Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 01, 2019 | |
Document And Entity Information | ||
Entity Registrant Name | ENB Financial Corp | |
Entity Central Index Key | 0001437479 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,692,384 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2019 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | PA | |
Entity File Number | 000-53297 | |
Document Quarterly Report | true | |
Document Transition Report | false |
CONSOLIDATED BALANCE SHEETS (UN
CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
ASSETS | |||
Cash and due from banks | $ 17,210 | $ 26,675 | $ 20,016 |
Interest-bearing deposits in other banks | 34,460 | 14,690 | 24,083 |
Total cash and cash equivalents | 51,670 | 41,365 | 44,099 |
Securities available for sale (at fair value) | 290,927 | 294,065 | 307,253 |
Equity securities (at fair value) | 6,231 | 5,934 | 5,737 |
Loans held for sale | 3,473 | 1,429 | 2,436 |
Loans (net of unearned income) | 718,356 | 694,073 | 628,218 |
Less: Allowance for loan losses | 8,957 | 8,666 | 8,171 |
Net loans | 709,399 | 685,407 | 620,047 |
Premises and equipment | 25,339 | 25,551 | 25,814 |
Regulatory stock | 6,959 | 6,348 | 6,263 |
Bank owned life insurance | 28,429 | 28,085 | 27,693 |
Other assets | 9,218 | 9,658 | 10,544 |
Total assets | 1,131,645 | 1,097,842 | 1,049,886 |
Deposits: | |||
Noninterest-bearing | 345,483 | 369,081 | 326,296 |
Interest-bearing | 596,123 | 550,653 | 551,773 |
Total deposits | 941,606 | 919,734 | 878,069 |
Short-term borrowings | 7,870 | 2,738 | |
Long-term debt | 74,628 | 65,386 | 68,361 |
Other liabilities | 2,897 | 2,050 | 1,975 |
Total liabilities | 1,019,131 | 995,040 | 951,143 |
Stockholders' equity: | |||
Common stock, par value $0.10 as of 6/30/19; $0.20 as of 12/31/18 and 6/30/18 Shares: Authorized 24,000,000 as of 6/30/19; 12,000,000 as of 12/31/18 and 6/30/18 Issued 5,739,114 and Outstanding 5,698,384 as of 6/30/19 Issued 2,869,557 and Outstanding 2,852,532 as of 12/31/18 Issued 2,869,557 and Outstanding 2,857,704 as of 6/30/18 | 574 | 574 | 574 |
Capital surplus | 4,454 | 4,435 | 4,424 |
Retained earnings | 108,024 | 104,067 | 100,922 |
Accumulated other comprehensive income (loss) net of tax | 298 | (5,678) | (6,778) |
Less: Treasury stock cost on 46,730 shares as of 6/30/19 17,025 shares as of 12/31/18 and 11,853 shares as of 6/30/18 | (836) | (596) | (399) |
Total stockholders' equity | 112,514 | 102,802 | 98,743 |
Total liabilities and stockholders' equity | $ 1,131,645 | $ 1,097,842 | $ 1,049,886 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | |||
Common stock, par value | $ 0.10 | $ 0.20 | $ 0.20 |
Common stock, authorized | 24,000,000 | 12,000,000 | 12,000,000 |
Common stock, issued | 5,739,114 | 2,869,557 | 2,869,557 |
Common stock, outstanding | 5,698,384 | 2,852,532 | 2,857,704 |
Treasury shares | 46,730 | 17,025 | 11,853 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 8,309 | $ 6,704 | $ 16,332 | $ 13,102 |
Interest on securities available for sale | ||||
Taxable | 1,242 | 1,186 | 2,517 | 2,287 |
Tax-exempt | 608 | 736 | 1,255 | 1,495 |
Interest on deposits at other banks | 119 | 135 | 166 | 247 |
Dividend income | 184 | 136 | 354 | 290 |
Total interest and dividend income | 10,462 | 8,897 | 20,624 | 17,421 |
Interest expense: | ||||
Interest on deposits | 913 | 512 | 1,737 | 991 |
Interest on borrowings | 391 | 330 | 746 | 625 |
Total interest expense | 1,304 | 842 | 2,483 | 1,616 |
Net interest income | 9,158 | 8,055 | 18,141 | 15,805 |
Provision for loan losses | 30 | 90 | 210 | 280 |
Net interest income after provision for loan losses | 9,128 | 7,965 | 17,931 | 15,525 |
Other income: | ||||
Trust and investment services income | 505 | 474 | 1,042 | 1,028 |
Service fees | 693 | 837 | 1,323 | 1,498 |
Commissions | 756 | 657 | 1,411 | 1,241 |
Gains (losses) on the sale of debt securities, net | 106 | (62) | 187 | (28) |
Gains on equity securities, net | 27 | 16 | 44 | 47 |
Gains on sale of mortgages | 415 | 352 | 764 | 587 |
Earnings on bank-owned life insurance | 179 | 192 | 357 | 1,291 |
Other income | 81 | 162 | 178 | 344 |
Total other income | 2,762 | 2,628 | 5,306 | 6,008 |
Operating expenses: | ||||
Salaries and employee benefits | 5,105 | 5,221 | 10,293 | 10,181 |
Occupancy | 590 | 602 | 1,220 | 1,265 |
Equipment | 287 | 291 | 574 | 579 |
Advertising & marketing | 166 | 205 | 416 | 437 |
Computer software & data processing | 609 | 574 | 1,266 | 1,118 |
Shares tax | 232 | 229 | 465 | 443 |
Professional services | 556 | 505 | 1,031 | 938 |
Other expense | 672 | 540 | 1,234 | 1,090 |
Total operating expenses | 8,217 | 8,167 | 16,499 | 16,051 |
Income before income taxes | 3,673 | 2,426 | 6,738 | 5,482 |
Provision for federal income taxes | 584 | 300 | 1,046 | 535 |
Net income | $ 3,089 | $ 2,126 | $ 5,692 | $ 4,947 |
Earnings per share of common stock | $ 0.54 | $ 0.37 | $ 1 | $ 0.87 |
Cash dividends paid per share | $ 0.155 | $ 0.145 | $ 0.305 | $ 0.285 |
Weighted average shares outstanding | 5,692,506 | 5,707,590 | 5,693,418 | 5,703,962 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 3,089 | $ 2,126 | $ 5,692 | $ 4,947 |
Securities available for sale not other-than-temporarily impaired: | ||||
Unrealized gains (losses) arising during the period | 4,520 | (362) | 7,751 | (3,730) |
Income tax effect | (949) | 76 | (1,627) | 759 |
Total | 3,571 | (286) | 6,124 | (2,971) |
(Gains) losses recognized in earnings | (106) | 62 | (187) | 28 |
Income tax effect | 22 | (13) | 39 | (6) |
Total | (84) | 49 | (148) | 22 |
Other comprehensive income (loss), net of tax | 3,487 | (237) | 5,976 | (2,949) |
Comprehensive Income | $ 6,576 | $ 1,889 | $ 11,668 | $ 1,998 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance, beginning at Dec. 31, 2017 | $ 574 | $ 4,415 | $ 98,629 | $ (3,195) | $ (664) | $ 99,759 |
Net income | 2,821 | 2,821 | ||||
Other comprehensive income (loss) net of tax | (2,712) | (2,712) | ||||
Change in accounting principal for adoption of ASU 2017-08 | (1,663) | (1,663) | ||||
Reclassification of certain income tax effects from accumulated other comprehensive loss | 634 | (634) | ||||
Treasury stock issued | 4 | 123 | 127 | |||
Cash dividends paid | (798) | (798) | ||||
Balance, ending at Mar. 31, 2018 | 574 | 4,419 | 99,623 | (6,541) | (541) | 97,534 |
Balance, beginning at Dec. 31, 2017 | 574 | 4,415 | 98,629 | (3,195) | (664) | 99,759 |
Net income | 4,947 | |||||
Balance, ending at Jun. 30, 2018 | 574 | 4,424 | 100,922 | (6,778) | (399) | 98,743 |
Balance, beginning at Mar. 31, 2018 | 574 | 4,419 | 99,623 | (6,541) | (541) | 97,534 |
Net income | 2,126 | 2,126 | ||||
Other comprehensive income (loss) net of tax | (237) | (237) | ||||
Treasury stock issued | 5 | 142 | 147 | |||
Cash dividends paid | (827) | (827) | ||||
Balance, ending at Jun. 30, 2018 | 574 | 4,424 | 100,922 | (6,778) | (399) | 98,743 |
Balance, beginning at Dec. 31, 2018 | 574 | 4,435 | 104,067 | (5,678) | (596) | 102,802 |
Net income | 2,603 | 2,603 | ||||
Other comprehensive income (loss) net of tax | 2,489 | 2,489 | ||||
Treasury stock purchased | (330) | (330) | ||||
Treasury stock issued | 3 | 143 | 146 | |||
Cash dividends paid | (852) | (852) | ||||
Balance, ending at Mar. 31, 2019 | 574 | 4,438 | 105,818 | (3,189) | (783) | 106,858 |
Balance, beginning at Dec. 31, 2018 | 574 | 4,435 | 104,067 | (5,678) | (596) | 102,802 |
Net income | 5,692 | |||||
Balance, ending at Jun. 30, 2019 | 574 | 4,454 | 108,024 | 298 | (836) | 112,514 |
Balance, beginning at Mar. 31, 2019 | 574 | 4,438 | 105,818 | (3,189) | (783) | 106,858 |
Net income | 3,089 | 3,089 | ||||
Other comprehensive income (loss) net of tax | 3,487 | 3,487 | ||||
Treasury stock purchased | (204) | (204) | ||||
Treasury stock issued | 16 | 151 | 167 | |||
Cash dividends paid | (883) | (883) | ||||
Balance, ending at Jun. 30, 2019 | $ 574 | $ 4,454 | $ 108,024 | $ 298 | $ (836) | $ 112,514 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Treasury stock purchased, shares | 29,366 | 18,800 | ||
Treasury stock issued, shares | 16,686 | 8,188 | 4,225 | 3,656 |
Cash dividends paid, per share | $ 0.155 | $ 0.15 | $ 0.29 | $ 0.28 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 5,692 | $ 4,947 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts and loan fees | 1,692 | 2,050 |
Amortization of operating leases right-of-use assets | 87 | |
Increase in interest receivable | (343) | (36) |
Increase in interest payable | 96 | 26 |
Provision for loan losses | 210 | 280 |
(Gain) loss on sale of debt securities, net | (187) | 28 |
Gain on equity securities, net | (44) | (47) |
Gains on sale of mortgages | (764) | (587) |
Loans originated for sale | (20,210) | (16,557) |
Proceeds from sales of loans | 18,930 | 17,600 |
Earnings on bank-owned life insurance | (357) | (1,291) |
Depreciation of premises and equipment and amortization of software | 783 | 816 |
Deferred income tax | (274) | (21) |
Other assets and other liabilities, net | 123 | 1,482 |
Net cash provided by operating activities | 5,434 | 8,690 |
Securities available for sale: | ||
Proceeds from maturities, calls, and repayments | 10,813 | 8,946 |
Proceeds from sales | 28,648 | 32,082 |
Purchases | (30,115) | (41,477) |
Equity securities | ||
Proceeds from sales | 153 | |
Purchases | (153) | (225) |
Purchase of regulatory bank stock | (1,102) | (1,398) |
Redemptions of regulatory bank stock | 491 | 929 |
Net increase in loans | (24,451) | (31,250) |
Purchases of premises and equipment, net | (517) | (857) |
Purchase of computer software | (31) | (57) |
Net cash used for investing activities | (16,417) | (33,154) |
Cash flows from financing activities: | ||
Net increase in demand, NOW, and savings accounts | 18,222 | 18,857 |
Net increase (decrease) in time deposits | 3,650 | (7,265) |
Net (decrease) increase in short-term borrowings | (7,870) | 2,738 |
Proceeds from long-term debt | 16,212 | 11,661 |
Repayments of long-term debt | (6,970) | (9,150) |
Dividends paid | (1,735) | (1,625) |
Proceeds from sale of treasury stock | 313 | 274 |
Treasury stock purchased | (534) | |
Net cash provided by (used in) financing activities | 21,288 | 15,490 |
Increase (decrease) in cash and cash equivalents | 10,305 | (8,974) |
Cash and cash equivalents at beginning of period | 41,365 | 53,073 |
Cash and cash equivalents at end of period | 51,670 | 44,099 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 2,387 | 1,590 |
Income taxes paid | 800 | 250 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Fair value adjustments for securities available for sale | (7,564) | 3,730 |
Initial recognition of operating right-of-use assets | 1,075 | |
Initial recognition of operating lease liabilities | $ 1,075 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
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 second quarter of 2019, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three and six months ended June 30, 2019, are not necessarily indicative of the results that may be expected for the year ended December 31, 2019. 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, 2018. 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. Leases ASU 2016-02, “Leases (Topic 842).” ASC Topic 606, “Revenue from Contracts with Customers “Leases (Topic 842) - Targeted Improvements,” ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors,” |
Securities Available for Sale
