Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 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 | Sep. 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 | 5,638,362 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2019 | |
Entity Shell Company | false | |
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 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
ASSETS | |||
Cash and due from banks | $ 23,856 | $ 26,675 | $ 17,097 |
Interest-bearing deposits in other banks | 17,334 | 14,690 | 11,091 |
Total cash and cash equivalents | 41,190 | 41,365 | 28,188 |
Securities available for sale (at fair value) | 298,983 | 294,065 | 295,335 |
Equity securities (at fair value) | 6,108 | 5,934 | 5,789 |
Loans held for sale | 1,578 | 1,429 | 2,804 |
Loans (net of unearned income) | 738,104 | 694,073 | 667,769 |
Less: Allowance for loan losses | 9,474 | 8,666 | 8,428 |
Net loans | 728,630 | 685,407 | 659,341 |
Premises and equipment | 25,247 | 25,551 | 25,730 |
Regulatory stock | 7,200 | 6,348 | 6,392 |
Bank owned life insurance | 28,610 | 28,085 | 27,901 |
Other assets | 8,452 | 9,658 | 10,715 |
Total assets | 1,145,998 | 1,097,842 | 1,062,195 |
Deposits: | |||
Noninterest-bearing | 347,929 | 369,081 | 346,827 |
Interest-bearing | 599,062 | 550,653 | 544,099 |
Total deposits | 946,991 | 919,734 | 890,926 |
Short-term borrowings | 7,870 | 1,074 | |
Long-term debt | 79,989 | 65,386 | 68,361 |
Other liabilities | 3,381 | 2,050 | 2,632 |
Total liabilities | 1,030,361 | 995,040 | 962,993 |
Stockholders' equity: | |||
Common stock, par value $0.10 as of 9/30/19; $0.20 as of 12/31/18 and 9/30/18 Shares:Authorized 24,000,000 as of 9/30/19; 12,000,000 as of 12/31/18 and 9/30/18 Issued 5,739,114 and Outstanding 5,677,161 as of 9/30/19 Issued 2,869,557 and Outstanding 2,852,532 as of 12/31/18 Issued 2,869,557 and Outstanding 2,861,274 as of 9/30/18 | 574 | 574 | 574 |
Capital surplus | 4,471 | 4,435 | 4,436 |
Retained earnings | 110,067 | 104,067 | 102,670 |
Accumulated other comprehensive income (loss) net of tax | 1,685 | (5,678) | (8,200) |
Less: Treasury stock cost on 61,953 shares as of 9/30/19 17,025 shares as of 12/31/18 and 8,283 shares as of 9/30/18 | (1,160) | (596) | (278) |
Total stockholders' equity | 115,637 | 102,802 | 99,202 |
Total liabilities and stockholders' equity | $ 1,145,998 | $ 1,097,842 | $ 1,062,195 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 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 | 5,677,161 | 2,852,532 | 2,861,274 |
Treasury shares | 61,953 | 17,025 | 8,283 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Interest and dividend income: | ||||
Interest and fees on loans | $ 8,501 | $ 7,157 | $ 24,833 | $ 20,259 |
Interest on securities available for sale | ||||
Taxable | 1,179 | 1,207 | 3,696 | 3,494 |
Tax-exempt | 605 | 701 | 1,860 | 2,196 |
Interest on deposits at other banks | 128 | 141 | 294 | 388 |
Dividend income | 177 | 142 | 531 | 432 |
Total interest and dividend income | 10,590 | 9,348 | 31,214 | 26,769 |
Interest expense: | ||||
Interest on deposits | 889 | 512 | 2,626 | 1,503 |
Interest on borrowings | 412 | 360 | 1,158 | 985 |
Total interest expense | 1,301 | 872 | 3,784 | 2,488 |
Net interest income | 9,289 | 8,476 | 27,430 | 24,281 |
Provision for loan losses | 630 | 190 | 840 | 470 |
Net interest income after provision for loan losses | 8,659 | 8,286 | 26,590 | 23,811 |
Other income: | ||||
Trust and investment services income | 538 | 449 | 1,580 | 1,477 |
Service fees | 701 | 853 | 2,024 | 2,351 |
Commissions | 734 | 658 | 2,145 | 1,899 |
Gains (losses) on the sale of debt securities, net | 42 | 4 | 229 | (24) |
Gains on equity securities, net | 7 | 3 | 51 | 50 |
Gains on sale of mortgages | 606 | 515 | 1,370 | 1,102 |
Earnings on bank-owned life insurance | 186 | 186 | 543 | 1,477 |
Other income | 129 | 119 | 307 | 463 |
Total other income | 2,943 | 2,787 | 8,249 | 8,795 |
Operating expenses: | ||||
Salaries and employee benefits | 5,227 | 5,197 | 15,520 | 15,378 |
Occupancy | 605 | 624 | 1,825 | 1,889 |
Equipment | 297 | 296 | 871 | 875 |
Advertising & marketing | 205 | 147 | 621 | 583 |
Computer software & data processing | 620 | 590 | 1,886 | 1,708 |
Shares tax | 233 | 226 | 698 | 669 |
Professional services | 448 | 438 | 1,479 | 1,376 |
Other expense | 493 | 553 | 1,727 | 1,644 |
Total operating expenses | 8,128 | 8,071 | 24,627 | 24,122 |
Income before income taxes | 3,474 | 3,002 | 10,212 | 8,484 |
Provision for federal income taxes | 550 | 425 | 1,596 | 960 |
Net income | $ 2,924 | $ 2,577 | $ 8,616 | $ 7,524 |
Earnings per share of common stock | $ 0.51 | $ 0.45 | $ 1.51 | $ 1.32 |
Cash dividends paid per share | $ 0.155 | $ 0.145 | $ 0.46 | $ 0.43 |
Weighted average shares outstanding | 5,685,679 | 5,716,004 | 5,690,788 | 5,708,020 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,924 | $ 2,577 | $ 8,616 | $ 7,524 |
Securities available for sale not other-than-temporarily impaired: | ||||
Unrealized gains (losses) arising during the period | 1,798 | (1,796) | 9,549 | (5,562) |
Income tax effect | (378) | 377 | (2,005) | 1,172 |
Total | 1,420 | (1,419) | 7,544 | (4,390) |
(Gains) losses recognized in earnings | (42) | (4) | (229) | 24 |
Income tax effect | 9 | 1 | 48 | (5) |
Total | (33) | (3) | (181) | 19 |
Other comprehensive income (loss), net of tax | 1,387 | (1,422) | 7,363 | (4,371) |
Comprehensive Income | $ 4,311 | $ 1,155 | $ 15,979 | $ 3,153 |
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 | 7,524 | 7,524 | ||||
Other comprehensive income (loss) net of tax | (4,371) | (4,371) | ||||
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 purchased | ||||||
Treasury stock issued | 21 | 386 | 407 | |||
Cash dividends paid | (2,454) | (2,454) | ||||
Balance, ending at Sep. 30, 2018 | 574 | 4,436 | 102,670 | (8,200) | (278) | 99,202 |
Balance, beginning at Jun. 30, 2018 | 574 | 4,424 | 100,922 | (6,778) | (399) | 98,743 |
Net income | 2,577 | 2,577 | ||||
Other comprehensive income (loss) net of tax | (1,422) | (1,422) | ||||
Treasury stock issued | 12 | 121 | 133 | |||
Cash dividends paid | (829) | (829) | ||||
Balance, ending at Sep. 30, 2018 | 574 | 4,436 | 102,670 | (8,200) | (278) | 99,202 |
Balance, beginning at Dec. 31, 2018 | 574 | 4,435 | 104,067 | (5,678) | (596) | 102,802 |
Net income | 8,616 | 8,616 | ||||
Other comprehensive income (loss) net of tax | 7,363 | 7,363 | ||||
Treasury stock purchased | (991) | (991) | ||||
Treasury stock issued | 36 | 427 | 463 | |||
Cash dividends paid | (2,616) | (2,616) | ||||
Balance, ending at Sep. 30, 2019 | 574 | 4,471 | 110,067 | 1,685 | (1,160) | 115,637 |
Balance, beginning at Jun. 30, 2019 | 574 | 4,454 | 108,024 | 298 | (836) | 112,514 |
Net income | 2,924 | 2,924 | ||||
Other comprehensive income (loss) net of tax | 1,387 | 1,387 | ||||
Treasury stock purchased | (457) | (457) | ||||
Treasury stock issued | 17 | 133 | 150 | |||
Cash dividends paid | (881) | (881) | ||||
Balance, ending at Sep. 30, 2019 | $ 574 | $ 4,471 | $ 110,067 | $ 1,685 | $ (1,160) | $ 115,637 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Treasury stock purchased, shares | 22,400 | 51,766 | ||
Treasury stock issued, shares | 7,177 | 7,140 | 23,863 | 22,902 |
Cash dividends paid, per share | $ 0.155 | $ 0.145 | $ 0.46 | $ 0.43 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 8,616 | $ 7,524 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization of securities premiums and discounts and loan fees | 2,592 | 3,024 |
Amortization of operating leases right-of-use assets | 131 | |
Increase in interest receivable | (76) | (36) |
Increase in interest payable | 119 | 33 |
Provision for loan losses | 840 | 470 |
(Gain) loss on sale of debt securities, net | (229) | 24 |
Gain on equity securities, net | (51) | (50) |
Gains on sale of mortgages | (1,370) | (1,102) |
Loans originated for sale | (35,657) | (32,227) |
Proceeds from sales of loans | 36,878 | 33,417 |
Earnings on bank-owned life insurance | (543) | (1,477) |
Depreciation of premises and equipment and amortization of software | 1,171 | 1,217 |
Deferred income tax | (416) | (10) |
Other assets and other liabilities, net | 828 | 2,267 |
Net cash provided by operating activities | 12,833 | 13,074 |
Securities available for sale: | ||
Proceeds from maturities, calls, and repayments | 20,908 | 13,048 |
Proceeds from sales | 35,818 | 45,734 |
Purchases | (54,437) | (49,968) |
Equity securities | ||
Proceeds from sales | 168 | 222 |
Purchases | (163) | (311) |
Purchase of regulatory bank stock | (2,749) | (1,860) |
Redemptions of regulatory bank stock | 1,897 | 1,262 |
Net increase in loans | (44,441) | (70,880) |
Purchases of premises and equipment, net | (787) | (1,135) |
Purchase of computer software | (68) | (58) |
Net cash used for investing activities | (43,854) | (63,946) |
Cash flows from financing activities: | ||
Net increase in demand, NOW, and savings accounts | 23,701 | 35,324 |
Net increase (decrease) in time deposits | 3,556 | (10,875) |
Net (decrease) increase in short-term borrowings | (7,870) | 1,074 |
Proceeds from long-term debt | 24,723 | 14,161 |
Repayments of long-term debt | (10,120) | (11,650) |
Dividends paid | (2,616) | (2,454) |
Proceeds from sale of treasury stock | 463 | 407 |
Treasury stock purchased | (991) | |
Net cash provided by financing activities | 30,846 | 25,987 |
Decrease in cash and cash equivalents | (175) | (24,885) |
Cash and cash equivalents at beginning of period | 41,365 | 53,073 |
Cash and cash equivalents at end of period | 41,190 | 28,188 |
Supplemental disclosures of cash flow information: | ||
Interest paid | 3,664 | 2,457 |
Income taxes paid | 1,300 | 375 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Fair value adjustments for securities available for sale | (9,320) | 5,479 |
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 | 9 Months Ended |
Sep. 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 third quarter of 2019, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three and nine months ended September 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 | 9 Months Ended |
