Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 20, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PATHFINDER BANCORP, INC. | ||
Entity Central Index Key | 0001609065 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well Known Seasoned Issuer | No | ||
Entity Public Float | $ 51.3 | ||
Entity Common Stock Shares Outstanding | 4,740,446 | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-36695 | ||
Entity Incorporation, State or Country Code | MD | ||
Entity Tax Identification Number | 38-3941859 | ||
Entity Address, Address Line One | 214 West First Street | ||
Entity Address, City or Town | Oswego | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 13126 | ||
City Area Code | 315 | ||
Local Phone Number | 343-0057 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Title of each class | Common Stock, $0.01 par value | ||
Trading Symbol | PBHC | ||
Name of each exchange on which registered | NASDAQ | ||
Documents Incorporated by Reference | Proxy Statement for the 2020 Annual Meeting of Shareholders of the Registrant (Part III). |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
ASSETS: | |||
Cash and due from banks | $ 8,284 | $ 9,610 | |
Interest-earning deposits (including restricted balances of $0 and $3,993, respectively) | 11,876 | 16,706 | |
Total cash and cash equivalents | 20,160 | 26,316 | |
Available-for-sale securities, at fair value | 111,134 | 177,664 | |
Held-to-maturity securities, at amortized cost (fair value of $124,148 and $53,769, respectively) | 122,988 | 53,908 | |
Marketable equity securities, at fair value | 534 | 453 | |
Federal Home Loan Bank stock, at cost | 4,834 | 5,937 | |
Loans | 745,516 | 620,270 | |
Loans held-for-sale | [1] | 35,935 | |
Less: Allowance for loan losses | 8,669 | 7,306 | |
Loans receivable, net | 772,782 | 612,964 | |
Premises and equipment, net | 22,699 | 20,623 | |
Operating lease right-of-use assets | 2,386 | ||
Accrued interest receivable | 3,712 | 3,068 | |
Foreclosed real estate | 88 | 1,173 | |
Intangible assets, net | 149 | 165 | |
Goodwill | 4,536 | 4,536 | |
Bank owned life insurance | 17,403 | 16,941 | |
Other assets | 10,402 | 9,367 | |
Total assets | 1,093,807 | 933,115 | |
Deposits: | |||
Interest-bearing | 774,392 | 623,936 | |
Noninterest-bearing | 107,501 | 103,124 | |
Total deposits | 881,893 | 727,060 | |
Short-term borrowings | 25,138 | 39,000 | |
Long-term borrowings | 67,987 | 79,534 | |
Subordinated loans | 15,128 | 15,094 | |
Accrued interest payable | 396 | 304 | |
Operating lease liabilities | 2,650 | ||
Other liabilities | 9,946 | 7,664 | |
Total liabilities | 1,003,138 | 868,656 | |
Shareholders' equity: | |||
Preferred stock, par value $0.01 per share; no liquidation preference; 10,000,000 and 0 shares authorized, respectively; 1,155,283 and 0 shares issued and outstanding, respectively | 12 | ||
Common stock, par value $0.01; 25,000,000 authorized shares; 4,709,238 and 4,362,328 shares issued and outstanding, respectively | 47 | 44 | |
Additional paid in capital | 49,362 | 29,139 | |
Retained earnings | 44,839 | 42,114 | |
Accumulated other comprehensive loss | (2,971) | (6,042) | |
Unearned ESOP | (855) | (1,034) | |
Total Pathfinder Bancorp, Inc. shareholders' equity | 90,434 | 64,221 | |
Noncontrolling interest | 235 | 238 | |
Total equity | 90,669 | 64,459 | |
Total liabilities and shareholders' equity | $ 1,093,807 | $ 933,115 | |
[1] | Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Restricted Cash | $ 0 | $ 3,993,000 |
Held-to-maturity securities at fair value | $ 124,148,000 | $ 53,769,000 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, liquidation preference | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 0 |
Preferred stock, shares issued (in shares) | 1,155,283 | 0 |
Preferred stock, shares outstanding (in shares) | 1,155,283 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 25,000,000 | 25,000,000 |
Common stock, shares issued (in shares) | 4,709,238 | 4,362,328 |
Common stock, shares outstanding (in shares) | 4,709,238 | 4,362,328 |
Total loans | $ 781,341,000 | $ 620,405,000 |
Net deferred loan fees | (110,000) | $ 135,000 |
Loans Held-For-Sale [Member] | ||
Shareholders' equity: | ||
Total loans | 35,800,000 | |
Net deferred loan fees | 146,000,000 | |
Loans and leases receivable amortized cost | $ 35,900,000 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income: | ||
Loans, including fees | $ 34,035 | $ 28,426 |
Debt securities: | ||
Taxable | 6,962 | 5,159 |
Tax-exempt | 178 | 720 |
Dividends | 279 | 259 |
Federal funds sold and interest earning deposits | 304 | 246 |
Total interest and dividend income | 41,758 | 34,810 |
Interest expense: | ||
Interest on deposits | 10,713 | 6,812 |
Interest on short-term borrowings | 377 | 221 |
Interest on long-term borrowings | 1,575 | 1,165 |
Interest on subordinated loans | 863 | 846 |
Total interest expense | 13,528 | 9,044 |
Net interest income | 28,230 | 25,766 |
Provision for loan losses | 1,966 | 1,497 |
Net interest income after provision for loan losses | 26,264 | 24,269 |
Noninterest income: | ||
Earnings and gain on bank owned life insurance | 462 | 427 |
Net gains (losses) on sales and redemptions of investment securities | 329 | (182) |
Gains (losses) on marketable equity securities | 81 | (62) |
Net gains on sales of loans and foreclosed real estate | 64 | 50 |
Insurance agency revenue | 844 | 840 |
Total noninterest income | 4,917 | 3,835 |
Noninterest expense: | ||
Salaries and employee benefits | 13,660 | 12,704 |
Building and occupancy | 2,674 | 2,243 |
Data processing | 2,339 | 1,924 |
Professional and other services | 1,325 | 1,360 |
Advertising | 962 | 920 |
FDIC assessments | 421 | 492 |
Audits and exams | 427 | 422 |
Insurance agency expense | 816 | 875 |
Community service activities | 620 | 541 |
Foreclosed real estate expenses | 337 | 150 |
Other expenses | 2,149 | 1,918 |
Total noninterest expenses | 25,730 | 23,549 |
Income before income taxes | 5,451 | 4,555 |
Provision for income taxes | 1,165 | 546 |
Net income attributable to noncontrolling interest and Pathfinder Bancorp, Inc. | 4,286 | 4,009 |
Net income (loss) attributable to noncontrolling interest | 10 | (22) |
Net income attributable to Pathfinder Bancorp, Inc. | 4,276 | 4,031 |
Convertible preferred stock dividends | 208 | |
Warrant dividends | 23 | |
Undistributed earnings allocated to participating securities | 467 | |
Net income available to common shareholders | $ 3,578 | $ 4,031 |
Earnings per common share - basic | $ 0.80 | $ 0.97 |
Earnings per common share - diluted | 0.80 | 0.94 |
Dividends per common share | $ 0.24 | $ 0.24 |
Service Charges on Deposit Accounts [Member] | ||
Noninterest income: | ||
Noninterest income | $ 1,391 | $ 1,148 |
Loan Servicing Fees [Member] | ||
Noninterest income: | ||
Noninterest income | 211 | 170 |
Debit Card Interchange Fees [Member] | ||
Noninterest income: | ||
Noninterest income | 657 | 576 |
Other Charges, Commissions & Fees [Member] | ||
Noninterest income: | ||
Noninterest income | $ 878 | $ 868 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Consolidated Statements of Comprehensive Income [Abstract] | |||
Net Income | $ 4,286 | $ 4,009 | |
Retirement Plans: | |||
Retirement plan net losses recognized in plan expenses | 335 | 171 | |
Plan gains (losses) not recognized in plan expenses | 255 | (1,432) | |
Net unrealized gain (loss) on retirement plans | 590 | (1,261) | |
Unrealized holding gains (losses) on available-for-sale securities | |||
Unrealized holding gains (losses) arising during the period | 3,869 | (1,991) | |
Reclassification adjustment for net (gains) losses included in net income | (329) | 182 | |
Net unrealized gains (losses) on available-for-sale securities | 3,540 | (1,809) | |
Accretion of net unrealized loss on securities transferred to held-to-maturity | [1] | 27 | 175 |
Other comprehensive income (loss), before tax | 4,157 | (2,895) | |
Tax effect | (1,086) | 755 | |
Other comprehensive income (loss), net of tax | 3,071 | (2,140) | |
Comprehensive income | 7,357 | 1,869 | |
Comprehensive income (loss), attributable to noncontrolling interest | 10 | (22) | |
Comprehensive income attributable to Pathfinder Bancorp, Inc. | 7,347 | 1,891 | |
Tax Effect Allocated to Each Component of Other Comprehensive Income (Loss) | |||
Retirement plan net losses recognized in plan expenses | (88) | (45) | |
Plan gains (losses) not recognized in plan expenses | (67) | 374 | |
Unrealized holding gains (losses) arising during the period | (1,010) | 520 | |
Reclassification adjustment for net gains (losses) included in net income | 86 | (48) | |
Accretion of net unrealized loss on securities transferred to held-to-maturity | [1] | (7) | (46) |
Income tax effect related to other comprehensive income (loss) | $ (1,086) | $ 755 | |
[1] | The accretion of the unrealized holding losses in accumulated other comprehensive loss at the date of transfer at September 30, 2013 partially offsets the amortization of the difference between the par value and the fair value of the investment securities at the date of transfer, and is an adjustment of yield. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] | Unearned ESOP [Member] | Non-controlling Interest [Member] | |
Balance at Dec. 31, 2017 | $ 62,144 | $ 43 | $ 28,170 | $ 39,020 | $ (4,208) | $ (1,214) | $ 333 | ||
Cumulative effect of change in measurement | ASU 2016-01 [Member] | [1] | (53) | 53 | (53) | |||||
Cumulative effect of change in measurement | ASU 2017-12 [Member] | [2] | 359 | 359 | ||||||
Net income | 4,009 | 4,031 | (22) | ||||||
Other comprehensive income (loss), net of tax | (2,140) | (2,140) | |||||||
ESOP shares earned | 375 | 195 | 180 | ||||||
Stock based compensation | 398 | 398 | |||||||
Stock options exercised | 385 | 1 | 384 | ||||||
Common stock dividends declared | (1,005) | (1,005) | |||||||
Cumulative effect of affiliate capital allocation | (8) | 15 | (7) | ||||||
Distributions from affiliates | (66) | (66) | |||||||
Balance at Dec. 31, 2018 | 64,459 | 44 | 29,139 | 42,114 | (6,042) | (1,034) | 238 | ||
Cumulative effect of change in measurement | ASU 2016-02 [Member] | [3] | (239) | (239) | ||||||
Net income | 4,286 | 4,276 | 10 | ||||||
Other comprehensive income (loss), net of tax | 3,071 | 3,071 | |||||||
Proceeds of common stock private placement, net of expenses | [4] | 3,826 | 3 | 3,823 | |||||
Proceeds of preferred stock private placement, net of expenses | [4] | 15,370 | $ 12 | 15,358 | |||||
Effect of warrant issued from private placement | [4] | 373 | 373 | ||||||
ESOP shares earned | 339 | 160 | 179 | ||||||
Stock based compensation | 291 | 291 | |||||||
Stock options exercised | 218 | 218 | |||||||
Common stock dividends declared | (1,081) | (1,081) | |||||||
Preferred stock dividends declared | (208) | (208) | |||||||
Warrant dividends declared | (23) | (23) | |||||||
Distributions from affiliates | (13) | (13) | |||||||
Balance at Dec. 31, 2019 | $ 90,669 | $ 12 | $ 47 | $ 49,362 | $ 44,839 | $ (2,971) | $ (855) | $ 235 | |
[1] | Cumulative effect of unrealized gain on marketable equity securities based on the adoption of ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. | ||||||||
[2] | Cumulative effect of unrealized gains on the transfer of 52 investment securities from held-to-maturity classification to available-for-sale classification based on the adoption of ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. | ||||||||
[3] | Cumulative effect of the adoption of ASU 2016-02, Leases (Topic 842), based on the difference in the right-of-use asset and lease liability as of January 1, 2019. | ||||||||
[4] | On May 8, 2019, the Company entered into a Securities Purchase Agreement with an institutional investor, in which it sold: (i) 37,700 shares of the Company’s common stock, (ii) 1,155,283 shares of a new series of preferred stock, Series B convertible perpetual preferred stock; and (iii) a warrant to purchase 125,000 shares of common stock in a private placement transaction. The Company also entered into Subscription Agreements with certain directors and executive officers of the Company as well as other accredited investors. Pursuant to the Subscription Agreements, the investors purchased an aggregate of 269,277 shares of common stock. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | May 08, 2019shares | Dec. 31, 2019$ / sharesshares | Dec. 31, 2018Security$ / sharesshares |
ESOP shares earned (in shares) | 24,442 | 24,442 | |
Restricted stock awards/units (in shares) | 18,709 | 14,490 | |
Dividends per common share | $ / shares | $ 0.24 | $ 0.24 | |
Dividends per preferred share | $ / shares | 0.18 | ||
Dividends per warrant | $ / shares | $ 0.18 | ||
Private Placement [Member] | Securities Purchase Agreement [Member] | |||
Warrant to purchase common stock | 125,000 | ||
Private Placement [Member] | Securities Purchase Agreement [Member] | Series B Preferred Stock [Member] | |||
Sale of stock | 1,155,283 | ||
Private Placement [Member] | Securities Purchase Agreement [Member] | Common Stock [Member] | |||
Sale of stock | 37,700 | ||
Private Placement [Member] | Subscription Agreements [Member] | Common Stock [Member] | Directors and Executive Officers [Member] | |||
Sale of stock | 269,277 | ||
ASU 2017-12 [Member] | |||
Number of investment securities classified from held-to-maturity to available-for-sale | Security | 52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net income attributable to Pathfinder Bancorp, Inc. | $ 4,276 | $ 4,031 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Provision for loan losses | 1,966 | 1,497 |
Deferred income (benefit) tax | (16) | 343 |
Amortization of operating leases | 25 | |
Proceeds from sales of loans | 1,492 | 216 |
Originations of loans held-for-sale | (1,474) | (212) |
Realized (gains) losses on sales, redemptions and calls of: | ||
Real estate acquired through foreclosure | (31) | (47) |
Loans | (33) | (3) |
Available-for-sale investment securities | (256) | 171 |
Held-to-maturity investment securities | (73) | 11 |
Premises and equipment | (8) | |
Marketable equity securities | (81) | |
Depreciation | 1,520 | 1,180 |
Amortization of mortgage servicing rights | (3) | 12 |
Amortization of deferred loan costs | (272) | 321 |
Amortization of deferred financing from subordinated debt | 34 | 35 |
Earnings and gain on bank owned life insurance | (462) | (427) |
Net amortization of premiums and discounts on investment securities | 1,269 | 1,656 |
Amortization of intangible assets | 16 | 17 |
Stock based compensation and ESOP expense | 630 | 773 |
Net change in accrued interest receivable | (644) | (21) |
Pension plan contribution | (825) | |
Net change in other assets and liabilities | 237 | 262 |
Net cash flows from operating activities | 8,120 | 8,982 |
INVESTING ACTIVITIES | ||
Purchase of investment securities available-for-sale | (75,551) | (55,291) |
Purchase of investment securities held-to-maturity | (88,892) | (28,452) |
Purchase of Federal Home Loan Bank stock | (10,201) | (8,679) |
Proceeds from redemption of Federal Home Loan Bank stock | 11,304 | 6,597 |
Proceeds from maturities and principal reductions of investment securities available-for-sale | 42,433 | 44,577 |
Proceeds from maturities and principal reductions of investment securities held-to-maturity | 19,101 | 5,842 |
Proceeds from sales, redemptions and calls of: | ||
Available-for-sale investment securities | 102,352 | 34,631 |
Held-to-maturity investment securities | 635 | 953 |
Real estate acquired through foreclosure | 1,664 | 744 |
Premise and equipment | 14 | |
Purchase of bank owned life insurance | (5,000) | |
Proceeds from bank owned life insurance | 228 | |
Net change in loans | (162,060) | (42,497) |
Purchase of premises and equipment | (3,596) | (5,692) |
Net cash flows from investing activities | (162,811) | (52,025) |
FINANCING ACTIVITIES | ||
Net change in demand deposits, NOW accounts, savings accounts, money management deposit accounts, MMDA accounts and escrow deposits | 10,021 | (43,969) |
Net change in time deposits | 49,708 | 65,525 |
Net change in brokered deposits | 95,104 | (18,099) |
Net change in short-term borrowings | (13,862) | 8,400 |
Payments on long-term borrowings | (31,227) | (2,000) |
Proceeds from long-term borrowings | 19,680 | 38,246 |
Proceeds from exercise of stock options | 218 | 385 |
Cash dividends paid to common shareholders | (1,091) | (1,025) |
Cash dividends paid to preferred shareholders | (139) | |
Cash dividends paid on warrants | (15) | |
Proceeds from finance lease transaction | 572 | |
Change in noncontrolling interest, net | (3) | (95) |
Net cash flows from financing activities | 148,535 | 47,368 |
Change in cash and cash equivalents | (6,156) | 4,325 |
Cash and cash equivalents at beginning of period | 26,316 | 21,991 |
Cash and cash equivalents at end of period | 20,160 | 26,316 |
CASH PAID DURING THE PERIOD FOR: | ||
Interest | 13,436 | 8,925 |
Income taxes | 750 | 662 |
NON-CASH INVESTING ACTIVITY | ||
Real estate acquired in exchange for loans | 548 | 1,420 |
RESTRICTED CASH | ||
Federal Reserve Bank Reserve Requirements included in interest earning deposits | $ 3,993 | |
Common Stock [Member] | ||
FINANCING ACTIVITIES | ||
Net proceeds from private placement | 4,199 | |
Preferred Stock [Member] | ||
FINANCING ACTIVITIES | ||