Securities Available for Sale | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019, and December 31, 2018, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ June 30, 2019 U.S. government agencies 31,186 28 (183 ) 31,031 U.S. agency mortgage-backed securities 46,899 65 (872 ) 46,092 U.S. agency collateralized mortgage obligations 54,906 291 (289 ) 54,908 Asset-backed securities 13,926 — (67 ) 13,859 Corporate bonds 52,680 80 (262 ) 52,498 Obligations of states and political subdivisions 90,953 1,639 (53 ) 92,539 Total securities available for sale 290,550 2,103 (1,726 ) 290,927 December 31, 2018 U.S. government agencies 31,025 5 (910 ) 30,120 U.S. agency mortgage-backed securities 46,363 2 (1,726 ) 44,639 U.S. agency collateralized mortgage obligations 55,182 74 (1,166 ) 54,090 Asset-backed securities 11,440 — (41 ) 11,399 Corporate bonds 61,085 — (1,893 ) 59,192 Obligations of states and political subdivisions 96,157 69 (1,601 ) 94,625 Total securities available for sale 301,252 150 (7,337 ) 294,065 The amortized cost and fair value of securities available for sale at June 30, 2019, 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 25,499 25,363 Due after one year through five years 133,326 132,587 Due after five years through ten years 24,363 24,257 Due after ten years 107,362 108,720 Total debt securities 290,550 290,927 Securities available for sale with a par value of $63,191,000 and $58,668,000 at June 30, 2019, and December 31, 2018, respectively, were pledged or restricted for public funds, borrowings, or other purposes as required by law. The fair value of these pledged securities was $64,686,000 at June 30, 2019, and $58,914,000 at December 31, 2018. 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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 $ $ $ $ Proceeds from sales 18,401 23,660 28,648 32,235 Gross realized gains 122 58 218 109 Gross realized losses 16 120 31 137 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 six months of 2019 or 2018. Information pertaining to securities with gross unrealized losses at June 30, 2019, and December 31, 2018, 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 June 30, 2019 U.S. government agencies — — 20,813 (183 ) 20,813 (183 ) U.S. agency mortgage-backed securities 1,983 (47 ) 37,732 (825 ) 39,715 (872 ) U.S. agency collateralized mortgage obligations 2,607 (6 ) 33,763 (283 ) 36,370 (289 ) Asset-backed securities 11,294 (67 ) — — 11,294 (67 ) Corporate bonds 3,989 (31 ) 30,210 (231 ) 34,199 (262 ) Obligations of states & political subdivisions — — 10,363 (53 ) 10,363 (53 ) Total temporarily impaired securities 19,873 (151 ) 132,881 (1,575 ) 152,754 (1,726 ) As of December 31, 2018 U.S. government agencies — — 28,116 (910 ) 28,116 (910 ) U.S. agency mortgage-backed securities — — 42,041 (1,726 ) 42,041 (1,726 ) U.S. agency collateralized mortgage obligations 8,055 (85 ) 40,735 (1,081 ) 48,790 (1,166 ) Asset-backed securities 5,563 (41 ) — — 5,563 (41 ) Corporate bonds 20,228 (455 ) 38,964 (1,438 ) 59,192 (1,893 ) Obligations of states & political subdivisions 12,367 (104 ) 68,982 (1,497 ) 81,349 (1,601 ) Total temporarily impaired securities 46,213 (685 ) 218,838 (6,652 ) 265,051 (7,337 ) In the debt security portfolio there were 82 positions that were carrying unrealized losses as of June 30, 2019. There were no instruments considered to be other-than-temporarily impaired at June 30, 2019. The Corporation evaluates 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 | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ June 30, 2019 CRA-qualified mutual funds 5,488 — — 5,488 Bank stocks 754 21 (32 ) 743 Total equity securities 6,242 21 (32 ) 6,231 Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2018 CRA-qualified mutual funds 5,410 — — 5,410 Bank stocks 591 — (67 ) 524 Total equity securities 6,001 — (67 ) 5,934 The following table presents the net gains and losses on the Corporation’s equity investments recognized in earnings during the year-to-date period ended June 30, 2019 and 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of June 30, 2019 and 2018. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 $ $ $ $ Net gains (losses) recognized in equity securities during the period 27 (14 ) 44 17 Less: Net gains (losses) realized on the sale of equity securities during the period — 30 — 30 Unrealized gains (losses) recognized in equity securities held at reporting date 27 16 44 47 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | 4. Loans and Allowance for Loan Losses The following table presents the Corporation’s loan portfolio by category of loans as of June 30, 2019, and December 31, 2018: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) June 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 104,418 101,419 Agriculture mortgages 168,726 165,926 Construction 18,151 18,092 Total commercial real estate 291,295 285,437 Consumer real estate (a) 1-4 family residential mortgages 241,134 219,037 Home equity loans 10,536 10,271 Home equity lines of credit 66,535 64,413 Total consumer real estate 318,205 293,721 Commercial and industrial Commercial and industrial 61,298 61,043 Tax-free loans 16,815 22,567 Agriculture loans 20,641 20,512 Total commercial and industrial 98,754 104,122 Consumer 8,397 9,197 Gross loans prior to deferred fees 716,651 692,477 Less: Deferred loan costs, net 1,705 1,596 Allowance for loan losses (8,957 ) (8,666 ) Total net loans 709,399 685,407 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $138,468,000 and $126,916,000 as of June 30, 2019, and December 31, 2018, 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 June 30, 2019 and December 31, 2018. 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) June 30, 2019 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 102,033 156,264 17,300 55,245 16,618 18,745 366,205 Special Mention 170 3,197 851 4,252 197 1,128 9,795 Substandard 2,215 9,265 — 1,801 — 768 14,049 Doubtful — — — — — — — Loss — — — — — — — Total 104,418 168,726 18,151 61,298 16,815 20,641 390,049 December 31, 2018 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 99,013 154,132 17,567 59,348 22,367 19,487 371,914 Special Mention 176 3,478 525 518 200 453 5,350 Substandard 2,230 8,316 — 1,177 — 572 12,295 Doubtful — — — — — — — Loss — — — — — — — Total 101,419 165,926 18,092 61,043 22,567 20,512 389,559 The largest movement in credit risk profile from December 31, 2018 to June 30, 2019 was a $3.9 million commercial and industrial (C&I) relationship that was downgraded from pass to special mention. This larger relationship, which provides a wide complement of leased equipment, accounted for the $3.7 million increase in commercial and industrial special mention loans since year end, and the majority of the increase in special mention loans for all commercial loan categories. This loan is current and has performed on a timely basis since origination. Agricultural loans not secured by real estate experienced a $675,000 increase in special mention loans from year end. This was primarily the result of a downgrading of one farmer with $920,000 of C&I balance, who has a mix of operations. 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 June 30, 2019 and December 31, 2018: CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) June 30, 2019 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 240,900 10,536 66,535 8,389 326,360 Non-performing 234 — — 8 242 Total 241,134 10,536 66,535 8,397 326,602 December 31, 2018 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 218,641 10,271 64,413 9,196 302,521 Non-performing 396 — — 1 397 Total 219,037 10,271 64,413 9,197 302,918 The following tables present an age analysis of the Corporation’s past due loans, segregated by loan portfolio class, as of June 30, 2019 and December 31, 2018: 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 June 30, 2019 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 993 993 103,425 104,418 — Agriculture mortgages — 377 816 1,193 167,533 168,726 — Construction — — — — 18,151 18,151 — Consumer real estate 1-4 family residential mortgages 274 184 234 692 240,442 241,134 234 Home equity loans 32 24 — 56 10,480 10,536 — Home equity lines of credit 30 — — 30 66,505 66,535 — Commercial and industrial Commercial and industrial 2 — — 2 61,296 61,298 — Tax-free loans — — — — 16,815 16,815 — Agriculture loans 648 — — 648 19,993 20,641 — Consumer 1 — 8 9 8,388 8,397 8 Total 987 585 2,051 3,623 713,028 716,651 242 Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and December 31, 2018 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 237 237 101,182 101,419 — Agriculture mortgages 326 — 816 1,142 164,784 165,926 — Construction — — — — 18,092 18,092 — Consumer real estate 1-4 family residential mortgages 455 201 396 1,052 217,985 219,037 396 Home equity loans 62 35 — 97 10,174 10,271 — Home equity lines of credit 95 — — 95 64,318 64,413 — Commercial and industrial Commercial and industrial 24 — — 24 61,019 61,043 — Tax-free loans — — — — 22,567 22,567 — Agriculture loans 118 — — 118 20,394 20,512 — Consumer 10 15 1 26 9,171 9,197 1 Total 1,090 251 1,450 2,791 689,686 692,477 397 The following table presents nonaccrual loans by classes of the loan portfolio as of June 30, 2019 and December 31, 2018: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) June 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 993 1,017 Agriculture mortgages 816 816 Construction — — Consumer real estate 1-4 family residential mortgages — — Home equity loans — — Home equity lines of credit — — Commercial and industrial Commercial and industrial — — Tax-free loans — — Agriculture loans — — Consumer — — Total 1,809 1,833 As of June 30, 2019 and December 31, 2018, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three and six months ended June 30, 2019 and June 30, 2018, is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 $ $ $ $ Average recorded balance of impaired loans 3,412 2,201 3,057 2,045 Interest income recognized on impaired loans 11 15 22 31 There were no loan modifications made during the three or six months ended June 30, 2019 or 2018 causing a loan to be considered a troubled debt restructuring (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 following tables summarize information regarding impaired loans by loan portfolio class as of June 30, 2019, and December 31, 2018: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) June 30, 2019 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 737 772 — 743 — Agriculture mortgages 2,393 2,393 — 2,054 22 Construction — — — — — Total commercial real estate 3,130 3,165 — 2,797 22 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 3,130 3,165 — 2,797 22 With an allowance recorded: Commercial real estate Commercial mortgages 256 274 106 260 — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 256 274 106 260 — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 256 274 106 260 — Total by loan class: Commercial real estate Commercial mortgages 993 1,046 106 1,003 — Agriculture mortgages 2,393 2,393 — 2,054 22 Construction — — — — — Total commercial real estate 3,386 3,439 106 3,057 22 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total 3,386 3,439 106 3,057 22 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) December 31, 2018 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 370 901 — 396 — Agriculture mortgages 1,692 1,692 — 1,063 45 Construction — — — — — Total commercial real estate 2,062 2,593 — 1,459 45 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 2,062 2,593 — 1,459 45 With an allowance recorded: Commercial real estate Commercial mortgages 647 694 132 484 — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 647 694 132 484 — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — 124 6 Total commercial and industrial — — — 124 6 Total with a related allowance 647 694 132 608 6 Total by loan class: Commercial real estate Commercial mortgages 1,017 1,595 132 880 — Agriculture mortgages 1,692 1,692 — 1,063 45 Construction — — — — — Total commercial real estate 2,709 3,287 132 1,943 45 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — 124 6 Total commercial and industrial — — — 124 6 Total 2,709 3,287 132 2,067 51 The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2019: ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2018 4,296 2,408 1,428 102 432 8,666 Charge-offs — — — (17 ) — (17 ) Recoveries 44 — 13 — — 57 Provision 148 (140 ) 128 16 28 180 Balance - March 31, 2019 4,488 2,268 1,569 101 460 8,886 Charge-offs — — — (6 ) — (6 ) Recoveries 43 — 1 3 — 47 Provision (114 ) 122 (204 ) (22 ) 248 30 Ending Balance - June 30, 2019 4,417 2,390 1,366 76 708 8,957 During the six months ended June 30, 2019, management charged off $23,000 in loans while recovering $104,000 and added $210,000 to the provision. The unallocated portion of the allowance did increase from 5.3% as of December 31, 2018, and 5.5% as of March 31, 2019, to 8.6% as of June 30, 2019. Management monitors the unallocated portion of the allowance and has guidelines for maintaining any unallocated allowance between 5.0% and 10.0% of the calculated required allowance for credit losses. During the six-months ended June 30, 2019, net provision expense was recorded for the commercial real estate segment, while net credit provisions were recorded in the consumer real estate, commercial and industrial, and consumer segments. This was due to continued very low historical loss experience for these three segments. In the past two quarters, management has adjusted the qualitative factors across the loan portfolio to better reflect the forward risk in each loan segment. This has resulted in a slightly larger allowance for commercial real estate loans and slightly lower allowances for consumer real estate, commercial real estate and consumer, while the unallocated portion of the allowance increased. The Corporation’s commercial real estate allocation for credit losses was reduced by $114,000 in the second quarter of 2019, influenced by a reduction in real estate secured agricultural delinquencies that declined materially since March 31, 2019. The allowance for credit losses on consumer real estate grew in the second quarter of 2019 relative to the sharper growth in this segment offset partially by lower delinquencies than March 31, 2019 but unchanged from the prior June 30, 2019. The Commercial and industrial allocation