Sep. 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 September 30, 2019, and December 31, 2018, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2019 U.S. government agencies 35,398 42 (124 ) 35,316 U.S. agency mortgage-backed securities 46,354 121 (564 ) 45,911 U.S. agency collateralized mortgage obligations 54,510 352 (202 ) 54,660 Asset-backed securities 19,787 — (219 ) 19,568 Corporate bonds 54,672 176 (176 ) 54,672 Obligations of states and political subdivisions 86,129 2,729 (2 ) 88,856 Total securities available for sale 296,850 3,420 (1,287 ) 298,983 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 September 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 26,772 26,709 Due after one year through five years 137,835 137,620 Due after five years through ten years 26,759 26,747 Due after ten years 105,484 107,907 Total debt securities 296,850 298,983 Securities available for sale with a par value of $61,463,000 and $58,668,000 at September 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 $63,115,000 at September 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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 $ $ $ $ Proceeds from sales 7,169 13,092 35,818 45,734 Gross realized gains 43 20 261 130 Gross realized losses (1 ) (16 ) (32 ) (154 ) 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 nine months of 2019 or 2018. Information pertaining to securities with gross unrealized losses at September 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 September 30, 2019 U.S. government agencies — — 18,873 (124 ) 18,873 (124 ) U.S. agency mortgage-backed securities 2,024 (11 ) 29,147 (553 ) 31,171 (564 ) U.S. agency collateralized mortgage obligations 14,627 (17 ) 22,122 (185 ) 36,749 (202 ) Asset-backed securities 17,643 (219 ) — — 17,643 (219 ) Corporate bonds 5,088 (14 ) 25,017 (162 ) 30,105 (176 ) Obligations of states & political subdivisions 511 (2 ) — — 511 (2 ) Total temporarily impaired securities 39,893 (263 ) 95,159 (1,024 ) 135,052 (1,287 ) 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 69 positions that were carrying unrealized losses as of September 30, 2019. There were no instruments considered to be other-than-temporarily impaired at September 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 | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2019 CRA-qualified mutual funds 5,529 — — 5,529 Bank stocks 601 10 (32 ) 579 Total equity securities 6,130 10 (32 ) 6,108 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 three and nine months ended September 30, 2019 and 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of September 30, 2019 and 2018. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, $ $ $ $ Net gains recognized in equity securities during the period (9 ) (7 ) 35 10 Less: Net gains realized on the sale of equity securities during the period 16 10 16 40 Unrealized gains recognized in equity securities held at reporting date 7 3 51 50 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 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 September 30, 2019, and December 31, 2018: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) September 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 113,744 101,419 Agriculture mortgages 173,697 165,926 Construction 17,661 18,092 Total commercial real estate 305,102 285,437 Consumer real estate (a) 1-4 family residential mortgages 250,898 219,037 Home equity loans 11,366 10,271 Home equity lines of credit 69,113 64,413 Total consumer real estate 331,377 293,721 Commercial and industrial Commercial and industrial 56,690 61,043 Tax-free loans 16,575 22,567 Agriculture loans 20,918 20,512 Total commercial and industrial 94,183 104,122 Consumer 5,651 9,197 Gross loans prior to deferred fees 736,313 692,477 Less: Deferred loan costs, net 1,791 1,596 Allowance for loan losses (9,474 ) (8,666 ) Total net loans 728,630 685,407 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $146,154,000 and $126,916,000 as of September 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 September 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) September 30, 2019 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 111,374 157,213 16,098 50,668 16,575 18,548 370,476 Special Mention 836 5,685 — 4,336 — 1,048 11,905 Substandard 1,534 10,799 1,563 1,139 — 1,322 16,357 Doubtful — — — 547 — — 547 Loss — — — — — — — Total 113,744 173,697 17,661 56,690 16,575 20,918 399,285 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 Both special mention and substandard loans have increased from December 31, 2018 to September 30, 2019, with the increase in special mention loans more pronounced. Special mention loans increased by $6.5 million over the nine-month period from $5.4 million to $11.9 million, while substandard loans increased by $4.1 million, from $12.3 million to $16.4 million. The larger $6.5 million year-to-date increase in special mention loans was caused by a combination of $2.2 million of dairy mortgages, and a $3.8 million loan to a leasing company migrating from a pass rating to special mention. The smaller $4.1 million increase in substandard loans since December 31, 2018 was due to several dairy loans migrating from special mention to substandard, and a $1.6 million construction loan being reclassified as substandard in the third quarter of 2019 until the conversion to permanent financing can be assured. The Corporation expects this construction loan to be paid off completely in the fourth quarter of 2019. For the third quarter of 2019, special mention loans increased by $2.1 million, while substandard loans increased by $2.3 million. The additional increases in special mention loans during the third quarter were caused by several dairy farmers migrating from a pass rating to special mention, while the increase in substandard loans was primarily due to the addition of the construction loan mentioned in the year-to-date changes above. The remainder of the substandard loan increase during the third quarter of 2019 was caused by increases in agricultural mortgages and other agricultural loans that were largely offset by decreases in commercial mortgages and C&I loans. The increase in agricultural mortgages was the most pronounced of these with several dairy farm loans being added to substandard during the quarter. 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 September 30, 2019 and December 31, 2018: CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) September 30, 2019 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 250,578 11,366 69,113 5,649 336,706 Non-performing 320 — — 2 322 Total 250,898 11,366 69,113 5,651 337,028 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 September 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 September 30, 2019 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 824 824 112,920 113,744 — Agriculture mortgages 437 — 1,095 1,532 172,165 173,697 — Construction — — — — 17,661 17,661 — Consumer real estate 1-4 family residential mortgages 557 154 320 1,031 249,867 250,898 320 Home equity loans 58 — — 58 11,308 11,366 — Home equity lines of credit 154 — — 154 68,959 69,113 — Commercial and industrial Commercial and industrial 7 — — 7 56,683 56,690 — Tax-free loans — — — — 16,575 16,575 — Agriculture loans — — — — 20,918 20,918 — Consumer 24 4 2 30 5,621 5,651 2 Total 1,237 158 2,241 3,636 732,677 736,313 322 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 September 30, 2019 and December 31, 2018: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) September 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 824 1,017 Agriculture mortgages 1,095 816 Construction — — Consumer real estate 1-4 family residential mortgages — — Home equity loans — — Home equity lines of credit — — Commercial and industrial Commercial and industrial 547 — Tax-free loans — — Agriculture loans — — Consumer — — Total 2,466 1,833 As of September 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 nine months ended September 30, 2019 and September 30, 2018, is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 $ $ $ $ Average recorded balance of impaired loans 3,721 1,388 3,278 2,153 Interest income recognized on impaired loans 11 11 32 42 There were no loan modifications made during the third quarter of 2019, however, there was one loan modification that occurred during the first quarter of 2019. A modification of the payment terms to a loan customer is considered a troubled debt restructuring (TDR) if a concession was made 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. In the first quarter 2019, a loan modification was made on a $717,000 agricultural mortgage which moved the timing of the annual principal payment and changed interest payments from monthly to annually. The farmer had suffered a fire loss in late 2018 impacting one year’s harvest. The principal and interest payment are now due on November 15, 2019. No other loans were modified during 2019. There was one loan modification made in the first nine months of 2018. An agricultural mortgage loan was modified in the first quarter of 2018, where a concession on principal payment was made. Included in the impaired loan portfolio are two loans that are being reported as TDRs that were restructured in prior periods. The balance of these two TDR loans was $1,157,000 as of September 30, 2019. One of these TDR loans with a balance of $439,000 is also on nonaccrual and is included under agricultural mortgages shown in the nonaccrual table above. For both of these TDR loans the borrowers have a history of being delinquent. Management will continue to report these loans as TDR loans until they have been paid off or charged off. The following tables summarize information regarding impaired loans by loan portfolio class as of September 30, 2019, and December 31, 2018: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) September 30, 2019 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 732 767 — 903 — Agriculture mortgages 1,945 1,947 — 1,685 32 Construction — — — — — Total commercial real estate 2,677 2,714 — 2,588 32 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 2,677 2,714 — 2,588 32 With an allowance recorded: Commercial real estate Commercial mortgages 92 100 49 93 — Agriculture mortgages 718 718 — 519 — Construction — — — — — Total commercial real estate 810 818 49 612 — Commercial and industrial Commercial and industrial 547 549 547 78 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 547 549 547 78 — Total with a related allowance 1,357 1,367 596 690 — Total by loan class: Commercial real estate Commercial mortgages 824 867 49 996 — Agriculture mortgages 2,663 2,665 — 2,204 32 Construction — — — — — Total commercial real estate 3,487 3,532 49 3,200 32 Commercial and industrial Commercial and industrial 547 549 547 78 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 547 549 547 78 — Total 4,034 4,081 596 3,278 32 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 nine months ended September 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 Charge-offs (122 ) — (63 ) (3 ) — (188 ) Recoveries 41 1 33 — — 75 Provision 229 156 740 (19 ) (476 ) 630 Balance - September 30, 2019 4,565 2,547 2,076 54 232 9,474 During the three months ended September 30, 2019, management charged off $188,000 in loans while recovering $75,000 and added $630,000 to the provision. The unallocated portion of the allowance decreased from 5.3% of total reserves as of December 31, 2018, to 