Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 01, 2018 | |
Document And Entity Information | ||
Entity Registrant Name | ENB Financial Corp | |
Entity Central Index Key | 1,437,479 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Is Entity a Well-known Seasoned Issuer | No | |
Is Entity a Voluntary Filer | No | |
Is Entity's Reporting Status Current | Yes | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 2,853,479 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,018 |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
ASSETS | |||
Cash and due from banks | $ 12,733 | $ 21,867 | $ 16,161 |
Interest-bearing deposits in other banks | 24,986 | 31,206 | 43,127 |
Total cash and cash equivalents | 37,719 | 53,073 | 59,288 |
Securities available for sale (at fair value) | 311,128 | 319,661 | 315,176 |
Equity securities (at fair value) | 5,775 | ||
Loans held for sale | 2,640 | 2,892 | 3,127 |
Loans (net of unearned income) | 609,515 | 597,553 | 572,876 |
Less: Allowance for loan losses | 8,083 | 8,240 | 7,672 |
Net loans | 601,432 | 589,313 | 565,204 |
Premises and equipment | 25,835 | 25,687 | 23,881 |
Regulatory stock | 6,194 | 5,794 | 5,455 |
Bank owned life insurance | 27,525 | 27,814 | 24,856 |
Other assets | 12,061 | 9,388 | 10,836 |
Total assets | 1,030,309 | 1,033,622 | 1,007,823 |
Deposits: | |||
Noninterest-bearing | 305,832 | 314,917 | 287,799 |
Interest-bearing | 550,367 | 551,560 | 547,831 |
Total deposits | 856,199 | 866,477 | 835,630 |
Short-term borrowings | 5,622 | 14,774 | |
Long-term debt | 68,511 | 65,850 | 58,819 |
Other liabilities | 2,443 | 1,536 | 2,188 |
Total liabilities | 932,775 | 933,863 | 911,411 |
Stockholders' equity: | |||
Common stock, par value $0.20; Shares: Authorized 12,000,000 Issued 2,869,557 and Outstanding 2,853,479 as of 3/31/18 Issued 2,869,557 and Outstanding 2,849,823 as of 12/31/17 Issued 2,869,557 and Outstanding 2,853,741 as of 3/31/17 | 574 | 574 | 574 |
Capital surplus | 4,419 | 4,415 | 4,411 |
Retained earnings | 99,623 | 98,629 | 96,504 |
Accumulated other comprehensive loss net of tax | (6,541) | (3,195) | (4,559) |
Less: Treasury stock cost on 16,078 shares as of 3/31/18 19,734 shares as of 12-31-17 and 15,816 shares as of 3-31-17 | (541) | (664) | (518) |
Total stockholders' equity | 97,534 | 99,759 | 96,412 |
Total liabilities and stockholders' equity | $ 1,030,309 | $ 1,033,622 | $ 1,007,823 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.20 | $ 0.20 | $ 0.20 |
Common stock, authorized | 12,000,000 | 12,000,000 | 12,000,000 |
Common stock, issued | 2,869,557 | 2,869,557 | 2,869,557 |
Common stock, outstanding | 2,853,479 | 2,849,823 | 2,853,741 |
Treasury shares | 16,078 | 19,734 | 15,816 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest and dividend income: | ||
Interest and fees on loans | $ 6,398 | $ 5,832 |
Interest on securities available for sale | ||
Taxable | 1,100 | 888 |
Tax-exempt | 760 | 1,120 |
Interest on deposits at other banks | 112 | 54 |
Dividend income | 154 | 88 |
Total interest and dividend income | 8,524 | 7,982 |
Interest expense: | ||
Interest on deposits | 479 | 467 |
Interest on borrowings | 295 | 235 |
Total interest expense | 774 | 702 |
Net interest income | 7,750 | 7,280 |
Provision for loan losses | 190 | 90 |
Net interest income after provision for loan losses | 7,560 | 7,190 |
Other income: | ||
Trust and investment services income | 554 | 482 |
Service fees | 661 | 562 |
Commissions | 584 | 547 |
Gains on sale of debt securities, net | 34 | 140 |
Gains on equity securities, net | 31 | |
Gains on sale of mortgages | 235 | 355 |
Earnings on bank-owned life insurance | 1,099 | 173 |
Other income | 182 | 153 |
Total other income | 3,380 | 2,412 |
Operating expenses: | ||
Salaries and employee benefits | 4,960 | 4,719 |
Occupancy | 663 | 599 |
Equipment | 288 | 282 |
Advertising & marketing | 232 | 237 |
Computer software & data processing | 545 | 530 |
Shares tax | 215 | 215 |
Professional services | 433 | 389 |
Other expense | 548 | 547 |
Total operating expenses | 7,884 | 7,518 |
Income before income taxes | 3,056 | 2,084 |
Provision for federal income taxes | 235 | 257 |
Net income | $ 2,821 | $ 1,827 |
Earnings per share of common stock | $ 0.99 | $ 0.64 |
Cash dividends paid per share | $ 0.28 | $ 0.28 |
Weighted average shares outstanding | 2,850,146 | 2,850,689 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,821 | $ 1,827 |
Securities available for sale not other-than-temporarily impaired: | ||
Unrealized gains (losses) arising during the period | (3,399) | 633 |
Income tax effect | 714 | (215) |
Total | (2,685) | 418 |
Gains on sale of debt securities recognized in earnings | (34) | (140) |
Income tax effect | 7 | 48 |
Total | (27) | (92) |
Other comprehensive income (loss), net of tax | (2,712) | 326 |
Comprehensive Income (Loss) | $ 109 | $ 2,153 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 2,821 | $ 1,827 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts and loan fees | 1,057 | 1,015 |
Decrease in interest receivable | 180 | 508 |
Increase (decrease) in interest payable | 22 | (2) |
Provision for loan losses | 190 | 90 |
Gains on sale of debt securities, net | (34) | (140) |
Gains on equity securities, net | (31) | |
Gains on sale of mortgages | (235) | (355) |
Loans originated for sale | (6,980) | (5,221) |
Proceeds from sales of loans | 7,467 | 5,001 |
Earnings on bank-owned life insurance | (1,099) | (173) |
Depreciation of premises and equipment and amortization of software | 406 | 406 |
Deferred income tax | (229) | 55 |
Other assets and other liabilities, net | 339 | (343) |
Net cash provided by operating activities | 3,874 | 2,668 |
Securities available for sale: | ||
Proceeds from maturities, calls, and repayments | 4,897 | 5,391 |
Proceeds from sales | 8,986 | 13,687 |
Purchases | (17,100) | (26,416) |
Purchase of regulatory bank stock | (1,088) | (873) |
Redemptions of regulatory bank stock | 688 | 790 |
Purchase of bank-owned life insurance | 24 | |
Net increase in loans | (12,423) | (1,397) |
Purchases of premises and equipment, net | (510) | (1,657) |
Purchase of computer software | (36) | (3) |
Net cash used for investing activities | (16,562) | (10,478) |
Cash flows from financing activities: | ||
Net increase (decrease) in demand, NOW, and savings accounts | (7,872) | 21,789 |
Net decrease in time deposits | (2,406) | (3,650) |
Net increase in short-term borrowings | 5,622 | 6,445 |
Proceeds from long-term debt | 7,661 | 5,062 |
Repayments of long-term debt | (5,000) | (7,500) |
Dividends paid | (798) | (798) |
Proceeds from sale of treasury stock | 127 | 118 |
Net cash (used in) provided by financing activities | (2,666) | 21,466 |
Increase (decrease) in cash and cash equivalents | (15,354) | 13,656 |
Cash and cash equivalents at beginning of period | 53,073 | 45,632 |
Cash and cash equivalents at end of period | 37,719 | 59,288 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 752 | 704 |
Income taxes paid | ||
Supplemental disclosure of non-cash investing and financing activities: | ||
Fair value adjustments for securities available for sale | $ 5,097 | $ 493 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and to general practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all significant adjustments considered necessary for fair presentation have been included. Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity. ENB Financial Corp (“the Corporation”) is the bank holding company for its wholly-owned subsidiary Ephrata National Bank (the “Bank”). This Form 10-Q, for the first quarter of 2018, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. For further information, refer to the consolidated financial statements and footnotes thereto included in ENB Financial Corp’s Annual Report on Form 10-K for the year ended December 31, 2017. Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2016-01 was effective for the Corporation on January 1, 2018, and resulted in separate classification of equity securities previously included in available for sale securities on the consolidated balance sheets with changes in the fair value of the equity securities captured in the consolidated statements of income. See Note 3 – Securities for disclosures related to equity securities. Adoption of the standard also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 5 – Fair Value Presentation for further information regarding the valuation of these loans. Nonrefundable Fees and Other Costs In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) |
Securities Available for Sale
Securities Available for Sale | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | 2. Securities Available for Sale The amortized cost, gross unrealized gains and losses, and fair value of securities held at March 31, 2018, and December 31, 2017, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ March 31, 2018 U.S. government agencies 35,095 — (1,295 ) 33,800 U.S. agency mortgage-backed securities 50,414 — (1,808 ) 48,606 U.S. agency collateralized mortgage obligations 60,496 23 (1,674 ) 58,845 Corporate bonds 61,169 3 (1,497 ) 59,675 Obligations of states and political subdivisions 112,234 191 (2,223 ) 110,202 Total debt securities available for sale 319,408 217 (8,497 ) 311,128 December 31, 2017 U.S. government agencies 35,101 — (749 ) 34,352 U.S. agency mortgage-backed securities 52,981 8 (916 ) 52,073 U.S. agency collateralized mortgage obligations 55,493 46 (898 ) 54,641 Corporate bonds 61,334 24 (589 ) 60,769 Obligations of states and political subdivisions 114,047 243 (2,047 ) 112,243 Total debt securities 318,956 321 (5,199 ) 314,078 Equity securities 5,547 36 — 5,583 Total securities available for sale 324,503 357 (5,199 ) 319,661 The amortized cost and fair value of debt securities available for sale at March 31, 2018, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. CONTRACTUAL MATURITY OF DEBT SECURITIES (DOLLARS IN THOUSANDS) Amortized Cost Fair Value $ $ Due in one year or less 15,461 15,070 Due after one year through five years 127,801 124,270 Due after five years through ten years 62,512 60,491 Due after ten years 113,634 111,297 Total debt securities 319,408 311,128 Securities available for sale with a par value of $63,004,000 and $64,580,000 at March 31, 2018, and December 31, 2017, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $63,368,000 at March 31, 2018, and $66,157,000 at December 31, 2017. Proceeds from active sales of securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Three Months Ended March 31, 2018 2017 $ $ Proceeds from sales 8,986 13,687 Gross realized gains 52 172 Gross realized losses 18 32 Management evaluates all of the Corporation’s securities for other than temporary impairment (OTTI) on a periodic basis. No securities in the portfolio had other-than-temporary impairment recorded in the first three months of 2018 or 2017. Information pertaining to securities with gross unrealized losses at March 31, 2018, and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: TEMPORARY IMPAIRMENTS OF SECURITIES (DOLLARS IN THOUSANDS) Less than 12 months More than 12 months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses $ $ $ $ $ $ As of March 31, 2018 U.S. government agencies 9,799 (201 ) 24,001 (1,094 ) 33,800 (1,295 ) U.S. agency mortgage-backed securities 14,012 (310 ) 34,594 (1,498 ) 48,606 (1,808 ) U.S. agency collateralized mortgage obligations 28,377 (669 ) 20,249 (1,005 ) 48,626 (1,674 ) Corporate bonds 41,936 (916 ) 14,716 (581 ) 56,652 (1,497 ) Obligations of states & political subdivisions 32,222 (513 ) 52,816 (1,710 ) 85,038 (2,223 ) Total temporarily impaired securities 126,346 (2,609 ) 146,376 (5,888 ) 272,722 (8,497 ) As of December 31, 2017 U.S. government agencies 9,941 (59 ) 24,411 (690 ) 34,352 (749 ) U.S. agency mortgage-backed securities 10,326 (78 ) 37,123 (838 ) 47,449 (916 ) U.S. agency collateralized mortgage obligations 29,551 (280 ) 20,980 (618 ) 50,531 (898 ) Corporate bonds 38,543 (282 ) 15,019 (307 ) 53,562 (589 ) Obligations of states & political subdivisions 15,188 (142 ) 68,278 (1,905 ) 83,466 (2,047 ) Total temporarily impaired securities 103,549 (841 ) 165,811 (4,358 ) 269,360 (5,199 ) In the debt security portfolio there were 188 positions that were carrying unrealized losses as of March 31, 2018. There were no instruments considered to be other-than-temporarily impaired at March 31, 2018. The Corporation evaluates both equity and fixed maturity positions for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic and market concerns warrant such evaluation. U.S. generally accepted accounting principles provide for the bifurcation of OTTI into two categories: (a) the amount of the total OTTI related to a decrease in cash flows expected to be collected from the debt security (the credit loss), which is recognized in earnings, and (b) the amount of total OTTI related to all other factors, which is recognized, net of taxes, as a component of accumulated other comprehensive income. |