for credit losses was reduced by $204,000 in the second quarter of 2019 as delinquencies declined significantly. The Corporation’s commercial and industrial loans continue to experience lower levels of delinquency than both commercial and agricultural mortgage loans. As of June 30, 2019 the commercial and industrial loan delinquencies were running at a fourth of the level of business mortgage delinquencies. The commercial and industrial delinquencies on June 30, 2019 were only one third of the level of delinquencies as of December 31, 2018. Therefore, the provision for commercial and industrial loans was lowered by $204,000 for the three-month period ended June 30, 2019. The provision for consumer loans was reduced by $22,000 in the second quarter of 2019 as a result of the reductions in consumer credit lines and loan delinquencies from March 31, 2019 to June 30, 2019. As of June 30, 2019, the 0.44% delinquency rate for all of the Corporation’s loans was down slightly from 0.46% as of December 31, 2018 levels, but was down moderately from 0.59% as of March 31, 2019. Charge-offs for the three and six months ended June 30, 2019, were very low at $5,000 and $22,000 compared to $8,000 and $360,000 for the same periods of 2018. The agricultural lending sector has generally been under stress over the past several years due to lower commodity prices within certain agricultural industries. The Corporation’s agricultural portfolio is highly affected by volatility in the protein sector; particularly dairy and broiler prices. These are the two commodity price indicators that have the most immediate impact to the majority of the Corporation’s agricultural borrowers. Due to abundant supplies of eggs forecasted through 2019, egg prices will continue to exhibit downward pressures on producers. Broiler prices have slightly increased in 2019 but are forecasted to show continued stress due to expected weak domestic demand for the second half of 2019. Slaughter levels have increased slightly year over year, but with slow growth in meat demand, poultry integrators are taking active measures to control production. Milk prices remain historically low and have not broken out of a historical low three-year range. The average milk price for the first half of 2019 slightly exceeded the average for the first half of 2018, but income over feed costs remain low. The local dairy industry continues to undergo consolidation as it deals with overcapacity. These agricultural challenges did not adversely impact the Corporation’s agricultural loans until the end of 2018 when total agricultural delinquencies rose to $1.4 million, from zero at the end of 2017. As of June 30, 2019, total agricultural mortgage delinquencies rose to $1.9 million, but had declined from the recent high of $2.3 million as of March 31, 2019. The reduction since March 31, 2019 is consistent with slightly improved milk and poultry prices that began to improve in early 2019. Agricultural mortgages over 90 days delinquent remained unchanged at $816,000 from December 31, 2018 to June 30, 2019. The agricultural mortgages over 90 days delinquent are made up of two loans to one dairy farmer, with the largest loan of $766,000 backed by a 90% FSA guarantee. Both of the loans were placed on non-accrual at the end of the fourth quarter of 2018. The borrower has been trying to sell the property since mid-2018. As of June 30, 2019, the Bank was proceeding on foreclosure proceedings on this loan. Management does not anticipate any charge-off on this loan due to the sufficiency of collateral and the FSA guarantee. Outside of this relationship, it was the 60-89 days past due delinquencies that were primarily responsible for the increase in total agricultural mortgage delinquencies. Management will continue to closely monitor the level of agricultural mortgage delinquencies for trends like declining borrower performance. Outside of the above measurements and indicators, management continues to utilize nine qualitative factors to continually refine the potential credit risks across the Corporation’s various loan types. The majority of the qualitative factors had little change during the first half of 2019. Minor adjustments to the qualitative factors covering changes in lending policies and procedures, trends in the nature and volume of the loan portfolio, and levels of and trends in delinquency, non-accruals, and charge-offs were made throughout the first half of 2019 as these levels increased or decreased. The other qualitative factors remained consistent since December 31, 2018, requiring no adjustments to the allowance. T 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 Charge-offs — — — (8 ) — (8 ) Recoveries — — 2 4 — 6 Provision (43 ) (7 ) (21 ) 63 98 90 Balance - June 30, 2018 4,004 2,182 1,282 131 572 8,171 During the six months ended June 30, 2018, provision expenses were recorded for the commercial real estate, consumer real estate, and consumer segments with a credit provision recorded for the commercial and industrial segment. The increase in the allowance for commercial real estate loans was primarily a result of higher levels of charge-offs in the first six months of 2018. The increase in the amount of the allowance for loan losses allocated to the consumer real estate and consumer segment was primarily a result of growth in these portfolios during the six months ended June 30, 2018. The decrease in commercial and industrial loans from December 31, 2017 to June 30, 2018 was caused by a qualitative factor change across the portfolio and also by the declining level of substandard commercial and industrial loans. The qualitative factors were adjusted across the loan portfolio to better reflect the forward risk in each portfolio. Commercial and consumer real estate carried heavier risk factors, while commercial and industrial was adjusted down. While commercial and industrial did have charge-offs in the first quarter of 2018 they were relative to the size of the allowance and sufficiently covered with prior provisions. There was no commercial and industrial charge-offs in the second quarter of 2018, as well as the commercial and consumer real estate areas. Meanwhile the amount of commercial and industrial loans rated substandard, declined from $3.2 million on December 31, 2017, to $2.8 million as of March 31, 2018, and to $2.0 million as of June 30, 2018. While the balances of commercial and industrial loans increased moderately from December 31, 2017 to June 30, 2018, the required allowance and related provision for these loans is influenced more heavily by the amount 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 June 30, 2019 and December 31, 2018: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of June 30, 2019: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 106 — — — — 106 Ending balance: collectively evaluated for impairment 4,311 2,390 1,366 76 708 8,851 Loans receivable: Ending balance 291,295 318,205 98,754 8,397 716,651 Ending balance: individually evaluated for impairment 3,386 — — — 3,386 Ending balance: collectively evaluated for impairment 287,909 318,205 98,754 8,397 713,265 As of December 31, 2018: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 132 — — — — 132 Ending balance: collectively evaluated for impairment 4,164 2,408 1,428 102 432 8,534 Loans receivable: Ending balance 285,437 293,721 104,122 9,197 692,477 Ending balance: individually evaluated for impairment 2,709 — — — 2,709 Ending balance: collectively evaluated for impairment 282,728 293,721 104,122 9,197 689,768 |
Fair Value Presentation
Fair Value Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019, and December 31, 2018, 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) June 30, 2019 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 31,031 — 31,031 U.S. agency mortgage-backed securities — 46,092 — 46,092 U.S. agency collateralized mortgage obligations — 54,908 — 54,908 Asset-backed securities — 13,859 — 13,859 Corporate bonds — 52,498 — 52,498 Obligations of states & political subdivisions — 92,539 — 92,539 Equity securities 6,231 — — 6,231 Total securities 6,231 290,927 — 297,158 On June 30, 2019, 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 June 30, 2019, the CRA fund investments had a $5,488,000 book and fair market value and the bank stock portfolio had a book value of $754,000, and fair market value of $743,000. 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, 2018 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 30,120 — 30,120 U.S. agency mortgage-backed securities — 44,639 — 44,639 U.S. agency collateralized mortgage obligations — 54,090 — 54,090 Asset-backed securities — 11,399 — 11,399 Corporate bonds — 59,192 — 59,192 Obligations of states & political subdivisions — 94,625 — 94,625 Equity securities 5,934 — — 5,934 Total securities 5,934 294,065 — 299,999 On December 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 December 31, 2018, the CRA fund investments had a $5,410,000 book and market value and the bank stocks had a book value of $591,000 and a market value of $524,000. 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 June 30, 2019 and December 31, 2018, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands June 30, 2019 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 3,280 $ 3,280 Total $ — $ — $ 3,280 $ 3,280 December 31, 2018 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 2,577 $ 2,577 Total $ — $ — $ 2,577 $ 2,577 The Corporation had a total of $3,386,000 of impaired loans as of June 30, 2019, with $106,000 of specific allocation against these loans and $2,709,000 of impaired loans as of December 31, 2018, with $132,000 of 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) June 30, 2019 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,280 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) December 31, 2018 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 2,577 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. 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 June 30, 2019 and December 31, 2018: |
FINANCIAL INSTRUMENTS NOT REQUI
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) June 30, 2019 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 51,670 51,670 51,670 — — Regulatory stock 6,959 6,959 6,959 — — Loans held for sale 3,473 3,473 3,473 — — Loans, net of allowance 709,399 712,886 — — 712,886 Mortgage servicing assets 806 828 — — 828 Accrued interest receivable 4,097 4,097 4,097 — — Bank owned life insurance 28,429 28,429 28,429 — — Financial Liabilities: Demand deposits 345,483 345,483 345,483 — — Interest-bearing demand deposits 21,982 21,982 21,982 — — NOW accounts 92,578 92,578 92,578 — — Money market deposit accounts 138,793 138,793 138,793 — — Savings accounts 205,902 205,902 205,902 — — Time deposits 136,868 137,833 — — 137,833 Total deposits 941,606 942,571 804,738 — 137,833 Long-term debt 74,628 73,671 — — 73,671 Accrued interest payable 493 493 493 — — FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 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 41,365 41,365 41,365 — — Regulatory stock 6,348 6,348 6,348 — — Loans held for sale 1,429 1,429 1,429 — — Loans, net of allowance 685,407 687,844 — — 687,844 Mortgage servicing assets 905 997 — — 997 Accrued interest receivable 3,754 3,754 3,754 — — Bank owned life insurance 28,085 28,085 28,085 — — Financial Liabilities: Demand deposits 369,081 369,081 369,081 — — Interest-bearing demand deposits 20,104 20,104 20,104 — — NOW accounts 89,072 89,072 89,072 — — Money market deposit accounts 108,594 108,594 108,594 — — Savings accounts 199,665 199,665 199,665 — — Time deposits 133,218 132,351 — — 132,351 Total deposits 919,734 918,867 786,516 — 132,351 Short-term borrowings 7,870 7,870 7,870 — — Long-term debt 65,386 65,286 — — 65,286 Accrued interest payable 397 397 397 — — |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingent Liabilities | 7. 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 June 30, 2019, firm loan commitments were $56.3 million, unused lines of credit were $256.3 million, and open letters of credit were $10.0 million. The total of these commitments was $322.6 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 Income (Loss) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 8. Accumulated Other Comprehensive Income (Loss) The activity in accumulated other comprehensive income (loss) for the six months ended June 30, 2019 and 2018 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at December 31, 2018 (5,678 ) Other comprehensive income before reclassifications 2,553 Amount reclassified from accumulated other comprehensive loss (64 ) Period change 2,489 Balance at March 31, 2019 (3,189 ) Other comprehensive income before reclassifications 3,571 Amount reclassified from accumulated other comprehensive income (84 ) Period change 3,487 Balance at June 30, 2019 298 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 loss (634 ) Period change (3,346 ) Balance at March 31, 2018 (6,541 ) Other comprehensive loss before reclassifications (286 ) Amount reclassified from accumulated other comprehensive loss 49 Period change (237 ) Balance at June 30, 2018 (6,778 ) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. (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 June 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 106 (62) Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (22) 13 Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 84 (49) (1) Amounts in parentheses indicate debits. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Six Months Ended June 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 187 (28) Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (39) 6 Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 148 (22) (1) Amounts in parentheses indicate debits. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | 9. Leases A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Corporation adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Corporation, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Corporation is the lessee. All of these leases in which the Corporation is the lessee are comprised of real estate property for branches and office space with terms extending through 2026. All of the Corporation’s leases are classified as operating leases, and therefore, were previously not recognized on the Corporation’s Consolidated Balance Sheets. With the adoption of Topic 842, operating lease agreements are required to be recognized on the Consolidated Balance Sheets as a right-of use (“ROU”) asset and a corresponding lease liability. The following table represents the Consolidated Balance Sheet classification of the Corporation’s ROU assets and lease liabilities. Lease Consolidated Balance Sheets Classification (Dollars in Thousands) Classification June 30, 2019 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 996 Lease Liabilities Operating lease liabilties Other Liabilities $ 1,002 The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to determine the present value of the minimum lease payments. The Corporation’s lease agreements often include one or more options to renew at the Corporation’s discretion. If at lease inception, the Corporation considers the exercising of a renewal option to be reasonably certain, the Corporation will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As the rate is rarely determinable, the Corporation utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1 2019, the rate for the remaining lease term as of January 1, 2019 was used. June 30, 2019 Weighted-average remaining lease term Operating leases 5.7 years Weighted-average discount rate Operating leases 3.09% The following table represents lease costs and other lease information. As the Corporation elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance and utilities. Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2019 were as follows: Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: June 30, 2020 $ 199 June 30, 2021 199 June 30, 2022 195 June 30, 2023 150 June 30, 2024 155 Thereafter 190 Total Future Minimum Lease Payments 1,088 Amounts Representing Interests (86 ) Present Value of Net Future Minimum Lease Payments $ 1,002 |
Change in Capital Structure
Change in Capital Structure | 6 Months Ended |
Jun. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Change in Capital Structure | 10. Change in Capital Structure On April 17, 2019 ENB Financial Corp announced the Board of Directors declared a two-for-one stock split of the Corporation’s issued and outstanding common stock pursuant to which one (1) additional share of common stock was issued for each share of common stock held by shareholders of record as of the close of business on May 31, 2019. The additional shares were issued on June 28, 2019. The stock split was effected pursuant to articles of amendment to the articles of incorporation to reduce the par value of the common stock from $0.20 to $0.10 and increase the authorized shares of common stock proportionately from 12,000,000 to 24,000,000. Per share data reflected on the Corporation’s consolidated statements of income are restated as if the stock split had occurred at the beginning of the earliest period presented. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Jun. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Standards | 11. Recently Issued Accounting Standards In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes the Disclosure Requirements for Fair Value Measurements In March 2019, the FASB issued ASU 2019-01, Leases (Topic 842): Codification Improvements, In April 2019, the FASB issued ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments – Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments, Topic 326, Financial Instruments – Credit Losses Topic 815, Derivatives and Hedging Topic 825, Financial Instruments In May 2019, the FASB issued ASU 2019-05, Financial Instruments – Credit Losses, Topic 326 In May 2019, the FASB issued ASU 2019-06, Intangibles – Goodwill and Other (Topic 350), Business Combinations (Topic 805), and Not-for-Profit Entities (Topic 958): Extending the Private Company Accounting Alternatives on Goodwill and Certain Identifiable Intangible Assets to Not-for-Profit Entities In July 2019, the FASB issued ASU 2019-07, Codification Updates to SEC Sections, Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10532, Disclosure Update and Simplification, and Nos. 33-10231 and 33-10442, Investment Company Reporting Modernization, and Miscellaneous Updates. Disclosure Update and Simplification Investment Company Reporting Modernization |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 second quarter of 2019, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three and six months ended June 30, 2019, are not necessarily indicative of the results that may be expected for the year ended December 31, 2019. 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, 2018. |
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. |
Leases | Leases ASU 2016-02, “Leases (Topic 842).” ASC Topic 606, “Revenue from Contracts with Customers “Leases (Topic 842) - Targeted Improvements,” ASU 2018-20, “Leases (Topic 842) - Narrow-Scope Improvements for Lessors,” |
Securities Available for Sale (
Securities Available for Sale (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019, and December 31, 2018, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ June 30, 2019 U.S. government agencies 31,186 28 (183 ) 31,031 U.S. agency mortgage-backed securities 46,899 65 (872 ) 46,092 U.S. agency collateralized mortgage obligations 54,906 291 (289 ) 54,908 Asset-backed securities 13,926 — (67 ) 13,859 Corporate bonds 52,680 80 (262 ) 52,498 Obligations of states and political subdivisions 90,953 1,639 (53 ) 92,539 Total securities available for sale 290,550 2,103 (1,726 ) 290,927 December 31, 2018 U.S. government agencies 31,025 5 (910 ) 30,120 U.S. agency mortgage-backed securities 46,363 2 (1,726 ) 44,639 U.S. agency collateralized mortgage obligations 55,182 74 (1,166 ) 54,090 Asset-backed securities 11,440 — (41 ) 11,399 Corporate bonds 61,085 — (1,893 ) 59,192 Obligations of states and political subdivisions 96,157 69 (1,601 ) 94,625 Total securities available for sale 301,252 150 (7,337 ) 294,065 |
Schedule of contractual maturity of debt securities | The amortized cost and fair value of securities available for sale at June 30, 2019, 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 25,499 25,363 Due after one year through five years 133,326 132,587 Due after five years through ten years 24,363 24,257 Due after ten years 107,362 108,720 Total debt securities 290,550 290,927 |
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 June 30, Six Months Ended June 30, 2019 2018 2019 2018 $ $ $ $ Proceeds from sales 18,401 23,660 28,648 32,235 Gross realized gains 122 58 218 109 Gross realized losses 16 120 31 137 |
Schedule of securities in an unrealized loss position (temporary impairment) | Information pertaining to securities with gross unrealized losses at June 30, 2019, and December 31, 2018, 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 June 30, 2019 U.S. government agencies — — 20,813 (183 ) 20,813 (183 ) U.S. agency mortgage-backed securities 1,983 (47 ) 37,732 (825 ) 39,715 (872 ) U.S. agency collateralized mortgage obligations 2,607 (6 ) 33,763 (283 ) 36,370 (289 ) Asset-backed securities 11,294 (67 ) — — 11,294 (67 ) Corporate bonds 3,989 (31 ) 30,210 (231 ) 34,199 (262 ) Obligations of states & political subdivisions — — 10,363 (53 ) 10,363 (53 ) Total temporarily impaired securities 19,873 (151 ) 132,881 (1,575 ) 152,754 (1,726 ) As of December 31, 2018 U.S. government agencies — — 28,116 (910 ) 28,116 (910 ) U.S. agency mortgage-backed securities — — 42,041 (1,726 ) 42,041 (1,726 ) U.S. agency collateralized mortgage obligations 8,055 (85 ) 40,735 (1,081 ) 48,790 (1,166 ) Asset-backed securities 5,563 (41 ) — — 5,563 (41 ) Corporate bonds 20,228 (455 ) 38,964 (1,438 ) 59,192 (1,893 ) Obligations of states & political subdivisions 12,367 (104 ) 68,982 (1,497 ) 81,349 (1,601 ) Total temporarily impaired securities 46,213 (685 ) 218,838 (6,652 ) 265,051 (7,337 ) |
Equity Securities (Tables)
Equity Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019 and December 31, 2018. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ June 30, 2019 CRA-qualified mutual funds 5,488 — — 5,488 Bank stocks 754 21 (32 ) 743 Total equity securities 6,242 21 (32 ) 6,231 Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ December 31, 2018 CRA-qualified mutual funds 5,410 — — 5,410 Bank stocks 591 — (67 ) 524 Total equity securities 6,001 — (67 ) 5,934 |
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 year-to-date period ended June 30, 2019 and 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of June 30, 2019 and 2018. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Three Months Ended Six Months Ended June 30, 2019 June 30, 2018 June 30, 2019 June 30, 2018 $ $ $ $ Net gains (losses) recognized in equity securities during the period 27 (14 ) 44 17 Less: Net gains (losses) realized on the sale of equity securities during the period — 30 — 30 Unrealized gains (losses) recognized in equity securities held at reporting date 27 16 44 47 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of loan portfolio by category | The following table presents the Corporation’s loan portfolio by category of loans as of June 30, 2019, and December 31, 2018: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) June 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 104,418 101,419 Agriculture mortgages 168,726 165,926 Construction 18,151 18,092 Total commercial real estate 291,295 285,437 Consumer real estate (a) 1-4 family residential mortgages 241,134 219,037 Home equity loans 10,536 10,271 Home equity lines of credit 66,535 64,413 Total consumer real estate 318,205 293,721 Commercial and industrial Commercial and industrial 61,298 61,043 Tax-free loans 16,815 22,567 Agriculture loans 20,641 20,512 Total commercial and industrial 98,754 104,122 Consumer 8,397 9,197 Gross loans prior to deferred fees 716,651 692,477 Less: Deferred loan costs, net 1,705 1,596 Allowance for loan losses (8,957 ) (8,666 ) Total net loans 709,399 685,407 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $138,468,000 and $126,916,000 as of June 30, 2019, and December 31, 2018, respectively. |
Schedule of commercial and consumer credit exposure | COMMERCIAL CREDIT EXPOSURE CREDIT RISK PROFILE BY INTERNALLY ASSIGNED GRADE (DOLLARS IN THOUSANDS) June 30, 2019 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 102,033 156,264 17,300 55,245 16,618 18,745 366,205 Special Mention 170 3,197 851 4,252 197 1,128 9,795 Substandard 2,215 9,265 — 1,801 — 768 14,049 Doubtful — — — — — — — Loss — — — — — — — Total 104,418 168,726 18,151 61,298 16,815 20,641 390,049 December 31, 2018 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 99,013 154,132 17,567 59,348 22,367 19,487 371,914 Special Mention 176 3,478 525 518 200 453 5,350 Substandard 2,230 8,316 — 1,177 — 572 12,295 Doubtful — — — — — — — Loss — — — — — — — Total 101,419 165,926 18,092 61,043 22,567 20,512 389,559 The largest movement in credit risk profile from December 31, 2018 to June 30, 2019 was a $3.9 million commercial and industrial (C&I) relationship that was downgraded from pass to special mention. This larger relationship, which provides a wide complement of leased equipment, accounted for the $3.7 million increase in commercial and industrial special mention loans since year end, and the majority of the increase in special mention loans for all commercial loan categories. This loan is current and has performed on a timely basis since origination. Agricultural loans not secured by real estate experienced a $675,000 increase in special mention loans from year end. This was primarily the result of a downgrading of one farmer with $920,000 of C&I balance, who has a mix of operations. 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 June 30, 2019 and December 31, 2018: CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) June 30, 2019 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 240,900 10,536 66,535 8,389 326,360 Non-performing 234 — — 8 242 Total 241,134 10,536 66,535 8,397 326,602 December 31, 2018 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 218,641 10,271 64,413 9,196 302,521 Non-performing 396 — — 1 397 Total 219,037 10,271 64,413 9,197 302,918 |