2.5% as of September 30, 2019, after being higher at the end of the first and second quarters. Management monitors the unallocated portion of the allowance with a desire to maintain it at approximately 5% or less, with a requirement of it not exceeding 10%. During the three months ended September 30, 2019, net provision expense was recorded for all sectors except consumer, which had a net credit provision. In the third quarter of 2019, management recorded charge-offs in commercial real estate and the C&I sector, unlike in the first two quarters of 2019. This also pushed up the historic loss rate and caused higher allocations in the third quarter for those sectors. The total amount of substandard and special mention loans at the end of the second and third quarters of 2019 were similar for commercial mortgages, but agricultural mortgages increased for both special mention and substandard loans, requiring more provision. The Corporation’s commercial and industrial allocation for credit losses was increased by $740,000 in the third quarter of 2019, primarily due to the classification of one $547,000 loan to doubtful status, which caused a specific provision for the same amount. This C&I loan customer is current as to payment of interest on a commercial line of credit but the line has not revolved for several years. The Corporation does have a general UCC filing against all business assets but the majority of their inventory assets are already covered by a purchase money security interest of the manufacturer. Management will continue to classify the loan as doubtful until it can be determined that sufficient collateral exists to cover the loan, or sustainable principal payments can be made on the line. Increases to the provision allocations for the three main loan sectors were consistent with the increases in special mention and substandard loans from June 30, 2019 to September 30, 2019, as well as an increase in nonaccrual loans. Provision allocations also increased as the size of the loan portfolio grew. The Corporation’s commercial real estate loan segment experienced an increase in delinquencies during the first nine months of 2019 with most of this increase occurring in the third quarter of 2019. This was primarily due to two commercial borrowers being placed on nonaccrual status with $498,000 of loans. The increase in nonaccrual loans, along with the $547,000 doubtful loan mentioned above, were responsible for the larger $740,000 provision in the third quarter of 2019. The other loan segments experienced relatively small changes in delinquencies. Placing loans on nonaccrual and doubtful status, along with the level of charge-offs, have a larger impact to the provision allocations than the absolute delinquency levels. The commercial real estate loans experienced an increase in balances and higher levels of charge-offs, which was responsible for the additional $229,000 of third quarter provision. Commercial real estate delinquencies, including agricultural mortgage delinquencies increased during the third quarter and have increased since December 31, 2018. The agricultural mortgage delinquencies accounted for the vast majority of commercial real estate delinquencies. The agricultural mortgage delinquencies have increased due to higher past due and nonaccrual loans on several dairy farmers. While milk prices have improved, the local dairy industry continues to slowly consolidate based on longer-term trends impacting the industry. The consumer real estate segment continued to grow rapidly in the third quarter of 2019, while the absolute level of delinquencies remaining relatively stable. This caused $156,000 of additional provision for this segment. As of September 30, 2019, the Corporation’s total delinquencies were 0.56%, up from 0.44% as of June 30, 2019, and 0.46% as of December 31, 2018. However, total delinquencies were as high as 0.70% during the first quarter of 2019 and finished the first quarter at 0.59%. The Corporation’s total delinquencies still compares favorably to the national uniform bank performance group which was at 0.64% as of June 30, 2019. 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. In addition, the loan portfolio is sectored out into nine different categories to evaluate these qualitative factors. A total score of the qualitative factors for each loan sector is calculated to utilize in the allowance for loan loss calculation. The agricultural dairy sector carries the highest level of qualitative factors due to the continued stress that the dairy farmers are under. However, the environment for dairy has improved slightly as milk prices have improved. As a result, the total qualitative factors for dairy agriculture declined slightly from December 31, 2018 and June 30, 2019. The non-dairy agriculture sector carries the second highest level of qualitative factors, pointing to other challenges in agricultural lending. Outside of the agricultural sectors, the business loan and business mortgages carry the next highest levels of qualitative factors. The qualitative factors for business loans did increase for the third quarter due to the trend of delinquency, nonaccruals, and charge-offs and increases in industry concentrations. While the qualitative factors surrounding delinquencies, nonaccrual loans, and criticized and classified loans were adjusted higher for the segments that experienced increases, there were other qualitative factors that were adjusted lower due to other reasons such as slower growth rates or if industry conditions improved. As a result, all of the loan segments outside of C&I lending either had no change or experienced minor changes since both December 31, 2018 and June 30, 2019. 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 Charge-offs — (20 ) — — — (20 ) Recoveries 30 — 55 2 — 87 Provision 90 192 90 (16 ) (166 ) 190 Ending Balance - September 30, 2018 4,124 2,354 1,427 117 406 8,428 During the nine months ended September 30, 2018, management charged off $380,000 in loans while recovering $98,000 and added $470,000 to the provision. The level of charge-offs along with the growth in the loan portfolio was primarily responsible for the $470,000 of additional provision. During the nine months ended September 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 nine months of 2018 as well as the addition of $116,000 of specific reserves allocated to this loan segment. 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 nine months ended September 30, 2018. The decrease in commercial and industrial loans from December 31, 2017 to September 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 or third quarters of 2018, and the amount of commercial and industrial loans rated substandard declined from $2.5 million on December 31, 2017, to $1.5 million on September 30, 2018. While the balances of commercial and industrial loans increased moderately from December 31, 2017 to September 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 September 30, 2019 and December 31, 2018: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of September 30, 2019: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 49 — 547 — — 596 Ending balance: collectively evaluated for impairment 4,516 2,547 1,529 54 232 8,878 Loans receivable: Ending balance 305,102 331,377 94,183 5,651 736,313 Ending balance: individually evaluated for impairment 3,487 — 547 — 4,034 Ending balance: collectively evaluated for impairment 301,615 331,377 93,636 5,651 732,279 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 | 9 Months Ended |
Sep. 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 September 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) September 30, 2019 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 35,316 — 35,316 U.S. agency mortgage-backed securities — 45,911 — 45,911 U.S. agency collateralized mortgage obligations — 54,660 — 54,660 Asset-backed securities — 19,568 — 19,568 Corporate bonds — 54,672 — 54,672 Obligations of states & political subdivisions — 88,856 — 88,856 Equity securities 6,108 — — 6,108 Total securities 6,108 298,983 — 305,091 On September 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 September 30, 2019, the CRA fund investments had a $5,529,000 book and fair market value and the bank stock portfolio had a book value of $601,000, and fair market value of $579,000. 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 September 30, 2019 and December 31, 2018, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands September 30, 2019 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 3,438 $ 3,438 Total $ — $ — $ 3,438 $ 3,438 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 $4,034,000 of impaired loans as of September 30, 2019, with $596,000 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) September 30, 2019 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,438 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 September 30, 2019 and December 31, 2018: |
FINANCIAL INSTRUMENTS NOT REQUI
FINANCIAL INSTRUMENTS NOT REQUIRED TO BE MEASURED OR REPORTED AT FAIR VALUE | 9 Months Ended |
Sep. 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) September 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 41,190 41,190 41,190 — — Regulatory stock 7,200 7,200 7,200 — — Loans held for sale 1,578 1,578 1,578 — — Loans, net of allowance 728,630 732,715 — — 732,715 Mortgage servicing assets 812 823 — — 823 Accrued interest receivable 3,830 3,830 3,830 — — Bank owned life insurance 28,610 28,610 28,610 — — Financial Liabilities: Demand deposits 347,929 347,929 347,929 — — Interest-bearing demand deposits 19,275 19,275 19,275 — — NOW accounts 90,444 90,444 90,444 — — Money market deposit accounts 148,863 148,863 148,863 — — Savings accounts 203,706 203,706 203,706 — — Time deposits 136,774 138,457 — — 138,457 Total deposits 946,991 948,674 810,217 — 138,457 Long-term debt 79,989 78,823 — — 78,823 Accrued interest payable 517 517 517 — — 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 | 9 Months Ended |
Sep. 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 September 30, 2019, firm loan commitments were $65.8 million, unused lines of credit were $258.6 million, and open letters of credit were $9.6 million. The total of these commitments was $334.0 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) | 9 Months Ended |