Equity Securities
Equity Securities | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Equity Securities | 3. Equity Securities The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of equity securities held at March 31, 2018. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ March 31, 2018 CRA-qualified mutual funds 5,310 — — 5,310 Bank stocks 430 41 (6 ) 465 Total equity securities 5,740 41 (6 ) 5,775 As of January 1, 2018, the Corporation adopted ASU 2016-01, resulting in the reclassification of equity securities from available-for-sale. The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the quarter ended March 31, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of March 31, 2018. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) March 31, 2018 $ Net gains (losses) recognized in equity securities during the period 31 Less: Net gains (losses) realized on the sale of equity securities during the period — Unrealized gains (losses) recognized in equity securities held at reporting date 31 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 3. Loans and Allowance for Loan Losses The following table presents the Corporation’s loan portfolio by category of loans as of March 31, 2018, and December 31, 2017: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) March 31, December 31, 2018 2017 $ $ Commercial real estate Commercial mortgages 90,049 90,072 Agriculture mortgages 151,436 152,050 Construction 19,700 18,670 Total commercial real estate 261,185 260,792 Consumer real estate (a) 1-4 family residential mortgages 184,556 176,971 Home equity loans 10,588 11,181 Home equity lines of credit 60,846 61,104 Total consumer real estate 255,990 249,256 Commercial and industrial Commercial and industrial 46,917 41,426 Tax-free loans 20,794 20,722 Agriculture loans 18,189 18,794 Total commercial and industrial 85,900 80,942 Consumer 5,129 5,320 Gross loans prior to deferred fees 608,204 596,310 Less: Deferred loan costs, net 1,311 1,243 Allowance for loan losses (8,083 ) (8,240 ) Total net loans 601,432 589,313 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $103,458,000 and $98,262,000 as of March 31, 2018, and December 31, 2017, respectively. The Corporation grades commercial credits differently than consumer credits. The following tables represent all of the Corporation’s commercial credit exposures by internally assigned grades as of March 31, 2018 and December 31, 2017. The grading analysis estimates the capability of the borrower to repay the contractual obligations under the loan agreements as scheduled. The Corporation's internal commercial credit risk grading system is based on experiences with similarly graded loans. The Corporation's internally assigned grades for commercial credits are as follows: · Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral. · Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected. · Substandard – loans that have a well-defined weakness based on objective evidence and characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. · Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. · Loss – loans classified as a loss are considered uncollectible, or of such value that continuance as an asset is not warranted. COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS March 31, 2018 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 86,680 142,964 18,161 44,241 20,588 17,237 329,871 Special Mention 198 3,836 539 602 206 248 5,629 Substandard 3,171 4,636 1,000 2,074 — 704 11,585 Doubtful — — — — — — — Loss — — — — — — — Total 90,049 151,436 19,700 46,917 20,794 18,189 347,085 December 31, 2017 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 86,259 143,037 17,670 37,947 20,514 17,798 323,225 Special Mention 160 3,873 — 1,015 208 270 5,526 Substandard 3,653 5,140 1,000 2,464 — 726 12,983 Doubtful — — — — — — — Loss — — — — — — — Total 90,072 152,050 18,670 41,426 20,722 18,794 341,734 For consumer loans, the Corporation evaluates credit quality based on whether the loan is considered performing or non-performing. Non-performing loans consist of those loans greater than 90 days delinquent and nonaccrual loans. The following tables present the balances of consumer loans by classes of the loan portfolio based on payment performance as of March 31, 2018 and December 31, 2017: CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) March 31, 2018 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 183,937 10,588 60,817 5,123 260,465 Non-performing 1,142 140 29 26 1,337 Total 185,079 10,728 60,846 5,149 261,802 December 31, 2017 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 176,576 11,181 61,074 5,305 254,136 Non-performing 395 — 30 15 440 Total 176,971 11,181 61,104 5,320 254,576 The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of March 31, 2018 and December 31, 2017: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and March 31, 2018 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 298 298 89,751 90,049 244 Agriculture mortgages — — — — 151,436 151,436 — Construction — — — — 19,700 19,700 — Consumer real estate 1-4 family residential mortgages 1,725 24 619 2,368 182,188 184,556 619 Home equity loans 53 — — 53 10,535 10,588 — Home equity lines of credit — — 29 29 60,817 60,846 29 Commercial and industrial Commercial and industrial 13 — — 13 46,904 46,917 — Tax-free loans — — — — 20,794 20,794 — Agriculture loans 227 — — 227 17,962 18,189 — Consumer 3 4 6 13 5,116 5,129 6 Total 2,021 28 952 3,001 605,203 608,204 898 Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and December 31, 2017 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 372 372 89,700 90,072 — Agriculture mortgages — — — — 152,050 152,050 — Construction — — — — 18,670 18,670 — Consumer real estate 1-4 family residential mortgages 533 248 395 1,176 175,795 176,971 395 Home equity loans 40 — — 40 11,141 11,181 — Home equity lines of credit — — 30 30 61,074 61,104 30 Commercial and industrial Commercial and industrial 65 109 — 174 41,252 41,426 — Tax-free loans — — — — 20,722 20,722 — Agriculture loans — — — — 18,794 18,794 — Consumer 8 3 15 26 5,294 5,320 15 Total 646 360 812 1,818 594,492 596,310 440 The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2018 and December 31, 2017: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) March 31, December 31, 2018 2017 $ $ Commercial real estate Commercial mortgages 192 393 Agriculture mortgages — — Construction — — Consumer real estate 1-4 family residential mortgages 523 — Home equity loans 140 — Home equity lines of credit — — Commercial and industrial Commercial and industrial — — Tax-free loans — — Agriculture loans — — Consumer 20 — Total 875 393 As of March 31, 2018 and December 31, 2017, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three months ended March 31, 2018 and March 31, 2017, is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) Three months ended March 31, 2018 2017 $ $ Average recorded balance of impaired loans 1,836 1,958 Interest income recognized on impaired loans 20 14 There were no loan modifications made during the three months ended March 31, 2018 causing a loan to be considered a troubled debt restructuring (TDR). However, there was a loan modification made during the three months ended March 31, 2017, that constituted a TDR. A TDR is a loan where management has granted a concession to a borrower that is experiencing financial difficulty. A concession is generally defined as more favorable payment or credit terms granted to a borrower in an effort to improve the likelihood of the lender collecting principal in its entirety. Concessions usually are in the form of interest only for a period of time, or a lower interest rate offered in an effort to enable the borrower to continue to make normally scheduled payments. The loan classified as a TDR during the three months ended March 31, 2017, was an agricultural loan with a principal balance at March 31, 2018, of $227,000. The concession initially granted to the borrower during the first quarter of 2017 was an interest-only period initially running for three months to March 31, 2017. However, on March 31, 2017, that deferral period was extended for an additional three months, causing management to classify the loan as a TDR. The concession period ended June 30, 2017. Subsequent to June 30, 2017, the borrower resumed normal principal and interest payments as of July 2017. The following tables summarize information in regarding impaired loans by loan portfolio class as of March 31, 2018, December 31, 2017, and March 31, 2017: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) March 31, 2018 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 369 895 — 340 3 Agriculture mortgages 1,156 1,156 — 1,164 13 Construction — — — — — Total commercial real estate 1,525 2,051 — 1,504 16 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 227 227 — 237 3 Total commercial and industrial 227 227 — 237 3 Total with no related allowance 1,752 2,278 — 1,741 19 With an allowance recorded: Commercial real estate Commercial mortgages 505 507 63 95 1 Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 505 507 63 95 1 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 505 507 63 95 1 Total by loan class: Commercial real estate Commercial mortgages 874 1,402 63 435 4 Agriculture mortgages 1,156 1,156 — 1,164 13 Construction — — — — — Total commercial real estate 2,030 2,558 63 1,599 17 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 227 227 — 237 3 Total commercial and industrial 227 227 — 237 3 Total 2,257 2,785 63 1,836 20 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) December 31, 2017 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 393 690 — 585 4 Agriculture mortgages 1,174 1,174 — 1,210 54 Construction — — — — — Total commercial real estate 1,567 1,864 — 1,795 58 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 245 245 — 163 7 Total commercial and industrial 245 245 — 163 7 Total with no related allowance 1,812 2,109 — 1,958 65 With an allowance recorded: Commercial real estate Commercial mortgages — — — — — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate — — — — — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance — — — — — Total by loan class: Commercial real estate Commercial mortgages 393 690 — 585 4 Agriculture mortgages 1,174 1,174 — 1,210 54 Construction — — — — — Total commercial real estate 1,567 1,864 — 1,795 58 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 245 245 — 163 7 Total commercial and industrial 245 245 — 163 7 Total 1,812 2,109 — 1,958 65 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) March 31, 2017 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 760 857 — 644 3 Agriculture mortgages 1,229 1,229 — 1,238 11 Construction — — — — — Total commercial real estate 1,989 2,086 — 1,882 14 Commercial and industrial Commercial and industrial 75 75 — 75 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 75 75 — 75 — Total with no related allowance 2,064 2,161 — 1,957 14 With an allowance recorded: Commercial real estate Commercial mortgages — — — — — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate — — — — — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance — — — — — Total by loan class: Commercial real estate Commercial mortgages 760 857 — 644 3 Agriculture mortgages 1,229 1,229 — 1,238 11 Construction — — — — — Total commercial real estate 1,989 2,086 — 1,882 14 Commercial and industrial Commercial and industrial 75 75 — 75 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 75 75 — 75 — Total 2,064 2,161 — 1,957 14 The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018: ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2017 3,863 2,052 1,829 98 398 8,240 Charge-offs (224 ) — (110 ) (18 ) — (352 ) Recoveries — — 4 1 — 5 Provision 408 137 (422 ) (9 ) 76 190 Balance - March 31, 2018 4,047 2,189 1,301 72 474 8,083 During the three months ended March 31, 2018, provision expenses were recorded for the commercial real estate and consumer real estate segments with credit provisions recorded for the commercial and industrial and consumer loan segments. The increase in the allowance for commercial real estate loans was primarily a result of higher levels of charge-offs in the first three months of 2018. The increase in the amount of the allowance for loan losses allocated to the consumer real estate segment was primarily a result of growth in the residential real estate portfolio during the three months ended March 31, 2018. Delinquency rates among the Corporation’s loan pools remain low but have increased to 0.56% of total loans, compared to 0.46% of total loans as of March 31, 2017. Additionally, charge-offs for the three months ended