Net proceeds from private placement | $ 15,370 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1: Summary of Significant Accounting Policies Nature of Operations The accompanying consolidated financial statements include the accounts of Pathfinder Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Pathfinder Bank (the “Bank”). The Company is a Maryland corporation headquartered in Oswego, New York. On October 16, 2014, the Company completed its conversion from the mutual holding company structure and the related public offering and is now a stock holding company that is fully owned by the public. As a result of the conversion, the mutual holding company and former mid-tier holding company were merged into Pathfinder Bancorp, Inc. The primary business of the Company is its investment in Pathfinder Bank (the "Bank") which is 100% owned by the Company. The Bank has two wholly owned operating subsidiaries, Pathfinder Risk Management Company, Inc. (“PRMC”) and Whispering Oaks Development Corp. All significant inter-company accounts and activity have been eliminated in consolidation. Although the Company owns, through its subsidiary PRMC, 51% of the membership interest in FitzGibbons Agency, LLC (“FitzGibbons”), the Company is required to consolidate 100% of FitzGibbons within the consolidated financial statements. The 49% of which the Company does not own is accounted for separately as noncontrolling interests within the consolidated financial statements. The Company received $24.9 million in net proceeds from the sale of approximately 2.6 million shares of common stock as a result of the Conversion in October 2014. In October 2015, the Company executed the issuance of the $10.0 million non-amortizing Subordinated Loan and subsequently used those proceeds in February 2016 to substantially fund the full retirement of $13.0 million in SBLF Preferred stock. The Company received $19.6 million in net proceeds from the sale of 37,700 shares of common stock and 1,155,283 shares of preferred stock as a result of the Private Placement in May 2019. The Company has seven branch offices located in Oswego County, three branch offices in Onondaga County and one limited purpose office in Oneida County. The Company is primarily engaged in the business of attracting deposits from the general public in the Company’s market area, and investing such deposits, together with other sources of funds, in loans secured by commercial real estate, business assets, one-to-four family residential real estate and investment securities. Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has identified the allowance for loan losses, deferred income taxes, pension obligations, the annual evaluation of the Company’s goodwill for possible impairment and the evaluation of investment securities for other than temporary impairment and the estimation of fair values for accounting and disclosure purposes to be the accounting areas that require the most subjective and complex judgments, and as such, could be the most subject to revision as new information becomes available. The Company is subject to the regulations of various governmental agencies. The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loss allowances, and operating restrictions resulting from the regulators' judgments based on information available to them at the time of their examinations. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located primarily in Oswego and Onondaga counties of New York State. A large portion of the Company’s portfolio is centered in residential and commercial real estate. The Company closely monitors real estate collateral values and requires additional reviews of commercial real estate appraisals by a qualified third party for commercial real estate loans in excess of $400,000. All residential loan appraisals are reviewed by an individual or third party who is independent of the loan origination or approval process and was not involved in the approval of appraisers or selection of the appraiser for the transaction, and has no direct or indirect interest, financial or otherwise in the property or the transaction. Advertising The Company generally follows the policy of charging the costs of advertising to expense as incurred. Expenditures for new marketing and advertising material designs and/or media content, related to specifically-identifiable marketing campaigns are capitalized and expensed over the estimated life of the campaign. Such periods of time are generally 12-24 months in duration and do not exceed 36 months. Noncontrolling Interest Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of FitzGibbons. Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits (with original maturity of three months or less). Investment Securities The Company classifies investment securities as either available-for-sale or held-to-maturity. The Company does not hold any securities considered to be trading. Available-for-sale securities are reported at fair value, with net unrealized gains and losses reflected as a separate component of shareholders’ equity, net of the applicable income tax effect. Held-to-maturity securities are those that the Company has the ability and intent to hold until maturity and are reported at amortized cost. Gains or losses on investment security transactions are based on the amortized cost of the specific securities sold. Premiums and discounts on securities are amortized and accreted into income using the interest method over the period to maturity. The Company records its investment in marketable equity securities (“MES”) at fair value. Changes in the fair value of MES are recorded as additions to, or subtractions from, net income in the period that the change occurs. These changes in fair value are separately disclosed as gains (losses) on equity securities on the Consolidated Statements of Income. Note 4 to the consolidated financial statements includes additional information about the Company’s accounting policies with respect to the impairment of investment securities. Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. The stock is carried at cost. Transfers of Financial Assets Transfers of financial assets, including sales of loans and loan participations, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Loans The Company grants mortgage, commercial, municipal, and consumer loans to customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at their outstanding unpaid principal balances, less the allowance for loan losses plus net deferred loan origination costs. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the market area. Interest income is generally recognized when income is earned using the interest method. Nonrefundable loan fees received and related direct origination costs incurred are deferred and amortized over the life of the loan using the interest method, resulting in a constant effective yield over the loan term. Deferred fees are recognized into income and deferred costs are charged to income immediately upon prepayment of the related loan. The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. The residential mortgage segment consists of one-to-four family first-lien residential mortgages and construction loans. Commercial loans consist of the following classes: real estate, lines of credit, other commercial and industrial, and tax-exempt loans. Consumer loans include both home equity lines of credit and loans with junior liens and other consumer loans. Allowance for Loan Losses The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the date of the statement of condition and it is recorded as a reduction of loans. The allowance is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, unless productive collection efforts are providing results. Consumer loans may be charged off earlier in the event of bankruptcy, or if there is an amount that is deemed uncollectible. No portion of the allowance for loan losses is restricted to any individual loan product and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on three major components which are; specific components for larger loans, recent historical losses and several qualitative factors applied to a general pool of loans, and an unallocated component. The first component is the specific component that relates to loans that are classified as impaired. For these loans, an allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. The second or general component covers pools of loans, by loan class, not considered impaired, smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure first based on historical loss rates for each of these categories of loans. The ratio of net charge-offs to loans outstanding within each product class, over the most recent eight quarters, lagged by one quarter, is used to generate the historical loss rates. In addition, qualitative factors are added to the historical loss rates in arriving at the total allowance for loan loss need for this general pool of loans. The qualitative factors include changes in national and local economic trends, the rate of growth in the portfolio, trends of delinquencies and nonaccrual balances, changes in loan policy, and changes in lending management experience and related staffing. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each product class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss analysis and calculation. The third or unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio and generally comprises less than 10% of the total allowance for loan loss. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length and reason for the delay, the borrower’s prior payment record and the amount of shortfall in relation to what is owed. Impairment is measured by either the present value of the expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral, if the loan is collateral dependent. The majority of the Company’s loans utilize the fair value of the underlying collateral. An allowance for loan loss is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals, less costs to sell. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans less than $300,000, home equity and other consumer loans for impairment disclosures, unless such loans are related to borrowers with impaired commercial loans or they are subject to a troubled debt restructuring agreement. Loans that are related to borrowers with impaired commercial loans or are subject to a troubled debt restructuring agreement are evaluated individually for impairment. Commercial loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally include but are not limited to a temporary reduction in the interest rate or an extension of a loan’s stated maturity date. Commercial loans classified as troubled debt restructurings are designated as impaired and evaluated individually as discussed above. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of the collateral, if appropriate, are evaluated not less than annually for commercial loans or when credit deficiencies arise on all loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. See Note 5 for a description of these regulatory classifications. In addition, Federal and State regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. Income Recognition on Impaired and Nonaccrual Loans For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan may be currently performing. A loan may remain on accrual status if it is either well secured or guaranteed and in the process of collection. When a loan is placed on nonaccrual status, unpaid interest is reversed and charged to interest income. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. For nonaccrual loans, when future collectability of the recorded loan balance is expected, interest income may be recognized on a cash basis. In the case where a nonaccrual loan had been partially charged off, recognition of interest on a cash basis is limited to that which would have been recognized on the recorded loan balance at the contractual interest rate. Cash interest receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charge-offs have been fully recovered. Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under standby letters of credit. Such financial instruments are recorded when they are funded. Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets, ranging up to 40 years for premises and 10 years for equipment. Maintenance and repairs are charged to operating expenses as incurred. The asset cost and accumulated depreciation are removed from the accounts for assets sold or retired and any resulting gain or loss is included in the determination of income. Foreclosed Real Estate Physical possession of residential real estate property collateralizing a residential mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed-in-lieu of foreclosure or through a similar legal agreement. Properties acquired through foreclosure, or by deed-in-lieu of foreclosure, are recorded at their fair value less estimated costs to sell. Fair value is typically determined based on evaluations by third parties. Costs incurred in connection with preparing the foreclosed real estate for disposition are capitalized to the extent that they enhance the overall fair value of the property. Any write-downs on the asset’s fair value less costs to sell at the date of acquisition are charged to the allowance for loan losses. Subsequent write downs and expenses of foreclosed real estate are included as a valuation allowance and recorded in noninterest expense. Goodwill and Intangible Assets Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized, but is evaluated annually for impairment. Intangible assets, such as customer lists, are amortized over their useful lives, generally 15 years. Mortgage Servicing Rights Originated mortgage servicing rights are recorded at their fair value at the time of transfer of the related loans and are amortized in proportion to, and over the period of, estimated net servicing income or loss. The carrying value of the originated mortgage servicing rights is periodically evaluated for impairment or between annual evaluations under certain circumstances. Stock-Based Compensation Compensation costs related to share-based payment transactions are recognized based on the grant-date fair value of the stock-based compensation issued. Compensation costs are recognized over the period that an employee provides service in exchange for the award. Compensation costs related to the Employee Stock Ownership Plan are dependent upon the average stock price and the shares committed to be released to plan participants through the period in which income is reported. Retirement Benefits The Company has a non-contributory defined benefit pension plan that covered substantially all employees. On May 14, 2012, the Company informed its employees of its decision to freeze participation and benefit accruals under the plan, primarily to reduce some of the volatility in earnings that can accompany the maintenance of a defined benefit plan. The plan was frozen on June 30, 2012. Compensation earned by employees up to June 30, 2012 is used for purposes of calculating benefits under the plan but there will be no future benefit accruals after this date. Participants as of June 30, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. Pension expense under these plans is charged to current operations and consists of several components of net pension cost based on various actuarial assumptions regarding future experience under the plans. Gains and losses, prior service costs and credits, and any remaining transition amounts that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, until they are amortized as a component of net periodic cost. Plan assets and obligations are measured as of the Company’s statement of condition date. The Company has unfunded deferred compensation and supplemental executive retirement plans for selected current and former employees and officers that provide benefits that cannot be paid from a qualified retirement plan due to Internal Revenue Code restrictions. These plans are nonqualified under the Internal Revenue Code, and assets used to fund benefit payments are not segregated from other assets of the Company, therefore, in general, a participant's or beneficiary's claim to benefits under these plans is as a general creditor. The Bank sponsors an Employee Stock Ownership Plan (“ESOP”) covering substantially all full time employees. The cost of shares issued to the ESOP but not committed to be released to the participants is presented in the consolidated statement of condition as a reduction of shareholders’ equity. ESOP shares are released to the participants on an annual basis in accordance with a predetermined schedule. The Company records ESOP compensation expense based on the shares committed to be released and allocated to the participant’s accounts multiplied by the average share price of the Company’s stock over the period. Dividends related to unallocated shares are recorded as compensation expense. Derivative Financial Instruments Derivatives are recorded on the statement of condition as assets and liabilities measured at their fair value. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. The specific accounting treatment for increases and decreases in the value of derivatives depends upon the use of the specific derivatives. There are two primary types of interest rate derivatives that may be employed by the Company: • Fair Value Hedge - As a result of interest rate fluctuations, fixed-rate assets and liabilities will appreciate or depreciate in fair value. When effectively hedged, this appreciation or depreciation will generally be offset by fluctuations in the fair value of derivative instruments that are linked to the hedged assets and liabilities. This strategy is referred to as a fair value hedge. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability are recognized currently in earnings. • Cash Flow Hedge - Cash flows related to floating rate assets and liabilities will fluctuate with changes in the underlying rate index. When effectively hedged, the increases or decreases in cash flows related to the floating-rate asset or liability will generally be offset by changes in cash flows of the derivative instrumnets designated as a hedge. This strategy is referred to as a cash flow hedge. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in other comprehensive income and subsequently reclassified to earnings as the hedged transaction impacts net income. Any ineffective portion of a cash flow hedge is recognized currently in earnings. Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are reported in the consolidated financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. Earnings Per Share Basic net income per share was calculated using the two-class method by dividing net income (less any dividends on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period. Diluted earnings per share may include the additional effect of other securities, if dilutive, in which case the dilutive effect of such securities is calculated by applying either the two-class method or the Treasury Stock method to the assumed exercise or vesting of potentially dilutive common shares. The method yielding the more dilutive result is ultimately reported for the applicable period. Potentially dilutive common stock equivalents primarily consist of employee stock options and restricted stock units. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants. Note 3 provides more information related to earnings per share. Segment Reporting The Company has evaluated the activities relating to its strategic business units. The controlling interest in the FitzGibbons Agency is dissimilar in nature and management when compared to the Company’s other strategic business units which are judged to be similar in nature and management. The Company has determined that the FitzGibbons Agency is below the reporting threshold in size in accordance with Accounting Standards Codification 280. Accordingly, the Company has determined it has no reportable segments. Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the statement of condition, such items, along with net income, are components of comprehensive income. Accumulated other comprehensive loss represents the sum of these items, with the exception of net income, as of the balance sheet date and is represented in the table below. As of December 31, Accumulated Other Comprehensive Loss By Component: 2019 2018 Unrealized loss for pension and other postretirement obligations $ (3,677 ) $ (4,266 ) Tax effect 960 1,114 Net unrealized loss for pension and other postretirement obligations (2,717 ) (3,152 ) Unrealized loss on available-for-sale securities (293 ) (3,833 ) Tax effect 77 1,001 Net unrealized loss on available-for-sale securities (216 ) (2,832 ) Unrealized loss on securities transferred to held-to-maturity (54 ) (82 ) Tax effect 16 24 Net unrealized loss on securities transferred to held-to-maturity (38 ) (58 ) Accumulated other comprehensive loss $ (2,971 ) $ (6,042 ) Reclassifications Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income as previously reported. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 2: NEW ACCOUNTING PRONOUNCEMENTS The Financial Accounting Standards Board (“FASB”) and, to a lesser extent, other authoritative rulemaking bodies promulgate GAAP to regulate the standards of accounting in the United States. From time to time, the FASB issues new GAAP standards, known as Accounting Standards Updates (“ASUs”) some of which, upon adoption, may have the potential to change the way in which the Company recognizes or reports within its consolidated financial statements. The following presentation provides a description of standards that were adopted in 2019 and standards not yet adopted as of December 31, 2019, but could have an impact on the Company's consolidated financial statements upon adoption. Standards Adopted in 2019 Standard : Leases ( ASU 2016-02: Leases [Topic 842] ) Description: The new guidance requires lessees to record a right-of-use asset and a lease liability for all leases with a term greater than 12 months. While the guidance requires all leases to be recognized in the balance sheet, there continues to be a differentiation between finance leases and operating leases for purposes of income statement recognition and cash flow statement presentation. For finance leases, interest on the lease liability and amortization of the right-of-use asset will be recognized separately in the statement of income. Repayments of principal on those lease liabilities will be classified within financing activities and payments of interest on the lease liability will be classified within operating activities in the statement of cash flows. For operating leases, a single lease cost is recognized in the statement of income and allocated over the lease term, generally on a straight-line basis. All cash payments are presented within operating activities in the statement of cash flows. The accounting applied by lessors is largely unchanged from existing GAAP, however, the guidance eliminates the accounting model for leveraged leases for leases that commence after the effective date of the guidance. Required Date of Implementation: January 1, 2019 Effect on Consolidated Financial Statements: The Company occupies certain banking offices and uses certain equipment under noncancelable operating lease agreements which were not reflected in its consolidated balance sheet at December 31, 2018. Upon adoption of this ASU on January 1, 2019, the Company recorded an asset of $2.5 million and a corresponding liability of $2.7 million, as a result of recognizing right-of-use assets and lease liabilities on its consolidated statement of financial condition. The Company elected to adopt the transition relief under Topic 842, Leases, using the modified retrospective transition method recognizing a cumulative effect adjustment to the opening balance of retained earnings of $239,000. The periods presented prior to January 1, 2019 continue to be in accordance with ASC 840. Under the new lease standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. T he Company uses its incremental borrowing rate based on the information available in determining the present value of lease payments. We elected all applicable practical expedients and implemented internal controls and key system functionality to enable the preparation of financial information on adoption. The Company owns certain properties that it leases to unaffiliated third parties at market rates. Lease rental income was $34,000 and $30,000 for the twelve months ended March 31, 2019 and 2018, respectively. All lease agreements are accounted for as operating leases. The Company has no unamortized initial direct costs related to the establishment of these lease agreements at January 1, 2019. ____ Standard: Premium Amortization on Purchased Callable Debt Securities ( ASU 2017-08: Receivables—Nonrefundable Fees and Other Costs [Subtopic 310-20]: Premium Amortization on Purchased Callable Debt Securities ) Description: The amended guidance requires the premium on callable debt securities to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. Required Date of Implementation: January 1, 2019 Effect on Consolidated Financial Statements : The Company has consistently employed accounting methodologies with respect to securities with purchased premiums that are consistent with the guidance provided in this Update. Accordingly, the adoption of this guidance had no material impact on the Company’s consolidated financial statements. ____ Standard: Improvements to Nonemployee Share-Based Payment Accounting ( ASU 2018-07: Compensation - Stock Compensation [Topic 718]) Description: Consistent with the accounting requirement for employee share-based payment awards, under the new guidance, nonemployee share-based payment awards within the scope of Topic 718 are measured on the grant date at the grant-date fair value of the equity instruments that an entity is obligated to issue when the good has been delivered or the service has been rendered and any other conditions necessary to earn the right to benefit from the instruments have been satisfied. The amendments in this ASU affect all entities that enter into share-based payment transactions for acquiring goods and services from nonemployees. Required Date of Implementation: January 1, 2019 Effect on Consolidated Financial Statements: The amendments should be applied using a prospective transition method. The Company is not currently party to any nonemployee share-based payment awards whereby the participant is obligated to any specific performance requirement other than to remain in the service of the Company through a specified vesting date, or schedule of vesting dates. Accordingly, the adoption of this ASU had no material impact on the Company’s consolidated financial statements. Standards Not Yet Adopted as of December 31, 2019 Standard: Measurement of Credit Losses on Financial Instruments ( ASU 2016-13: Financial Instruments—Credit Losses [Topic 326]: Measurement of Credit Losses on Financial Instruments ) Description: The amended guidance replaces the current incurred loss model for determining the allowance for credit losses. The guidance requires financial assets measured at amortized cost to be presented at the net amount expected to be collected. The allowance for credit losses will represent a valuation account that is deducted from the amortized cost basis of the financial assets to present their net carrying value at the amount expected to be collected. The income statement will reflect the measurement of credit losses for newly recognized financial assets as well as expected increases or decreases of expected credit losses that have taken place during the period. When determining the allowance, expected credit losses over the contractual term of the financial asset(s) (taking into account prepayments) will be estimated considering relevant information about past events, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The amended guidance also requires recording an allowance for credit losses for purchased financial assets with a more-than-insignificant amount of credit deterioration since origination. The initial allowance for these assets will be added to the purchase price at acquisition rather than being reported as an expense. Subsequent changes in the allowance will be recorded through the income statement as an expense adjustment. In addition, the amended guidance requires credit losses relating to available-for-sale debt securities to be recorded through an allowance for credit losses. The calculation of credit losses for available-for-sale securities will be similar to how it is determined under existing guidance. Required Date of Implementation: January 1, 2023 (early adoption permitted as of January 1, 2019). Effect on Consolidated Financial Statements: The Company is assessing the new guidance to determine what modifications to existing credit estimation processes may be required. The new guidance is complex and management is still evaluating the preliminary output from models that have been developed during this evaluative phase. In addition, future levels of allowances will also reflect new requirements to include estimated credit losses on investment securities classified as held-to-maturity, if any. The Company has formed an Implementation Committee, whose membership includes representatives of senior management, to develop plans that will encompass: (1) internal methodology changes (2) data collection and management activities, (3) internal communication requirements, and (4) estimation of the projected impact of this guidance. It has been generally assumed that the conversion from the incurred loss model, required under current GAAP, to the CECL methodology will, more likely than not, result in increases to the allowances for credit losses at many financial institutions. However, the amount of any change in the allowance for credit losses resulting from the new guidance will ultimately be impacted by the provisions of this guidance as well as by the loan and debt security portfolios composition and asset quality at the adoption date, and economic conditions and forecasts at the time of adoption. The amendments in this Update should be applied on a modified retrospective basis by means of a cumulative-effect adjustment to the opening retained earnings balance in the statement of financial position as of the date that an entity adopted the amendments in Update 2016-13. _____ Standard: Transition Relief for the Implementation of ASU-2016-13 ( ASU 2019-5: Financial Instruments—Credit Losses [Topic 326]: Targeted Transition Relief ) Description: The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20, Financial Instruments—Credit Losses— Measured at Amortized Cost, with an option to irrevocably elect the fair value option in Subtopic 825-10, Financial Instruments—Overall, applied on an instrument-by-instrument basis for eligible instruments, upon adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently apply the guidance in Subtopics 820-10, Fair Value Measurement—Overall, and 825-10. General guidance for the use of the fair value option is contained in Subtopic 825-10. The irrevocable election of the fair value option must be applied on an instrument-by-instrument basis for eligible instruments, whose characteristics are within the scope of Subtopic 326-20. Upon adoption of Topic 326, for items measured at fair value in accordance with paragraph 326-10-65-1(i), the difference between the carrying amount and the fair value shall be recorded by means of a cumulative-effect adjustment to the opening retained earnings balance as of the beginning of the first reporting period that an entity has adopted ASU 2016-13. Those differences may include, but are not limited to: (1) unamortized deferred costs, fees, premiums, and discounts (2) valuation allowances (for example, allowance for loan losses), or (3) accrued interest. Required Date of Implementation: See comments above related to ASU 2016-13. Effect on Consolidated Financial Statements: See comments above related to ASU 2016-13. _____ Standard: Simplifying the Test for Goodwill Impairment ( ASU 2017-04: Intangibles—Goodwill and Other [Topic 350]: Simplifying the Test for Goodwill Impairment ) Description: Current guidance requires a two-step approach to determining if recorded goodwill is impaired. In Step 1, reporting entities must first evaluate whether or not the carrying value of a reporting unit is greater than its fair value. In Step 2, if a reporting unit’s carrying value is greater than its fair value, then the entity should calculate the implied fair value of goodwill. If the carrying value of goodwill is more than the implied fair value, an impairment charge for the difference must be recorded. The amended guidance eliminates Step 2 from the goodwill impairment test. Therefore, under the new guidance, if the carrying value of a reporting unit is greater than its fair value, a goodwill impairment charge will be recorded for the difference (up to the carrying value of the recorded goodwill). Required Date of Implementation: January 1, 2020 (early adoption permitted). Effect on Consolidated Financial Statements: The amendments should be applied using a prospective transition method. The Company does not expect the guidance will have a material impact on its consolidated financial statements, unless at some point in the future one of its reporting units were to fail Step 1 of the goodwill impairment test. ____ Standard : Fair Value Measurement ( ASU 2018-13: Fair Value Measurement [Topic 820]: Disclosure Framework Changes to the Disclosure Requirements for Fair Value Measurement Description: The FASB is issuing the amendments in this ASU as part of the disclosure framework project. The disclosure framework project’s objective and primary focus are to improve the effectiveness of disclosures in the notes to financial statements by facilitating clear communication of the information required by GAAP that is most important to users of each entity’s financial statements. The amendments in this ASU modify the disclosure requirements for entities such as the Company on fair value measurements in Topic 820, Fair Value Measurement. The following disclosure requirements were removed from Topic 820: 1. The amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy. 2. The policy for timing of transfers between levels. 3. The valuation processes for Level 3 fair value measurements. The following disclosure requirements were modified in Topic 820: 1. For investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly. 2. The amendments clarify that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The following disclosure requirements were added to Topic 820: 1. The changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period. 2. The range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information (such as the median or arithmetic average) in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. Required Date of Implementation: The amendments in this ASU are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this Update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of this ASU and delay adoption of the additional disclosures until their effective date. Effect on Consolidated Financial Statements: The Company does not expect the new guidance will have a material impact to its consolidated statements of condition or income. ____ Standard : Compensation ( ASU 2018-14: Compensation - Retirement Benefits - Defined Benefit Plans - General [Subtopic 715 – 20]: Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans) Description: The FASB is issuing the amendments in this ASU as part of the disclosure framework project. The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The following disclosure requirements are removed from Subtopic 715-20: 1. The amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. 2. The amount and timing of plan assets expected to be returned to the employer. 3. Related party disclosures about the amount of future annual benefits covered by insurance and annuity contracts and significant transactions between the employer or related parties and the plan. 4. The effects of a one-percentage-point change in assumed health care cost trend rates on the (a) aggregate of the service and interest cost components of net periodic benefit costs and (b) benefit obligation for postretirement health care benefits. The following disclosure requirements are added to Subtopic 715-20: 1. The weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates. 2. An explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. 