Sep. 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 nine months ended September 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 income (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 Other comprehensive income before reclassifications 1,420 Amount reclassified from accumulated other comprehensive income (33 ) Period change 1,387 Balance at September 30, 2019 1,685 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 ) Other comprehensive loss before reclassifications (1,419 ) Amount reclassified from accumulated other comprehensive loss (3 ) Period change (1,422 ) Balance at September 30, 2018 (8,200 ) (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 September 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 42 4 Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (9 ) (1 ) Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 33 3 (1) Amounts in parentheses indicate debits. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains (losses), 229 (24 ) Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (48 ) 5 Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 181 (19 ) (1) Amounts in parentheses indicate debits. |
Leases
Leases | 9 Months Ended |
Sep. 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 September 30, 2019 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 952 Lease Liabilities Operating lease liabilties Other Liabilities $ 959 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. September 30, 2019 Weighted-average remaining lease term Operating leases 5.5 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 September 30, 2019 were as follows: Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: September 30, 2020 $ 202 September 30, 2021 203 September 30, 2022 183 September 30, 2023 151 September 30, 2024 155 Thereafter 151 Total Future Minimum Lease Payments 1,045 Amounts Representing Interests (86 ) Present Value of Net Future Minimum Lease Payments $ 959 |
Change in Capital Structure
Change in Capital Structure | 9 Months Ended |
Sep. 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 | 9 Months Ended |
Sep. 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 Financial Instruments – Credit Losses 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 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 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 Financial Instruments – Credit Losses 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) | 9 Months Ended |
Sep. 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 third quarter of 2019, is reporting on the results of operations and financial condition of ENB Financial Corp. Operating results for the three and nine months ended September 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) | 9 Months Ended |
Sep. 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 September 30, 2019, and December 31, 2018, are as follows: Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2019 U.S. government agencies 35,398 42 (124 ) 35,316 U.S. agency mortgage-backed securities 46,354 121 (564 ) 45,911 U.S. agency collateralized mortgage obligations 54,510 352 (202 ) 54,660 Asset-backed securities 19,787 — (219 ) 19,568 Corporate bonds 54,672 176 (176 ) 54,672 Obligations of states and political subdivisions 86,129 2,729 (2 ) 88,856 Total securities available for sale 296,850 3,420 (1,287 ) 298,983 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 September 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 26,772 26,709 Due after one year through five years 137,835 137,620 Due after five years through ten years 26,759 26,747 Due after ten years 105,484 107,907 Total debt securities 296,850 298,983 |
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 September 30, Nine Months Ended September 30, 2019 2018 2019 2018 $ $ $ $ Proceeds from sales 7,169 13,092 35,818 45,734 Gross realized gains 43 20 261 130 Gross realized losses (1 ) (16 ) (32 ) (154 ) |
Schedule of securities in an unrealized loss position (temporary impairment) | Information pertaining to securities with gross unrealized losses at September 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 September 30, 2019 U.S. government agencies — — 18,873 (124 ) 18,873 (124 ) U.S. agency mortgage-backed securities 2,024 (11 ) 29,147 (553 ) 31,171 (564 ) U.S. agency collateralized mortgage obligations 14,627 (17 ) 22,122 (185 ) 36,749 (202 ) Asset-backed securities 17,643 (219 ) — — 17,643 (219 ) Corporate bonds 5,088 (14 ) 25,017 (162 ) 30,105 (176 ) Obligations of states & political subdivisions 511 (2 ) — — 511 (2 ) Total temporarily impaired securities 39,893 (263 ) 95,159 (1,024 ) 135,052 (1,287 ) 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) | 9 Months Ended |
Sep. 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 September 30, 2019 and December 31, 2018. Gross Gross (DOLLARS IN THOUSANDS) Amortized Unrealized Unrealized Fair Cost Gains Losses Value $ $ $ $ September 30, 2019 CRA-qualified mutual funds 5,529 — — 5,529 Bank stocks 601 10 (32 ) 579 Total equity securities 6,130 10 (32 ) 6,108 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 three and nine months ended September 30, 2019 and 2018, and the portion of unrealized gains and losses for the period that relates to equity investments held as of September 30, 2019 and 2018. NET GAINS AND LOSSES ON EQUITY INVESTMENTS RECOGNIZED IN EARNINGS (DOLLARS IN THOUSANDS) Three Months Ended Nine Months Ended September 30, September 30, September 30, September 30, $ $ $ $ Net gains recognized in equity securities during the period (9 ) (7 ) 35 10 Less: Net gains realized on the sale of equity securities during the period 16 10 16 40 Unrealized gains recognized in equity securities held at reporting date 7 3 51 50 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 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 September 30, 2019, and December 31, 2018: LOAN PORTFOLIO (DOLLARS IN THOUSANDS) September 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 113,744 101,419 Agriculture mortgages 173,697 165,926 Construction 17,661 18,092 Total commercial real estate 305,102 285,437 Consumer real estate (a) 1-4 family residential mortgages 250,898 219,037 Home equity loans 11,366 10,271 Home equity lines of credit 69,113 64,413 Total consumer real estate 331,377 293,721 Commercial and industrial Commercial and industrial 56,690 61,043 Tax-free loans 16,575 22,567 Agriculture loans 20,918 20,512 Total commercial and industrial 94,183 104,122 Consumer 5,651 9,197 Gross loans prior to deferred fees 736,313 692,477 Less: Deferred loan costs, net 1,791 1,596 Allowance for loan losses (9,474 ) (8,666 ) Total net loans 728,630 685,407 (a) Real estate loans serviced for others, which are not included in the Consolidated Balance Sheets, totaled $146,154,000 and $126,916,000 as of September 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) September 30, 2019 Commercial Agriculture Construction Commercial Tax-free Agriculture Total $ $ $ $ $ $ $ Grade: Pass 111,374 157,213 16,098 50,668 16,575 18,548 370,476 Special Mention 836 5,685 — 4,336 — 1,048 11,905 Substandard 1,534 10,799 1,563 1,139 — 1,322 16,357 Doubtful — — — 547 — — 547 Loss — — — — — — — Total 113,744 173,697 17,661 56,690 16,575 20,918 399,285 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 CONSUMER CREDIT EXPOSURE CREDIT RISK PROFILE BY PAYMENT PERFORMANCE (DOLLARS IN THOUSANDS) September 30, 2019 1-4 Family Home Equity Home Equity Consumer Total Payment performance: $ $ $ $ $ Performing 250,578 11,366 69,113 5,649 336,706 Non-performing 320 — — 2 322 Total 250,898 11,366 69,113 5,651 337,028 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 September 30, 2019 Past Due Past Due Days Due Current Receivable Accruing $ $ $ $ $ $ $ Commercial real estate Commercial mortgages — — 824 824 112,920 113,744 — Agriculture mortgages 437 — 1,095 1,532 172,165 173,697 — Construction — — — — 17,661 17,661 — Consumer real estate 1-4 family residential mortgages 557 154 320 1,031 249,867 250,898 320 Home equity loans 58 — — 58 11,308 11,366 — Home equity lines of credit 154 — — 154 68,959 69,113 — Commercial and industrial Commercial and industrial 7 — — 7 56,683 56,690 — Tax-free loans — — — — 16,575 16,575 — Agriculture loans — — — — 20,918 20,918 — Consumer 24 4 2 30 5,621 5,651 2 Total 1,237 158 2,241 3,636 732,677 736,313 322 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 September 30, 2019 and December 31, 2018: NONACCRUAL LOANS BY LOAN CLASS (DOLLARS IN THOUSANDS) September 30, December 31, 2019 2018 $ $ Commercial real estate Commercial mortgages 824 1,017 Agriculture mortgages 1,095 816 Construction — — Consumer real estate 1-4 family residential mortgages — — Home equity loans — — Home equity lines of credit — — Commercial and industrial Commercial and industrial 547 — Tax-free loans — — Agriculture loans — — Consumer — — Total 2,466 1,833 |
Schedule of impaired loans | As of September 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 nine months ended September 30, 2019 and September 30, 2018, is as follows: IMPAIRED LOANS (DOLLARS IN THOUSANDS) Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 $ $ $ $ Average recorded balance of impaired loans 3,721 1,388 3,278 2,153 Interest income recognized on impaired loans 11 11 32 42 The following tables summarize information regarding impaired loans by loan portfolio class as of September 30, 2019, and December 31, 2018: IMPAIRED LOAN ANALYSIS (DOLLARS IN THOUSANDS) September 30, 2019 Recorded Unpaid Related Average Interest $ $ $ $ $ With no related allowance recorded: Commercial real estate Commercial mortgages 732 767 — 903 — Agriculture mortgages 1,945 1,947 — 1,685 32 Construction — — — — — Total commercial real estate 2,677 2,714 — 2,588 32 Commercial and industrial Commercial and industrial — — — — — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial — — — — — Total with no related allowance 2,677 2,714 — 2,588 32 With an allowance recorded: Commercial real estate Commercial mortgages 92 100 49 93 — Agriculture mortgages 718 718 — 519 — Construction — — — — — Total commercial real estate 810 818 49 612 — Commercial and industrial Commercial and industrial 547 549 547 78 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 547 549 547 78 — Total with a related allowance 1,357 1,367 596 690 — Total by loan class: Commercial real estate Commercial mortgages 824 867 49 996 — Agriculture mortgages 2,663 2,665 — 2,204 32 Construction — — — — — Total commercial real estate 3,487 3,532 49 3,200 32 Commercial and industrial Commercial and industrial 547 549 547 78 — Tax-free loans — — — — — Agriculture loans — — — — — Total commercial and industrial 547 549 547 78 — Total 4,034 4,081 596 3,278 32 |