March 31, 2018, were $352,000 compared to only $11,000 for the three months ended March 31, 2017. However, classified loans experienced a decrease in the first three months of 2018. The Corporation’s classified loans were $21.5 million as of March 31, 2017, but had declined to $16.1 million as of March 31, 2018. Currently, the agricultural lending sector remains under stress due to weak milk and egg prices impacting farmers. Outside of this, the health of the Corporation’s commercial real estate and commercial and industrial borrowers is generally stable with no material trends related to certain types of industries. Commercial borrowers that have exposure to agriculture are subject to more financial stress in the current environment. Qualitative factors regarding trends in the loan portfolio as well as national and local economic conditions and external factors such as competition, legal and regulatory were increased for several loan pools in the first quarter of 2018 while several factors related to experience, ability, and depth of lending management and other areas declined for the first quarter of 2018. The increases in charge-offs and growth in the loan portfolio caused management to record provision expense of $190,000 through March 31, 2018. T ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2016 3,795 1,652 1,552 82 481 7,562 Charge-offs — — (7 ) (4 ) — (11 ) Recoveries — 20 9 2 — 31 Provision (275 ) 163 95 3 104 90 Balance - March 31, 2017 3,520 1,835 1,649 83 585 7,672 During the three months ended March 31, 2017, a credit provision was recorded for the commercial real estate segment with provision expense recorded in all other loan categories. For the entire portfolio, $90,000 of additional provision expense was recorded for the first three months of 2017. Delinquency rates among most loan pools remained very low with the total amount of delinquent loans lower on March 31, 2017 than on December 31, 2016. The Corporation received $20,000 more recoveries than charge-offs for the three months ended March 31, 2017. These favorable results acted to offset higher levels of classified loans and non-accruals resulting in $90,000 of additional provision being sufficient to cover projected losses inherent in the loan portfolio and still retain a sufficient unallocated portion of the allowance. Changes in qualitative factors were minimal during the first quarter and the provision expense recorded was primarily the result of higher levels of classified loans. The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of March 31, 2018 and December 31, 2017: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of March 31, 2018: Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 63 — — — — 63 Ending balance: collectively evaluated for impairment 3,984 2,189 1,301 72 474 8,020 Loans receivable: Ending balance 261,185 255,990 85,900 5,129 608,204 Ending balance: individually evaluated for impairment 2,030 — 227 — 2,257 Ending balance: collectively evaluated for impairment 259,155 255,990 85,673 5,129 605,947 As of December 31, 2017: Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment — — — — — — Ending balance: collectively evaluated for impairment 3,863 2,052 1,829 98 398 8,240 Loans receivable: Ending balance 260,792 249,256 80,942 5,320 596,310 Ending balance: individually evaluated for impairment 1,567 — 245 — 1,812 Ending balance: collectively evaluated for impairment 259,225 249,256 80,697 5,320 594,498 |
Fair Value Presentation
Fair Value Presentation | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Presentation | 5. Fair Value Presentation U.S. generally accepted accounting principles establish a hierarchal disclosure framework associated with the level of observable pricing utilized in measuring assets and liabilities at fair value. The three broad levels defined by the hierarchy are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no observable pricing as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. The following tables provide the fair market value for assets required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets as of March 31, 2018, and December 31, 2017, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) March 31, 2018 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 33,800 — 33,800 U.S. agency mortgage-backed securities — 48,606 — 48,606 U.S. agency collateralized mortgage obligations — 58,845 — 58,845 Corporate bonds — 59,675 — 59,675 Obligations of states & political subdivisions — 110,202 — 110,202 Equity securities 5,775 — — 5,775 Total securities 5,775 311,128 — 316,903 On March 31, 2018, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable, but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of March 31, 2018, the CRA fund investments had a $5,310,000 book and fair market value and the bank stock portfolio had a book value of $430,000, and fair market value of $465,000. Financial instruments are considered level III when their values are determined using pricing models, discounted cash flow methodologies, or similar techniques, and at least one significant model assumption or input is unobservable. In addition to these unobservable inputs, the valuation models for level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly. Level III financial instruments also include those for which the determination of fair value requires significant management judgment or estimation. ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2017 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 34,352 — 34,352 U.S. agency mortgage-backed securities — 52,073 — 52,073 U.S. agency collateralized mortgage obligations — 54,641 — 54,641 Corporate bonds — 60,769 — 60,769 Obligations of states & political subdivisions — 112,243 — 112,243 Equity securities 5,583 — — 5,583 Total securities 5,583 314,078 — 319,661 On December 31, 2017, the Corporation held no securities valued using level III inputs. All of the Corporation’s debt instruments were valued using level II inputs, where quoted prices are available and observable but not necessarily quotes on identical securities traded in active markets on a daily basis. The Corporation’s CRA fund investments and bank stocks are fair valued utilizing level I inputs because the funds have their own quoted prices in an active market. As of December 31, 2017, the CRA fund investments had a $5,280,000 book and market value and the bank stocks had a book value of $267,000 and a market value of $303,000. The following tables provide the fair value for each class of assets required to be measured and reported at fair value on a nonrecurring basis on the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands March 31, 2018 Level I Level II Level III Total Assets: Impaired Loans — — 2,194 2,194 Total — — 2,194 2,194 December 31, 2017 Level I Level II Level III Total Assets: Impaired Loans — — 1,812 1,812 Total — — 1,812 1,812 The Corporation had a total of $2,257,000 of impaired loans as of March 31, 2018, with $63,000 of specific allocation against these loans and $1,812,000 of impaired loans as of December 31, 2017, with no specific allocation against these loans. The value of impaired loans is generally determined through independent appraisals of the underlying collateral. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) March 31, 2018 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 2,194 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) December 31, 2017 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 1,812 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management 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. |
FINANCIAL INSTRUMENTS NO REQUIR
FINANCIAL INSTRUMENTS NO REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS NO REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017: FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) March 31, 2018 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 37,719 37,719 37,719 — — Regulatory stock 6,194 6,194 6,194 — — Loans held for sale 2,640 2,640 2,640 — — Loans, net of allowance 601,432 612,969 — — 612,969 Mortgage servicing assets 717 876 — — 876 Accrued interest receivable 3,504 3,504 3,504 — — Bank owned life insurance 27,525 27,525 27,525 — — Financial Liabilities: Demand deposits 305,832 305,832 305,832 — — Interest-bearing demand deposits 19,764 19,764 19,764 — — NOW accounts 85,307 85,307 85,307 — — Money market deposit accounts 101,088 101,088 101,088 — — Savings accounts 197,205 197,205 197,205 — — Time deposits 147,003 147,726 — — 147,726 Total deposits 856,199 856,922 709,196 — 147,726 Short-term borrowings 5,622 5,622 5,622 — — Long-term debt 68,511 68,524 — — 68,524 Accrued interest payable 407 407 407 — — FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2017 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 53,073 53,073 53,073 — — Regulatory stock 5,794 5,794 5,794 — — Loans held for sale 2,892 2,892 2,892 — — Loans, net of allowance 589,313 590,415 — — 590,415 Mortgage servicing assets 661 751 — — 751 Accrued interest receivable 3,684 3,684 3,684 — — Bank owned life insurance 27,814 27,814 27,814 — — Financial Liabilities: Demand deposits 314,917 314,917 314,917 — — Interest-bearing demand deposits 20,230 20,230 20,230 — — NOW accounts 86,758 86,758 86,758 — — Money market deposit accounts 105,994 105,994 105,994 — — Savings accounts 189,169 189,169 189,169 — — Time deposits 149,409 150,165 — — 150,165 Total deposits 866,477 867,233 717,068 — 150,165 Long-term debt 65,850 65,850 — — 65,850 Accrued interest payable 385 385 385 — — |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 6. Commitments and Contingent Liabilities In order to meet the financing needs of its customers in the normal course of business, the Corporation makes various commitments that are not reflected in the accompanying consolidated financial statements. These commitments include firm commitments to extend credit, unused lines of credit, and open letters of credit. As of March 31, 2018, firm loan commitments were $37.3 million, unused lines of credit were $222.6 million, and open letters of credit were $11.6 million. The total of these commitments was $271.5 million, which represents the Corporation’s exposure to credit loss in the event of nonperformance by its customers with respect to these financial instruments. The actual credit losses that may arise from these commitments are expected to compare favorably with the Corporation’s loan loss experience on its loan portfolio taken as a whole. The Corporation uses the same credit policies in making commitments and conditional obligations as it does for balance sheet financial instruments. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | 8. Accumulated Other Comprehensive Income (Loss) The activity in accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 is as follows: ACCUMULATED OTHER COMPREHENSIVE LOSS (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at December 31, 2017 (3,195 ) Other comprehensive loss before reclassifications (2,685 ) Amount reclassified from accumulated other comprehensive loss (27 ) Reclassification of certain income tax effects from accumulated other comprehensive income (loss) (634 ) Period change (3,346 ) Balance at March 31, 2018 (6,541 ) Balance at December 31, 2016 (4,885 ) Other comprehensive income before reclassifications 418 Amount reclassified from accumulated other comprehensive loss (92 ) Period change 326 Balance at March 31, 2017 (4,559 ) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21% for 2018 periods and 34% for 2017 periods. (2) Amounts in parentheses indicate debits. DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) (DOLLARS IN THOUSANDS) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, 2018 2017 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains reclassified into earnings 34 140 Gains on securities transactions, net Related income tax expense (7 ) (48 ) Provision for federal income taxes Net effect on accumulated other comprehensive loss for the period 27 92 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 31, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | 8. Recently Issued Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) In March 2016, the FASB issued ASU 2016-04, Liabilities – In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740) In October 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230) In December 2016, the FASB issued ASU 2016-20 , Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers Guarantees In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805), Clarifying the Definition of a Business In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment In February 2017, the FASB issued Other Income—Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20). annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. For