Schedule of aging of loans receivable | 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 June 30, 2019 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 993 993 103,425 104,418 — Agriculture mortgages — 377 816 1,193 167,533 168,726 — Construction — — — — 18,151 18,151 — Consumer real estate 1-4 family residential mortgages 274 184 234 692 240,442 241,134 234 Home equity loans 32 24 — 56 10,480 10,536 — Home equity lines of credit 30 — — 30 66,505 66,535 — Commercial and industrial Commercial and industrial 2 — — 2 61,296 61,298 — Tax-free loans — — — — 16,815 16,815 — Agriculture loans 648 — — 648 19,993 20,641 — Consumer 1 — 8 9 8,388 8,397 8 Total 987 585 2,051 3,623 713,028 716,651 242 Loans Greater Receivable > 30-59 Days 60-89 Days than 90 Total Past Total Loans 90 Days and December 31, 2018 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 237 237 101,182 101,419 — Agriculture mortgages 326 — 816 1,142 164,784 165,926 — Construction — — — — 18,092 18,092 — Consumer real estate 1-4 family residential mortgages 455 201 396 1,052 217,985 219,037 396 Home equity loans 62 35 — 97 10,174 10,271 — Home equity lines of credit 95 — — 95 64,318 64,413 — Commercial and industrial Commercial and industrial 24 — — 24 61,019 61,043 — Tax-free loans — — — — 22,567 22,567 — Agriculture loans 118 — — 118 20,394 20,512 — Consumer 10 15 1 26 9,171 9,197 1 Total 1,090 251 1,450 2,791 689,686 692,477 397 |
Schedule of nonaccrual loans by class | The following table presents nonaccrual loans by classes of the loan portfolio as of June 30, 2019 and December 31, 2018: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) June 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 993 1,017 Agriculture mortgages 816 816 Construction — — Consumer real estate 1-4 family residential mortgages — — Home equity loans — — Home equity lines of credit — — Commercial and industrial Commercial and industrial — — Tax-free loans — — Agriculture loans — — Consumer — — Total 1,809 1,833 |
Schedule of impaired loans | As of June 30, 2019 and December 31, 2018, all of the Corporation’s commercial loans on nonaccrual status were also considered impaired. Information with respect to impaired loans for the three and six months ended June 30, 2019 and June 30, 2018, is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) Three months ended June 30, Six months ended June 30, 2019 2018 2019 2018 $ $ $ $ Average recorded balance of impaired loans 3,412 2,201 3,057 2,045 Interest income recognized on impaired loans 11 15 22 31 The following tables summarize information regarding impaired loans by loan portfolio class as of June 30, 2019, and December 31, 2018: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) June 30, 2019 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 737 772 — 743 — Agriculture mortgages 2,393 2,393 — 2,054 22 Construction — — — — — Total commercial real estate 3,130 3,165 — 2,797 22 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 3,130 3,165 — 2,797 22 With an allowance recorded: Commercial real estate Commercial mortgages 256 274 106 260 — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 256 274 106 260 — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with a related allowance 256 274 106 260 — Total by loan class: Commercial real estate Commercial mortgages 993 1,046 106 1,003 — Agriculture mortgages 2,393 2,393 — 2,054 22 Construction — — — — — Total commercial real estate 3,386 3,439 106 3,057 22 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total 3,386 3,439 106 3,057 22 IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) December 31, 2018 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 370 901 — 396 — Agriculture mortgages 1,692 1,692 — 1,063 45 Construction — — — — — Total commercial real estate 2,062 2,593 — 1,459 45 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 2,062 2,593 — 1,459 45 With an allowance recorded: Commercial real estate Commercial mortgages 647 694 132 484 — Agriculture mortgages — — — — — Construction — — — — — Total commercial real estate 647 694 132 484 — Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — 124 6 Total commercial and industrial — — — 124 6 Total with a related allowance 647 694 132 608 6 Total by loan class: Commercial real estate Commercial mortgages 1,017 1,595 132 880 — Agriculture mortgages 1,692 1,692 — 1,063 45 Construction — — — — — Total commercial real estate 2,709 3,287 132 1,943 45 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — 124 6 Total commercial and industrial — — — 124 6 Total 2,709 3,287 132 2,067 51 |
Schedule of allowance for credit losses | The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2019: ALLOWANCE FOR CREDIT LOSSES (DOLLARS IN THOUSANDS) Commercial Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Beginning balance - December 31, 2018 4,296 2,408 1,428 102 432 8,666 Charge-offs — — — (17 ) — (17 ) Recoveries 44 — 13 — — 57 Provision 148 (140 ) 128 16 28 180 Balance - March 31, 2019 4,488 2,268 1,569 101 460 8,886 Charge-offs — — — (6 ) — (6 ) Recoveries 43 — 1 3 — 47 Provision (114 ) 122 (204 ) (22 ) 248 30 Ending Balance - June 30, 2019 4,417 2,390 1,366 76 708 8,957 The following table details activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 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 Charge-offs — — — (8 ) — (8 ) Recoveries — — 2 4 — 6 Provision (43 ) (7 ) (21 ) 63 98 90 Balance - June 30, 2018 4,004 2,182 1,282 131 572 8,171 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 June 30, 2019 and December 31, 2018: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of June 30, 2019: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 106 — — — — 106 Ending balance: collectively evaluated for impairment 4,311 2,390 1,366 76 708 8,851 Loans receivable: Ending balance 291,295 318,205 98,754 8,397 716,651 Ending balance: individually evaluated for impairment 3,386 — — — 3,386 Ending balance: collectively evaluated for impairment 287,909 318,205 98,754 8,397 713,265 As of December 31, 2018: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 132 — — — — 132 Ending balance: collectively evaluated for impairment 4,164 2,408 1,428 102 432 8,534 Loans receivable: Ending balance 285,437 293,721 104,122 9,197 692,477 Ending balance: individually evaluated for impairment 2,709 — — — 2,709 Ending balance: collectively evaluated for impairment 282,728 293,721 104,122 9,197 689,768 |
Fair Value Presentation (Tables
Fair Value Presentation (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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 June 30, 2019, and December 31, 2018, 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) June 30, 2019 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 31,031 — 31,031 U.S. agency mortgage-backed securities — 46,092 — 46,092 U.S. agency collateralized mortgage obligations — 54,908 — 54,908 Asset-backed securities — 13,859 — 13,859 Corporate bonds — 52,498 — 52,498 Obligations of states & political subdivisions — 92,539 — 92,539 Equity securities 6,231 — — 6,231 Total securities 6,231 290,927 — 297,158 ASSETS MEASURED ON A RECURRING BASIS (DOLLARS IN THOUSANDS) December 31, 2018 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 30,120 — 30,120 U.S. agency mortgage-backed securities — 44,639 — 44,639 U.S. agency collateralized mortgage obligations — 54,090 — 54,090 Asset-backed securities — 11,399 — 11,399 Corporate bonds — 59,192 — 59,192 Obligations of states & political subdivisions — 94,625 — 94,625 Equity securities 5,934 — — 5,934 Total securities 5,934 294,065 — 299,999 |
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 June 30, 2019 and December 31, 2018, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands June 30, 2019 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 3,280 $ 3,280 Total $ — $ — $ 3,280 $ 3,280 December 31, 2018 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 2,577 $ 2,577 Total $ — $ — $ 2,577 $ 2,577 |
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) June 30, 2019 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,280 Appraisal of Appraisal -20% (-20%) collateral (1) adjustments (2) Liquidation -10% (-10%) expenses (2) December 31, 2018 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 2,577 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 NOT REQ_2
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and fair value of financial instruments | FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) June 30, 2019 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 51,670 51,670 51,670 — — Regulatory stock 6,959 6,959 6,959 — — Loans held for sale 3,473 3,473 3,473 — — Loans, net of allowance 709,399 712,886 — — 712,886 Mortgage servicing assets 806 828 — — 828 Accrued interest receivable 4,097 4,097 4,097 — — Bank owned life insurance 28,429 28,429 28,429 — — Financial Liabilities: Demand deposits 345,483 345,483 345,483 — — Interest-bearing demand deposits 21,982 21,982 21,982 — — NOW accounts 92,578 92,578 92,578 — — Money market deposit accounts 138,793 138,793 138,793 — — Savings accounts 205,902 205,902 205,902 — — Time deposits 136,868 137,833 — — 137,833 Total deposits 941,606 942,571 804,738 — 137,833 Long-term debt 74,628 73,671 — — 73,671 Accrued interest payable 493 493 493 — — FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (DOLLARS IN THOUSANDS) December 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 41,365 41,365 41,365 — — Regulatory stock 6,348 6,348 6,348 — — Loans held for sale 1,429 1,429 1,429 — — Loans, net of allowance 685,407 687,844 — — 687,844 Mortgage servicing assets 905 997 — — 997 Accrued interest receivable 3,754 3,754 3,754 — — Bank owned life insurance 28,085 28,085 28,085 — — Financial Liabilities: Demand deposits 369,081 369,081 369,081 — — Interest-bearing demand deposits 20,104 20,104 20,104 — — NOW accounts 89,072 89,072 89,072 — — Money market deposit accounts 108,594 108,594 108,594 — — Savings accounts 199,665 199,665 199,665 — — Time deposits 133,218 132,351 — — 132,351 Total deposits 919,734 918,867 786,516 — 132,351 Short-term borrowings 7,870 7,870 7,870 — — Long-term debt 65,386 65,286 — — 65,286 Accrued interest payable 397 397 397 — — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive loss | The activity in accumulated other comprehensive income (loss) for the six months ended June 30, 2019 and 2018 is as follows: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (1) (2) (DOLLARS IN THOUSANDS) Unrealized Gains (Losses) on Securities Available-for-Sale $ Balance at December 31, 2018 (5,678 ) Other comprehensive income before reclassifications 2,553 Amount reclassified from accumulated other comprehensive loss (64 ) Period change 2,489 Balance at March 31, 2019 (3,189 ) Other comprehensive income before reclassifications 3,571 Amount reclassified from accumulated other comprehensive income (84 ) Period change 3,487 Balance at June 30, 2019 298 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 loss (634 ) Period change (3,346 ) Balance at March 31, 2018 (6,541 ) Other comprehensive loss before reclassifications (286 ) Amount reclassified from accumulated other comprehensive loss 49 Period change (237 ) Balance at June 30, 2018 (6,778 ) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. (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 June 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 106 (62) Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (22) 13 Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 84 (49) (1) Amounts in parentheses indicate debits. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Six Months Ended June 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 187 (28) Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (39) 6 Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 148 (22) (1) Amounts in parentheses indicate debits. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Schedule of ROU Assets and Lease Liabilities | The following table represents the Consolidated Balance Sheet classification of the Corporation’s ROU assets and lease liabilities. Lease Consolidated Balance Sheets Classification (Dollars in Thousands) Classification June 30, 2019 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 996 Lease Liabilities Operating lease liabilties Other Liabilities $ 1,002 |