Schedule of allowance for credit losses | 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 nine months ended September 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 Charge-offs (122 ) — (63 ) (3 ) — (188 ) Recoveries 41 1 33 — — 75 Provision 229 156 740 (19 ) (476 ) 630 Balance - September 30, 2019 4,565 2,547 2,076 54 232 9,474 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 Charge-offs — (20 ) — — — (20 ) Recoveries 30 — 55 2 — 87 Provision 90 192 90 (16 ) (166 ) 190 Ending Balance - September 30, 2018 4,124 2,354 1,427 117 406 8,428 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 September 30, 2019 and December 31, 2018: ALLOWANCE FOR CREDIT LOSSES AND RECORDED INVESTMENT IN LOANS RECEIVABLE (DOLLARS IN THOUSANDS) As of September 30, 2019: Commercial Real Consumer Commercial Consumer Unallocated Total $ $ $ $ $ $ Allowance for credit losses: Ending balance: individually evaluated for impairment 49 — 547 — — 596 Ending balance: collectively evaluated for impairment 4,516 2,547 1,529 54 232 8,878 Loans receivable: Ending balance 305,102 331,377 94,183 5,651 736,313 Ending balance: individually evaluated for impairment 3,487 — 547 — 4,034 Ending balance: collectively evaluated for impairment 301,615 331,377 93,636 5,651 732,279 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) | 9 Months Ended |
Sep. 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 September 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) September 30, 2019 Level I Level II Level III Total $ $ $ $ U.S. government agencies — 35,316 — 35,316 U.S. agency mortgage-backed securities — 45,911 — 45,911 U.S. agency collateralized mortgage obligations — 54,660 — 54,660 Asset-backed securities — 19,568 — 19,568 Corporate bonds — 54,672 — 54,672 Obligations of states & political subdivisions — 88,856 — 88,856 Equity securities 6,108 — — 6,108 Total securities 6,108 298,983 — 305,091 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 September 30, 2019 and December 31, 2018, by level within the fair value hierarchy: ASSETS MEASURED ON A NONRECURRING BASIS ( Dollars in Thousands September 30, 2019 Level I Level II Level III Total $ $ $ $ Assets: Impaired Loans $ — $ — $ 3,438 $ 3,438 Total $ — $ — $ 3,438 $ 3,438 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) September 30, 2019 Fair Value Valuation Unobservable Range Estimate Techniques Input (Weighted Avg) Impaired loans 3,438 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) | 9 Months Ended |
Sep. 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) September 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 41,190 41,190 41,190 — — Regulatory stock 7,200 7,200 7,200 — — Loans held for sale 1,578 1,578 1,578 — — Loans, net of allowance 728,630 732,715 — — 732,715 Mortgage servicing assets 812 823 — — 823 Accrued interest receivable 3,830 3,830 3,830 — — Bank owned life insurance 28,610 28,610 28,610 — — Financial Liabilities: Demand deposits 347,929 347,929 347,929 — — Interest-bearing demand deposits 19,275 19,275 19,275 — — NOW accounts 90,444 90,444 90,444 — — Money market deposit accounts 148,863 148,863 148,863 — — Savings accounts 203,706 203,706 203,706 — — Time deposits 136,774 138,457 — — 138,457 Total deposits 946,991 948,674 810,217 — 138,457 Long-term debt 79,989 78,823 — — 78,823 Accrued interest payable 517 517 517 — — 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) | 9 Months Ended |
Sep. 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 nine months ended September 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 income (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 Other comprehensive income before reclassifications 1,420 Amount reclassified from accumulated other comprehensive income (33 ) Period change 1,387 Balance at September 30, 2019 1,685 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 ) Other comprehensive loss before reclassifications (1,419 ) Amount reclassified from accumulated other comprehensive loss (3 ) Period change (1,422 ) Balance at September 30, 2018 (8,200 ) (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 September 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains, 42 4 Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (9 ) (1 ) Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 33 3 (1) Amounts in parentheses indicate debits. Amount Reclassified from Accumulated Other Comprehensive Income (Loss) For the Nine Months Ended September 30, 2019 2018 Affected Line Item in the $ $ Consolidated Statements of Income Securities available-for-sale: Net securities gains (losses), 229 (24 ) Gains (losses) on the sale of reclassified into earnings debt securities, net Related income tax expense (48 ) 5 Provision for federal income taxes Net effect on accumulated other comprehensive income for the period 181 (19 ) (1) Amounts in parentheses indicate debits. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 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 September 30, 2019 Lease Right-of-Use Assets Operating lease right-of use assets Other Assets $ 952 Lease Liabilities Operating lease liabilties Other Liabilities $ 959 |
Schedule of Opreating Leases Weighted-Average Discount Term and Rate | September 30, 2019 Weighted-average remaining lease term Operating leases 5.5 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 September 30, 2019 were as follows: Lease Payment Schedule (Dollars in Thousands) Operating Leases Twelve Months Ended: September 30, 2020 $ 202 September 30, 2021 203 September 30, 2022 183 September 30, 2023 151 September 30, 2024 155 Thereafter 151 Total Future Minimum Lease Payments 1,045 Amounts Representing Interests (86 ) Present Value of Net Future Minimum Lease Payments $ 959 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 02, 2019 |
Accounting Policies [Abstract] | ||
Right-of-use assets | $ 952 | $ 1,075 |
Securities Available for Sale_2
Securities Available for Sale (Narrative) (Details) $ in Thousands | Sep. 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 | $ 61,463 | $ 58,668 |
Available for sale debt securities pledged or restricted for public funds, fair value | $ 63,115 | $ 58,914 |
Number of securities considered temporarily impaired | N | 0 |
Securities Available for Sale_3
Securities Available for Sale (Schedule of Amortized Cost and Fair Value of Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Securities Available For Sale | ||
Amortized Cost | $ 296,850 | $ 301,252 |
Gross Unrealized Gains | 3,420 | 150 |
Gross Unrealized Losses | (1,287) | (7,337) |
Fair Value | 305,091 | 294,065 |
U.S. Government Agencies [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 35,398 | 31,025 |
Gross Unrealized Gains | 42 | 5 |
Gross Unrealized Losses | (124) | (910) |
Fair Value | 35,316 | 30,120 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 46,354 | 46,363 |
Gross Unrealized Gains | 121 | 2 |
Gross Unrealized Losses | (564) | (1,726) |
Fair Value | 45,911 | 44,639 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 54,510 | 55,182 |
Gross Unrealized Gains | 352 | 74 |
Gross Unrealized Losses | (202) | (1,166) |
Fair Value | 54,660 | 54,090 |
Asset-backed Securities [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 19,787 | 11,440 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | (219) | (41) |
Fair Value | 19,568 | 11,399 |
Corporate Bonds [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 54,672 | 61,085 |
Gross Unrealized Gains | 176 | |
Gross Unrealized Losses | (176) | (1,893) |
Fair Value | 54,672 | 59,192 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available For Sale | ||
Amortized Cost | 86,129 | 96,157 |
Gross Unrealized Gains | 2,729 | 69 |
Gross Unrealized Losses | (2) | (1,601) |
Fair Value | $ 88,856 | $ 94,625 |
Securities Available for Sale_4
Securities Available for Sale (Schedule of Contractual Maturity of Debt Securities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Contractual maturity of debt securities, Amortized Cost | |||
Due in one year or less | $ 26,772 | ||
Due after one year through five years | 137,835 | ||
Due after five years through ten years | 26,759 | ||
Due after ten years | 105,484 | ||
Total debt securities | 296,850 | ||
Contractual maturity of debt securities, Fair Value | |||
Due in one year or less | 26,709 | ||
Due after one year through five years | 137,620 | ||
Due after five years through ten years | 26,747 | ||
Due after ten years | 107,907 | ||
Securities available for sale | $ 298,983 | $ 294,065 | $ 295,335 |
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 | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 7,169 | $ 13,092 | $ 35,818 | $ 45,734 |
Gross realized gains | 43 | 20 | 261 | 130 |
Gross realized losses | $ (1) | $ (16) | $ (32) | $ (154) |
Securities Available for Sale_6
Securities Available for Sale (Schedule of Securities in an Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than 12 months | $ 39,893 | $ 46,213 |
More than 12 months | 95,159 | 218,838 |
Total | 135,052 | 265,051 |
Gross Unrealized Losses | ||
Less than 12 months | (263) | (685) |
More than 12 months | (1,024) | (6,652) |
Total | (1,287) | (7,337) |
U.S. Government Agencies [Member] | ||
Fair Value | ||
Less than 12 months | ||
More than 12 months | 18,873 | 28,116 |
Total | 18,873 | 28,116 |
Gross Unrealized Losses | ||
Less than 12 months | ||
More than 12 months | (124) | (910) |
Total | (124) | (910) |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 2,024 | |
More than 12 months | 29,147 | 42,041 |
Total | 31,171 | 42,041 |
Gross Unrealized Losses | ||
Less than 12 months | (11) | |
More than 12 months | (553) | (1,726) |
Total | (564) | (1,726) |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Fair Value | ||
Less than 12 months | 14,627 | 8,055 |
More than 12 months | 22,122 | 40,735 |
Total | 36,749 | 48,790 |
Gross Unrealized Losses | ||
Less than 12 months | (17) | (85) |
More than 12 months | (185) | (1,081) |
Total | (202) | (1,166) |
Asset-backed Securities [Member] | ||
Fair Value | ||
Less than 12 months | 17,643 | 5,563 |
More than 12 months | ||
Total | 17,643 | 5,563 |
Gross Unrealized Losses | ||
Less than 12 months | (219) | (41) |
More than 12 months | ||
Total | (219) | (41) |
Corporate Bonds [Member] | ||
Fair Value | ||
Less than 12 months | 5,088 | 20,228 |
More than 12 months | 25,017 | 38,964 |
Total | 30,105 | 59,192 |
Gross Unrealized Losses | ||
Less than 12 months | (14) | (455) |
More than 12 months | (162) | (1,438) |
Total | (176) | (1,893) |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value | ||
Less than 12 months | 511 | 12,367 |
More than 12 months | 68,982 | |
Total | 511 | 81,349 |
Gross Unrealized Losses | ||
Less than 12 months | (2) | (104) |
More than 12 months | (1,497) | |
Total | $ (2) | $ (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 | Sep. 30, 2019 | Dec. 31, 2018 |
Net Investment Income [Line Items] | ||
Amortized Cost | $ 296,850 | $ 301,252 |
Gross Unrealized Gains | 3,420 | 150 |
Gross Unrealized Losses | (1,287) | (7,337) |
Fair Value | 305,091 | 294,065 |
CRA-qualified mutual funds [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 5,529 | 5,410 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | 5,529 | 5,410 |
