements
Other Real Estate Owned Fair Value Disclosure	$ 415	$ 614

Fair Value Measurement and Fa75

Fair Value Measurement and Fair Value of Financial Instruments - Level 3 Information (Details) - Nonrecurring basis - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Fair Value
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
Other real estate owned, portion valued at fair value	$ 415	$ 614
Significant Unobservable Inputs (Level 3)
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
Other real estate owned, portion valued at fair value	$ 415	$ 614
Significant Unobservable Inputs (Level 3) | 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
Impaired loans - Appraisal Adjustments (as a percent)		11.50%
Impaired loans - Liquidation Expenses (as a percent)		8.90%
Other real estate owned - Appraisal Adjustments (as a percent)	21.80%
Other real estate owned - Liquidation Expenses (as a percent)	6.80%
Significant Unobservable Inputs (Level 3) | 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
Impaired loans - Appraisal Adjustments (as a percent)		48.40%
Impaired loans - Liquidation Expenses (as a percent)		10.30%
Significant Unobservable Inputs (Level 3) | 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
Impaired loans - Appraisal Adjustments (as a percent)		21.80%
Impaired loans - Liquidation Expenses (as a percent)		9.30%

Fair Value Measurement and Fa76

Fair Value Measurement and Fair Value of Financial Instruments - Carrying Amount (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Dec. 31, 2016
Financial assets:
Interest bearing time deposits	$ 1,000	$ 1,000
Securities available for sale	53,234	61,589
Securities held to maturity	6,058	7,343
Restricted investment in bank stock	1,380	1,983
Accrued interest receivable	2,695	2,366
Quoted Prices in Active Markets for Identical Assets (Level 1)
Financial assets:
Cash and cash equivalents	92,619	76,976
Significant Other Observable Inputs (Level 2)
Financial assets:
Interest bearing time deposits	1,000	1,000
Securities available for sale	53,234	61,589
Securities held to maturity	6,058	7,343
Restricted investment in bank stock	1,380	1,983
Accrued interest receivable	2,695	2,366
Financial liabilities:
Deposits	793,879	722,711
Borrowed funds	13,307	24,933
Accrued interest payable	651	516
Significant Unobservable Inputs (Level 3)
Financial assets:
Net loans	703,901	659,084
Carrying amount
Financial assets:
Cash and cash equivalents	92,619	76,976
Interest bearing time deposits	1,000	1,000
Securities available for sale	53,234	61,589
Securities held to maturity	6,058	7,343
Restricted investment in bank stock	1,380	1,983
Net loans	712,076	651,698
Accrued interest receivable	2,695	2,366
Financial liabilities:
Deposits	788,293	717,988
Borrowed funds	13,385	25,008
Accrued interest payable	651	516
Fair Value
Financial assets:
Cash and cash equivalents	92,619	76,976
Interest bearing time deposits	1,000	1,000
Securities available for sale	53,234	61,589
Securities held to maturity	6,058	7,343
Restricted investment in bank stock	1,380	1,983
Net loans	703,901	659,084
Accrued interest receivable	2,695	2,366
Financial liabilities:
Deposits	793,879	722,711
Borrowed funds	13,307	24,933
Accrued interest payable	$ 651	$ 516

Accumulated Other Comprehensi77

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Accumulated other comprehensive income
Amount Reclassified	$ 3,574	$ 4,001
Available for Sale Securities | Amount Reclassified out of Accumulated Other Comprehensive Income
Accumulated other comprehensive income
Amount Reclassified	$ 0	$ 0

Recent Accounting Pronounceme78

Recent Accounting Pronouncements - (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss	$ 355	$ 193
Reclassification related to adoption of ASU 2018-02	58
Retained earnings	13,482	$ 15,813
Accounting Standards Update 2018-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accumulated other comprehensive loss	58
Retained earnings	$ 58