all other entities, the amendments in this Update are effective for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. This Update is not expected to have a significant impact on the Corporation’s financial statements. In February 2017, the FASB issued ASU 2017-06 , Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), and Health and Welfare Benefit Plans (Topic 965) This Update relates primarily to the reporting by an employee benefit plan for its interest in a master trust, which is a trust for which a regulated financial institution serves as a trustee or custodian and in which assets of more than one plan sponsored by a single employer or by a group of employers under common control are held. For each master trust in which a plan holds an interest, the amendments in this Update require a plan's interest in that master trust and any change in that interest to be presented in separate line items in the statement of net assets available for benefits and in the statement of changes in net assets available for benefits, respectively. The amendments in this Update remove the requirement to disclose the percentage interest in the master trust for plans with divided interests and require that all plans disclose the dollar amount of their interest in each of those general types of investments, which supplements the existing requirement to disclose the master trusts balances in each general type of investments. There are also increased disclosure requirements for investments in master trusts. The amendments in this Update are effective for In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715) In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718) . The amendments in this Update should be applied prospectively to an award modified on or after the adoption date. This Update is not expected to have a significant impact on the Corporation’s financial statements. In May 2017, the Service Concession Arrangements (Topic 853) Revenue from Contracts with Customers (Topic 606)) Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480), and Derivative and Hedging (Topic 815) Debt—Debt with Conversion and Other Options accounting changes in paragraphs 250-10-45-5 through 45-10. The amendments in Part II of this Update do not require any transition guidance because those amendments do not have an accounting effect. This Update is not expected to have a significant impact on the Corporation’s financial statements. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 850) In September 2017, the FASB issued ASU 2017-13, Revenue Recognition (Topic 605), Revenue from Contracts with Customers (Topic 606), Leases (Topic 840), and Leases (Topic 842 Amendments to SEC Paragraphs Pursuant to the Staff Announcement at the July 20, 2017 EITF Meeting and Rescission of Prior SEC Staff Announcements and Observer Comments. Revenue from Contracts with Customers Leases In January 2018, the FASB issued ASU 2018-01, Leases (Topic 842) should evaluate all existing or expired land easements in connection with the adoption of the new lease requirements in Topic 842 to assess whether they meet the definition of a lease. The effective date and transition requirements for the amendments are the same as the effective date and transition requirements in ASU 2016-02. This Update is not expected to have a significant impact on the Corporation’s financial statements. In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments—Overall (Subtopic 825-10) Fair Value Measurement Derivatives and Hedging—Embedded Derivatives Financial Instruments—Overall Financial Services— Insurance |
Summary of Significant Accoun16
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and to general practices within the banking industry. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all significant adjustments considered necessary for fair presentation have been included. Certain items previously reported have been reclassified to conform to the current period’s reporting format. Such reclassifications did not affect net income or stockholders’ equity. ENB Financial Corp (“the Corporation”) is the bank holding company for its wholly-owned subsidiary Ephrata National Bank (the “Bank”). This Form 10-Q, for the first quarter of 2018, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three months ended March 31, 2018, are not necessarily indicative of the results that may be expected for the year ended December 31, 2018. For further information, refer to the consolidated financial statements and footnotes thereto included in ENB Financial Corp’s Annual Report on Form 10-K for the year ended December 31, 2017. |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The Company records revenue from contracts with customers in accordance with Accounting Standards Topic 606, Revenue from Contracts with Customers (Topic 606). The Corporation’s primary sources of revenue are derived from interest and dividends earned on loans, investment securities, and other financial instruments that are not within the scope of Topic 606. The Corporation has evaluated the nature of its contracts with customers and determined that further disaggregation of revenue from contracts with customers into more granular categories beyond what is presented in the Consolidated Statements of Income was not necessary. The Corporation generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. |
Financial Instruments | Financial Instruments In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities ASU 2016-01 was effective for the Corporation on January 1, 2018, and resulted in separate classification of equity securities previously included in available for sale securities on the consolidated balance sheets with changes in the fair value of the equity securities captured in the consolidated statements of income. See Note 3 – Securities for disclosures related to equity securities. Adoption of the standard also resulted in the use of an exit price rather than an entrance price to determine the fair value of loans not measured at fair value on a non-recurring basis in the consolidated balance sheets. See Note 5 – Fair Value Presentation for further information regarding the valuation of these loans. |
Nonrefundable Fees and Other Costs | Nonrefundable Fees and Other Costs In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Subtopic 310-20). |
Reporting Comprehensive Income | Reporting Comprehensive Income In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) |
Securities Available for Sale (
Securities Available for Sale (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities | The amortized cost, gross unrealized gains and losses, and fair value of securities held at March 31, 2018, and December 31, 2017, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ March 31, 2018 U.S. government agencies 35,095 — (1,295 ) 33,800 U.S. agency mortgage-backed securities 50,414 — (1,808 ) 48,606 U.S. agency collateralized mortgage obligations 60,496 23 (1,674 ) 58,845 Corporate bonds 61,169 3 (1,497 ) 59,675 Obligations of states and political subdivisions 112,234 191 (2,223 ) 110,202 Total debt securities available for sale 319,408 217 (8,497 ) 311,128 December 31, 2017 U.S. government agencies 35,101 — (749 ) 34,352 U.S. agency mortgage-backed securities 52,981 8 (916 ) 52,073 U.S. agency collateralized mortgage obligations 55,493 46 (898 ) 54,641 Corporate bonds 61,334 24 (589 ) 60,769 Obligations of states and political subdivisions 114,047 243 (2,047 ) 112,243 Total debt securities 318,956 321 (5,199 ) 314,078 Equity securities 5,547 36 — 5,583 Total securities available for sale 324,503 357 (5,199 ) 319,661 |
Schedule of contractual maturity of debt securities | The amortized cost and fair value of debt securities available for sale at March 31, 2018, by contractual maturity, are shown below. Actual maturities may differ from contractual maturities due to certain call or prepayment provisions. CONTRACTUAL MATURITY OF DEBT SECURITIES (DOLLARS IN THOUSANDS) Amortized Cost Fair Value $ $ Due in one year or less 15,461 15,070 Due after one year through five years 127,801 124,270 Due after five years through ten years 62,512 60,491 Due after ten years 113,634 111,297 Total debt securities 319,408 311,128 |
Schedule of proceeds and gains and losses on securities available for sale | Proceeds from active sales of securities available for sale, along with the associated gross realized gains and gross realized losses, are shown below. Realized gains and losses are computed on the basis of specific identification. PROCEEDS FROM SALES OF SECURITIES AVAILABLE FOR SALE (DOLLARS IN THOUSANDS) Three Months Ended March 31, 2018 2017 $ $ Proceeds from sales 8,986 13,687 Gross realized gains 52 172 Gross realized losses 18 32 |
Schedule of securities in an unrealized loss position (temporary impairment) | Information pertaining to securities with gross unrealized losses at March 31, 2018, and December 31, 2017, aggregated by investment category and length of time that individual securities have been in a continuous loss position follows: TEMPORARY IMPAIRMENTS OF SECURITIES (DOLLARS IN THOUSANDS) Less than 12 months More than 12 months Total Gross Gross Gross Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses $ $ $ $ $ $ As of March 31, 2018 U.S. government agencies 9,799 (201 ) 24,001 (1,094 ) 33,800 (1,295 ) U.S. agency mortgage-backed securities 14,012 (310 ) 34,594 (1,498 ) 48,606 (1,808 ) U.S. agency collateralized mortgage obligations 28,377 (669 ) 20,249 (1,005 ) 48,626 (1,674 ) Corporate bonds 41,936 (916 ) 14,716 (581 ) 56,652 (1,497 ) Obligations of states & political subdivisions 32,222 (513 ) 52,816 (1,710 ) 85,038 (2,223 ) Total temporarily impaired securities 126,346 (2,609 ) 146,376 (5,888 ) 272,722 (8,497 ) As of December 31, 2017 U.S. government agencies 9,941 (59 ) 24,411 (690 ) 34,352 (749 ) U.S. agency mortgage-backed securities 10,326 (78 ) 37,123 (838 ) 47,449 (916 ) U.S. agency collateralized mortgage obligations 29,551 (280 ) 20,980 (618 ) 50,531 (898 ) Corporate bonds 38,543 (282 ) 15,019 (307 ) 53,562 (589 ) Obligations of states & political subdivisions 15,188 (142 ) 68,278 (1,905 ) 83,466 (2,047 ) Total temporarily impaired securities 103,549 (841 ) 165,811 (4,358 ) 269,360 (5,199 ) |
Schedule of security impairment charges | The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the quarter ended March 31, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of March 31, 2018. NET GAINS AND LOSS ON EQUITY INVESTMENTS RECOGNIZED IN EARINGS (DOLLARS IN THOUSANDS) March 31, 2018 $ Net gains (losses) recognized in equity securities during the period 31 Less: Net gains (losses) realized on the sale of equity securities during the period — Unrealized gains (losses) recognized in equity securities held at reporting date 31 |
Equity Securities (Tables)
Equity Securities (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Marketable Securities [Abstract] | |
Schedule of Amortized Cost, Gross Unrealized gains, Losses, and Fair Value of Equity Securities | The following table summarizes the amortized cost, gross unrealized gains and losses, and fair value of equity securities held at March 31, 2018. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ March 31, 2018 CRA-qualified mutual funds 5,310 — — 5,310 Bank stocks 430 41 (6 ) 465 Total equity securities 5,740 41 (6 ) 5,775 |
Schedule of Unrealized Gains and Losses | The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the quarter ended March 31, 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of March 31, 2018. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) March 31, 2018 $ Net gains (losses) recognized in equity securities during the period 31 Less: Net gains (losses) realized on the sale of equity securities during the period — Unrealized gains (losses) recognized in equity securities held at reporting date 31 |
Loans and Allowance for Loan 19
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Receivables [Abstract] | |
Schedule of loan portfolio by category | The following table presents the Corporation’s loan portfolio by category of loans as of March 31, 2018, and December 31, 2017: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) March 31, December 31, 2018 2017 $ $ Commercial real estate Commercial mortgages 90,049 90,072 Agriculture mortgages 151,436 152,050 Construction 19,700 18,670 Total commercial real estate 261,185 260,792 Consumer real estate (a) 1-4 family residential mortgages 184,556 176,971 Home equity loans 10,588 11,181 Home equity lines of credit 60,846 61,104 Total consumer real estate 255,990 249,256 Commercial and industrial Commercial and industrial 46,917 41,426 Tax-free loans 20,794 20,722 Agriculture loans 18,189 18,794 Total commercial and industrial 85,900 80,942 Consumer 5,129 5,320 Gross loans prior to deferred fees 608,204 596,310 Less: Deferred loan costs, net 1,311 1,243 Allowance for loan losses (8,083 ) (8,240 ) Total net loans 601,432 589,313 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $103,458,000 and $98,262,000 as of March 31, 2018, and December 31, 2017, respectively. |