Bank stocks [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 601 | 591 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (32) | (67) |
Fair Value | 579 | 524 |
Equity Securities [Member] | ||
Net Investment Income [Line Items] | ||
Amortized Cost | 6,130 | 6,001 |
Gross Unrealized Gains | 10 | |
Gross Unrealized Losses | (32) | (67) |
Fair Value | $ 6,108 | $ 5,934 |
Equity Securities (Schedule o_2
Equity Securities (Schedule of Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Marketable Securities [Abstract] | ||||
Net gains recognized in equity securities during the period | $ (9) | $ (7) | $ 35 | $ 10 |
Less: Net gains realized on the sale of equity securities during the period | 16 | 10 | 16 | 40 |
Unrealized gains recognized in equity securities held at reporting date | $ 7 | $ 3 | $ 51 | $ 50 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Nonaccrual loan | $ 2,466 | $ 2,466 | $ 1,833 | |||||||
Increase (decrease) in ending balance of allowance for loan losses | $ 717 | |||||||||
Increase decrease in loans | $ 116 | |||||||||
Delinquency rate | 0.56% | 0.44% | 0.59% | 0.56% | 0.46% | |||||
Provision (credit) for loan losses | $ 470 | |||||||||
Additional provision for loan losses | $ 630 | 470 | ||||||||
Recoveries of loan losses | 75 | 98 | ||||||||
Charge-offs | $ 188 | $ 6 | $ 17 | $ 20 | $ 8 | $ 352 | $ 188 | 380 | ||
Unallocated portion of allowance, percentage | 2.50% | 2.50% | 5.30% | |||||||
Uniform Bank Performance Group[Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Delinquency rate | 0.64% | |||||||||
Commercial Loan [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Nonaccrual loan | $ 498 | $ 498 | ||||||||
Maximum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Delinquency rate | 0.70% | 0.70% | ||||||||
Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | $ 2,100 | $ 6,500 | ||||||||
Special Mention [Member] | Minimum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 5,400 | |||||||||
Special Mention [Member] | Maximum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 11,900 | |||||||||
Substandard [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 2,300 | 4,100 | ||||||||
Substandard [Member] | Minimum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 12,300 | |||||||||
Substandard [Member] | Maximum [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 16,400 | |||||||||
Doubtful [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Nonaccrual loan | 547 | 547 | ||||||||
Loans Serviced for Others [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Real estate loans serviced for others | 146,154 | 146,154 | $ 126,916 | |||||||
dairy mortgages [Member] | Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 2,200 | |||||||||
Leasing [Member] | Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 3,800 | |||||||||
Several Dairy Loans Migrating From Special Mention to Substandard [Member] | Special Mention [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase decrease in loans | 1,600 | $ 4,100 | ||||||||
Two Loans [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
TDRs loan | 1,157 | 1,157 | ||||||||
One Loans Balance [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
TDRs loan | 439 | $ 439 | ||||||||
Commercial and Industrial Sector [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Increase (decrease) in ending balance of allowance for loan losses | 740 | |||||||||
Increase decrease in loans | $ 1,500 | $ 2,500 | ||||||||
Provision (credit) for loan losses | 229 | |||||||||
Charge-offs | 63 | 110 | ||||||||
Consumer Portfolio Segment [Member] | ||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||
Provision (credit) for loan losses | 156 | |||||||||
Charge-offs | $ 3 | $ 6 | $ 17 | $ 8 | $ 18 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Schedule of Loan Portfolio by Category) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | $ 736,313 | $ 692,477 | ||||||
Less: Deferred loan costs, net | 1,791 | 1,596 | ||||||
Allowance for loan losses | (9,474) | $ (8,957) | $ (8,886) | (8,666) | $ (8,428) | $ (8,171) | $ (8,083) | $ (8,240) |
Total net loans | 728,630 | 685,407 | 659,341 | |||||
Home Equity Loan [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 11,366 | 10,271 | ||||||
Home Equity Lines of Credit [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 69,113 | 64,413 | ||||||
Commercial Real Estate [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 305,102 | 285,437 | ||||||
Allowance for loan losses | (4,565) | (4,417) | (4,488) | (4,296) | (4,124) | (4,004) | (4,047) | (3,863) |
Commercial Real Estate [Member] | Mortgages [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 113,744 | 101,419 | ||||||
Commercial Real Estate [Member] | Agricultural Sector [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 173,697 | 165,926 | ||||||
Commercial Real Estate [Member] | Construction [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 17,661 | 18,092 | ||||||
Consumer Real Estate [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 331,377 | 293,721 | ||||||
Allowance for loan losses | (2,547) | (2,390) | (2,268) | (2,408) | (2,354) | (2,182) | (2,189) | (2,052) |
Consumer Real Estate [Member] | 1-4 Family Residential Mortgages [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 250,898 | 219,037 | ||||||
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 11,366 | 10,271 | ||||||
Consumer Real Estate [Member] | Home Equity Lines of Credit [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 69,113 | 64,413 | ||||||
Commercial and Industrial [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 94,183 | 104,122 | ||||||
Allowance for loan losses | 1,428 | |||||||
Commercial and Industrial [Member] | Agricultural Sector [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 20,918 | 20,512 | ||||||
Commercial and Industrial [Member] | Commercial and Industrial Sector [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 56,690 | 61,043 | ||||||
Commercial and Industrial [Member] | Tax-free loans [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 16,575 | 22,567 | ||||||
Consumer Portfolio Segment [Member] | ||||||||
Loan Portfolio | ||||||||
Gross loans prior to deferred fees | 5,651 | 9,197 | ||||||
Allowance for loan losses | $ (54) | $ (76) | $ (101) | $ (102) | $ (117) | $ (131) | $ (72) | $ (98) |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Schedule of Commercial and Consumer Credit Exposure) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total | $ 399,285 | $ 389,559 |
Construction [Member] | ||
Total | 17,661 | 18,092 |
Agricultural Mortgage Loans [Member] | ||
Total | 173,697 | 165,926 |
Commercial and Industrial Sector [Member] | ||
Total | 56,690 | 61,043 |
Tax-free loans [Member] | ||
Total | 16,575 | 22,567 |
Agriculture loans [Member] | ||
Total | 20,918 | 20,512 |
Commercial [Member] | ||
Total | 113,744 | 101,419 |
Pass [Member] | ||
Total | 370,476 | 371,914 |
Pass [Member] | Construction [Member] | ||
Total | 16,098 | 17,567 |
Pass [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 157,213 | 154,132 |
Pass [Member] | Commercial and Industrial Sector [Member] | ||
Total | 50,668 | 59,348 |
Pass [Member] | Tax-free loans [Member] | ||
Total | 16,575 | 22,367 |
Pass [Member] | Agriculture loans [Member] | ||
Total | 18,548 | 19,487 |
Pass [Member] | Commercial [Member] | ||
Total | 111,374 | 99,013 |
Special Mention [Member] | ||
Total | 11,905 | 5,350 |
Special Mention [Member] | Construction [Member] | ||
Total | 525 | |
Special Mention [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 5,685 | 3,478 |
Special Mention [Member] | Commercial and Industrial Sector [Member] | ||
Total | 4,336 | 518 |
Special Mention [Member] | Tax-free loans [Member] | ||
Total | 200 | |
Special Mention [Member] | Agriculture loans [Member] | ||
Total | 1,048 | 453 |
Special Mention [Member] | Commercial [Member] | ||
Total | 836 | 176 |
Substandard [Member] | ||
Total | 16,357 | 12,295 |
Substandard [Member] | Construction [Member] | ||
Total | 1,563 | |
Substandard [Member] | Agricultural Mortgage Loans [Member] | ||
Total | 10,799 | 8,316 |
Substandard [Member] | Commercial and Industrial Sector [Member] | ||
Total | 1,139 | 1,177 |
Substandard [Member] | Tax-free loans [Member] | ||
Total | ||
Substandard [Member] | Agriculture loans [Member] | ||
Total | 1,322 | 572 |
Substandard [Member] | Commercial [Member] | ||
Total | 1,534 | 2,230 |
Doubtful [Member] | ||
Total | 547 | |
Doubtful [Member] | Construction [Member] | ||
Total | ||
Doubtful [Member] | Agricultural Mortgage Loans [Member] | ||
Total | ||
Doubtful [Member] | Commercial and Industrial Sector [Member] | ||
Total | 547 | |
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 | Sep. 30, 2019 | Dec. 31, 2018 |
Gross loans prior to deferred fees | $ 736,313 | $ 692,477 |
Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 11,366 | 10,271 |
Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 69,113 | 64,413 |
1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 250,898 | 219,037 |
Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 5,651 | 9,197 |
Performing [Member] | ||
Gross loans prior to deferred fees | 336,706 | 302,521 |
Performing [Member] | Home Equity Loan [Member] | ||
Gross loans prior to deferred fees | 11,366 | 10,271 |
Performing [Member] | Home Equity Lines of Credit [Member] | ||
Gross loans prior to deferred fees | 69,113 | 64,413 |
Performing [Member] | 1-4 Family Residential Mortgages [Member] | ||
Gross loans prior to deferred fees | 250,578 | 218,641 |
Performing [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 5,649 | 9,196 |
Nonperforming [Member] | ||
Gross loans prior to deferred fees | 322 | 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 | 320 | 396 |
Nonperforming [Member] | Consumer Portfolio Segment [Member] | ||
Gross loans prior to deferred fees | 2 | 1 |
Consumer Borrower [Member] | ||
Gross loans prior to deferred fees | $ 337,028 | $ 302,918 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Schedule of Aging of Loans Receivable) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 3,636 | $ 2,791 |
Current | 7,326,777 | 689,686 |
Total Loans Receivable | 736,313 | 692,477 |
Loans Receivable - Greater than 90 Days and Accruing | 322 | 397 |
1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Loans Receivable | 250,898 | 219,037 |
Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 824 | 237 |
Current | 112,920 | 101,182 |
Total Loans Receivable | 113,744 | 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 | 1,532 | 1,142 |
Current | 172,165 | 164,784 |
Total Loans Receivable | 173,697 | 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 | 17,661 | 18,092 |
Total Loans Receivable | 17,661 | 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 | 1,031 | 1,052 |
Current | 249,867 | 217,985 |