Schedule of Opreating Leases Weighted-Average Discount Term and Rate | June 30, 2019 Weighted-average remaining lease term Operating leases 5.7 years Weighted-average discount rate Operating leases 3.09% |
Schedule of Maturities of Operating Leases | Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2019 were as follows: Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: June 30, 2020 $ 199 June 30, 2021 199 June 30, 2022 195 June 30, 2023 150 June 30, 2024 155 Thereafter 190 Total Future Minimum Lease Payments 1,088 Amounts Representing Interests (86 ) Present Value of Net Future Minimum Lease Payments $ 1,002 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 02, 2019 |
Accounting Policies [Abstract] | ||
Right-of-use assets | $ 996 | $ 1,075 |
Securities Available for Sale_2
Securities Available for Sale (Narrative) (Details) $ in Thousands | Jun. 30, 2019USD ($)N | Dec. 31, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | ||
Available for sale debt securities pledged or restricted for public funds, par value | $ 63,191 | $ 58,668 |
Available for sale debt securities pledged or restricted for public funds, fair value | $ 64,686 | $ 58,914 |
Number of securities considered temporarily impaired | N | 82 |
Securities Available for Sale_3
Securities Available for Sale (Schedule of Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Securities Available For Sale | ||
Amortized Cost | $ 290,550 | $ 301,252 |
Gross Unrealized Gains | 2,103 | 150 |
Gross Unrealized Losses | (1,726) | (7,337) |
Fair Value | 290,927 | 294,065 |
U.S. Government Agencies [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 31,186 | 31,025 |
Gross Unrealized Gains | 28 | 5 |
Gross Unrealized Losses | (183) | (910) |
Fair Value | 31,031 | 30,120 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 46,899 | 46,363 |
Gross Unrealized Gains | 65 | 2 |
Gross Unrealized Losses | (872) | (1,726) |
Fair Value | 46,092 | 44,639 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 54,906 | 55,182 |
Gross Unrealized Gains | 291 | 74 |
Gross Unrealized Losses | (289) | (1,166) |
Fair Value | 54,908 | 54,090 |
Asset-backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 13,926 | 11,440 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (67) | (41) |
Fair Value | 13,859 | 11,399 |
Corporate Bonds [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 52,680 | 61,085 |
Gross Unrealized Gains | 80 | |
Gross Unrealized Losses | (262) | (1,893) |
Fair Value | 52,498 | 59,192 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 90,953 | 96,157 |
Gross Unrealized Gains | 1,639 | 69 |
Gross Unrealized Losses | (53) | (1,601) |
Fair Value | $ 92,539 | $ 94,625 |
Securities Available for Sale_4
Securities Available for Sale (Schedule of Contractual Maturity of Debt Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Contractual maturity of debt securities, Amortized Cost | |||
Due in one year or less | $ 25,499 | ||
Due after one year through five years | 133,326 | ||
Due after five years through ten years | 24,363 | ||
Due after ten years | 107,362 | ||
Total debt securities | 290,550 | ||
Contractual maturity of debt securities, Fair Value | |||
Due in one year or less | 25,363 | ||
Due after one year through five years | 132,587 | ||
Due after five years through ten years | 24,257 | ||
Due after ten years | 108,720 | ||
Securities available for sale | $ 290,927 | $ 294,065 | $ 307,253 |
Securities Available for Sale_5
Securities Available for Sale (Schedule of Proceeds and Gains and Losses on Securities) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 18,401 | $ 23,660 | $ 28,648 | $ 32,082 |
Gross realized gains | 122 | 58 | 218 | 109 |
Gross realized losses | $ 16 | $ 120 | $ 31 | $ 137 |
Securities Available for Sale_6
Securities Available for Sale (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than 12 months | $ 19,873 | $ 46,213 |
More than 12 months | 132,881 | 218,838 |
Total | 152,754 | 265,051 |
Gross Unrealized Losses | ||
Less than 12 months | (151) | (685) |
More than 12 months | (1,575) | (6,652) |
Total | (1,726) | (7,337) |
U.S. Government Agencies [Member] | ||
Fair Value | ||
Less than 12 months | ||
More than 12 months | 20,813 | 28,116 |
Total | 20,813 | 28,116 |
Gross Unrealized Losses | ||
Less than 12 months | ||
More than 12 months | (183) | (910) |
Total | (183) | (910) |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 1,983 | |
More than 12 months | 37,732 | 42,041 |
Total | 39,715 | 42,041 |
Gross Unrealized Losses | ||
Less than 12 months | (47) | |
More than 12 months | (825) | (1,726) |
Total | (872) | (1,726) |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value | ||
Less than 12 months | 2,607 | 8,055 |
More than 12 months | 33,763 | 40,735 |
Total | 36,370 | 48,790 |
Gross Unrealized Losses | ||
Less than 12 months | (6) | (85) |
More than 12 months | (283) | (1,081) |
Total | (289) | (1,166) |
Asset-backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 11,294 | 5,563 |
More than 12 months | ||
Total | 11,294 | 5,563 |
Gross Unrealized Losses | ||
Less than 12 months | (67) | (41) |
More than 12 months | ||
Total | (67) | (41) |
Corporate Bonds [Member] | ||
Fair Value | ||
Less than 12 months | 3,989 | 20,228 |
More than 12 months | 30,210 | 38,964 |
Total | 34,199 | 59,192 |
Gross Unrealized Losses | ||
Less than 12 months | (31) | (455) |
More than 12 months | (231) | (1,438) |
Total | (262) | (1,893) |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value | ||
Less than 12 months | 12,367 | |
More than 12 months | 10,363 | 68,982 |
Total | 10,363 | 81,349 |
Gross Unrealized Losses | ||
Less than 12 months | (104) | |
More than 12 months | (53) | (1,497) |
Total | $ (53) | $ (1,601) |
Equity Securities (Schedule of
Equity Securities (Schedule of Amortized Cost, Gross Unrealized gains, Losses, and Fair Value of Equity Securities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Net Investment Income [Line Items] | ||
Amortized Cost | $ 290,550 | $ 301,252 |
Gross Unrealized Gains | 2,103 | 150 |
Gross Unrealized Losses | (1,726) | (7,337) |
Fair Value | 290,927 | 294,065 |
CRA-qualified mutual funds [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 5,488 | 5,410 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 5,488 | 5,410 |
Bank stocks [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 754 | 591 |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (32) | (67) |
Fair Value | 743 | 524 |
Equity Securities [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 6,242 | 6,001 |
Gross Unrealized Gains | 21 | |
Gross Unrealized Losses | (32) | (67) |
Fair Value | $ 6,231 | $ 5,934 |
Equity Securities (Schedule o_2
Equity Securities (Schedule of Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Marketable Securities [Abstract] | ||||
Net gains (losses) recognized in equity securities during the period | $ 27 | $ (14) | $ 44 | $ 17 |
Less: Net gains (losses) realized on the sale of equity securities during the period | 30 | 30 | ||
Unrealized gains (losses) recognized in equity securities held at reporting date | $ 27 | $ 16 | $ 44 | $ 47 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Mar. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase decrease in loans | $ 2,300 | ||||||||
Delinquency rate | 0.44% | 0.59% | 0.44% | 0.46% | |||||
Provision (credit) for loan losses | $ 210 | ||||||||
Additional provision for loan losses | 210 | ||||||||
Recoveries of loan losses | 104 | ||||||||
Charge-offs | $ 6 | $ 17 | $ 8 | $ 352 | 23 | $ 360 | |||
Amount of delinquent remained unchanged | 816 | ||||||||
Amount of largest loan backed to one farmer | $ 766 | ||||||||
Percentage of amount of largest loan backed to one farmer | 90.00% | ||||||||
Unallocated portion of allowance, percentage | 8.60% | 5.50% | 8.60% | 5.30% | |||||
Loans Serviced for Others [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Real estate loans serviced for others | $ 138,468 | $ 138,468 | $ 126,916 | ||||||
Commercial and Industrial Sector [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase (decrease) in ending balance of allowance for loan losses | (204) | ||||||||
Increase decrease in loans | 2,800 | $ 2,000 | $ 3,200 | ||||||
Provision (credit) for loan losses | 204 | ||||||||
Charge-offs | 110 | ||||||||
Commercial and Industrial Sector [Member] | Downgraded from pass to special mention [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase decrease in loans | 3,900 | ||||||||
Commercial and Industrial Sector [Member] | Special Mention [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase decrease in loans | 3,700 | ||||||||
Commercial and Industrial Sector [Member] | One Farmer [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase decrease in loans | 920 | ||||||||
Agriculture loans [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase decrease in loans | 1,900 | $ 1,400 | |||||||
Agriculture loans [Member] | Special Mention [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase decrease in loans | $ 675 | ||||||||
Consumer Portfolio Segment [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Provision (credit) for loan losses | 22 | ||||||||
Charge-offs | 6 | 17 | 8 | 18 | |||||
Commercial Real Estate [Member] | |||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||
Increase (decrease) in ending balance of allowance for loan losses | (114) | ||||||||
Charge-offs | $ 224 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Schedule of Loan Portfolio by Category) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Loan Portfolio | |||||||
Gross loans prior to deferred fees | $ 716,651 | $ 692,477 | |||||
Less: Deferred loan costs, net | 1,705 | 1,596 | |||||
Allowance for loan losses | (8,957) | $ (8,886) | (8,666) | $ (8,171) | $ (8,083) | $ (8,240) | |
Total net loans | 709,399 | 685,407 | 620,047 | ||||
Home Equity Loan [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 10,536 | 10,271 | |||||
Home Equity Lines of Credit [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 66,535 | 64,413 | |||||
Commercial Real Estate [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 291,295 | 285,437 | |||||
Allowance for loan losses | (4,417) | (4,488) | (4,296) | (4,004) | (4,047) | (3,863) | |
Commercial Real Estate [Member] | Mortgages [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 104,418 | 101,419 | |||||
Commercial Real Estate [Member] | Agricultural Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 168,726 | 165,926 | |||||
Commercial Real Estate [Member] | Construction [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 18,151 | 18,092 | |||||
Consumer Real Estate [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | [1] | 318,205 | 293,721 | ||||
Allowance for loan losses | (2,390) | (2,268) | (2,408) | (2,182) | (2,189) | (2,052) | |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | [1] | 241,134 | 219,037 | ||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | [1] | 10,536 | 10,271 | ||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | [1] | 66,535 | 64,413 | ||||
Commercial and Industrial [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 98,754 | 104,122 | |||||
Allowance for loan losses | 1,428 | ||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 20,641 | 20,512 | |||||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 61,298 | 61,043 | |||||
Commercial and Industrial [Member] | Tax-free loans [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 16,815 | 22,567 | |||||
Consumer Portfolio Segment [Member] | |||||||
Loan Portfolio | |||||||
Gross loans prior to deferred fees | 8,397 | 9,197 | |||||
Allowance for loan losses | $ (76) | $ (101) | $ (102) | $ (131) | $ (72) | $ (98) | |
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $138,468,000 and $126,916,000 as of June 30, 2019, and December 31, 2018, respectively. |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of Commercial and Consumer Credit Exposure) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Total | $ 390,049 | $ 389,559 |
Construction [Member] | ||
Total | 18,151 | 18,092 |
Agricultural Mortgage Loans [Member] | ||
Total | 168,726 | 165,926 |
Commercial and Industrial Sector [Member] | ||
Total | 61,298 | 61,043 |
Tax-free loans [Member] | ||
Total | 16,815 | 22,567 |
Agriculture loans [Member] | ||
Total | 20,641 | 20,512 |
Commercial [Member] | ||
Total | 104,418 | 101,419 |
Pass [Member] | ||
Total | 366,205 | 371,914 |
Pass [Member] | Construction [Member] | ||
Total | 17,300 | 17,567 |
Pass [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 156,264 | 154,132 |
Pass [Member] | Commercial and Industrial Sector [Member] | ||
Total | 55,245 | 59,348 |