Schedule of commercial and consumer credit exposure | COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS March 31, 2018 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 86,680 142,964 18,161 44,241 20,588 17,237 329,871 Special Mention 198 3,836 539 602 206 248 5,629 Substandard 3,171 4,636 1,000 2,074 — 704 11,585 Doubtful — — — — — — — Loss — — — — — — — Total 90,049 151,436 19,700 46,917 20,794 18,189 347,085 December 31, 2017 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 86,259 143,037 17,670 37,947 20,514 17,798 323,225 Special Mention 160 3,873 — 1,015 208 270 5,526 Substandard 3,653 5,140 1,000 2,464 — 726 12,983 Doubtful — — — — — — — Loss — — — — — — — Total 90,072 152,050 18,670 41,426 20,722 18,794 341,734 CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) March 31, 2018 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 183,937 10,588 60,817 5,123 260,465 Non-performing 1,142 140 29 26 1,337 Total 185,079 10,728 60,846 5,149 261,802 December 31, 2017 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 176,576 11,181 61,074 5,305 254,136 Non-performing 395 — 30 15 440 Total 176,971 11,181 61,104 5,320 254,576 |
Schedule of aging of loans receivable | The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of March 31, 2018 and December 31, 2017: AGING OF LOANS RECEIVABLE (DOLLARS IN THOUSANDS) Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and March 31, 2018 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 298 298 89,751 90,049 244 Agriculture mortgages — — — — 151,436 151,436 — Construction — — — — 19,700 19,700 — Consumer real estate 1-4 family residential mortgages 1,725 24 619 2,368 182,188 184,556 619 Home equity loans 53 — — 53 10,535 10,588 — Home equity lines of credit — — 29 29 60,817 60,846 29 Commercial and industrial Commercial and industrial 13 — — 13 46,904 46,917 — Tax-free loans — — — — 20,794 20,794 — Agriculture loans 227 — — 227 17,962 18,189 — Consumer 3 4 6 13 5,116 5,129 6 Total 2,021 28 952 3,001 605,203 608,204 898 Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and December 31, 2017 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 372 372 89,700 90,072 — Agriculture mortgages — — — — 152,050 152,050 — Construction — — — — 18,670 18,670 — Consumer real estate 1-4 family residential mortgages 533 248 395 1,176 175,795 176,971 395 Home equity loans 40 — — 40 11,141 11,181 — Home equity lines of credit — — 30 30 61,074 61,104 30 Commercial and industrial Commercial and industrial 65 109 — 174 41,252 41,426 — Tax-free loans — — — — 20,722 20,722 — Agriculture loans — — — — 18,794 18,794 — Consumer 8 3 15 26 5,294 5,320 15 Total 646 360 812 1,818 594,492 596,310 440 |
Schedule of nonaccrual loans by class | The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2018 and December 31, 2017: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) March 31, December 31, 2018 2017 $ $ Commercial real estate Commercial mortgages 192 393 Agriculture mortgages — — Construction — — Consumer real estate 1-4 family residential mortgages 523 — Home equity loans 140 — Home equity lines of credit — — Commercial and industrial Commercial and industrial — — Tax-free loans — — Agriculture loans — — Consumer 20 — Total 875 393 |
Schedule of impaired loans | As of March 31, 2018 and December 31, 2017, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three months ended March 31, 2018 and March 31, 2017, is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) Three months ended March 31, 2018 2017 $ $ Average recorded balance of impaired loans 1,836 1,958 Interest income recognized on impaired loans 20 14 The following tables summarize information regarding impaired loans by loan portfolio class as of March 31, 2018, December 31, 2017, and March 31, 2017: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) March 31, 2018 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 369 895 — 340 3 Agriculture mortgages 1,156 1,156 — 1,164 13 Construction — — — — — Total commercial real estate 1,525 2,051 — 1,504 16 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 227 227 — 237 3 Total commercial and industrial 227 227 — 237 3 Total with no related allowance 1,752 2,278 — 1,741 19 With an allowance recorded: Commercial real estate Commercial mortgages 505 507 63 95 1 Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 505 507 63 95 1 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 505 507 63 95 1 Total by loan class: Commercial real estate Commercial mortgages 874 1,402 63 435 4 Agriculture mortgages 1,156 1,156 — 1,164 13 Construction — — — — — Total commercial real estate 2,030 2,558 63 1,599 17 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 227 227 — 237 3 Total commercial and industrial 227 227 — 237 3 Total 2,257 2,785 63 1,836 20 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) December 31, 2017 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 393 690 — 585 4 Agriculture mortgages 1,174 1,174 — 1,210 54 Construction — — — — — Total commercial real estate 1,567 1,864 — 1,795 58 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 245 245 — 163 7 Total commercial and industrial 245 245 — 163 7 Total with no related allowance 1,812 2,109 — 1,958 65 With an allowance recorded: Commercial real estate Commercial mortgages — — — — — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate — — — — — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance — — — — — Total by loan class: Commercial real estate Commercial mortgages 393 690 — 585 4 Agriculture mortgages 1,174 1,174 — 1,210 54 Construction — — — — — Total commercial real estate 1,567 1,864 — 1,795 58 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans 245 245 — 163 7 Total commercial and industrial 245 245 — 163 7 Total 1,812 2,109 — 1,958 65 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) March 31, 2017 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 760 857 — 644 3 Agriculture mortgages 1,229 1,229 — 1,238 11 Construction — — — — — Total commercial real estate 1,989 2,086 — 1,882 14 Commercial and industrial Commercial and industrial 75 75 — 75 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 75 75 — 75 — Total with no related allowance 2,064 2,161 — 1,957 14 With an allowance recorded: Commercial real estate Commercial mortgages — — — — — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate — — — — — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance — — — — — Total by loan class: Commercial real estate Commercial mortgages 760 857 — 644 3 Agriculture mortgages 1,229 1,229 — 1,238 11 Construction — — — — — Total commercial real estate 1,989 2,086 — 1,882 14 Commercial and industrial Commercial and industrial 75 75 — 75 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 75 75 — 75 — Total 2,064 2,161 — 1,957 14 |
Schedule of allowance for credit losses | The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018: ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2017 3,863 2,052 1,829 98 398 8,240 Charge-offs (224 ) — (110 ) (18 ) — (352 ) Recoveries — — 4 1 — 5 Provision 408 137 (422 ) (9 ) 76 190 Balance - March 31, 2018 4,047 2,189 1,301 72 474 8,083 T ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2016 3,795 1,652 1,552 82 481 7,562 Charge-offs — — (7 ) (4 ) — (11 ) Recoveries — 20 9 2 — 31 Provision (275 ) 163 95 3 104 90 Balance - March 31, 2017 3,520 1,835 1,649 83 585 7,672 The following tables present the balance in the allowance for credit losses and the recorded investment in loans receivable by portfolio segment based on impairment method as of March 31, 2018 and December 31, 2017: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of March 31, 2018: Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 63 — — — — 63 Ending balance: collectively evaluated for impairment 3,984 2,189 1,301 72 474 8,020 Loans receivable: Ending balance 261,185 255,990 85,900 5,129 608,204 Ending balance: individually evaluated for impairment 2,030 — 227 — 2,257 Ending balance: collectively evaluated for impairment 259,155 255,990 85,673 5,129 605,947 As of December 31, 2017: Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment — — — — — — Ending balance: collectively evaluated for impairment 3,863 2,052 1,829 98 398 8,240 Loans receivable: Ending balance 260,792 249,256 80,942 5,320 596,310 Ending balance: individually evaluated for impairment 1,567 — 245 — 1,812 Ending balance: collectively evaluated for impairment 259,225 249,256 80,697 5,320 594,498 |
Fair Value Presentation (Tables
Fair Value Presentation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets measured on a recurring basis | The following tables provide the fair market value for assets required to be measured and reported at fair value on a recurring basis on the Consolidated Balance Sheets as of March 31, 2018, and December 31, 2017, by level within the fair value hierarchy. As required by U.S. generally accepted accounting principles, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) March 31, 2018 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 33,800 — 33,800 U.S. agency mortgage-backed securities — 48,606 — 48,606 U.S. agency collateralized mortgage obligations — 58,845 — 58,845 Corporate bonds — 59,675 — 59,675 Obligations of states & political subdivisions — 110,202 — 110,202 Equity securities 5,775 — — 5,775 Total securities 5,775 311,128 — 316,903 December 31, 2017 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 34,352 — 34,352 U.S. agency mortgage-backed securities — 52,073 — 52,073 U.S. agency collateralized mortgage obligations — 54,641 — 54,641 Corporate bonds — 60,769 — 60,769 Obligations of states & political subdivisions — 112,243 — 112,243 Equity securities 5,583 — — 5,583 Total securities 5,583 314,078 — 319,661 |
Schedule of assets measured on a nonrecurring basis | The following tables provide the fair value for each class of assets required to be measured and reported at fair value on a nonrecurring basis on the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands March 31, 2018 Level I Level II Level III Total Assets: Impaired Loans — — 2,194 2,194 Total — — 2,194 2,194 December 31, 2017 Level I Level II Level III Total Assets: Impaired Loans — — 1,812 1,812 Total — — 1,812 1,812 |
Schedule of Level III inputs | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis for which the Corporation has utilized level III inputs to determine fair value: QUANTITATIVE INFORMATION ABOUT LEVEL III FAIR VALUE MEASUREMENTS (DOLLARS IN THOUSANDS) March 31, 2018 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 2,194 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) December 31, 2017 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 1,812 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) (1) Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable. (2) Appraisals may be adjusted by management 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. |
FINANCIAL INSTRUMENTS NO REQU21