Total Loans Receivable | 250,898 | 219,037 |
Loans Receivable - Greater than 90 Days and Accruing | 320 | 396 |
Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 58 | 97 |
Current | 11,308 | 10,174 |
Total Loans Receivable | 11,366 | 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 | 154 | 95 |
Current | 68,959 | 64,318 |
Total Loans Receivable | 69,113 | 64,413 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7 | 24 |
Current | 56,683 | 61,019 |
Total Loans Receivable | 56,690 | 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 | 16,575 | 22,567 |
Total Loans Receivable | 16,575 | 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 | 118 | |
Current | 20,918 | 20,394 |
Total Loans Receivable | 20,918 | 20,512 |
Loans Receivable - Greater than 90 Days and Accruing | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 30 | 26 |
Current | 5,621 | 9,171 |
Total Loans Receivable | 5,651 | 9,197 |
Loans Receivable - Greater than 90 Days and Accruing | 2 | 1 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,237 | 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 | 437 | 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 | 557 | 455 |
30-59 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 58 | 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 | 154 | 95 |
30-59 Days Past Due [Member] | Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 7 | 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 | 118 | |
30-59 Days Past Due [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 24 | 10 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 158 | 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 | ||
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 | 154 | 201 |
60-89 Days Past Due [Member] | Consumer Real Estate [Member] | Home Equity Loan [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 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 | 4 | 15 |
Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,241 | 1,450 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 824 | 237 |
Greater than 90 Days Past Due [Member] | Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,095 | 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 | 320 | 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 | $ 2 | $ 1 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Schedule of Nonaccrual Loans by Class) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | $ 2,466 | $ 1,833 |
Commercial real estate [Member] | Mortgages [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 824 | 1,017 |
Commercial real estate [Member] | Agricultural Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Non-accrual Loans | 1,095 | 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 | 547 | |
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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Total impaired loans | |||||
Average recorded balance of impaired loans | $ 3,721 | $ 1,388 | $ 3,278 | $ 2,153 | $ 2,067 |
Interest income recognized on impaired loans | $ 11 | $ 11 | $ 32 | $ 41 | $ 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 | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Loans with no related allowance recorded: | |||||
Recorded Investment | $ 2,677 | $ 2,677 | $ 2,062 | ||
Unpaid Principal Balance | 2,714 | 2,714 | 2,593 | ||
Related Allowance | |||||
Average Recorded Investment | 2,588 | 1,459 | |||
Interest Income Recognized | 32 | 45 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 1,357 | 1,357 | 647 | ||
Unpaid Principal Balance | 1,367 | 1,367 | 694 | ||
Related Allowance | 596 | 596 | 132 | ||
Average Recorded Investment | 690 | 608 | |||
Interest Income Recognized | 6 | ||||
Total impaired loans | |||||
Recorded Investment | 4,034 | 4,034 | 2,709 | ||
Unpaid Principal Balance | 4,081 | 4,081 | 3,287 | ||
Related Allowance | 596 | 596 | 132 | ||
Average Recorded Investment | 3,721 | $ 1,388 | 3,278 | $ 2,153 | 2,067 |
Interest Income Recognized | 11 | $ 11 | 32 | $ 41 | 51 |
Commercial real estate [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 2,677 | 2,677 | 2,062 | ||
Unpaid Principal Balance | 2,714 | 2,714 | 2,593 | ||
Related Allowance | |||||
Average Recorded Investment | 2,588 | 1,459 | |||
Interest Income Recognized | 32 | 45 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 810 | 810 | 647 | ||
Unpaid Principal Balance | 818 | 818 | 694 | ||
Related Allowance | 49 | 49 | 132 | ||
Average Recorded Investment | 612 | 484 | |||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 3,487 | 3,487 | 2,709 | ||
Unpaid Principal Balance | 3,532 | 3,532 | 3,287 | ||
Related Allowance | 49 | 49 | 132 | ||
Average Recorded Investment | 3,200 | 1,943 | |||
Interest Income Recognized | 32 | 45 | |||
Commercial real estate [Member] | Mortgages [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 732 | 732 | 370 | ||
Unpaid Principal Balance | 767 | 767 | 901 | ||
Related Allowance | |||||
Average Recorded Investment | 903 | 396 | |||
Interest Income Recognized | |||||
Loans with an allowance recorded: | |||||
Recorded Investment | 92 | 92 | 647 | ||
Unpaid Principal Balance | 100 | 100 | 694 | ||
Related Allowance | 49 | 49 | 132 | ||
Average Recorded Investment | 93 | 484 | |||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 824 | 824 | 1,017 | ||
Unpaid Principal Balance | 867 | 867 | 1,595 | ||
Related Allowance | 49 | 49 | 132 | ||
Average Recorded Investment | 996 | 880 | |||
Interest Income Recognized | |||||
Commercial real estate [Member] | Agricultural Sector [Member] | |||||
Loans with no related allowance recorded: | |||||
Recorded Investment | 1,945 | 1,945 | 1,692 | ||
Unpaid Principal Balance | 1,947 | 1,947 | 1,692 | ||
Related Allowance | |||||
Average Recorded Investment | 1,685 | 1,063 | |||
Interest Income Recognized | 32 | 45 | |||
Loans with an allowance recorded: | |||||
Recorded Investment | 718 | 718 | |||
Unpaid Principal Balance | 718 | 718 | |||
Related Allowance | |||||
Average Recorded Investment | 519 | ||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 2,663 | 2,663 | 1,692 | ||
Unpaid Principal Balance | 2,665 | 2,665 | 1,692 | ||
Related Allowance | |||||
Average Recorded Investment | 2,204 | 1,063 | |||
Interest Income Recognized | 32 | 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 | 547 | 547 | |||
Unpaid Principal Balance | 549 | 549 | |||
Related Allowance | 547 | 547 | |||
Average Recorded Investment | 78 | ||||
Interest Income Recognized | |||||
Total impaired loans | |||||
Recorded Investment | 547 | 547 | |||
Unpaid Principal Balance | 549 | 549 | |||
Related Allowance | 547 | 547 | |||
Average Recorded Investment | 78 | ||||
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 | 547 | 547 | |||
Unpaid Principal Balance | 549 | 549 | |||
Related Allowance | 547 | 547 | |||
Average Recorded Investment | 78 | 124 | |||
Interest Income Recognized | 6 | ||||
Total impaired loans | |||||
Recorded Investment | 547 | 547 | |||
Unpaid Principal Balance | 549 | 549 | |||
Related Allowance | $ 547 | 547 | |||
Average Recorded Investment | 78 | 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 | 9 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | $ 8,957 | $ 8,886 | $ 8,666 | $ 8,171 | $ 8,083 | $ 8,240 | $ 8,666 | $ 8,240 |
Charge-offs | (188) | (6) | (17) | (20) | (8) | (352) | (188) | (380) |
Recoveries | 75 | 47 | 57 | 87 | 6 | 5 | ||
Provision | 630 | 30 | 180 | 190 | 90 | 190 | ||
Ending balance | 9,474 | 8,957 | 8,886 | 8,428 | 8,171 | 8,083 | 9,474 | 8,428 |
Commercial Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 4,417 | 4,488 | 4,296 | 4,004 | 4,047 | 3,863 | 4,296 | 3,863 |
Charge-offs | (122) | (224) | ||||||
Recoveries | 41 | 43 | 44 | 30 | ||||
Provision | 229 | (114) | 148 | 90 | (43) | 408 | ||
Ending balance | 4,565 | 4,417 | 4,488 | 4,124 | 4,004 | 4,047 | 4,565 | 4,124 |
Consumer Real Estate [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 2,390 | 2,268 | 2,408 | 2,182 | 2,189 | 2,052 | 2,408 | 2,052 |
Charge-offs | (20) | |||||||
Recoveries | 1 | |||||||
Provision | 156 | 122 | (140) | 192 | (7) | 137 | ||
Ending balance | 2,547 | 2,390 | 2,268 | 2,354 | 2,182 | 2,189 | 2,547 | 2,354 |
Commercial and Industrial Sector [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 1,366 | 1,569 | 1,428 | 1,282 | 1,301 | 1,829 | 1,428 | 1,829 |
Charge-offs | (63) | (110) | ||||||
Recoveries | 33 | 1 | 13 | 55 | 2 | 4 | ||
Provision | 740 | (204) | 128 | 90 | (21) | (422) | ||
Ending balance | 2,076 | 1,366 | 1,569 | 1,427 | 1,282 | 1,301 | 2,076 | 1,427 |
Consumer Portfolio Segment [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 76 | 101 | 102 | 131 | 72 | 98 | 102 | 98 |
Charge-offs | (3) | (6) | (17) | (8) | (18) | |||
Recoveries | 3 | 2 | 4 | 1 | ||||
Provision | (19) | (22) | 16 | (16) | 63 | (9) | ||
Ending balance | 54 | 76 | 101 | 117 | 131 | 72 | 54 | 117 |
Unallocated [Member] | ||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||
Beginning balance | 708 | 460 | 432 | 572 | 474 | 398 | 432 | 398 |
Charge-offs | ||||||||
Recoveries | ||||||||
Provision | (476) | 248 | 28 | (166) | 98 | 76 | ||
Ending balance | $ 232 | $ 708 | $ 460 | $ 406 | $ 572 | $ 474 | $ 232 | $ 406 |
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 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for credit losses: | ||||||||
Ending balance | $ 9,474 | $ 8,957 | $ 8,886 | $ 8,666 | $ 8,428 | $ 8,171 | $ 8,083 | $ 8,240 |
individually evaluated for impairment | 596 | 132 | ||||||
collectively evaluated for impairment | 8,878 | 8,534 | ||||||
Loans receivable: | ||||||||
Total Loans Receivable | 736,313 | 692,477 | ||||||
individually evaluated for impairment | 4,034 | 2,709 | ||||||
collectively evaluated for impairment | 732,279 | 689,768 | ||||||
Commercial Real Estate [Member] | ||||||||
Allowance for credit losses: | ||||||||
Ending balance | 4,565 | 4,417 | 4,488 | 4,296 | 4,124 | 4,004 | 4,047 | 3,863 |
individually evaluated for impairment | 49 | 132 | ||||||
collectively evaluated for impairment | 4,516 | 4,164 | ||||||
Loans receivable: | ||||||||
Total Loans Receivable | 305,102 | 285,437 | ||||||
individually evaluated for impairment | 3,487 | 2,709 | ||||||
collectively evaluated for impairment | 301,615 | 282,728 | ||||||
Consumer Real Estate [Member] | ||||||||
Allowance for credit losses: | ||||||||
Ending balance | 2,547 | 2,390 | 2,268 | 2,408 | 2,354 | 2,182 | 2,189 | 2,052 |
individually evaluated for impairment | ||||||||
collectively evaluated for impairment | 2,547 | 2,408 | ||||||
Loans receivable: | ||||||||
Total Loans Receivable | 331,377 | 293,721 | ||||||
individually evaluated for impairment | ||||||||
collectively evaluated for impairment | 331,377 | 293,721 | ||||||
Commercial and Industrial Sector [Member] | ||||||||