1. The projected benefit obligation (PBO) and fair value of plan assets for plans with PBOs in excess of plan assets. 2. The accumulated benefit obligation (ABO) and fair value of plan assets for plans with ABOs in excess of plan assets. Required Date of Implementation: The amendments in this ASU are effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption is permitted for all entities. Effect on Consolidated Financial Statements: The Company does not expect the new guidance will have a material impact to its consolidated statements of condition or income. ____ Standard: Leases ( ASU 2019-01: Leases [Topic 842] Codification Improvements) Description: On February 25, 2016, the FASB issued Accounting Standards ASU No. 2016-02, Leases [Topic 842], to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing essential information about leasing transactions. ASU 2019-01 addresses three Issues: (1) Determining the fair value of the underlying asset by lessors that are not manufacturers or dealers; (2) Presentation on the statement of cash flows for sales-type and direct financing leases; and (3) Transition disclosures related to Topic 250, Accounting Changes and Error Corrections . The amendments in this ASU address Issue 1, described above, and reinstate the exception in Topic 842 for lessors that are not manufacturers or dealers (generally financial institutions and captive finance companies). Specifically, those lessors will use their cost, reflecting any volume or trade discounts that may apply, as the fair value of the underlying asset. However, if significant time lapses between the acquisition of the underlying asset and lease commencement, those lessors will be required to apply the definition of fair value (exit price) in Topic 820. Topic 840 does not provide guidance on how cash received from leases by lessors from sales-type and direct financing leases should be presented in the cash flow statement. The amendments in this ASU address Issue 2, described above, as to the concerns of lessors within the scope of Topic 942 about where “principal payments received under leases” should be presented. Specifically, lessors that are depository and lending institutions within the scope of Topic 942 will present all “principal payments received under leases” within investing activities in the Statement of Cash Flows. Required Date of Implementation : The amendments in this ASU amend Topic 842. The effective date of those amendments for public business entities, such as the Company, is for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Effect on Consolidated Financial Statements: The Company does not expect that the new guidance will have a material impact to its consolidated statements of condition or income. ____ Standard : Various Codification Improvements (ASU 2019-04: Codification Improvements to Topic 326, Financial Instruments—Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments) Description: Since 2016, the FASB has issued the following Updates related to financial instruments: 1. Accounting Standards Update No. 2016-01, Financial Instruments— Overall [Subtopic 825-10]: Recognition and Measurement of Financial Assets and Financial Liabilities 2. Accounting Standards Update No. 2016-13, Financial Instruments— Credit Losses [Topic 326]: Measurement of Credit Losses on Financial Instruments; 3. Accounting Standards Update No. 2017-12, Derivatives and Hedging [Topic 815]: Targeted Improvements to Accounting for Hedging Activities. The FASB has an ongoing project on its agenda for improving the Codification or correcting its unintended application. The items addressed in that project generally are not expected to have a significant effect on current accounting practice or to create a significant administrative cost for most entities. The amendments in this ASU are similar to those items and are summarized below. For Codification Improvements specific to ASU 2016-01, the following topics were covered within ASU 2019-04: • Scope Clarifications • Held-to-Maturity Debt Securities Fair Value Disclosures • Applicability of Topic 820 to the Measurement Alternative • Remeasurement of Equity Securities at Historical Exchange Rates The amendments to Topic 326 and other Topics in this Update include items related to the amendments in Update 2016-13 discussed at the June 2018 and November 2018 Credit Losses Transition Resource Group (“TRG”) meetings. The amendments clarify or address stakeholders’ specific issues about certain aspects of the amendments in Update 2016-13 on a number of different topics, including the following: • Accrued Interest • Transfers between Classifications or Categories for Loans and Debt Securities • Recoveries • Consideration of Prepayments in Determining the Effective Interest Rate • Consideration of Estimated Costs to Sell When Foreclosure Is Probable • Vintage Disclosures— Line-of-Credit Arrangements Converted to Term Loans • Contractual Extensions and Renewals The ASU also covered a number of issues that related to hedge accounting (ASU-2017-12) including: • Partial-Term Fair Value Hedges of Interest Rate Risk • Amortization of Fair Value Hedge Basis Adjustments • Disclosure of Fair Value Hedge Basis Adjustments • Consideration of the Hedged Contractually Specified Interest Rate under the Hypothetical Derivative Method • Scoping for Not-for-Profit Entities • Hedge Accounting Provisions Applicable to Certain Private Companies and Not-for- Profit Entities • Application of a First- Payments-Received Cash Flow Hedging Technique to Overall Cash Flows on a Group of Variable Interest Payments • Transition Guidance Required Dates of Implementation : This ASU 2019-04 has various implementation dates dependent on a number of factors as it pertains to the above items. The Company has adopted ASU 2016-01. Effect on Consolidated Financial Statements: The Company does not expect that the new guidance will have a material impact to its consolidated statements of condition or income. ____ Standard : Investments ( ASU 2020-01- Equity Securities [Topic 321], Investments—Equity Method and Joint Ventures [Topic 323], and Derivatives and Hedging [Topic 815]—Clarifying the Interactions between Topic 321, Topic 323, and Topic 815 ) Description: The amendments in this Update clarify the interaction of the accounting for equity securities under Topic 321 and investments accounted for under the equity method of accounting in Topic 323 and the accounting for certain forward contracts and purchased options accounted for under Topic 815. The amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments clarify that for the purpose of applying paragraph 815-10-15-141(a) an entity should not consider whether, upon the settlement of the forward contract or exercise of the purchased option, individually or with existing investments, the underlying securities would be accounted for under the equity method in Topic 323 or the fair value option in accordance with the financial instruments guidance in Topic 825. An entity also would evaluate the remaining characteristics in paragraph 815-10-15-141 to determine the accounting for those forward contracts and purchased options. Required Date of Implementation: The amendments in this ASU are effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption is permitted for all entities. Effect on Consolidated Financial Statements: The amendments in this Update should be applied prospectively. The Company does not expect the new guidance will have a material impact to its consolidated statements of condition or income. ____ Standard: Income Taxes (ASU 2019-12- Simplifying the Accounting for Income Taxes) Description: The FASB Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). The objective of the Simplification Initiative is to identify, evaluate, and improve areas of generally accepted accounting principles (GAAP) for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided to users of financial statements. The specific areas of potential simplification in this Update were submitted by stakeholders as part of the Simplification Initiative. The amendments in this Update simplify the accounting for income taxes by removing the following exceptions: 1. Exception to the incremental approach for intraperiod tax allocation when there is a loss from continuing operations and income or a gain from other items (for example, discontinued operations or other comprehensive income) 2. Exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment 3. Exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary 4. Exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. The amendments in this Update also simplify the accounting for income taxes by doing the following: 1. Requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax. 2. Requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. 3. Specifying that an entity is not required to allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements. However, an entity may elect to do so (on an entity-by-entity basis) for a legal entity that is both not subject to tax and disregarded by the taxing authority. 4. Requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. 5. Making minor Codification improvements for income taxes related to employee stock ownership plans and investments in qualified affordable housing projects accounted for using the equity method. Required Date of Implementation: The amendments in this ASU are effective for fiscal years ending after December 15, 2020, for public business entities and for fiscal years ending after December 15, 2021, for all other entities. Early adoption of the amendments is permitted, including adoption in any interim period for (1) public business entities for periods for which financial statements have not yet been issued and (2) all other entities for periods for which financial statements have not yet been made available for issuance. An entity that elects to early adopt the amendments in an interim period should reflect any adjustments as of the beginning of the annual period that includes that interim period. Additionally, an entity that elects early adoption must adopt all the amendments in the same period. Effect on Consolidated Financial Statements : The amendments in this Update related to separate financial statements of legal entities that are not subject to tax should be applied on a retrospective basis for all periods presented. The amendments related to changes in ownership of foreign equity method investments or foreign subsidiaries should be applied on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. The amendments related to franchise taxes that are partially based on income should be applied on either a retrospective basis for all periods presented or a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other amendments should be applied on a prospective basis. The Company does not expect the new guidance will have a material impact to its consolidated statements of condition or income. ____ Standard : Financial Instruments—Credit Losses (ASU 2019-11- Codification Improvements to Topic 326) Description: On June 16, 2016, the FASB issued Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which introduced an expected credit loss model for the impairment of financial assets measured at amortized cost basis. That model replaces the probable, incurred loss model for those assets. Through the amendments in that Update, the Board added Topic 326, Financial Instruments—Credit Losses, and made several consequential amendments to the Codification. The Board has an ongoing project on its agenda for improving the Codification or correcting its unintended application. The items addressed in that project generally are not expected to have a significant effect on current accounting practice or create a significant administrative cost for most entities. The amendments in this Update are similar to those items. However, the Board decided to issue a separate Update for improvements to the amendments in Update 2016-13 to increase stakeholder awareness of those amendments and to expedite the improvement process. The amendments include items brought to the Board's attention by stakeholders. The amendments in this Update clarify or address stakeholders' specific issues about certain aspects of the amendments in Update 2016-13 as described below: 1. Expected Recoveries for Purchased Financial Assets with Credit Deterioration (PCDs) : The amendments clarify that the allowance for credit losses for PCD assets should include in the allowance for credit losses expected recoveries of amounts previously written off and expected to be written off by the entity and should not exceed the aggregate of amounts of the amortized cost basis previously written off and expected to be written off by an entity. In addition, the amendments clarify that when a method other than a discounted cash flow method is used to esti |
Earnings per Share
Earnings per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 3: EARNINGS PER SHARE The Company entered into a securities purchase agreement with Castle Creek Capital Partners VII, L.P. on May 8, 2019, pursuant to which the Company sold: (i) 37,700 shares of the Company’s common stock, par value $0.01 per share, at a purchase price of $14.25 per share; (ii) 1,155,283 shares of a new series of preferred stock, Series B convertible perpetual preferred stock, par value $0.01 per share, at a purchase price of $14.25 per share; and (iii) a warrant, with an approximate fair value of $373,000, to purchase 125,000 shares of common stock at an exercise price equal to $14.25 per share, in a Private Placement transaction for gross proceeds of approximately $17.0 million. As a result of the securities purchase agreement, the Company has common stock, preferred stock and a warrant that are all eligible to participate in dividends equal to the common stock dividends on a per share basis. Securities that participate in dividends, such as the Company’s preferred stock and warrant, are considered “participating securities.” The Company calculates net income available to common shareholders using the two-class method required for capital structures that include participating securities. In applying the two-class method for the year ended December 31, 2019, basic net income per share was calculated by dividing net income (less any dividends on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period. Diluted earnings per share may include the additional effect of other securities, if dilutive, in which case the dilutive effect of such securities is calculated by applying either the two-class method or the Treasury Stock method to the assumed exercise or vesting of potentially dilutive common shares. The method yielding the more dilutive result is ultimately reported for the applicable period. Potentially dilutive common stock equivalents primarily consist of employee stock options and restricted stock units. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants. Basic earnings per share for the year ended December 31, 2018 was calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Net income available to common shareholders is net income to Pathfinder Bancorp, Inc. less the total of preferred dividends declared, if any. Diluted earnings per share include the potential dilutive effect that could occur upon the assumed exercise of issued stock options using the Treasury Stock method. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants. Anti-dilutive shares are common stock equivalents with average exercise prices in excess of the weighted average market price for the period presented. Anti-dilutive stock options, not included in the computation below, were -0- for the years ended 2019 and 2018. The following table sets forth the calculation of basic and diluted earnings per share. Years ended December 31, (In thousands, except per share data) 2019 2018 Net income attributable to Pathfinder Bancorp, Inc. $ 4,276 $ 4,031 Convertible preferred stock dividends 208 - Warrant dividends 23 - Undistributed earnings allocated to participating securities 467 - Net income available to common shareholders $ 3,578 $ 4,031 Basic weighted average common shares outstanding 4,464 4,171 Effect of assumed exercise of stock options and unvested restricted stock units - 95 Diluted weighted average common shares outstanding 4,464 4,266 Basic earnings per common share $ 0.80 $ 0.97 Diluted earnings per common share $ 0.80 $ 0.94 |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