FINANCIAL INSTRUMENTS NO REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and fair value of financial instruments | The following table provides the carrying amount for each class of assets and liabilities and the fair value for certain financial instruments that are not required to be measured or reported at fair value on the Consolidated Balance Sheets as of March 31, 2018 and December 31, 2017: FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) March 31, 2018 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 37,719 37,719 37,719 — — Regulatory stock 6,194 6,194 6,194 — — Loans held for sale 2,640 2,640 2,640 — — Loans, net of allowance 601,432 612,969 — — 612,969 Mortgage servicing assets 717 876 — — 876 Accrued interest receivable 3,504 3,504 3,504 — — Bank owned life insurance 27,525 27,525 27,525 — — Financial Liabilities: Demand deposits 305,832 305,832 305,832 — — Interest-bearing demand deposits 19,764 19,764 19,764 — — NOW accounts 85,307 85,307 85,307 — — Money market deposit accounts 101,088 101,088 101,088 — — Savings accounts 197,205 197,205 197,205 — — Time deposits 147,003 147,726 — — 147,726 Total deposits 856,199 856,922 709,196 — 147,726 Short-term borrowings 5,622 5,622 5,622 — — Long-term debt 68,511 68,524 — — 68,524 Accrued interest payable 407 407 407 — — FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 31, 2017 Quoted Prices in Active Markets Significant Other Significant for Identical Observable Unobservable Carrying Assets Inputs Inputs Amount Fair Value (Level 1) (Level II) (Level III) $ $ $ $ $ Financial Assets: Cash and cash equivalents 53,073 53,073 53,073 — — Regulatory stock 5,794 5,794 5,794 — — Loans held for sale 2,892 2,892 2,892 — — Loans, net of allowance 589,313 590,415 — — 590,415 Mortgage servicing assets 661 751 — — 751 Accrued interest receivable 3,684 3,684 3,684 — — Bank owned life insurance 27,814 27,814 27,814 — — Financial Liabilities: Demand deposits 314,917 314,917 314,917 — — Interest-bearing demand deposits 20,230 20,230 20,230 — — NOW accounts 86,758 86,758 86,758 — — Money market deposit accounts 105,994 105,994 105,994 — — Savings accounts 189,169 189,169 189,169 — — Time deposits 149,409 150,165 — — 150,165 Total deposits 866,477 867,233 717,068 — 150,165 Long-term debt 65,850 65,850 — — 65,850 Accrued interest payable 385 385 385 — — |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive | The activity in accumulated other comprehensive loss for the three months ended March 31, 2018 and 2017 is as follows: ACCUMULATED OTHER COMPREHENSIVE LOSS (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at December 31, 2017 (3,195 ) Other comprehensive loss before reclassifications (2,685 ) Amount reclassified from accumulated other comprehensive loss (27 ) Reclassification of certain income tax effects from accumulated other comprehensive income (loss) (634 ) Period change (3,346 ) Balance at March 31, 2018 (6,541 ) Balance at December 31, 2016 (4,885 ) Other comprehensive income before reclassifications 418 Amount reclassified from accumulated other comprehensive loss (92 ) Period change 326 Balance at March 31, 2017 (4,559 ) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21% for 2018 periods and 34% for 2017 periods. (2) Amounts in parentheses indicate debits. DETAILS ABOUT ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) COMPONENTS (1) (DOLLARS IN THOUSANDS) Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Three Months Ended March 31, 2018 2017 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains reclassified into earnings 34 140 Gains on securities transactions, net Related income tax expense (7 ) (48 ) Provision for federal income taxes Net effect on accumulated other comprehensive loss for the period 27 92 |
Summary of Significant Accoun23
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Feb. 28, 2018 | Jan. 31, 2018 | |
Accounting Policies [Abstract] | ||
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings | $ 634 | $ 1,700 |
Securities Available for Sale24
Securities Available for Sale (Narrative) (Details) $ in Thousands | Mar. 31, 2018USD ($)N | Dec. 31, 2017USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale debt securities pledged or restricted for public funds, par value | $ 63,004 | $ 64,580 |
Available for sale debt securities pledged or restricted for public funds, fair value | $ 63,368 | $ 66,157 |
Number of securities considered temporarily impaired | N | 188 |
Securities Available for Sale25
Securities Available for Sale (Schedule of Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Securities Available For Sale | ||
Amortized Cost | $ 319,408 | $ 324,503 |
Gross Unrealized Gains | 217 | 357 |
Gross Unrealized Losses | (8,497) | (5,199) |
Fair Value | 311,128 | 319,661 |
U.S. Government Agencies [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 35,095 | 35,101 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (1,295) | (749) |
Fair Value | 33,800 | 34,352 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 50,414 | 52,981 |
Gross Unrealized Gains | 8 | |
Gross Unrealized Losses | (1,808) | (916) |
Fair Value | 48,606 | 52,073 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 60,496 | 55,493 |
Gross Unrealized Gains | 23 | 46 |
Gross Unrealized Losses | (1,674) | (898) |
Fair Value | 58,845 | 54,641 |
Corporate Bonds [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 61,169 | 61,334 |
Gross Unrealized Gains | 3 | 24 |
Gross Unrealized Losses | (1,497) | (589) |
Fair Value | 59,675 | 60,769 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 112,234 | 114,047 |
Gross Unrealized Gains | 191 | 243 |
Gross Unrealized Losses | (2,223) | (2,047) |
Fair Value | $ 110,202 | 112,243 |
Total Debt Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 318,956 | |
Gross Unrealized Gains | 321 | |
Gross Unrealized Losses | (5,199) | |
Fair Value | 314,078 | |
Equity Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 5,547 | |
Gross Unrealized Gains | 36 | |
Gross Unrealized Losses | ||
Fair Value | $ 5,583 |
Securities Available for Sale26
Securities Available for Sale (Schedule of Contractual Maturity of Debt Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Contractual maturity of debt securities, Amortized Cost | |||
Due in one year or less | $ 15,461 | ||
Due after one year through five years | 127,801 | ||
Due after five years through ten years | 62,512 | ||
Due after ten years | 113,634 | ||
Total debt securities | 319,408 | ||
Contractual maturity of debt securities, Fair Value | |||
Due in one year or less | 15,070 | ||
Due after one year through five years | 124,270 | ||
Due after five years through ten years | 60,491 | ||
Due after ten years | 111,297 | ||
Securities available for sale | $ 311,128 | $ 319,661 | $ 315,176 |
Securities Available for Sale27
Securities Available for Sale (Schedule of Proceeds and Gains and Losses on Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 8,986 | $ 13,687 |
Gross realized gains | 52 | 172 |
Gross realized losses | $ 18 | $ 32 |
Securities Available for Sale28
Securities Available for Sale (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Fair Value | ||
Less than 12 months | $ 126,346 | $ 103,549 |
More than 12 months | 146,376 | 165,811 |
Total | 272,722 | 269,360 |
Gross Unrealized Losses | ||
Less than 12 months | (2,609) | (841) |
More than 12 months | (5,888) | (4,358) |
Total | (8,497) | (5,199) |
U.S. Government Agencies [Member] | ||
Fair Value | ||
Less than 12 months | 9,799 | 9,941 |
More than 12 months | 24,001 | 24,411 |
Total | 33,800 | 34,352 |
Gross Unrealized Losses | ||
Less than 12 months | (201) | (59) |
More than 12 months | (1,094) | (690) |
Total | (1,295) | (749) |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 14,012 | 10,326 |
More than 12 months | 34,594 | 37,123 |
Total | 48,606 | 47,449 |
Gross Unrealized Losses | ||
Less than 12 months | (310) | (78) |
More than 12 months | (1,498) | (838) |
Total | (1,808) | (916) |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value | ||
Less than 12 months | 28,377 | 29,551 |
More than 12 months | 20,249 | 20,980 |
Total | 48,626 | 50,531 |
Gross Unrealized Losses | ||
Less than 12 months | (669) | (280) |
More than 12 months | (1,005) | (618) |
Total | (1,674) | (898) |
Corporate Bonds [Member] | ||
Fair Value | ||
Less than 12 months | 41,936 | 38,543 |
More than 12 months | 14,716 | 15,019 |
Total | 56,652 | 53,562 |
Gross Unrealized Losses | ||
Less than 12 months | (916) | (282) |
More than 12 months | (581) | (307) |
Total | (1,497) | (589) |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value | ||
Less than 12 months | 32,222 | 15,188 |
More than 12 months | 52,816 | 68,278 |
Total | 85,038 | 83,466 |
Gross Unrealized Losses | ||
Less than 12 months | (513) | (142) |
More than 12 months | (1,710) | (1,905) |
Total | $ (2,223) | $ (2,047) |
Equity Securities (Schedule of
Equity Securities (Schedule of Amortized Cost, Gross Unrealized gains, Losses, and Fair Value of Equity Securities) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Net Investment Income [Line Items] | ||
Amortized Cost | $ 319,408 | $ 324,503 |
Gross Unrealized Gains | 217 | 357 |
Gross Unrealized Losses | (8,497) | (5,199) |
Fair Value | 311,128 | $ 319,661 |
CRA-qualified mutual funds [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 5,310 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 5,310 | |
Bank stocks [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 430 | |
Gross Unrealized Gains | 41 | |
Gross Unrealized Losses | (6) | |
Fair Value | 465 | |
Equity Securities [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 5,740 | |
Gross Unrealized Gains | 41 | |
Gross Unrealized Losses | (6) | |
Fair Value | $ 5,775 |
Equity Securities (Schedule o30
Equity Securities (Schedule of Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Marketable Securities [Abstract] | ||
Net gains (losses) recognized in equity securities during the period | $ 31 | |
Less: Net gains (losses) realized on the sale of equity securities during the period | ||
Unrealized gains (losses) recognized in equity securities held at reporting date | $ 31 |
Loans and Allowance for Loan 31
Loans and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Classified loans | $ 16,100 | $ 21,500 | |
Delinquency rate | 0.56% | 0.46% | |
Provision (credit) for loan losses | $ 190 | $ 90 | |
Charge-offs | 352 | $ 11 | |
Loans Serviced for Others [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Real estate loans serviced for others | 103,458 | $ 98,262 | |
Agricultural Sector [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
TDRs loan | $ 227 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Schedule of Loan Portfolio by Category) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Loan Portfolio | |||||
Gross loans prior to deferred fees | $ 608,204 | $ 596,310 | |||
Less: Deferred loan costs, net | 1,311 | 1,243 | |||
Allowance for loan losses | (8,083) | (8,240) | $ (7,672) | $ (7,562) | |
Total net loans | 601,432 | 589,313 | 565,204 | ||
Home Equity Loan [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 10,728 | 11,181 | |||
Home Equity Lines of Credit [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 60,846 | 61,104 | |||
Commercial Real Estate [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 261,185 | 260,792 | |||
Allowance for loan losses | (4,047) | (3,863) | (3,520) | (3,795) | |
Commercial Real Estate [Member] | Mortgages [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 90,049 | 90,072 | |||
Commercial Real Estate [Member] | Agricultural Sector [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 151,436 | 152,050 | |||
Commercial Real Estate [Member] | Construction [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 19,700 | 18,670 | |||
Consumer Real Estate [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | [1] | 255,990 | 249,256 | ||
Allowance for loan losses | (2,189) | (2,052) | (1,835) | (1,652) | |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | [1] | 184,556 | 176,971 | ||
Consumer Real Estate [Member] | Home Equity Loan [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | [1] | 10,588 | 11,181 | ||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | [1] | 60,846 | 61,104 | ||
Commercial and Industrial [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 85,900 | 80,942 | |||
Allowance for loan losses | 1,301 | (1,829) | |||
Commercial and Industrial [Member] | Agricultural Sector [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 18,189 | 18,794 | |||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 46,917 | 41,426 | |||
Commercial and Industrial [Member] | Tax-free loans [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 20,794 | 20,722 | |||
Consumer Portfolio Segment [Member] | |||||
Loan Portfolio | |||||
Gross loans prior to deferred fees | 5,149 | 5,320 | |||
Allowance for loan losses | $ (72) | $ (98) | $ (83) | $ (82) | |
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $103,458,000 and $98,262,000 as of March 31, 2018, and December 31, 2017, respectively. |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses (Schedule of Commercial and Consumer Credit Exposure) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Total | $ 347,085 | $ 341,734 |
Construction [Member] | ||
Total | 19,700 | 18,670 |
Agricultural Mortgage Loans [Member] | ||
Total | 151,436 | 152,050 |
Commercial and Industrial Sector [Member] | ||
Total | 46,917 | 41,426 |
Tax-free loans [Member] | ||
Total | 20,794 | 20,722 |
Agriculture loans [Member] | ||
Total | 18,189 | 18,794 |
Commercial [Member] | ||
Total | 90,049 | 90,072 |
Pass [Member] | ||
Total | 329,871 | 323,225 |
Pass [Member] | Construction [Member] | ||
Total | 18,161 | 17,670 |
Pass [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 142,964 | 143,037 |
Pass [Member] | Commercial and Industrial Sector [Member] | ||
Total | 44,241 | 37,947 |
Pass [Member] | Tax-free loans [Member] | ||
Total | 20,588 | 20,514 |
Pass [Member] | Agriculture loans [Member] | ||
Total | 17,237 | 17,798 |
Pass [Member] | Commercial [Member] | ||
Total | 86,680 | 86,259 |
Special Mention [Member] | ||
Total | 5,629 | 5,526 |
Special Mention [Member] | Construction [Member] | ||
Total | 539 | |
Special Mention [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 3,836 | 3,873 |
Special Mention [Member] | Commercial and Industrial Sector [Member] | ||
Total | 602 | 1,015 |