Allowance for credit losses: | ||||||||
Ending balance | 2,076 | 1,366 | 1,569 | 1,428 | 1,427 | 1,282 | 1,301 | 1,829 |
individually evaluated for impairment | 547 | |||||||
collectively evaluated for impairment | 1,529 | 1,428 | ||||||
Loans receivable: | ||||||||
Total Loans Receivable | 94,183 | 104,122 | ||||||
individually evaluated for impairment | 547 | |||||||
collectively evaluated for impairment | 93,636 | 104,122 | ||||||
Consumer Portfolio Segment [Member] | ||||||||
Allowance for credit losses: | ||||||||
Ending balance | 54 | 76 | 101 | 102 | 117 | 131 | 72 | 98 |
individually evaluated for impairment | ||||||||
collectively evaluated for impairment | 54 | 102 | ||||||
Loans receivable: | ||||||||
Total Loans Receivable | 5,651 | 9,197 | ||||||
individually evaluated for impairment | ||||||||
collectively evaluated for impairment | 5,651 | 9,197 | ||||||
Unallocated [Member] | ||||||||
Allowance for credit losses: | ||||||||
Ending balance | 232 | $ 708 | $ 460 | 432 | $ 406 | $ 572 | $ 474 | $ 398 |
individually evaluated for impairment | ||||||||
collectively evaluated for impairment | $ 232 | $ 432 |
Fair Value Presentation (Narrat
Fair Value Presentation (Narrative) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, market value | $ 6,108 | $ 5,934 | $ 5,789 |
Impaired Financing Receivable, Recorded Investment | 4,034 | 2,709 | |
Related Allowance | 596 | 132 | |
CRA Investment Fund [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 5,529 | 5,410 | |
Marketable equity securities, market value | 5,529 | 5,410 | |
Regulatory Bank Stock [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Marketable equity securities, book value | 601 | 591 | |
Marketable equity securities, market value | $ 579 | $ 524 |
Fair Value Presentation (Schedu
Fair Value Presentation (Schedule of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | $ 305,091 | $ 294,065 |
U.S. Government Agencies [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 35,316 | 30,120 |
U.S. Agency Mortgage-Backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 45,911 | 44,639 |
U.S. Agency Collateralized Mortgage Obligations [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 54,660 | 54,090 |
Asset-backed Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 19,568 | 11,399 |
Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 54,672 | 59,192 |
Obligations of States and Political Subdivisions [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 88,856 | 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) | 35,316 | 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) | 45,911 | 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) | 54,660 | 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) | 19,568 | 11,399 |
Fair Value Measured on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 54,672 | 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) | 88,856 | 94,625 |
Fair Value Measured on a Recurring Basis [Member] | Equity Securities [Member] | ||
Recurring Fair Value Measurements | ||
Securities available for sale (at fair value) | 6,108 | 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) | 6,108 | 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) | 6,108 | 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) | 298,983 | 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) | 35,316 | 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) | 45,911 | 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) | 54,660 | 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) | 19,568 | 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) | 54,672 | 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) | 88,856 | 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 | Sep. 30, 2019 | Dec. 31, 2018 |
Non-Recurring Fair Value Measurements | ||
Impaired Loans | $ 3,438 | $ 2,577 |
Total Fair Value, non-recurring | 3,438 | 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 | 3,438 | 2,577 |
Total Fair Value, non-recurring | $ 3,438 | $ 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 | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total Fair Value, non-recurring | $ 3,438 | $ 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 | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 |
Financial Assets: | ||||
Cash and cash equivalents | $ 41,190 | $ 41,365 | $ 28,188 | $ 53,073 |
Securities available for sale | 305,091 | 294,065 | ||
Regulatory stock | 7,200 | 6,348 | 6,392 | |
Loans, net of allowance | 728,630 | 685,407 | 659,341 | |
Bank owned life insurance | 28,610 | 28,085 | 27,901 | |
Financial Liabilities: | ||||
Demand deposits | 347,929 | 369,081 | 346,827 | |
Total deposits | 946,991 | 919,734 | 890,926 | |
Short-term borrowings | 7,870 | 1,074 | ||
Long-term debt | 79,989 | 65,386 | $ 68,361 | |
Carrying Amount [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 41,190 | 41,365 | ||
Regulatory stock | 7,200 | 6,348 | ||
Loans held for sale | 1,578 | 1,429 | ||
Loans, net of allowance | 728,630 | 685,407 | ||
Mortgage Servicing Assets | 812 | 905 | ||
Accrued interest receivable | 3,830 | 3,754 | ||
Bank owned life insurance | 28,610 | 28,085 | ||
Financial Liabilities: | ||||
Demand deposits | 347,929 | 369,081 | ||
Interest-bearing demand deposits | 19,275 | 20,104 | ||
NOW accounts | 90,444 | 89,072 | ||
Money market deposit accounts | 148,863 | 108,594 | ||
Savings accounts | 203,706 | 199,665 | ||
Time deposits | 136,774 | 133,218 | ||
Total deposits | 946,991 | 919,734 | ||
Short-term borrowings | 7,870 | |||
Long-term debt | 79,989 | 65,386 | ||
Accrued interest payable | 517 | 397 | ||
Fair Value [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 41,190 | 41,365 | ||
Regulatory stock | 7,200 | 6,348 | ||
Loans held for sale | 1,578 | 1,429 | ||
Loans, net of allowance | 732,715 | 687,844 | ||
Mortgage Servicing Assets | 823 | 997 | ||
Accrued interest receivable | 3,830 | 3,754 | ||
Bank owned life insurance | 28,610 | 28,085 | ||
Financial Liabilities: | ||||
Demand deposits | 347,929 | 369,081 | ||
Interest-bearing demand deposits | 19,275 | 20,104 | ||
NOW accounts | 90,444 | 89,072 | ||
Money market deposit accounts | 148,863 | 108,594 | ||
Savings accounts | 203,706 | 199,665 | ||
Time deposits | 138,457 | 132,351 | ||
Total deposits | 948,674 | 918,867 | ||
Short-term borrowings | 7,870 | |||
Long-term debt | 78,823 | 65,286 | ||
Accrued interest payable | 517 | 397 | ||
Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level I) [Member] | ||||
Financial Assets: | ||||
Cash and cash equivalents | 41,190 | 41,365 | ||
Regulatory stock | 7,200 | 6,348 | ||
Loans held for sale | 1,578 | 1,429 | ||
Loans, net of allowance | ||||
Mortgage Servicing Assets | ||||
Accrued interest receivable | 3,830 | 3,754 | ||
Bank owned life insurance | 28,610 | 28,085 | ||
Financial Liabilities: | ||||
Demand deposits | 347,929 | 369,081 | ||
Interest-bearing demand deposits | 19,275 | 20,104 | ||
NOW accounts | 90,444 | 89,072 | ||
Money market deposit accounts | 148,863 | 108,594 | ||
Savings accounts | 203,706 | 199,665 | ||
Time deposits | ||||
Total deposits | 810,217 | 786,516 | ||
Short-term borrowings | 7,870 | |||
Long-term debt | ||||
Accrued interest payable | 517 | 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 | 732,715 | 687,844 | ||
Mortgage Servicing Assets | 823 | 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 | 138,457 | 132,351 | ||
Total deposits | 138,457 | 132,351 | ||
Short-term borrowings | ||||
Long-term debt | 78,823 | 65,286 | ||
Accrued interest payable |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Commitment to extend credit | $ 334 |
Loan Commitments [Member] | |
Commitment to extend credit | 65.8 |
Line of Credit [Member] | |
Commitment to extend credit | 258.6 |
Letter of Credit [Member] | |
Commitment to extend credit | $ 9.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Schedule of Accumulated Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||||
Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance, beginning | $ 112,514 | $ 102,802 | $ 98,743 | $ 99,759 | |||
Balance, ending | 115,637 | $ 112,514 | 99,202 | $ 98,743 | |||
Unrealized Gains (Losses) on Securities Available-for-Sale [Member] | |||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||
Balance, beginning | [1],[2] | 298 | (3,189) | (5,678) | (6,778) | (6,541) | (3,195) |
Other comprehensive income loss before reclassifications | [1],[2] | 1,420 | 3,571 | 2,553 | (1,419) | (286) | (2,685) |
Amount reclassified from accumulated other comprehensive income loss | [1],[2] | (33) | (84) | (64) | (3) | 49 | (27) |
Reclassification of certain income tax effects from accumulated other comprehensive loss | [1],[2] | (634) | |||||
Period change | [1],[2] | 1,387 | 3,487 | 2,489 | (1,422) | (237) | (3,346) |
Balance, ending | [1],[2] | $ 1,685 | $ 298 | $ (3,189) | $ (8,200) | $ (6,778) | $ (6,541) |
Federal income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
[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 | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Gains (losses) on the sale of debt securities, net | $ 7 | $ 3 | $ 51 | $ 50 | |
Provision for federal income taxes | (550) | (425) | (1,596) | (960) | |
Reclassifications for the period | 2,924 | 2,577 | 8,616 | 7,524 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||
Reclassifications for the period | [1] | 33 | 3 | 181 | (19) |
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] | 42 | 4 | 229 | (24) |
Provision for federal income taxes | [1] | $ (9) | $ (1) | $ (48) | $ 5 |
[1] | Amounts in parentheses indicate debits. |
Leases (Schedule of ROU Assets
Leases (Schedule of ROU Assets and Lease Liabilities) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jan. 02, 2019 |
Lease Right-of-Use Assets | ||
Operating lease right-of use assets | $ 952 | $ 1,075 |
Lease Liabilities | ||
Operating lease liabilties | $ 959 |
Leases (Schedule of Opreating L
Leases (Schedule of Opreating Leases Weighted-Average Discount Term and Rate) (Details) | Sep. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term Operating leases | 5 years 6 months |
Weighted-average discount rate Operating leases | 3.09% |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Operating Leases) (Details) $ in Thousands | Sep. 30, 2019USD ($) |
Twelve Months Ended: | |
September 30, 2020 | $ 202 |
September 30, 2021 | 203 |
September 30, 2022 | 183 |
September 30, 2023 | 151 |
September 30, 2024 | 155 |
Thereafter | 151 |
Total Future Minimum Lease Payments | 1,045 |
Amounts Representing Interests | (86) |
Present Value of Net Future Minimum Lease Payments | $ 959 |
Change in Capital Structure (De
Change in Capital Structure (Details) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 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 |