INVESTMENT SECURITIES | NOTE 4: INVESTMENT SECURITIES The amortized cost and estimated fair value of investment securities are summarized as follows: December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 16,850 $ - $ (30 ) $ 16,820 State and political subdivisions 1,735 1 - 1,736 Corporate 12,347 230 (23 ) 12,554 Asset backed securities 13,190 61 (19 ) 13,232 Residential mortgage-backed - US agency 19,012 56 (88 ) 18,980 Collateralized mortgage obligations - US agency 31,320 35 (570 ) 30,785 Collateralized mortgage obligations - Private label 16,767 97 (43 ) 16,821 Total 111,221 480 (773 ) 110,928 Equity investment securities: Common stock - financial services industry 206 - - 206 Total 206 - - 206 Total available-for-sale $ 111,427 $ 480 $ (773 ) $ 111,134 Held-to-Maturity Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 1,998 $ 2 $ - $ 2,000 State and political subdivisions 8,534 124 (4 ) 8,654 Corporate 25,779 584 (29 ) 26,334 Asset backed securities 23,099 101 (115 ) 23,085 Residential mortgage-backed - US agency 13,715 247 (3 ) 13,959 Collateralized mortgage obligations - US agency 19,607 300 (29 ) 19,878 Collateralized mortgage obligations - Private label 30,256 35 (53 ) 30,238 Total held-to-maturity $ 122,988 $ 1,393 $ (233 ) $ 124,148 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 17,171 $ 18 $ (158 ) $ 17,031 State and political subdivisions 23,661 6 (602 ) 23,065 Corporate 17,389 220 (409 ) 17,200 Asset backed securities 18,243 13 (137 ) 18,119 Residential mortgage-backed - US agency 32,409 34 (777 ) 31,666 Collateralized mortgage obligations - US agency 48,101 31 (1,691 ) 46,441 Collateralized mortgage obligations - Private label 24,317 17 (398 ) 23,936 Total 181,291 339 (4,172 ) 177,458 Equity investment securities: Common stock - financial services industry 206 - - 206 Total 206 - - 206 Total available-for-sale $ 181,497 $ 339 $ (4,172 ) $ 177,664 Held-to-Maturity Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 3,987 $ - $ (35 ) $ 3,952 State and political subdivisions 5,089 22 (84 ) 5,027 Corporate 9,924 4 (182 ) 9,746 Asset backed securities 1,509 - (13 ) 1,496 Residential mortgage-backed - US agency 11,601 124 (47 ) 11,678 Collateralized mortgage obligations - US agency 13,972 93 (13 ) 14,052 Collateralized mortgage obligations - Private label 7,826 17 (25 ) 7,818 Total held-to-maturity $ 53,908 $ 260 $ (399 ) $ 53,769 The majority of the Company’s investments in mortgage-backed securities include pass-through securities and collateralized mortgage obligations issued and guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. At December 31, 2019, 33 21 14 The amortized cost and estimated fair value of debt investments at December 31, 2019 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (In thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 10,252 $ 10,250 $ 1,308 $ 1,312 Due after one year through five years 11,452 11,620 24,674 24,947 Due after five years through ten years 15,809 15,854 17,540 17,945 Due after ten years 6,609 6,618 15,888 15,869 Sub-total 44,122 44,342 59,410 60,073 Residential mortgage-backed - US agency 19,012 18,980 13,715 13,959 Collateralized mortgage obligations - US agency 31,320 30,785 19,607 19,878 Collateralized mortgage obligations - Private label 16,767 16,821 30,256 30,238 Totals $ 111,221 $ 110,928 $ 122,988 $ 124,148 The Company’s investment securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, is as follows: December 31, 2019 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale Portfolio US Treasury, agencies and GSE's 4 $ (30 ) $ 16,820 - $ - $ - 4 $ (30 ) $ 16,820 Corporate 1 (23 ) 786 - - - 1 (23 ) 786 Asset backed securities 3 (7 ) 5,211 1 (12 ) 594 4 (19 ) 5,805 Residential mortgage-backed - US agency 10 (77 ) 10,709 4 (11 ) 2,543 14 (88 ) 13,252 Collateralized mortgage obligations - US agency 10 (67 ) 15,791 10 (503 ) 10,034 20 (570 ) 25,825 Collateralized mortgage obligations - Private label 2 (7 ) 3,818 5 (36 ) 3,959 7 (43 ) 7,777 Totals 30 $ (211 ) $ 53,135 20 $ (562 ) $ 17,130 50 $ (773 ) $ 70,265 Held-to-Maturity Portfolio State and political subdivisions 1 $ (4 ) 3,027 - $ - - 1 $ (4 ) 3,027 Corporate 2 (29 ) 2,974 - - - 2 (29 ) 2,974 Asset backed securities 6 (115 ) 11,091 - - - 6 (115 ) 11,091 Residential mortgage-backed - US agency - - - 1 (3 ) 198 1 (3 ) 198 Collateralized mortgage obligations - US agency 2 (29 ) 4,907 - - - 2 (29 ) 4,907 Collateralized mortgage obligations - Private label 6 (49 ) 9,396 2 (4 ) 1,132 8 (53 ) 10,528 Totals 17 $ (226 ) $ 31,395 3 $ (7 ) $ 1,330 20 $ (233 ) $ 32,725 December 31, 2018 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale Portfolio US Treasury, agencies and GSE's 1 $ (22 ) $ 977 2 $ (136 ) $ 12,017 3 $ (158 ) $ 12,994 State and political subdivisions 5 (76 ) 5,213 26 (526 ) 14,206 31 (602 ) 19,419 Corporate 10 (137 ) 8,266 4 (272 ) 3,374 14 (409 ) 11,640 Asset backed securities 7 (91 ) 10,470 2 (46 ) 3,059 9 (137 ) 13,529 Residential mortgage-backed - US agency 6 (83 ) 3,519 21 (694 ) 24,154 27 (777 ) 27,673 Collateralized mortgage obligations - US agency 3 (98 ) 2,792 28 (1,593 ) 35,765 31 (1,691 ) 38,557 Collateralized mortgage obligations - Private label 7 (275 ) 14,011 5 (123 ) 5,907 12 (398 ) 19,918 Totals 39 $ (782 ) $ 45,248 88 $ (3,390 ) $ 98,482 127 $ (4,172 ) $ 143,730 Held-to-Maturity Portfolio US Treasury, agencies and GSE's 1 $ (8 ) $ 982 3 $ (27 ) $ 2,970 4 $ (35 ) $ 3,952 State and political subdivisions - - - 6 (84 ) 2,310 6 (84 ) 2,310 Corporate 4 (41 ) 3,214 2 (141 ) 2,507 6 (182 ) 5,721 Asset backed securities 1 (13 ) 1,496 - - - 1 (13 ) 1,496 Residential mortgage-backed - US agency 3 (8 ) 1,447 2 (39 ) 1,769 5 (47 ) 3,216 Collateralized mortgage obligations - US agency 4 (13 ) 3,972 - - - 4 (13 ) 3,972 Collateralized mortgage obligations - Private label - - - 2 (25 ) 1,874 2 (25 ) 1,874 Totals 13 $ (83 ) $ 11,111 15 $ (316 ) $ 11,430 28 $ (399 ) $ 22,541 The Company conducts a formal review of investment securities on a quarterly basis for the presence of OTTI. The Company assesses whether OTTI is present when the fair value of a debt security is less than its amortized cost basis at the statement of condition date. Under these circumstances, OTTI is considered to have occurred (1) if we intend to sell the security; (2) if it is “more likely than not” we will be required to sell the security before recovery of its amortized cost basis; or (3) the present value of expected cash flows is not anticipated to be sufficient to recover the entire amortized cost basis. The guidance requires that credit-related OTTI is recognized in earnings while non-credit-related OTTI on securities not expected to be sold is recognized in other comprehensive income (“OCI”). Non-credit-related OTTI is based on other factors, including illiquidity and changes in the general interest rate environment. Presentation of OTTI is made in the consolidated statement of income on a gross basis, including both the portion recognized in earnings as well as the portion recorded in OCI. The gross OTTI would then be offset by the amount of non-credit-related OTTI, showing the net as the impact on earnings. Management does not believe any individual unrealized loss in other securities within the portfolio as of December 31, 2019 represents OTTI. There were a total of 20 securities classified as available-for-sale and 3 securities classified as held-to-maturity that were in an unrealized loss position for 12 months or longer at December 31, 2019. Each security which has been in an unrealized loss position for 12 months or more has been analyzed and is not considered to be impaired. These securities have unrealized losses primarily due to changes in general interest rates that occurred since the securities were acquired or due to changes in certain assumptions related to the securities’ such as the timing of projected prepayment activity. Of the 23 securities in an unrealized loss position for 12 months or more at December 31, 2019, 15 securities, representing 69.8% of the amortized cost of the total securities in an unrealized loss position for 12 months or more, are issued by United States agencies or government sponsored enterprises and consist of mortgage-backed securities, collateralized mortgage obligations and direct agency financings. These positions in US government agency and government-sponsored enterprises are deemed to have no credit impairment, thus, the disclosed unrealized losses relate primarily to changes in interest rates subsequent to the acquisition of the individual securities. In addition to these securities, the Company held the following issuances that were in an unrealized loss position for 12 or more months at December 31, 2019: One privately-issued asset-backed security, categorized as available-for-sale, with an amortized historical cost of $606,000 and a fair value of $594,000 (unrealized loss of $12,000, or 2.06%). This security maintains a credit rating established by one or more NRSRO above the minimum level required to be considered as investment grade and therefore, no credit-related OTTI is deemed to be present. Five privately-issued collateralized mortgage obligation securities, categorized as available-for-sale, with an aggregate amortized historical cost of $3.9 million and an aggregate fair value of $3.9 million (aggregate unrealized loss of $36,000, or 0.92%). These securities were not rated at the time of their issuances by any NRSRO but each security remains significantly collateralized through subordination. Therefore, no credit-related OTTI is deemed to be present. Two privately-issued collateralized mortgage obligation securities, categorized as held-to-maturity, with aggregate The Company does not intend to sell any of the securities in an unrealized loss position for 12 or months nor is it more likely than not that the Company will be required to sell these securities prior to the recovery of the amortized cost. Proceeds of $103.0 million and $35.6 million, respectively on sales and redemptions of securities for the years ended December 31 resulted in gross realized gains (losses) detailed below (In thousands) 2019 2018 Realized gains on investments $ 707 $ 242 Realized losses on investments (378 ) (424 ) $ 329 $ (182 ) As of December 31, 2019 and December 31, 2018, securities with a fair value of $92.4 million and $69.8 million, respectively, were pledged to collateralize certain municipal deposit relationships. As of the same dates, securities with a fair value of $21.3 million and $19.5 million were pledged against certain borrowing arrangements. Management has reviewed its loan and mortgage-backed securities portfolios and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of investing in, or originating, these types of investments or loans. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
LOANS | NOTE 5: LOANS Major classifications of loans are as follows: December 31, December 31, (In thousands) 2019 2018 Residential mortgage loans: 1-4 family first-lien residential mortgages $ 209,559 $ 232,523 Construction 3,963 7,121 Loans held-for-sale (1) 35,790 - Total residential mortgage loans 249,312 239,644 Commercial loans: Real estate 254,257 212,314 Lines of credit 58,617 44,235 Other commercial and industrial 82,092 63,359 Tax exempt loans 8,067 9,320 Total commercial loans 403,033 329,228 Consumer loans: Home equity and junior liens 46,389 26,109 Other consumer 82,607 25,424 Total consumer loans 128,996 51,533 Total loans 781,341 620,405 Net deferred loan fees 110 (135 ) Less allowance for loan losses (8,669 ) (7,306 ) Loans receivable, net $ 772,782 $ 612,964 (1) Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. The Bank In addition, the Bank will, from time to time, purchase aggregated pools of homogenous consumer or commercial business loans from unaffiliated third parties. These purchases are made primarily as an alternative to investment in debt securities. The following summarizes the Bank’s positions in these acquisitions at December 31, 2019 and December 31, 2018: The Bank acquired $15.6 million, $10.2 million and $24.6 million of loans originated by an unrelated financial institution, located outside of the Bank’s market area, in January 2017, April 2017, and March 2019, respectively. The acquired loan pools represented a 90% participating interest in a total of 2,283 loans secured by liens on automobiles with original maturities ranging primarily from two to six years. These loans will be serviced through their respective maturities by the originating financial institution. At December 31, 2019 and December 31, 2018, The Bank acquired a $5.0 million pool of consumer loans and $5.0 million pool of commercial and industrial loans originated by an unrelated financial institution, located outside of the Bank’s market area, in June 2019. In December 2019, the Bank acquired an additional $1.8 million in commercial and industrial loans and $392,000 of consumer loans from the same institution. The acquired loan pools represented a 100% interest in a total of 89 unsecured consumer loans and a total of 43 commercial and industrial loans. These loans have maturities ranging primarily from four to ten years. At December 31, 2019 there were 87 unsecured consumer loans outstanding with a remaining outstanding carrying value of $5.0 million and 43 commercial and industrial loans outstanding with a remaining outstanding carrying value of $6.6 million. These loans have no unamortized premium or discount included in the carrying value. No charge-offs have occurred since the acquisition of these loan pools. The Bank acquired a $21.9 million pool of home equity lines of credit originated by an unrelated financial technology company, located outside of the Bank’s market area, in August 2019. The acquired loan pool represented a 100% interest in a total of 395 secured home equity lines of credit. These lines of credit have maturities ranging primarily from four to thirty years. These lines of credit will be serviced through their respective maturities by the originating financial technology company. At December 31, 2019, there were 376 secured home equity lines of credit outstanding with a remaining outstanding carrying value of $20.1 million. The unamortized premium included in the carrying value at December 31, 2019 was $390,000. No charge-offs have occurred since the acquisition of these loan pools. The Bank acquired a $26.6 million pool of unsecured consumer loans originated by an unrelated financial technology company, located outside of the Bank’s market area, in November 2019. The acquired loan pool represents a 59.2% interest in a total of 2,787 unsecured consumer loans. These loans have maturities ranging primarily from three to five years. These loans will be serviced through their respective maturities by the originating unrelated financial technology company. At December 31, 2019, there were 2,768 unsecured consumer loans outstanding with a remaining outstanding carrying value of $25.8 million. The unamortized premium included in the carrying value at December 31, 2019 was $114.000. No charge-offs have occurred since the acquisition of these loan pools. The Bank acquired a $10.3 million pool of unsecured consumer loans originated by an unrelated financial technology company, located outside of the Bank’s market area, in December 2019. The acquired loan pool represents a 100% interest in a total of 4,259 unsecured consumer loans. These loans have maturities ranging primarily from less than one year to three to seven years. These loans will be serviced through their respective maturities by the originating unrelated financial technology company. At December 31, 2019, there were 4,259 unsecured consumer loans outstanding with a remaining outstanding carrying value of $10.3 million. The unamortized premium included in the carrying value at December 31, 2019 was $245,000. No charge-offs have occurred since the acquisition of these loan pools. The Bank acquired a $2.1 million pool of secured first lien residential mortgages originated by an unrelated non-profit housing and community development organization, located within the Bank’s market area, in December 2019. The acquired loan pool represents a 100% interest in a total of 25 secured first lien residential mortgages. These loans have maturities ranging primarily from 22 to 24 years. These loans will be serviced through their respective maturities by the unrelated non-profit housing and community development organization. At December 31, 2019, there were 25 unsecured consumer loans outstanding with a remaining outstanding carrying value of $2.1 million. The unamortized premium included in the carrying value at December 31, 2019 was $135,000. No charge-offs have occurred since the acquisition of these loan pools. As of December 31, 2019 and December 31, 2018, residential mortgage loans with a carrying value of $136.9 million and Loan Origination / Risk Management The Company has lending policies and procedures in place that are designed to maximize loan income within an acceptable level of risk. Management and the board of directors reviews and approves these policies and procedures on a regular basis. A reporting system supplements the review process by frequently providing management with reports related to loan production, loan quality, loan delinquencies, nonperforming and potential problem loans. Diversification in the loan portfolio is also a means of managing risk associated with fluctuations in economic conditions. Homogenous pools of purchased loans are subject to substantial prepurchase analyses led by a team of the Bank’s senior executives and credit analysts. In each case, the Bank’s analytical processes consider the types of loans being evaluated, the underwriting criteria employed by the originating entity, the historical performance of such loans, especially in the most recent deeply recessionary environments, the collateral enhancements and other credit loss mitigation factors offered by the seller and the capabilities and financial stability of the servicing entities involved. From a credit risk perspective, these loan pools also benefit from broad diversification, including wide geographic dispersion, the readily-verifiable historical performance of similar loans issued by the originators, as well as the overall experience and skill of the underwriters and servicing entities involved as counterparties to the Bank in these transactions. The performance of all purchased loan pools are monitored regularly from detailed reports and remittance reconciliations provided at least monthly by the servicing entities. Risk Characteristics of Portfolio Segments Each portfolio segment generally carries its own unique risk characteristics. The residential mortgage loan segment is impacted by general economic conditions, unemployment rates in the Bank’s service area, real estate values and the forward expectation of improvement or deterioration in economic conditions. First and second lien residential mortgages, acquired via purchase are impacted by general economic conditions, unemployment