Pass [Member] | Tax-free loans [Member] | ||
Total | 16,618 | 22,367 |
Pass [Member] | Agriculture loans [Member] | ||
Total | 18,745 | 19,487 |
Pass [Member] | Commercial [Member] | ||
Total | 102,033 | 99,013 |
Special Mention [Member] | ||
Total | 9,795 | 5,350 |
Special Mention [Member] | Construction [Member] | ||
Total | 851 | 525 |
Special Mention [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 3,197 | 3,478 |
Special Mention [Member] | Commercial and Industrial Sector [Member] | ||
Total | 4,252 | 518 |
Special Mention [Member] | Tax-free loans [Member] | ||
Total | 197 | 200 |
Special Mention [Member] | Agriculture loans [Member] | ||
Total | 1,128 | 453 |
Special Mention [Member] | Commercial [Member] | ||
Total | 170 | 176 |
Substandard [Member] | ||
Total | 14,049 | 12,295 |
Substandard [Member] | Construction [Member] | ||
Total | ||
Substandard [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 9,265 | 8,316 |
Substandard [Member] | Commercial and Industrial Sector [Member] | ||
Total | 1,801 | 1,177 |
Substandard [Member] | Tax-free loans [Member] | ||
Total | ||
Substandard [Member] | Agriculture loans [Member] | ||
Total | 768 | 572 |
Substandard [Member] | Commercial [Member] | ||
Total | 2,215 | 2,230 |
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 _6
Loans and Allowance for Loan Losses (Schedule of Credit Risk Profile by Payment Performance) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Gross loans prior to deferred fees | $ 716,651 | $ 692,477 |
Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 10,536 | 10,271 |
Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 66,535 | 64,413 |
1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 241,134 | 219,037 |
Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 8,397 | 9,197 |
Performing [Member] | ||
Gross loans prior to deferred fees | 326,360 | 302,521 |
Performing [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 10,536 | 10,271 |
Performing [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 66,535 | 64,413 |
Performing [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 240,900 | 218,641 |
Performing [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 8,389 | 9,196 |
Nonperforming [Member] | ||
Gross loans prior to deferred fees | 242 | 397 |
Nonperforming [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | ||
Nonperforming [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | ||
Nonperforming [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 234 | 396 |
Nonperforming [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 8 | 1 |
Consumer Borrower [Member] | ||
Gross loans prior to deferred fees | $ 326,602 | $ 302,918 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of Aging of Loans Receivable) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 3,623 | $ 2,791 |
Current | 713,028 | 689,686 |
Total Loans Receivable | 716,651 | 692,477 |
Loans Receivable - Greater than 90 Days and Accruing | 242 | 397 |
1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 241,134 | 219,037 |
Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 993 | 237 |
Current | 103,425 | 101,182 |
Total Loans Receivable | 104,418 | 101,419 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,193 | 1,142 |
Current | 167,533 | 164,784 |
Total Loans Receivable | 168,726 | 165,926 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current | 18,151 | 18,092 |
Total Loans Receivable | 18,151 | 18,092 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 692 | 1,052 |
Current | 240,442 | 217,985 |
Total Loans Receivable | 241,134 | 219,037 |
Loans Receivable - Greater than 90 Days and Accruing | 234 | 396 |
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 56 | 97 |
Current | 10,480 | 10,174 |
Total Loans Receivable | 10,536 | 10,271 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 30 | 95 |
Current | 66,505 | 64,318 |
Total Loans Receivable | 66,535 | 64,413 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2 | 24 |
Current | 61,296 | 61,019 |
Total Loans Receivable | 61,298 | 61,043 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Current | 16,815 | 22,567 |
Total Loans Receivable | 16,815 | 22,567 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 648 | 118 |
Current | 19,993 | 20,394 |
Total Loans Receivable | 20,641 | 20,512 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 9 | 26 |
Current | 8,388 | 9,171 |
Total Loans Receivable | 8,397 | 9,197 |
Loans Receivable - Greater than 90 Days and Accruing | 8 | 1 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 987 | 1,090 |
30-59 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 326 | |
30-59 Days Past Due [Member] | Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 274 | 455 |
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 32 | 62 |
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 30 | 95 |
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2 | 24 |
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 648 | 118 |
30-59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | 10 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 585 | 251 |
60-89 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 377 | |
60-89 Days Past Due [Member] | Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 184 | 201 |
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 24 | 35 |
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
60-89 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 15 | |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,051 | 1,450 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 993 | 237 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 816 | 816 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 234 | 396 |
Greater than 90 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Greater than 90 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 8 | $ 1 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Schedule of Nonaccrual Loans by Class) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | $ 1,809 | $ 1,833 |
Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 993 | 1,017 |
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 816 | 816 |
Commercial real estate [Member] | Construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Real Estate [Member] | Home equity lines of credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | Tax-free loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Commercial and Industrial Sector [Member] | Agriculture loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Total impaired loans | |||||
Average recorded balance of impaired loans | $ 3,412 | $ 2,201 | $ 3,057 | $ 2,045 | $ 2,067 |
Interest income recognized on impaired loans | $ 11 | $ 15 | $ 22 | $ 31 | $ 51 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Schedule of Impaired Loans by Loan Portfolio Class) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Loans with no related allowance recorded: | |||||
Recorded Investment | $ 3,130 | $ 3,130 | $ 2,062 | ||
Unpaid Principal Balance | 3,165 | 3,165 | 2,593 | ||
Related Allowance | |||||
Average Recorded Investment | 2,797 | 1,459 | |||
Interest Income Recognized | 22 | 45 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 256 | 256 | 647 | ||
Unpaid Principal Balance | 274 | 274 | 694 | ||
Related Allowance | 106 | 106 | 132 | ||
Average Recorded Investment | 260 | 608 | |||
Interest Income Recognized | 6 | ||||
Total impaired loans | |||||
Recorded Investment | 3,386 | 3,386 | 2,709 | ||
Unpaid Principal Balance | 3,439 | 3,439 | 3,287 | ||
Related Allowance | 106 | 106 | 132 | ||
Average Recorded Investment | 3,412 | $ 2,201 | 3,057 | $ 2,045 | 2,067 |
Interest Income Recognized | 11 | $ 15 | 22 | $ 31 | 51 |
Commercial real estate [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 3,130 | 3,130 | 2,062 | ||
Unpaid Principal Balance | 3,165 | 3,165 | 2,593 | ||
Related Allowance | |||||
Average Recorded Investment | 2,797 | 1,459 | |||
Interest Income Recognized | 22 | 45 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 256 | 256 | 647 | ||
Unpaid Principal Balance | 274 | 274 | 694 | ||
Related Allowance | 106 | 106 | 132 | ||
Average Recorded Investment | 260 | 484 | |||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 3,386 | 3,386 | 2,709 | ||
Unpaid Principal Balance | 3,439 | 3,439 | 3,287 | ||
Related Allowance | 106 | 106 | 132 | ||
Average Recorded Investment | 3,057 | 1,943 | |||
Interest Income Recognized | 22 | 45 | |||
Commercial real estate [Member] | Mortgages [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 737 | 737 | 370 | ||
Unpaid Principal Balance | 772 | 772 | 901 | ||
Related Allowance | |||||
Average Recorded Investment | 743 | 396 | |||
Interest Income Recognized | |||||
Loans with an allowance recorded: | |||||
Recorded Investment | 256 | 256 | 647 | ||
Unpaid Principal Balance | 274 | 274 | 694 | ||
Related Allowance | 106 | 106 | 132 | ||
Average Recorded Investment | 260 | 484 | |||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 993 | 993 | 1,017 | ||
Unpaid Principal Balance | 1,046 | 1,046 | 1,595 | ||
Related Allowance | 106 | 106 | 132 | ||
Average Recorded Investment | 1,003 | 880 | |||
Interest Income Recognized | |||||
Commercial real estate [Member] | Agricultural Sector [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 2,393 | 2,393 | 1,692 | ||
Unpaid Principal Balance | 2,393 | 2,393 | 1,692 | ||
Related Allowance | |||||
Average Recorded Investment | 2,054 | 1,063 | |||
Interest Income Recognized | 22 | 45 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | |||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 2,393 | 2,393 | 1,692 | ||
Unpaid Principal Balance | 2,393 | 2,393 | 1,692 | ||
Related Allowance | |||||
Average Recorded Investment | 2,054 | 1,063 | |||
Interest Income Recognized | 22 | 45 | |||
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 | |||||
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] | 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 | |||||
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 | 124 | ||||
Interest Income Recognized | 6 | ||||
Total impaired loans | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | 124 | ||||
Interest Income Recognized | 6 | ||||
Total Commercial and Industrial Sector [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 | 124 | ||||
Interest Income Recognized | 6 | ||||
Total impaired loans | |||||
Recorded Investment | |||||
Unpaid Principal Balance | |||||
Related Allowance | |||||
Average Recorded Investment | 124 | ||||
Interest Income Recognized | $ 6 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses (Schedule of Allowance for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | $ 8,886 | $ 8,666 | $ 8,083 | $ 8,240 | $ 8,666 | $ 8,240 |
Charge-offs | (6) | (17) | (8) | (352) | (23) | (360) |
Recoveries | 47 | 57 | 6 | 5 | ||
Provision | 30 | 180 | 90 | 190 | ||
Ending balance | 8,957 | 8,886 | 8,171 | 8,083 | 8,957 | 8,171 |
Commercial Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | 4,488 | 4,296 | 4,047 | 3,863 | 4,296 | 3,863 |
Charge-offs | (224) | |||||
Recoveries | 43 | 44 | ||||
Provision | (114) | 148 | (43) | 408 | ||
Ending balance | 4,417 | 4,488 | 4,004 | 4,047 | 4,417 | 4,004 |
Consumer Real Estate [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | 2,268 | 2,408 | 2,189 | 2,052 | 2,408 | 2,052 |
Charge-offs | ||||||
Recoveries | ||||||
Provision | 122 | (140) | (7) | 137 | ||
Ending balance | 2,390 | 2,268 | 2,182 | 2,189 | 2,390 | 2,182 |
Commercial and Industrial Sector [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | 1,569 | 1,428 | 1,301 | 1,829 | 1,428 | 1,829 |
Charge-offs | (110) | |||||
Recoveries | 1 | 13 | 2 | 4 | ||
Provision | (204) | 128 | (21) | (422) | ||
Ending balance | 1,366 | 1,569 | 1,282 | 1,301 | 1,366 | 1,282 |
Consumer Portfolio Segment [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | 101 | 102 | 72 | 98 | 102 | 98 |
Charge-offs | (6) | (17) | (8) | (18) | ||
Recoveries | 3 | 4 | 1 | |||
Provision | (22) | 16 | 63 | (9) | ||
Ending balance | 76 | 101 | 131 | 72 | 76 | 131 |
Unallocated [Member] | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Beginning balance | 460 | 432 | 474 | 398 | 432 | 398 |
Charge-offs | ||||||
Recoveries | ||||||
Provision | 248 | 28 | 98 | 76 | ||
Ending balance | $ 708 | $ 460 | $ 572 | $ 474 | $ 708 | $ 572 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses (Schedule of Allowance for Credit Losses and Recorded Investment) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Allowance for credit losses: | |||||||
Ending balance | $ 8,957 | $ 8,886 | $ 8,666 | $ 8,171 | $ 8,083 | $ 8,240 | |
individually evaluated for impairment | 106 | 132 | |||||
collectively evaluated for impairment | 8,851 | 8,534 | |||||
Loans receivable: | |||||||
Total Loans Receivable | 716,651 | 692,477 | |||||
individually evaluated for impairment | 3,386 | 2,709 | |||||