Special Mention [Member] | Tax-free loans [Member] | ||
Total | 206 | 208 |
Special Mention [Member] | Agriculture loans [Member] | ||
Total | 248 | 270 |
Special Mention [Member] | Commercial [Member] | ||
Total | 198 | 160 |
Substandard [Member] | ||
Total | 11,585 | 12,983 |
Substandard [Member] | Construction [Member] | ||
Total | 1,000 | 1,000 |
Substandard [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 4,636 | 5,140 |
Substandard [Member] | Commercial and Industrial Sector [Member] | ||
Total | 2,074 | 2,464 |
Substandard [Member] | Tax-free loans [Member] | ||
Total | ||
Substandard [Member] | Agriculture loans [Member] | ||
Total | 704 | 726 |
Substandard [Member] | Commercial [Member] | ||
Total | 3,171 | 3,653 |
Doubtful [Member] | ||
Total | ||
Doubtful [Member] | Construction [Member] | ||
Total | ||
Doubtful [Member] | Agricultural Mortgage Loans [Member] | ||
Total | ||
Doubtful [Member] | Commercial and Industrial Sector [Member] | ||
Total | ||
Doubtful [Member] | Tax-free loans [Member] | ||
Total | ||
Doubtful [Member] | Agriculture loans [Member] | ||
Total | ||
Doubtful [Member] | Construction [Member] | ||
Total | ||
Doubtful [Member] | Commercial [Member] | ||
Total | ||
Loss [Member] | ||
Total | ||
Loss [Member] | Construction [Member] | ||
Total | ||
Loss [Member] | Agricultural Mortgage Loans [Member] | ||
Total | ||
Loss [Member] | Commercial and Industrial Sector [Member] | ||
Total | ||
Loss [Member] | Tax-free loans [Member] | ||
Total | ||
Loss [Member] | Agriculture loans [Member] | ||
Total | ||
Loss [Member] | Commercial [Member] | ||
Total |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses (Schedule of Credit Risk Profile by Payment Performance) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Gross loans prior to deferred fees | $ 608,204 | $ 596,310 |
Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 10,728 | 11,181 |
Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 60,846 | 61,104 |
1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 185,079 | 176,971 |
Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 5,149 | 5,320 |
Performing [Member] | ||
Gross loans prior to deferred fees | 260,465 | 254,136 |
Performing [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 10,588 | 11,181 |
Performing [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 60,817 | 61,074 |
Performing [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 183,937 | 176,576 |
Performing [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 5,123 | 5,305 |
Nonperforming [Member] | ||
Gross loans prior to deferred fees | 1,337 | 440 |
Nonperforming [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 140 | |
Nonperforming [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 29 | 30 |
Nonperforming [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 1,142 | 395 |
Nonperforming [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 26 | 15 |
Consumer Borrower [Member] | ||
Gross loans prior to deferred fees | $ 261,802 | $ 254,576 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses (Schedule of Aging of Loans Receivable) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 3,001 | $ 1,818 |
Current | 605,203 | 594,492 |
Total Loans Receivable | 608,204 | 596,310 |
Loans Receivable - Greater than 90 Days and Accruing | 898 | 440 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,021 | 646 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 28 | 360 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 952 | 812 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 85,900 | 80,942 |
1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans Receivable | 185,079 | 176,971 |
Commercial real estate [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 298 | 372 |
Current | 89,751 | 89,700 |
Total Loans Receivable | 90,049 | 90,072 |
Loans Receivable - Greater than 90 Days and Accruing | 244 | |
Commercial real estate [Member] | Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Commercial and Industrial [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Commercial and Industrial [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 298 | 372 |
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | 151,436 | 152,050 |
Total Loans Receivable | 151,436 | 152,050 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial real estate [Member] | Agricultural Sector [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Agricultural Sector [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Agricultural Sector [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | 19,700 | 18,670 |
Total Loans Receivable | 19,700 | 18,670 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial real estate [Member] | Construction [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Construction [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial real estate [Member] | Construction [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 2,368 | 1,176 |
Current | 182,188 | 175,795 |
Total Loans Receivable | 184,556 | 176,971 |
Loans Receivable - Greater than 90 Days and Accruing | 619 | 395 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 1,725 | 533 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 24 | 248 |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 619 | 395 |
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 53 | 40 |
Current | 10,535 | 11,141 |
Total Loans Receivable | 10,588 | 11,181 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Real Estate [Member] | Home Equity Loan [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 53 | 40 |
Consumer Real Estate [Member] | Home Equity Loan [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer Real Estate [Member] | Home Equity Loan [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | 30 |
Current | 60,817 | 61,074 |
Total Loans Receivable | 60,846 | 61,104 |
Loans Receivable - Greater than 90 Days and Accruing | 29 | 30 |
Consumer Real Estate [Member] | Home equity lines of credit [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer Real Estate [Member] | Home equity lines of credit [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer Real Estate [Member] | Home equity lines of credit [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 29 | 30 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13 | 174 |
Current | 46,904 | 41,252 |
Total Loans Receivable | 46,917 | 41,426 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13 | 65 |
Commercial and Industrial Sector [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 109 | |
Commercial and Industrial Sector [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Current | 20,794 | 20,722 |
Total Loans Receivable | 20,794 | 20,722 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 227 | |
Current | 17,962 | 18,794 |
Total Loans Receivable | 18,189 | 18,794 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 227 | |
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 13 | 26 |
Current | 5,116 | 5,294 |
Total Loans Receivable | 5,129 | 5,320 |
Loans Receivable - Greater than 90 Days and Accruing | 6 | 15 |
Consumer Portfolio Segment [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 3 | 8 |
Consumer Portfolio Segment [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | 4 | 3 |
Consumer Portfolio Segment [Member] | Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due | $ 6 | $ 15 |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses (Schedule of Nonaccrual Loans by Class) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | $ 875 | $ 393 |
Commercial real estate [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | 192 | 393 |
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | 523 | |
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | 140 | |
Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-accrual Loans | $ 20 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Total impaired loans | |||
Average recorded balance of impaired loans | $ 1,836 | $ 1,957 | $ 1,958 |
Interest income recognized on impaired loans | $ 20 | $ 14 | $ 65 |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses (Schedule of Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Loans with no related allowance recorded: | |||
Recorded Investment | $ 1,752 | $ 2,064 | $ 1,812 |
Unpaid Principal Balance | 2,278 | 2,161 | 2,109 |
Related Allowance | |||
Average Recorded Investment | 1,741 | 1,957 | 1,958 |
Interest Income Recognized | 19 | 14 | 65 |
Loans with an allowance recorded: | |||
Recorded Investment | 505 | ||
Unpaid Principal Balance | 507 | ||
Related Allowance | 63 | ||
Average Recorded Investment | 95 | ||
Interest Income Recognized | 1 | ||
Total impaired loans | |||
Recorded Investment | 2,257 | 2,064 | 1,812 |
Unpaid Principal Balance | 2,785 | 2,161 | 2,109 |
Related Allowance | 63 | ||
Average Recorded Investment | 1,836 | 1,957 | 1,958 |
Interest Income Recognized | 20 | 14 | 65 |
Commercial real estate [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 1,525 | 1,989 | 1,567 |
Unpaid Principal Balance | 2,051 | 2,086 | 1,864 |
Related Allowance | |||
Average Recorded Investment | 1,504 | 1,882 | 1,795 |
Interest Income Recognized | 16 | 14 | 58 |
Loans with an allowance recorded: | |||
Recorded Investment | 505 | ||
Unpaid Principal Balance | 507 | ||
Related Allowance | 63 | ||
Average Recorded Investment | 95 | ||
Interest Income Recognized | 1 | ||
Total impaired loans | |||
Recorded Investment | 2,030 | 1,989 | 1,567 |
Unpaid Principal Balance | 2,558 | 2,086 | 1,864 |
Related Allowance | 63 | ||
Average Recorded Investment | 1,599 | 1,882 | 1,795 |
Interest Income Recognized | 17 | 14 | 58 |
Commercial real estate [Member] | Commercial and Industrial [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 369 | 760 | 393 |
Unpaid Principal Balance | 895 | 857 | 690 |
Related Allowance | |||
Average Recorded Investment | 340 | 644 | 585 |
Interest Income Recognized | 3 | 3 | 4 |
Loans with an allowance recorded: | |||
Recorded Investment | 505 | ||
Unpaid Principal Balance | 507 | ||
Related Allowance | 63 | ||
Average Recorded Investment | 95 | ||
Interest Income Recognized | 1 | ||
Total impaired loans | |||
Recorded Investment | 874 | 760 | 393 |
Unpaid Principal Balance | 1,402 | 857 | 690 |
Related Allowance | 63 | ||
Average Recorded Investment | 435 | 644 | 585 |
Interest Income Recognized | 4 | 3 | 4 |
Commercial real estate [Member] | Agricultural Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 1,156 | 1,229 | 1,174 |
Unpaid Principal Balance | 1,156 | 1,229 | 1,174 |
Related Allowance | |||
Average Recorded Investment | 1,164 | 1,238 | 1,210 |
Interest Income Recognized | 13 | 11 | 54 |
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | 1,156 | 1,229 | 1,174 |
Unpaid Principal Balance | 1,156 | 1,229 | 1,174 |
Related Allowance | |||
Average Recorded Investment | 1,164 | 1,238 | 1,210 |
Interest Income Recognized | 13 | 11 | 54 |
Commercial real estate [Member] | Construction [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Commercial and Industrial Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 75 | ||
Unpaid Principal Balance | 75 | ||
Related Allowance | |||
Average Recorded Investment | 75 | ||
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | 75 | ||
Unpaid Principal Balance | 75 | ||
Related Allowance | |||
Average Recorded Investment | 75 | ||
Interest Income Recognized | |||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 227 | 245 | |
Unpaid Principal Balance | 227 | 245 | |
Related Allowance | |||
Average Recorded Investment | 237 | 163 | |
Interest Income Recognized | 3 | 7 | |
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | 227 | 245 | |
Unpaid Principal Balance | 227 | 245 | |
Related Allowance | |||
Average Recorded Investment | 237 | 163 | |
Interest Income Recognized | 3 | 7 | |
Total Commercial and Industrial Sector [Member] | |||
Loans with no related allowance recorded: | |||
Recorded Investment | 227 | 75 | 245 |
Unpaid Principal Balance | 227 | 75 | 245 |
Related Allowance | |||
Average Recorded Investment | 237 | 75 | 163 |
Interest Income Recognized | 3 | 7 | |
Loans with an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related Allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total impaired loans | |||
Recorded Investment | 227 | 75 | 245 |
Unpaid Principal Balance | 227 | 75 | 245 |
Related Allowance | |||
Average Recorded Investment | 237 | 75 | 163 |
Interest Income Recognized | $ 3 | $ 7 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses (Schedule of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | $ 8,240 | $ 7,562 |
Charge-offs | (352) | (11) |
Recoveries | 5 | 31 |
Provision (credit) | 190 | 90 |
Ending balance | 8,083 | 7,672 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 3,863 | 3,795 |
Charge-offs | (224) | |
Recoveries | ||
Provision (credit) | 408 | (275) |