rates in the general areas in which the loan collateral is located, real estate values in those areas and the forward expectation of improvement or deterioration in economic conditions. The commercial loan segment is impacted by general economic conditions but, more specifically, the industry segment in which each borrower participates. Unique competitive changes within a borrower’s specific industry, or geographic location could cause significant changes in the borrower’s revenue stream, and therefore, impact its ability to repay its obligations. Commercial real estate is also subject to general economic conditions but changes within this segment typically lag changes seen within the consumer and commercial segment. Included within this portfolio are both owner occupied real estate, in which the borrower occupies the majority of the real estate property and upon which the majority of the sources of repayment of the obligation is dependent upon, and non-owner occupied real estate, in which several tenants comprise the repayment source for this portfolio segment. The composition and competitive position of the tenant structure may cause adverse changes in the repayment of debt obligations for the non-owner occupied class within this segment. The consumer loan segment is impacted by general economic conditions, unemployment rates in the geographic areas in which borrowers and loan collateral are located, and the forward expectation of improvement or deterioration in economic conditions. Real estate loans, including residential mortgages, commercial real estate loans and home equity, comprise 70% of the portfolio in 2019, similar to the composition in 2018, where such loans represented 77% of total loans. Loans secured by real estate generally provide strong collateral protection and thus significantly reduce the inherent credit risk in the portfolio. Management has reviewed its loan portfolio and determined that, to the best of its knowledge, little or no exposure exists to sub-prime or other high-risk residential mortgages. The Company is not in the practice of originating these types of loans. Description of Credit Quality Indicators The Company utilizes an eight tier risk rating system to evaluate the quality of its loan portfolio. Loans that are risk rated “1” through “4” are considered “Pass” loans. In accordance with regulatory guidelines, loans rated “5” through “8” are termed “criticized” loans and loans rated “6” through “8” are termed “classified” loans. A description of the Company’s credit quality indicators follows. For Commercial Loans: 1. Prime 2. Strong 3. Satisfactory 4. Satisfactory Watch: 5. Special Mention 6. Substandard 7. Doubtful 8. Loss For Residential Mortgage and Consumer Loans: Residential mortgage and consumer loans are assigned a “Pass” rating unless the loan has demonstrated signs of weakness as indicated by the ratings below. 5. Special Mention 6. Substandard 7. Doubtful The risk ratings for classified loans are evaluated at least quarterly for commercial loans or when credit deficiencies arise, such as delinquent loan payments, for commercial, residential mortgage or consumer loans. See further discussion of risk ratings in Note 1. The following table presents the segments and classes of the loan portfolio summarized by the aggregate pass rating and the criticized and classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system: As of December 31, 2019 Special (In thousands) Pass Mention Substandard Doubtful Total Residential mortgage loans: 1-4 family first-lien residential mortgages $ 205,554 $ 1,093 $ 1,731 $ 1,181 $ 209,559 Construction 3,963 - - - 3,963 Loans held-for-sale 35,790 - - - 35,790 Total residential mortgage loans 245,307 1,093 1,731 1,181 249,312 Commercial loans: Real estate 238,288 12,473 3,194 302 254,257 Lines of credit 50,396 7,945 276 - 58,617 Other commercial and industrial 72,653 8,473 923 43 82,092 Tax exempt loans 8,067 - - - 8,067 Total commercial loans 369,404 28,891 4,393 345 403,033 Consumer loans: Home equity and junior liens 45,414 191 477 307 46,389 Other consumer 82,252 167 188 - 82,607 Total consumer loans 127,666 358 665 307 128,996 Total loans $ 742,377 $ 30,342 $ 6,789 $ 1,833 $ 781,341 As of December 31, 2018 Special (In thousands) Pass Mention Substandard Doubtful Total Residential mortgage loans: 1-4 family first-lien residential mortgages $ 228,563 $ 999 $ 1,190 $ 1,771 $ 232,523 Construction 7,121 - - - 7,121 Total residential mortgage loans 235,684 999 1,190 1,771 239,644 Commercial loans: Real estate 201,997 8,299 1,947 71 212,314 Lines of credit 42,489 1,491 233 22 44,235 Other commercial and industrial 59,344 3,268 612 135 63,359 Tax exempt loans 9,320 - - - 9,320 Total commercial loans 313,150 13,058 2,792 228 329,228 Consumer loans: Home equity and junior liens 25,706 144 173 86 26,109 Other consumer 25,294 95 35 - 25,424 Total consumer loans 51,000 239 208 86 51,533 Total loans $ 599,834 $ 14,296 $ 4,190 $ 2,085 $ 620,405 Nonaccrual and Past Due Loans Loans are placed on nonaccrual when the contractual payment of principal and interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan may be performing. Loans are considered past due if the required principal and interest payments have not been received within thirty days of the payment due date. An age analysis of past due loans, not including net deferred loan costs, segregated by portfolio segment and class of loans, for the years ended December 31, are detailed in the following tables: As of December 31, 2019 30-59 Days 60-89 Days 90 Days Past Due Past Due and Total Total Loans (In thousands) and Accruing and Accruing Over Past Due Current Receivable Residential mortgage loans: 1-4 family first-lien residential mortgages $ 947 $ 744 $ 1,613 $ 3,304 $ 206,255 $ 209,559 Construction - - - - 3,963 3,963 Loans held-for-sale - - - - 35,790 35,790 Total residential mortgage loans 947 744 1,613 3,304 246,008 249,312 Commercial loans: Real estate 953 100 2,271 3,324 250,933 254,257 Lines of credit 4,464 25 68 4,557 54,060 58,617 Other commercial and industrial 2,747 315 591 3,653 78,439 82,092 Tax exempt loans - - - - 8,067 8,067 Total commercial loans 8,164 440 2,930 11,534 391,499 403,033 Consumer loans: Home equity and junior liens 315 130 480 925 45,464 46,389 Other consumer 335 50 151 536 82,071 82,607 Total consumer loans 650 180 631 1,461 127,535 128,996 Total loans $ 9,761 $ 1,364 $ 5,174 $ 16,299 $ 765,042 $ 781,341 As of December 31, 2018 30-59 Days 60-89 Days 90 Days Past Due Past Due and Total Total Loans (In thousands) and Accruing and Accruing Over Past Due Current Receivable Residential mortgage loans: 1-4 family first-lien residential mortgages $ 1,507 $ 505 $ 1,176 $ 3,188 $ 229,335 $ 232,523 Construction - - - - 7,121 7,121 Total residential mortgage loans 1,507 505 1,176 3,188 236,456 239,644 Commercial loans: Real estate 4,261 364 323 4,948 207,366 212,314 Lines of credit 1,033 111 22 1,166 43,069 44,235 Other commercial and industrial 814 44 387 1,245 62,114 63,359 Tax exempt loans - - - - 9,320 9,320 Total commercial loans 6,108 519 732 7,359 321,869 329,228 Consumer loans: Home equity and junior liens 247 6 35 288 25,821 26,109 Other consumer 226 65 107 398 25,026 25,424 Total consumer loans 473 71 142 686 50,847 51,533 Total loans $ 8,088 $ 1,095 $ 2,050 $ 11,233 $ 609,172 $ 620,405 Year-end nonaccrual loans, segregated by class of loan, were as follows: December 31, December 31, (In thousands) 2019 2018 Residential mortgage loans: 1-4 family first-lien residential mortgages $ 1,613 $ 1,176 Total residential mortgage loans 1,613 1,176 Commercial loans: Real estate 2,343 415 Lines of credit 68 28 Other commercial and industrial 591 387 Total commercial loans 3,002 830 Consumer loans: Home equity and junior liens 480 35 Other consumer 151 107 Total consumer loans 631 142 Total nonaccrual loans $ 5,246 $ 2,148 There were no loans past due ninety days or more and still accruing interest at December 31, 2019 or 2018. The Company is required to disclose certain activities related to Troubled Debt Restructurings (“TDR”) in accordance with accounting guidance. Certain loans have been modified in a TDR where economic concessions have been granted to a borrower who is experiencing, or expected to experience, financial difficulties. These economic concessions could include a reduction in the loan interest rate, extension of payment terms, reduction of principal amortization, or other actions that it would not otherwise consider for a new loan with similar risk characteristics. The Company is required to disclose new TDRs for each reporting period for which an income statement is being presented. Pre-modification outstanding recorded investment is the principal loan balance less the provision for loan losses before the loan was modified as a TDR. Post-modification outstanding recorded investment is the principal balance less the provision for loan losses after the loan was modified as a TDR. Additional provision for loan losses is the change in the allowance for loan losses between the pre-modification outstanding recorded investment and post-modification outstanding recorded investment. The table below details loans that had been modified as TDRs for the year ended December 31, 2019. For the year ended December 31, 2019 (In thousands) Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Additional provision for loan losses Residential real estate loans 1 $ 205 $ 250 $ - The TDR evaluated for impairment for the twelve months ended December 31, 2019 has been classified as a TDR due to economic concessions granted, which consisted of additional funds advanced without associated increases in collateral and an extended maturity date that will result in a delay in payment from the original contractual maturity. The table below details loans that have been modified as TDRs for the year ended December 31, 2018. For the year ended December 31, 2018 (In thousands) Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Additional provision for loan losses Other commercial and industrial loans 1 $ 300 $ 300 $ - Commercial real estate loans 1 $ 123 $ 137 $ 14 The TDRs individually evaluated for impairment have been classified as TDRs due to economic concessions granted, which consisted of additional funds advanced without associated increases in collateral and/or an extended maturity date that will result in a delay in payment from the original contractual maturity. The Company was required to increase the specific reserves against the commercial real estate loan individually reviewed for impairment by $14,000, which was a component of the provision of loan losses in the fourth quarter of 2018. The Company is required to disclose loans that have been modified as TDRs within the previous 12 months in which there was payment default after the restructuring. The Company defines payment default as any loans 90 days past due on contractual payments. The Company had no loans that had been modified as TDRs during the twelve months prior to December 31, 2019, which had subsequently defaulted during the year ended December 31, 2019. The Company had no loans that had been modified as TDRs during the twelve months prior to December 31, 2018, which had subsequently defaulted during the year ended December 31, 2018. When the Company modifies a loan within a portfolio segment that is individually evaluated for impairment, a potential impairment is analyzed either based on the present value of the expected future cash flows discounted at the interest rate of the original loan terms or the fair value of the collateral less costs to sell. If it is determined that the value of the loan is less than its recorded investment, then impairment is recognized as a component of the provision for loan losses, an associated increase to the allowance for loan losses or as a charge-off to the allowance for loan losses in the current period. Impaired Loans The following table summarizes impaired loans information by portfolio class: December 31, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (In thousands) Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: 1-4 family first-lien residential mortgages $ 1,027 $ 1,027 $ - $ 1,221 $ 1,226 $ - Commercial real estate 3,996 4,067 - 2,387 2,448 - Commercial lines of credit 86 86 - 228 228 - Other commercial and industrial 69 77 - 451 452 - Home equity and junior liens 40 40 - - - - Other consumer 55 55 - - - - With an allowance recorded: 1-4 family first-lien residential mortgages 584 584 97 606 606 108 Commercial real estate 450 450 78 486 486 100 Commercial lines of credit 98 98 98 28 28 28 Other commercial and industrial 866 866 406 373 373 255 Home equity and junior liens 180 180 150 207 207 140 Other consumer 36 36 1 - - - Total: 1-4 family first-lien residential mortgages 1,611 1,611 97 1,827 1,832 108 Commercial real estate 4,446 4,517 78 2,873 2,934 100 Commercial lines of credit 184 184 98 256 256 28 Other commercial and industrial 935 943 406 824 825 255 Home equity and junior liens 220 220 150 207 207 140 Other consumer 91 91 1 - - - Totals $ 7,487 $ 7,566 $ 830 $ 5,987 $ 6,054 $ 631 The following table presents the average recorded investment in impaired loans for years ended December 31: (In thousands) 2019 2018 1-4 family first-lien residential mortgages $ 1,622 $ 1,842 Commercial real estate 3,868 4,555 Commercial lines of credit 295 343 Other commercial and industrial 1,015 965 Home equity and junior liens 220 224 Other consumer 76 - Total $ 7,096 $ 7,929 The following table presents the cash basis interest income recognized on impaired loans for the years ended December 31: (In thousands) 2019 2018 1-4 family first-lien residential mortgages $ 62 $ 61 Commercial real estate 190 175 Commercial lines of credit 16 28 Other commercial and industrial 66 38 Home equity and junior liens 11 12 Other consumer 7 - Total $ 352 $ 314 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Allowance For Loan Losses [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | Changes in the allowance for loan losses for the years ended December 31, 2019 and 2018 and information pertaining to the allocation of the allowance for loan losses and balances of the allowance for loan losses and loans receivable based on individual and collective impairment evaluation by loan portfolio class at the indicated dates are summarized in the tables below. An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class. December 31, 2019 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Allowance for loan losses: Beginning Balance $ 766 $ - $ 3,578 $ 730 $ 1,285 Charge-offs (11 ) - - (136 ) (158 ) Recoveries 2 - - - 1 Provisions (credits) (177 ) - 432 601 517 Ending balance $ 580 $ - $ 4,010 $ 1,195 $ 1,645 Ending balance: related to loans individually evaluated for impairment $ 97 $ - $ 78 $ 98 $ 406 Ending balance: related to loans collectively evaluated for impairment $ 483 $ - $ 3,932 $ 1,097 $ 1,239 Loans receivables: Ending balance $ 209,559 $ 3,963 $ 254,257 $ 58,617 $ 82,092 Ending balance: individually evaluated for impairment $ 1,611 $ - $ 4,446 $ 184 $ 935 Ending balance: collectively evaluated for impairment $ 207,948 $ 3,963 $ 249,811 $ 58,433 $ 81,157 Home equity Other Tax exempt and junior liens consumer Unallocated (1) Total Allowance for loan losses: Beginning Balance $ 1 $ 409 $ 385 $ 152 $ 7,306 Charge-offs - (7 ) (354 ) - (666 ) Recoveries - - 60 - 63 Provisions - 151 322 120 1,966 Ending balance $ 1 $ 553 $ 413 $ 272 $ 8,669 Ending balance: related to loans individually evaluated for impairment $ - $ 150 $ 1 $ - $ 830 Ending balance: related to loans collectively evaluated for impairment $ 1 $ 403 $ 412 $ 272 $ 7,839 Loans receivables: Ending balance $ 8,067 $ 46,389 $ 82,607 $ 35,790 $ 781,341 Ending balance: individually evaluated for impairment $ - $ 220 $ 91 $ - $ 7,487 Ending balance: collectively evaluated for impairment $ 8,067 $ 46,169 $ 82,516 $ 35,790 $ 773,854 (1) December 31, 2018 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Allowance for loan losses: Beginning Balance $ 865 $ - $ 3,589 $ 735 $ 1,214 Charge-offs (245 ) - (643 ) (102 ) (207 ) Recoveries 21 - - 66 - Provisions 125 - 632 31 278 Ending balance $ 766 $ - $ 3,578 $ 730 $ 1,285 Ending balance: related to loans individually evaluated for impairment $ 108 $ - $ 100 $ 28 $ 255 Ending balance: related to loans collectively evaluated for impairment $ 658 $ - $ 3,478 $ 702 $ 1,030 Loans receivables: Ending balance $ 232,523 $ 7,121 $ 212,314 $ 44,235 $ 63,359 Ending balance: individually evaluated for impairment $ 1,827 $ - $ 2,873 $ 256 $ 824 Ending balance: collectively evaluated for impairment $ 230,696 $ 7,121 $ 209,441 $ 43,979 $ 62,535 Home equity Other Tax exempt and junior liens consumer Unallocated Total Allowance for loan losses: Beginning Balance $ 1 $ 514 $ 208 $ - $ 7,126 Charge-offs - (17 ) (248 ) - (1,462 ) Recoveries - 7 51 - 145 Provisions (credits) - (95 ) 374 152 1,497 Ending balance $ 1 $ 409 $ 385 $ 152 $ 7,306 Ending balance: related to loans individually evaluated for impairment $ - $ 140 $ - $ - $ 631 Ending balance: related to loans collectively evaluated for impairment $ 1 $ 269 $ 385 $ 152 $ 6,675 Loans receivables: Ending balance $ 9,320 $ 26,109 $ 25,424 $ 620,405 Ending balance: individually evaluated for impairment $ - $ 207 $ - $ 5,987 Ending balance: collectively evaluated for impairment $ 9,320 $ 25,902 $ 25,424 $ 614,418 The Company’s methodology for determining its allowance for loan losses includes an analysis of qualitative factors that are added to the historical loss rates in arriving at the total allowance for loan losses needed for this general pool of loans. The qualitative factors include: • Changes in national and local economic trends; • The rate of growth in the portfolio; • Trends of delinquencies and nonaccrual balances; • Changes in loan policy; and • Changes in lending management experience and related staffing. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each product class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan losses analysis and calculation. The allocation of the allowance for loan losses summarized on the basis of the Company’s calculation methodology was as follows: December 31, 2019 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Specifically reserved $ 97 $ - $ 78 $ 98 $ 406 Historical loss rate 43 - 98 106 34 Qualitative factors 440 - 3,834 991 1,205 Total $ 580 $ - $ 4,010 $ 1,195 $ 1,645 Home equity Other Tax exempt and junior liens consumer Unallocated Total Specifically reserved $ - $ 150 $ 1 $ - $ 830 Historical loss rate - 85 167 - 533 Qualitative factors 1 318 245 - 7,034 Other - - - 272 272 Total $ 1 $ 553 $ 413 $ 272 $ 8,669 December 31, 2018 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Specifically reserved $ 108 $ - $ 100 $ 28 $ 255 Historical loss rate 87 - 85 20 24 Qualitative factors 571 - 3,393 682 1,006 Total $ 766 $ - $ 3,578 $ 730 $ 1,285 Home equity Other Tax exempt and junior liens consumer Unallocated Total Specifically reserved $ - $ 140 $ - $ - $ 631 Historical loss rate - 15 155 - 386 Qualitative factors 1 254 230 - 6,137 Other - - - 152 152 Total $ 1 $ 409 $ 385 $ 152 $ 7,306 |