collectively evaluated for impairment | 713,265 | 689,768 | |||||
Commercial Real Estate [Member] | |||||||
Allowance for credit losses: | |||||||
Ending balance | 4,417 | 4,488 | 4,296 | 4,004 | 4,047 | 3,863 | |
individually evaluated for impairment | 106 | 132 | |||||
collectively evaluated for impairment | 4,311 | 4,164 | |||||
Loans receivable: | |||||||
Total Loans Receivable | 291,295 | 285,437 | |||||
individually evaluated for impairment | 3,386 | 2,709 | |||||
collectively evaluated for impairment | 287,909 | 282,728 | |||||
Consumer Real Estate [Member] | |||||||
Allowance for credit losses: | |||||||
Ending balance | 2,390 | 2,268 | 2,408 | 2,182 | 2,189 | 2,052 | |
individually evaluated for impairment | |||||||
collectively evaluated for impairment | 2,390 | 2,408 | |||||
Loans receivable: | |||||||
Total Loans Receivable | [1] | 318,205 | 293,721 | ||||
individually evaluated for impairment | |||||||
collectively evaluated for impairment | 318,205 | 293,721 | |||||
Commercial and Industrial Sector [Member] | |||||||
Allowance for credit losses: | |||||||
Ending balance | 1,366 | 1,569 | 1,428 | 1,282 | 1,301 | 1,829 | |
individually evaluated for impairment | |||||||
collectively evaluated for impairment | 1,366 | 1,428 | |||||
Loans receivable: | |||||||
Total Loans Receivable | 98,754 | 104,122 | |||||
individually evaluated for impairment | |||||||
collectively evaluated for impairment | 98,754 | 104,122 | |||||
Consumer Portfolio Segment [Member] | |||||||
Allowance for credit losses: | |||||||
Ending balance | 76 | 101 | 102 | 131 | 72 | 98 | |
individually evaluated for impairment | |||||||
collectively evaluated for impairment | 76 | 102 | |||||
Loans receivable: | |||||||
Total Loans Receivable | 8,397 | 9,197 | |||||
individually evaluated for impairment | |||||||
collectively evaluated for impairment | 8,397 | 9,197 | |||||
Unallocated [Member] | |||||||
Allowance for credit losses: | |||||||
Ending balance | 708 | $ 460 | 432 | $ 572 | $ 474 | $ 398 | |
individually evaluated for impairment | |||||||
collectively evaluated for impairment | $ 708 | $ 432 | |||||
[1] | Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $138,468,000 and $126,916,000 as of June 30, 2019, and December 31, 2018, respectively. |
Fair Value Presentation (Narrat
Fair Value Presentation (Narrative) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, market value | $ 6,231 | $ 5,934 | $ 5,737 |
Impaired Financing Receivable, Recorded Investment | 3,386 | 2,709 | |
Related Allowance | 106 | 132 | |
CRA Investment Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 5,488 | 5,410 | |
Marketable equity securities, market value | 5,488 | 5,410 | |
Regulatory Bank Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 754 | 591 | |
Marketable equity securities, market value | $ 743 | $ 524 |
Fair Value Presentation (Schedu
Fair Value Presentation (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 290,927 | $ 294,065 |
U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 31,031 | 30,120 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 46,092 | 44,639 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 54,908 | 54,090 |
Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 13,859 | 11,399 |
Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 52,498 | 59,192 |
Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 92,539 | 94,625 |
Fair Value Measured on a Recurring Basis [Member] | U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 31,031 | 30,120 |
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) | 46,092 | 44,639 |
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) | 54,908 | 54,090 |
Fair Value Measured on a Recurring Basis [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 13,859 | 11,399 |
Fair Value Measured on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 52,498 | 59,192 |
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) | 92,539 | 94,625 |
Fair Value Measured on a Recurring Basis [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 6,231 | 5,934 |
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) | 6,231 | 5,934 |
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] | Asset-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] | 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) | 6,231 | 5,934 |
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) | 290,927 | 294,065 |
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) | 31,031 | 30,120 |
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) | 46,092 | 44,639 |
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) | 54,908 | 54,090 |
Fair Value Measured on a Recurring Basis [Member] | Significant Other Observable Inputs (Level II) [Member] | Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 13,859 | 11,399 |
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) | 52,498 | 59,192 |
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) | 92,539 | 94,625 |
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] | Asset-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] | 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 (Sche_2
Fair Value Presentation (Schedule of Assets Measured on Nonrecurring Basis) (Details) - Fair Value Measured on a Nonrecurring Basis [Member] - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 3,280 | $ 2,577 |
Total Fair Value, non-recurring | 3,280 | 2,577 |
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 | 3,280 | 2,577 |
Total Fair Value, non-recurring | $ 3,280 | $ 2,577 |
Fair Value Presentation (Sche_3
Fair Value Presentation (Schedule of Level III Inputs to Determine Fair Value) (Details) - Impaired Loans [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Fair Value, non-recurring | $ 3,280 | $ 2,577 | |
Valuation Techniques | [1] | Appraisal of collateral | Appraisal of collateral |
Unobservable inputs - Appraisal adjustments | [2] | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | [2] | (10.00%) | (10.00%) |
Weighted Average [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Unobservable inputs - Appraisal adjustments | [2] | (20.00%) | (20.00%) |
Unobservable inputs - Liquidation expenses | [2] | (10.00%) | (10.00%) |
[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 NOT REQ_3
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||||
Cash and cash equivalents | $ 51,670 | $ 41,365 | $ 44,099 | $ 53,073 |
Securities available for sale | 290,927 | 294,065 | ||
Regulatory stock | 6,959 | 6,348 | 6,263 | |
Loans, net of allowance | 709,399 | 685,407 | 620,047 | |
Bank owned life insurance | 28,429 | 28,085 | 27,693 | |
Financial Liabilities: | ||||
Demand deposits | 345,483 | 369,081 | 326,296 | |
Total deposits | 941,606 | 919,734 | 878,069 | |
Short-term borrowings | 7,870 | 2,738 | ||
Long-term debt | 74,628 | 65,386 | $ 68,361 | |
Carrying Amount [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 51,670 | 41,365 | ||
Regulatory stock | 6,959 | 6,348 | ||
Loans held for sale | 3,473 | 1,429 | ||
Loans, net of allowance | 709,399 | 685,407 | ||
Mortgage Servicing Assets | 806 | 905 | ||
Accrued interest receivable | 4,097 | 3,754 | ||
Bank owned life insurance | 28,429 | 28,085 | ||
Financial Liabilities: | ||||
Demand deposits | 345,483 | 369,081 | ||
Interest-bearing demand deposits | 21,982 | 20,104 | ||
NOW accounts | 92,578 | 89,072 | ||
Money market deposit accounts | 138,793 | 108,594 | ||
Savings accounts | 205,902 | 199,665 | ||
Time deposits | 136,868 | 133,218 | ||
Total deposits | 941,606 | 919,734 | ||
Short-term borrowings | 7,870 | |||
Long-term debt | 74,628 | 65,386 | ||
Accrued interest payable | 493 | 397 | ||
Fair Value [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 51,670 | 41,365 | ||
Regulatory stock | 6,959 | 6,348 | ||
Loans held for sale | 3,473 | 1,429 | ||
Loans, net of allowance | 712,886 | 687,844 | ||
Mortgage Servicing Assets | 828 | 997 | ||
Accrued interest receivable | 4,097 | 3,754 | ||
Bank owned life insurance | 28,429 | 28,085 | ||
Financial Liabilities: | ||||
Demand deposits | 345,483 | 369,081 | ||
Interest-bearing demand deposits | 21,982 | 20,104 | ||
NOW accounts | 92,578 | 89,072 | ||
Money market deposit accounts | 138,793 | 108,594 | ||
Savings accounts | 205,902 | 199,665 | ||
Time deposits | 137,833 | 132,351 | ||
Total deposits | 942,571 | 918,867 | ||
Short-term borrowings | 7,870 | |||
Long-term debt | 73,671 | 65,286 | ||
Accrued interest payable | 493 | 397 | ||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 51,670 | 41,365 | ||
Regulatory stock | 6,959 | 6,348 | ||
Loans held for sale | 3,473 | 1,429 | ||
Loans, net of allowance | ||||
Mortgage Servicing Assets | ||||
Accrued interest receivable | 4,097 | 3,754 | ||
Bank owned life insurance | 28,429 | 28,085 | ||
Financial Liabilities: | ||||
Demand deposits | 345,483 | 369,081 | ||
Interest-bearing demand deposits | 21,982 | 20,104 | ||
NOW accounts | 92,578 | 89,072 | ||
Money market deposit accounts | 138,793 | 108,594 | ||
Savings accounts | 205,902 | 199,665 | ||
Time deposits | ||||
Total deposits | 804,738 | 786,516 | ||
Short-term borrowings | 7,870 | |||
Long-term debt | ||||
Accrued interest payable | 493 | 397 | ||
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 | 712,886 | 687,844 | ||
Mortgage Servicing Assets | 828 | 997 | ||
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 | 137,833 | 132,351 | ||
Total deposits | 137,833 | 132,351 | ||
Short-term borrowings | ||||
Long-term debt | 73,671 | 65,286 | ||
Accrued interest payable |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | Jun. 30, 2019USD ($) |
Commitment to extend credit | $ 322.6 |
Loan Commitments [Member] | |
Commitment to extend credit | 56.3 |
Line of Credit [Member] | |
Commitment to extend credit | 256.3 |
Letter of Credit [Member] | |
Commitment to extend credit | $ 10 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance, beginning | $ 106,858 | $ 102,802 | $ 97,534 | $ 99,759 | |
Balance, ending | 112,514 | 106,858 | 98,743 | 97,534 | |
Unrealized Gains (Losses) on Securities Available-for-Sale [Member] | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance, beginning | [1],[2] | (3,189) | (5,678) | (6,541) | (3,195) |
Other comprehensive income before reclassifications | [1],[2] | 3,571 | 2,553 | (286) | (2,685) |
Amount reclassified from accumulated other comprehensive loss | [1],[2] | (84) | (64) | 49 | (27) |
Reclassification of certain income tax effects from accumulated other comprehensive loss | [1],[2] | (634) | |||
Period change | [1],[2] | 3,487 | 2,489 | (237) | (3,346) |
Balance, ending | [1],[2] | $ 298 | $ (3,189) | $ (6,778) | $ (6,541) |
[1] | All amounts are net of tax. Related income tax expense or benefit is calculated using a Federal income tax rate of 21%. | ||||
[2] | Amounts in parentheses indicate debits. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Schedule of Amounts Reclassified from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Gains (losses) on the sale of debt securities, net | $ 27 | $ 16 | $ 44 | $ 47 | |||
Provision for federal income taxes | (584) | (300) | (1,046) | (535) | |||
Reclassifications for the period | 3,089 | $ 2,603 | 2,126 | $ 2,821 | 5,692 | 4,947 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||
Reclassifications for the period | [1] | 84 | (49) | 148 | (22) | ||
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 (losses) on the sale of debt securities, net | [1] | 106 | (62) | 187 | (28) | ||
Provision for federal income taxes | [1] | $ (22) | $ 13 | $ (39) | $ 6 | ||
[1] | Amounts in parentheses indicate debits. |
Leases (Schedule of ROU Assets
Leases (Schedule of ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 02, 2019 |
Lease Right-of-Use Assets | ||
Operating lease right-of use assets | $ 996 | $ 1,075 |
Lease Liabilities | ||
Operating lease liabilties | $ 1,002 |
Leases (Schedule of Opreating L
Leases (Schedule of Opreating Leases Weighted-Average Discount Term and Rate) (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted average remaining lease term - Operating leases | 5 years 8 months 12 days |
Weighted average discount rate - Operating leases | 3.09% |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Operating Leases) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Twelve Months Ended: | |
June 30, 2020 | $ 199 |
June 30, 2021 | 199 |
June 30, 2022 | 195 |
June 30, 2023 | 150 |
June 30, 2024 | 155 |
Thereafter | 190 |
Total Future Minimum Lease Payments | 1,088 |
Amounts Representing Interests | (86) |
Present Value of Net Future Minimum Lease Payments | $ 1,002 |
Change in Capital Structure (De
Change in Capital Structure (Details) - $ / shares | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 |
Stockholders' Equity Note [Abstract] | |||
Common stock, par value | $ 0.10 | $ 0.20 | $ 0.20 |
Common stock, authorized | 24,000,000 | 12,000,000 | 12,000,000 |