Ending balance | 4,047 | 3,520 |
Consumer Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 2,052 | 1,652 |
Charge-offs | ||
Recoveries | 20 | |
Provision (credit) | 137 | 163 |
Ending balance | 2,189 | 1,835 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 1,829 | 1,552 |
Charge-offs | (110) | (7) |
Recoveries | 4 | 9 |
Provision (credit) | (422) | 95 |
Ending balance | 1,301 | 1,649 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 98 | 82 |
Charge-offs | (18) | (4) |
Recoveries | 1 | 2 |
Provision (credit) | (9) | 3 |
Ending balance | 72 | 83 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning balance | 398 | 481 |
Charge-offs | ||
Recoveries | ||
Provision (credit) | 76 | 104 |
Ending balance | $ 474 | $ 585 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses (Schedule of Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Allowance for credit losses: | |||||
Ending balance | $ 8,083 | $ 8,240 | $ 7,672 | $ 7,562 | |
Individually evaluated for impairment | 63 | ||||
Collectively evaluated for impairment | 8,020 | 8,240 | |||
Loans receivable: | |||||
Total Loans Receivable | 608,204 | 596,310 | |||
Individually evaluated for impairment | 2,257 | 1,812 | |||
Collectively evaluated for impairment | 605,947 | 594,498 | |||
Commercial Real Estate [Member] | |||||
Allowance for credit losses: | |||||
Ending balance | 4,047 | 3,863 | 3,520 | 3,795 | |
Individually evaluated for impairment | 63 | ||||
Collectively evaluated for impairment | 3,984 | 3,863 | |||
Loans receivable: | |||||
Total Loans Receivable | 261,185 | 260,792 | |||
Individually evaluated for impairment | 2,030 | 1,567 | |||
Collectively evaluated for impairment | 259,155 | 259,225 | |||
Consumer Real Estate [Member] | |||||
Allowance for credit losses: | |||||
Ending balance | 2,189 | 2,052 | 1,835 | 1,652 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 2,189 | 2,052 | |||
Loans receivable: | |||||
Total Loans Receivable | [1] | 255,990 | 249,256 | ||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 255,990 | 249,256 | |||
Commercial and Industrial Sector [Member] | |||||
Allowance for credit losses: | |||||
Ending balance | 1,301 | 1,829 | 1,649 | 1,552 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 1,301 | 1,829 | |||
Loans receivable: | |||||
Total Loans Receivable | 85,900 | 80,942 | |||
Individually evaluated for impairment | 227 | 245 | |||
Collectively evaluated for impairment | 85,673 | 80,697 | |||
Consumer Portfolio Segment [Member] | |||||
Allowance for credit losses: | |||||
Ending balance | 72 | 98 | 83 | 82 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 72 | 98 | |||
Loans receivable: | |||||
Total Loans Receivable | 5,149 | 5,320 | |||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 5,129 | 5,320 | |||
Unallocated [Member] | |||||
Allowance for credit losses: | |||||
Ending balance | 474 | 398 | $ 585 | $ 481 | |
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | $ 474 | $ 398 | |||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $103,458,000 and $98,262,000 as of March 31, 2018, and December 31, 2017, respectively. |
Fair Value Presentation (Narrat
Fair Value Presentation (Narrative) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, market value | $ 5,775 | ||
Impaired Financing Receivable, Recorded Investment | 2,257 | 1,812 | 2,064 |
Related Allowance | 63 | ||
CRA Investment Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 5,310 | 5,280 | |
Marketable equity securities, market value | 5,310 | 5,280 | |
Regulatory Bank Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 430 | 267 | |
Marketable equity securities, market value | $ 465 | $ 303 |
Fair Value Presentation (Schedu
Fair Value Presentation (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 311,128 | $ 319,661 |
U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 33,800 | 34,352 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 48,606 | 52,073 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 58,845 | 54,641 |
Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 59,675 | 60,769 |
Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 110,202 | 112,243 |
Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 5,583 | |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 33,800 | 34,352 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 48,606 | 52,073 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 58,845 | 54,641 |
Fair Value Measured on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 59,675 | 60,769 |
Fair Value Measured on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 110,202 | 112,243 |
Fair Value Measured on a Recurring Basis [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 5,775 | 5,583 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 5,775 | 5,583 |
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 5,775 | 5,583 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 311,128 | 314,078 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 33,800 | 34,352 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 48,606 | 52,073 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 58,845 | 54,641 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 59,675 | 60,769 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 110,202 | 112,243 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | ||
Fair Value Measured on a Recurring Basis [Member] | Significant Unobservable Inputs (Level III) [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) |
Fair Value Presentation (Sche43
Fair Value Presentation (Schedule of Assets Measured on Nonrecurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 2,194 | $ 1,812 |
Total Fair Value, non-recurring | 2,194 | 2,563 |
Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
Total Fair Value, non-recurring | ||
Significant Other Observable Inputs (Level II) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | ||
Total Fair Value, non-recurring | ||
Significant Unobservable Inputs (Level III) [Member] | ||
Non-Recurring Fair Value Measurements | ||
Impaired Loans | 2,194 | 1,812 |
Total Fair Value, non-recurring | $ 2,194 | $ 2,563 |
Fair Value Presentation (Sche44
Fair Value Presentation (Schedule of Level III Inputs to Determine Fair Value) (Details) - Impaired Loans [Member] - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2018 | Dec. 31, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total Fair Value, non-recurring | $ 2,194 | $ 1,812 |
Valuation Techniques | Appraisal of collateral | Appraisal of collateral |
Unobservable inputs - Appraisal adjustments | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | (10.00%) | (10.00%) |
Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs - Appraisal adjustments | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | (10.00%) | (10.00%) |
FINANCIAL INSTRUMENTS NO REQU45
FINANCIAL INSTRUMENTS NO REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | ||||
Cash and cash equivalents | $ 37,719 | $ 53,073 | $ 59,288 | $ 45,632 |
Securities available for sale | 311,128 | 319,661 | ||
Regulatory stock | 6,194 | 5,794 | 5,455 | |
Loans, net of allowance | 601,432 | 589,313 | 565,204 | |
Bank owned life insurance | 27,525 | 27,814 | 24,856 | |
Financial Liabilities: | ||||
Demand deposits | 305,832 | 314,917 | 287,799 | |
Total deposits | 856,199 | 866,477 | 835,630 | |
Short-term borrowings | 5,622 | 14,774 | ||
Long-term debt | 68,511 | 65,850 | $ 58,819 | |
Carrying Amount [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 37,719 | 53,073 | ||
Regulatory stock | 6,194 | 5,794 | ||
Loans held for sale | 2,640 | 2,892 | ||
Loans, net of allowance | 601,432 | 589,313 | ||
Mortgage Servicing Assets | 717 | 661 | ||
Accrued interest receivable | 3,504 | 3,684 | ||
Bank owned life insurance | 27,525 | 27,814 | ||
Financial Liabilities: | ||||
Demand deposits | 305,832 | 314,917 | ||
Interest-bearing demand deposits | 19,764 | 20,230 | ||
NOW accounts | 85,307 | 86,758 | ||
Money market deposit accounts | 101,088 | 105,994 | ||
Savings accounts | 197,205 | 189,169 | ||
Time deposits | 147,003 | 149,409 | ||
Total deposits | 856,199 | 866,477 | ||
Short-term borrowings | 5,622 | |||
Long-term debt | 68,511 | 65,850 | ||
Accrued interest payable | 407 | 385 | ||
Fair Value [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 37,719 | 53,073 | ||
Regulatory stock | 6,194 | 5,794 | ||
Loans held for sale | 2,640 | 2,892 | ||
Loans, net of allowance | 612,969 | 590,415 | ||
Mortgage Servicing Assets | 876 | 751 | ||
Accrued interest receivable | 3,504 | 3,684 | ||
Bank owned life insurance | 27,525 | 27,814 | ||
Financial Liabilities: | ||||
Demand deposits | 305,832 | 314,917 | ||
Interest-bearing demand deposits | 19,764 | 20,230 | ||
NOW accounts | 85,307 | 86,758 | ||
Money market deposit accounts | 101,088 | 105,994 | ||
Savings accounts | 197,205 | 189,169 | ||
Time deposits | 147,726 | 150,165 | ||
Total deposits | 856,922 | 867,233 | ||
Short-term borrowings | 5,622 | |||
Long-term debt | 68,524 | 65,850 | ||
Accrued interest payable | 407 | 385 | ||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 37,719 | 53,073 | ||
Regulatory stock | 6,194 | 5,794 | ||
Loans held for sale | 2,640 | 2,892 | ||
Loans, net of allowance | ||||
Mortgage Servicing Assets | ||||
Accrued interest receivable | 3,504 | 3,684 | ||
Bank owned life insurance | 27,525 | 27,814 | ||
Financial Liabilities: | ||||
Demand deposits | 305,832 | 314,917 | ||
Interest-bearing demand deposits | 19,764 | 20,230 | ||
NOW accounts | 85,307 | 86,758 | ||
Money market deposit accounts | 101,088 | 105,994 | ||
Savings accounts | 197,205 | 189,169 | ||
Time deposits | ||||
Total deposits | 709,196 | 717,068 | ||
Short-term borrowings | 5,622 | |||
Long-term debt | ||||
Accrued interest payable | 407 | 385 | ||
Fair Value [Member] | Significant Other Observable Inputs (Level II) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | ||||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance | ||||
Mortgage Servicing Assets | ||||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Financial Liabilities: | ||||
Demand deposits | ||||
Interest-bearing demand deposits | ||||
NOW accounts | ||||
Money market deposit accounts | ||||
Savings accounts | ||||
Time deposits | ||||
Total deposits | ||||
Short-term borrowings | ||||
Long-term debt | ||||
Accrued interest payable | ||||
Fair Value [Member] | Significant Unobservable Inputs (Level III) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | ||||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance | 612,969 | 590,415 | ||
Mortgage Servicing Assets | 876 | 751 | ||
Accrued interest receivable | ||||
Bank owned life insurance | ||||
Financial Liabilities: | ||||
Demand deposits | ||||
Interest-bearing demand deposits | ||||
NOW accounts | ||||
Money market deposit accounts | ||||
Savings accounts | ||||
Time deposits | 147,726 | 150,165 | ||
Total deposits | 147,726 | 150,165 | ||
Short-term borrowings | ||||
Long-term debt | 68,524 | 65,850 | ||
Accrued interest payable |
Commitments and Contingent Li46
Commitments and Contingent Liabilities (Details) $ in Millions | Mar. 31, 2018USD ($) |
Commitment to extend credit | $ 271.5 |
Loan Commitments [Member] | |
Commitment to extend credit | 37.3 |
Line of Credit [Member] | |
Commitment to extend credit | 222.6 |
Letter of Credit [Member] | |
Commitment to extend credit | $ 11.6 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Loss (Schedule of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ 99,759 | |
Ending balance | 97,534 | $ 96,412 |
Unrealized Gains (Losses) on Securities Available-for-Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (3,195) | (4,885) |
Other comprehensive loss before reclassifications | (2,685) | 418 |
Amount reclassified from accumulated other comprehensive loss | (27) | (92) |
Reclassification of certain income tax effects from accumulated other comprehensive income (loss) | (634) | |
Period change | (3,346) | 326 |
Ending balance | $ (6,541) | $ (4,559) |
Federal income tax rate | 21.00% | 34.00% |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss (Schedule of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gains on securities transactions, net | $ 34 | $ 140 |
Provision for federal income taxes | (235) | (257) |
Reclassifications for the period | 2,821 | 1,827 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Unrealized Gains (Losses) on Securities Available-for-Sale [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Gains on securities transactions, net | 34 | 140 |
Provision for federal income taxes | (7) | (48) |
Reclassifications for the period | $ 27 | $ 92 |
Recently Issued Accounting St49
Recently Issued Accounting Standards (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Cumulative effect adjustment from accumulated other comprehensive income to retained earnings | $ 1,700 |