Servicing
Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Servicing Asset [Abstract] | |
SERVICING | NOTE 7: SERVICING Loans serviced for others are not included in the accompanying consolidated statements of condition. At December 31, 2019 and 2018, the Bank serviced 195 and 206 residential mortgage loans for others, respectively. The unpaid principal balances of mortgage loans serviced for others were $11.8 million and $11.9 million at December 31, 2019 and 2018, respectively. The balance of capitalized servicing rights included in other assets at December 31, 2019 and 2018, was $19,000 and $16,000, respectively. The following summarizes mortgage servicing rights capitalized and amortized: (In thousands) 2019 2018 Mortgage servicing rights capitalized $ 16 $ - Mortgage servicing rights amortized $ 13 $ 12 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | NOTE 8: PREMISES AND EQUIPMENT A summary of premises and equipment at December 31, is as follows: (In thousands) 2019 2018 Land $ 2,268 $ 2,205 Buildings 17,673 16,094 Furniture, fixtures and equipment 15,936 15,029 Construction in progress 4,575 3,599 40,452 36,927 Less: Accumulated depreciation 17,753 16,304 $ 22,699 $ 20,623 Depreciation expense in 2019 and 2018 was $1.5 million and $1.2 million, respectively. |
Foreclosed Real Estate
Foreclosed Real Estate | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Foreclosed Real Estate | NOTE 9: FORECLOSED REAL ESTATE The Company is required to disclose the carrying amount of foreclosed residential real estate properties held at each reporting period as a result of obtaining physical possession of the property. (Dollars in thousands) Number of properties December 31, 2019 Number of properties December 31, 2018 Foreclosed residential real estate - $ - 2 $ 73 At December 31, 2019 and 2018, the Company reported $341,000 and $951,000, respectively, in residential real estate loans in the process of foreclosure. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 10: GOODWILL AND INTANGIBLE ASSETS Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized, but is evaluated annually for impairment or between annual evaluations in certain circumstances. Management performs an annual assessment of the Company’s goodwill to determine whether or not any impairment of the carrying value may exist. Of the $4.5 million of goodwill carried on the Company’s books as of December 31, 2019, $3.8 million of this amount was due to prior periods acquisitions of bank branches and $696,000 was due to the 2013 acquisition of the FitzGibbons Agency by Pathfinder Risk Management Company, Inc. and the 2015 acquisition of the Huntington Agency. The Company is permitted to assess qualitative factors to determine if it is more likely than not that the fair value of the reporting unit is less than the carrying value. Based on the results of the assessment, management has determined that the carrying value of goodwill in the amount of $4.5 million is not impaired as of December 31, 2019. The identifiable intangible asset of $149,000 as of December 31, 2019 was due to the acquisition of the FitzGibbons and Huntington Agencies and represents the amortized carrying amount of the customer lists intangible. The weighted average remaining amortization period of this intangible asset is 5.2 The gross carrying amount and annual amortization for this identifiable intangible asset are as follows: December 31, (In thousands) 2019 2018 Gross carrying amount $ 243 $ 243 Accumulated amortization (94 ) (78 ) Net amortizing intangibles $ 149 $ 165 The estimated amortization expense for each of the five succeeding years ended December 31, is as follows: (In thousands) 2020 $ 16 2021 16 2022 16 2023 16 2024 16 Thereafter 69 Total $ 149 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
DEPOSITS | NOTE 11: DEPOSITS A summary of deposits at December 31 is as follows: (In thousands) 2019 2018 Savings accounts $ 81,926 $ 80,545 Time accounts 301,193 199,598 Time accounts of $250,000 or more 120,450 77,224 Money management accounts 14,388 13,180 MMDA accounts 185,402 189,679 Demand deposit interest-bearing 64,533 57,407 Demand deposit noninterest-bearing 107,501 103,124 Mortgage escrow funds 6,500 6,303 Total Deposits $ 881,893 $ 727,060 At December 31, 2019, the scheduled maturities of time deposits are as follows: (In thousands) Year of Maturity: 2020 $ 386,920 2021 24,456 2022 4,639 2023 2,360 2024 1,499 Thereafter 1,769 Total $ 421,643 In addition to deposits obtained from its business operations within its target market areas, the Bank also obtains brokered deposits through various programs administered by Promontory Interfinancial Network and through other unaffiliated third-party financial institutions. At December 31, 2019 2018 (In thousands) Non-Brokered Brokered Total Non-Brokered Brokered Total Savings accounts $ 81,926 $ - $ 81,926 $ 80,545 $ - $ 80,545 Time accounts 190,685 110,508 301,193 158,207 41,391 199,598 Time accounts of $250,000 or more 94,455 25,995 120,450 77,224 - 77,224 Money management accounts 14,388 - 14,388 13,180 - 13,180 MMDA accounts 185,356 46 185,402 189,625 54 189,679 Demand deposit interest-bearing 64,533 - 64,533 57,407 - 57,407 Demand deposit noninterest-bearing 107,501 - 107,501 103,124 - 103,124 Mortgage escrow funds 6,500 - 6,500 6,303 - 6,303 Total Deposits $ 745,344 $ 136,549 $ 881,893 $ 685,615 $ 41,445 $ 727,060 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
BORROWED FUNDS | NOTE 12: BORROWED FUNDS The composition of borrowings (excluding subordinated loans) at December 31 is as follows: (In thousands) 2019 2018 Short-term: FHLB Advances $ 25,138 $ 39,000 Total short-term borrowings $ 25,138 $ 39,000 Long-term: FHLB advances $ 67,987 $ 79,534 Total long-term borrowings $ 67,987 $ 79,534 The principal balances, interest rates and maturities of the outstanding long-term borrowings, all of which are at a fixed rate, at December 31, 2019 are as follows: Term Principal Rates (Dollars in thousands) Advances with FHLB Due within 1 year $ 30,193 1.62 - 3.03% Due within 2 years 25,969 1.74 - 3.10% Due within 10 years 11,825 1.68 - 3.17% Total advances with FHLB $ 67,987 Total long-term fixed rate borrowings $ 67,987 At December 31, 2019, scheduled repayments of long-term debt are as follows: (In thousands) 2020 $ 30,193 2021 25,969 2022 11,000 2023 825 2024 - Thereafter - Total $ 67,987 The Company has access to FHLBNY advances, under which it can borrow at various terms and interest rates. Residential mortgage loans with a carrying value of $136.9 million and FHLB stock with a carrying value of $4.8 million have been pledged by the Company under a blanket collateral agreement to secure the Company’s borrowings at December 31, 2019. |
Subordinated Loans
Subordinated Loans | 12 Months Ended |
Dec. 31, 2019 | |
Subordinated Borrowings [Abstract] | |
SUBORDINATED LOANS | NOTE 13: SUBORDINATED LOANS The Company has a non-consolidated subsidiary trust, Pathfinder Statutory Trust II, of which the Company owns 100% of the common equity. The Trust issued $5,000,000 of 30-year floating rate Company-obligated pooled capital securities of Pathfinder Statutory Trust II (“Floating-Rate Debentures”). The Company borrowed the proceeds of the capital securities from its subsidiary by issuing floating rate junior subordinated deferrable interest debentures having substantially similar terms. The capital securities mature in 2037 and are treated as Tier 1 capital by the FDIC and FRB. The capital securities of the trust are a pooled trust preferred fund of Preferred Term Securities VI, Ltd., whose interest rate resets quarterly, and are indexed to the 3-month LIBOR rate plus 1.65%. These securities have a The Company paid $213,000 and $199,000 in interest expense related to this issuance in 2019 and 2018, respectively. The Company's equity interest in the trust subsidiary is included in other assets on the Consolidated Statements of Financial Condition at December 31, 2019 and 2018. For regulatory reporting purposes, the Federal Reserve has indicated that the preferred securities will continue to qualify as Tier 1 Capital subject to previously specified limitations, until further notice. If regulators make a determination that Trust Preferred Securities can no longer be considered in regulatory capital, the securities become callable and the Company may redeem them. On October 15, 2015, the Company executed a $10.0 million non-amortizing Subordinated Loan with an unrelated third party that is scheduled to mature on October 1, 2025. The Company has the right to prepay the Subordinated Loan at any time after October 15, 2020 without penalty. The annual interest rate charged to the Company will be 6.25% through the maturity date of the subordinated loan. The Subordinated Loan is senior in the Company’s credit repayment hierarchy only to the Company’s common equity and, as a result, qualifies as Tier 2 capital for all future periods when applicable. The Company paid $172,000 in origination and legal fees as part of this transaction. These fees will be amortized over the life of the Subordinated Loan through its first call date using the effective interest method. The effective cost of funds related to this transaction is 6.44% calculated under this method. Accordingly, interest expense of $ 650,000 The composition of subordinated loans at December 31 is as follows: (In thousands) 2019 2018 Subordinated loans: Junior subordinated debenture $ 5,155 $ 5,155 Subordinated loan 9,973 9,939 Total subordinated loans $ 15,128 $ 15,094 The principal balances, interest rates and maturities of the subordinated loans at December 31, 2019 are as follows: Term Principal Rates (Dollars in thousands) Subordinated loans: Due within 10 years $ 9,973 6.48% Due within 18 years 5,155 3-Month Libor + 1.65% Total subordinated loans $ 15,128 At December 31, 2019, scheduled repayments of the subordinated loans: (In thousands) 2020 $ - 2021 - 2022 - 2023 - 2024 - Thereafter 15,128 Total $ 15,128 |
Employee Benefits and Deferred
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFITS AND DEFERRED COMPENSATION AND SUPPLEMENTAL RETIREMENT PLANS | NOTE 14: Employee Benefits and Deferred Compensation and Supplemental Retirement Plans The Company has a noncontributory defined benefit pension plan covering substantially all employees. The plan provides defined benefits based on years of service and final average salary. On May 14, 2012, the Company informed its employees of its decision to freeze participation and benefit accruals under the plan, primarily to reduce some of the volatility in earnings that can accompany the maintenance of a defined benefit plan. The plan was frozen on June 30, 2012. Compensation earned by employees up to June 30, 2012 is used for purposes of calculating benefits under the plan but there will be no future benefit accruals after this date. Participants as of June 30, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. In addition, the Company provides certain health and life insurance benefits for a limited number of eligible retired employees. The healthcare plan is contributory with participants’ contributions adjusted annually; the life insurance plan is noncontributory. Employees with less than 14 years of service as of January 1, 1995, are not eligible for the health and life insurance retirement benefits. The following tables set forth the changes in the plans’ benefit obligations, fair value of plan assets and the plans’ funded status as of December 31: Pension Benefits Postretirement Benefits (In thousands) 2019 2018 2019 2018 Change in benefit obligations: Benefit obligations at beginning of year $ 10,095 $ 10,469 $ 454 $ 481 Service cost - - - - Interest cost 494 473 22 21 Plan participants' contribution - - 8 9 Actuarial loss (gain) 1,558 (581 ) (27 ) (16 ) Benefits paid (255 ) (266 ) (43 ) (41 ) Benefit obligations at end of year 11,892 10,095 414 454 Change in plan assets: Fair value of plan assets at beginning of year 14,522 14,956 - - Actual return on plan assets 2,718 (993 ) - - Benefits paid (255 ) (266 ) (43 ) (41 ) Plan participants' contribution - - 8 9 Employer contributions - 825 35 32 Fair value of plan assets at end of year 16,985 14,522 - - Funded (unfunded) status - asset (liability) $ 5,093 $ 4,427 $ (414 ) $ (454 ) The funded status of the pension was recorded within other assets on the statement of condition. The unfunded status of the postretirement plan is recorded within other liabilities on the statement of condition. Amounts recognized in accumulated other comprehensive loss as of December 31 are as follows: Pension Benefits Postretirement Benefits (In thousands) 2019 2018 2019 2018 Net loss $ 3,557 $ 4,112 $ 117 $ 151 Tax Effect 929 1,074 31 40 $ 2,628 $ 3,038 $ 86 $ 111 Gains and losses in excess of 10% of the greater of the benefit obligation or the fair value of assets are amortized over the average remaining service period of active participants. The Company utilized the actual projected cash flows of the participants in both plans for the years ended December 31, 2019 and December 31, 2018. The following points address the approach taken. 1. An analysis of the defined benefit pension plan’s expected future cash flows and high-quality fixed income investments currently available and expected to be available during the period to maturity of the pension benefits yielded a single discount rate of 3.97% at December 31, 2019. 2. An analysis of the postretirement health plan’s expected future cash flows and high-quality fixed-income investments currently available and expected to be available during the period to maturity of the retiree medical benefits yielded a single discount rate of 3.97% at December 31, 2019. 3. Each discount rate was developed by matching the expected future cash flows of the Bank to high quality bonds. Every bond considered has earned ratings of at least AA by Fitch Group, AA by Standard & Poor’s, or Aa2 by Moody’s Investor Services. The accumulated benefit obligation for the defined benefit pension plan was $11.9 million and $10.1 million at December 31, 2019 and 2018, respectively. The postretirement plan had an accumulated benefit obligation of $414,000 and $454,000 at December 31, 2019 and 2018, respectively. The significant assumptions used in determining the benefit obligations as of December 31, are as follows: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Weighted average discount rate 3.97 % 4.97 % 3.97 % 4.97 % Rate of increase in future compensation levels - - - - Assumed health care cost trend rates have a significant effect on the amounts reported for the postretirement health care plan. The annual rates of increase in the per capita cost of covered medical and prescription drug benefits for future years were assumed to be 4.50% for 2020, gradually decreasing to 4.20% in 2023 and remain at that level thereafter. The composition of the net periodic benefit plan (benefit) cost for the years ended December 31 is as follows: Pension Benefits Postretirement Benefits (In thousands) 2019 2018 2019 2018 Service cost $ - $ - $ - $ - Interest cost 494 473 22 21 Expected return on plan assets (934 ) (1,037 ) - - Amortization of transition obligation - - - - Amortization of net losses 328 164 12 13 Amortization of unrecognized past service liability - - (5 ) (5 ) Net periodic benefit plan (benefit) cost $ (112 ) $ (400 ) $ 29 $ 29 The significant assumptions used in determining the net periodic benefit plan cost for years ended December 31, were as follows: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Weighted average discount rate 3.97 % 4.97 % 3.97 % 4.97 % Expected long term rate of return on plan assets 6.50 % 6.50 % - - Rate of increase in future compensation levels - - - - The long term rate of return on assets assumption was set based on historical returns earned by equities and fixed income securities, adjusted to reflect expectations of future returns as applied to the plan’s target allocation of asset classes. Equities and fixed income securities were assumed to earn real rates of return in the ranges of 6.0%-8.0% and 3.0%-5.0%, respectively. The long-term inflation rate was estimated to be 2.5%. When these overall return expectations are applied to the plan’s target allocation, the expected rate of return was determined to be in the range of 5.0% to 7.0%. Management chose to use a 6.5% expected long-term rate of return in 2019 and a 6.5% expected long-term rate of return in 2020 reflecting current economic conditions and expected rates of return. Based on the $17.0 million fair value of plan assets at December 31, 2019, each 50 basis point decrease in the expected long-term rate of return would reduce after tax net income at 2020 expected marginal tax rate of 21.0% by approximately $67,000. The estimated net actuarial loss that will be amortized from accumulated other comprehensive loss into net periodic benefit plan income during 2020 is $228,000. The estimated amortization of the unrecognized transition obligation and actuarial loss for the postretirement health plan in 2020 is $10,000. The expected net periodic benefit plan benefit for 2020 is estimated to be $379,000 for both retirement plans in aggregate. Plan assets are invested in three diversified investment portfolios of the Pentegra Retirement Trust (the “Trust”, formerly known as RSI Retirement Trust), a private placement investment fund. The Trust has been given discretion by the Plan Sponsor to determine the appropriate strategic asset allocation versus plan liabilities, as governed by the Trust’s Investment Policy Statement. The Plan is structured to utilize a Total Return approach which seeks to fund the current and future liabilities of the Plan via long-term growth in assets. The Plan’s asset allocation targets to hold 48% of assets in equity securities via investment in the Long-Term Growth – Equity Portfolio (‘LTGE’), 16% in intermediate-term investment grade bonds via investment in the Long-Term Growth – Fixed-Income Portfolio (‘LTGFI’), 35% in long duration bonds via the Liability Focused Fixed-Income Portfolio (‘LFFI’), and 1% in a cash equivalents portfolio (for liquidity). LTGE is a diversified portfolio that invests in a number of actively and passively managed equity-focused mutual funds and collective investment trusts. The Portfolio holds a diversified mix of equity funds in order to gain exposure to the U.S. and non-U.S. equity markets. LTGFI is a diversified portfolio that invests in a number of fixed-income mutual funds and collective investment trusts. The Portfolio invests primarily in intermediate-term bond funds with a focus on Core Plus fixed-income investment approaches. LFFI is a diversified high quality fixed-income portfolio that currently invests in passively managed collective investment trusts that hold long duration bonds. The investment objectives, investment strategies and risk of each of the daily valued and unitized Portfolios and the funds held within the Portfolios are detailed in the Private Placement Memorandum and the Trust’s Investment Policy Statement. The overall long-term investment objectives are to maintain plan assets at a level that will sufficiently cover long-term obligations and to generate a return on plan assets that will meet or exceed the rate at which long-term obligations will grow. The LTGE and LTGFI Portfolios are designed to provide long-term growth of equity and fixed-income assets with the objective of achieving an investment return in excess of the cost of funding the active life, deferred vested, and all 30-year term and longer obligations of retired lives in the Trust. The LFFI Portfolio is designed to fund the Trust’s estimated retired lives class of liabilities for 30 years. The ALT Strategy is designed to add diversification via the addition of relatively low correlation assets. Risk/volatility is further managed by the distinct investment objectives of each of the Trust’s Portfolios. Pension plan assets measured at fair value are summarized below: At December 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Asset Category: Mutual Funds - Equity Large-cap value (a) $ - $ 1,432 $ - $ 1,432 Large-cap Growth (b) - 1,470 - 1,470 Large-cap Core (c) - 1,075 - 1,075 Mid-cap Value (d) - 307 - 307 Mid-cap Growth (e) - 328 - 328 Mid-cap Core (f) - 314 - 314 Small-cap Value (g) - 220 - 220 Small-cap Growth (h) - 466 - 466 Small-cap Core (i) - 211 - 211 International Equity (j) - 1,733 - 1,733 Equity -Total - 7,556 - 7,556 Fixed Income Funds Fixed Income - US Core (k) - 2,356 - 2,356 Intermediate Duration (l) - 3,708 - 3,708 Long Duration (m) - 3,084 - 3,084 Fixed Income-Total - 9,148 - 9,148 Company Common Stock - - - - Cash Equivalents-Money market* 48 233 - 281 Total $ 48 $ 16,937 $ - $ 16,985 At December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Asset Category: Mutual Funds - Equity Large-cap value (a) $ - $ 1,132 $ - $ 1,132 Large-cap Growth (b) - 1,157 - 1,157 Large-cap Core (c) - 821 - 821 Mid-cap Value (d) - 242 - 242 Mid-cap Growth (e) - 247 - 247 Mid-cap Core (f) - 250 - 250 Small-cap Value (g) - 193 - 193 Small-cap Growth (h) - 337 - 337 Small-cap Core (i) - 189 - 189 International Equity (j) - 1,409 - 1,409 Equity -Total - 5,977 - 5,977 Fixed Income Funds Fixed Income-US Core (k) - 2,207 - 2,207 Intermediate Duration (l) - 3,255 - 3,255 Long Duration (m) - 2,521 - 2,521 Fixed Income-Total - 7,983 - 7,983 Company Common Stock - - - - Cash Equivalents-Money market* 271 291 - 562 Total $ 271 $ 14,251 $ - $ 14,522 *Includes cash equivalents investments in equity and fixed income strategies a) This category contains large-cap stocks with above-average yield. The portfolio typically holds between 60 and 70 stocks. b) This category seeks long-term capital appreciation by investing primarily in large growth companies based in the U.S. c) This fund tracks the performance of the S&P 500 index by purchasing the securities represented in the index in approximately the same weightings as the index. d) This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Value Index. e) This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Growth Index. f) This category seeks to track the performance of the S&P Midcap 400 Index. g) This category consists of a selection of investments based on the Russell 2000 Value Index. h) This category consists of a mutual fund invested in smallcap growth companies along with a fund invested in a selection of investments based on the Russell 2000 Growth Index. i) This category consists of a mutual fund investing in readily marketable securities of U.S. companies with market capitalizations within the smallest 10% of the market universe, or smaller than the 1000th largest US company. j) This category invests primarily in medium to large non-US companies in developed and emerging markets. Under normal circumstances, at least 80% of total assets will be invested in equity securities, including common stocks, preferred stocks, and convertible securities. k) This category currently includes equal investments in three mutual funds, two of which usually hold at least 80% of fund assets in investment grade fixed income securities, seeking to outperform the Barclays US Aggregate Bond Index while maintaining a similar duration to that index. The third fund targets investments of 50% or more in mortgage-backed securities guaranteed by the US government and its agencies. l) This category consists mostly of a fund which seeks to track the Barclays Capital US Corporate A or Better 5-20 Year, Bullets only Index, along with a diversified mutual fund holding fixed income securities rated A or better. m) This category consists of a fund that seeks to approximate the performance of the Barclays Capital US Corporate A or Better, 20+ Year Bullets Only Index over the long term. For the fiscal year ending December 31, 2020, the Company expects to contribute approximately $36,000 to the postretirement plan. The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid from both retirement plans: Pension Postretirement (In thousands) Benefits Benefits Total Years ending December 31: 2020 $ 320 $ 36 $ 356 2021 333 37 370 2022 374 38 412 2023 451 25 476 2024 470 25 495 Years 2025-2029 3,170 118 3,288 The Company also offers a 401(k) plan to its employees. Contributions to this plan by the Company were $393,000 and $371,000 for 2019 and 2018, respectively. In addition, the Company made $291,000 and $273,000 of safe harbor contributions to the plan in 2019 and 2018, respectively The Company maintains optional deferred compensation plans for its directors and certain executive officers, whereby fees and income normally received are deferred and paid by the Company based upon a payment schedule commencing between the ages of 65 and 70 and continuing monthly for 10 years. At December 31, 2019 and 2018, other liabilities include approximately $2.8 million deferred compensation. Deferred compensation expense for the years ended December 31, 2019 and 2018 amounted to To assist in the funding of the Company’s benefits under the supplemental executive retirement plan and deferred compensation plans, the Company is the owner of single premium life insurance policies on selected participants. At December 31, 2019 and 2018, the cash surrender values of these policies and $ The Bank adopted a Defined Contribution Supplemental Executive Retirement Plan (the “SERP”), effective January 1, 2014. The SERP benefits certain key senior executives of the Bank who are selected by the Board to participate, including our Named Executive Officers. The SERP is intended to provide a benefit from the Bank upon retirement, death, disability or voluntary or involuntary termination of service (other than “for cause”), subject to the requirements of Section 409A of the Internal Revenue Code. Accordingly, the SERP obligates the Bank to make a contribution to each executive’s account on the last business day of each calendar year. In addition, the Bank, may, but is not required to, make additional discretionary contributions to the executive’s accounts from time to time. All executives currently participating in the plan, including the Named Executive Officers, are fully vested in the Bank’s contribution to the plan. In the event the executive is terminated involuntarily or resigns for good reason within 24 months following a change in control, the Bank is required to make additional annual contributions the lesser of: (1) three years or (2) the number of years remaining until the executive’s benefit age, subject to potential reduction to avoid an excess parachute payment under Code Section 280G. In the event of the executive’s death, disability or termination within 24 months after a change in control, the executive’s account will be paid in a lump sum to the executive or his beneficiary, as applicable. In the event the executive is entitled to a benefit from the SERP due to retirement or other termination of employment, the benefit will be paid either in a lump sum or in 10 annual installments as detailed in his or her participant agreement. At December 31, 2019 and 2018, other liabilities included $836,000 and $745,000, respectively, accrued under this plan. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
STOCK BASED COMPENSATION PLANS | NOTE 15: Stock Based Compensation PlanS All share and per share values have been adjusted, where appropriate, by the 1.6472 exchange rate used in the Conversion and Offering that occurred on October 16, 2014. April 2010 Stock Option Grants In June 2011, the board of directors of the Company approved the grant of stock option awards to its directors and executive officers under the 2010 Stock Option Plan that had 247,080 shares authorized for award. A total of 74,124 stock option awards were granted to the nine directors of the Company, at that time, and 123,540 stock option awards, in total, were granted to the Chief Executive Officer and the Company’s then four senior vice presidents. The awards vested ratably over five years (20% per year for each year of the participant’s service with the Company) with an expiration date ten years from the date of the grant, or June 2021. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 2.2%; volatility factors of the expected market price of the Company's common stock of 0.45; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.49%. Based upon these assumptions, the weighted average fair value of options granted was $2.29. In July 2013, the board of directors of the Company approved the grant of 16,472 stock option awards in total to two newly elected directors of the Company. The awards vested ratably over five years (20% per year for each year of the participant’s service with the Company) with an expiration date ten years from the date of the grant, or July 2023. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 2.0%; volatility factors of the expected market price of the Company's common stock of 0.45; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.0%. Based upon these assumptions, the weighted average fair value of options granted was $3.69. In November 2015, the board of directors of the Company approved the grant of 16,472 stock option awards in total to two newly elected directors of the Company. The awards vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or November 2025. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.9%; volatility factors of the expected market price of the Company's common stock of 0.23; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.4%. Based upon these assumptions, the weighted average fair value of options granted was $2.56. In April 2016, the board of directors of the Company approved the grant of 47,768 stock option awards in total to three officers and one recently promoted senior officer. The awards vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or April 2026. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.6%; volatility factors of the expected market price of the Company's common stock of 0.32; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.55%. Based upon these assumptions, the weighted average fair value of options granted was $3.17. May 2016 Stock Option Grants In May 2016, the board of directors of the Company approved the grant of stock option awards to its directors, executive officers, senior officers and officers under the 2016 Equity Incentive Plan that was approved at the Annual Meeting of Shareholders on May 4, 2016 when 263,605 shares were authorized for award. A total of 79,083 stock option awards were granted to the nine directors of the Company and 44,812 stock option awards, in total, were granted to thirteen officers. The awards vest ratably over five years (20% per year for each year of the participant’s service with the Company) and will expire ten years from the date of the grant, or May 2026. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.6%; volatility factors of the expected market price of the Company's common stock of 0.32; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.55%. Based upon these assumptions, the weighted average fair value of options granted was $3.32. A total of 92,261 stock option awards were granted to the Chief Executive Officer, two executive officers and three senior officers. The awards vest ratably over seven years (approximately 14.28% per year for each year of the participant’s service with the Company) with the exception of one senior officer whose awards vested upon retirement on August 1, 2017 and will expire ten years from the date of the grant, or May 2026. The fair value of each option grant was established at the date of grant using the Black-Scholes option pricing model. The Black-Scholes model used the following weighted average assumptions: risk-free interest rate of 1.7%; volatility factors of the expected market price of the Company's common stock of 0.32; weighted average expected lives of the options of 7.0 years: cash dividend yield of 1.55%. Based upon these assumptions, the weighted average fair value of options granted was $3.59. Activity in the stock option plans is as follows: Options Outstanding Shares Exercisable Number of Weighted Average Number of Weighted Average (Shares in thousands) Shares Exercise Price Shares Exercise Price Outstanding at December 31, 2017 395 $ 9.68 168 $ 7.61 Granted - $ - - $ - Newly vested - 11.05 52 - Exercised (67 ) - (67 ) - Expired (3 ) 11.35 - - Outstanding at December 31, 2018 325 $ 10.50 153 $ 9.65 Granted - $ - - $ - Newly vested - 11.10 62 - Exercised (21 ) - (21 ) - Expired (1 ) 11.35 - - Outstanding at December 31, 2019 303 $ 10.51 194 $ 10.04 The aggregate intrinsic value of a stock option represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options prior to the expiration date. The intrinsic value can change based on fluctuations in the market value of the Company’s stock. At December 31, 2019, the intrinsic value of the stock options was $1.0 million. At December 31, 2018, the intrinsic value of the stock options was $1.7 million. At December 31, 2019, the average remaining contractual life of outstanding options and shares exercisable were 5.7 years and 5.3 years, respectively. May 2016 Restricted Stock Unit Grants In May 2016, the board of directors of the Company approved the grant of restricted stock units to its directors, executive officers, senior officers and officers under the 2016 Equity Incentive Plan that was approved at the Annual Meeting of Shareholders on May 4, 2016 when 105,442 shares were authorized for award. A total of 31,635 restricted stock units were granted to the nine directors of the Company and 8,436 restricted stock units, in total, were granted to two officers. The units vest ratably over five years (20% per year for each year of the participant’s service with the Company). A total of 46,570 restricted stock units, in total, were granted to the Chief Executive Officer, two executive officers and three senior officers. The units vest ratably over seven years (approximately 14.28% per year for each year of the participant’s service with the Company) with the exception of one senior officer whose units vested upon retirement on August 1, 2017. The compensation expense of the stock option awards and restricted stock units is based on the fair value of the instruments on the date of grant. The Company recorded compensation expense in the amount of $291,000 and $398,000 in 2019 and 2018, respectively, and is expected to record $289,000, $153,000, $92,000 and $31,000 in 2020 through 2023. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 12 Months Ended |
Dec. 31, 2019 | |
Employee Stock Ownership Plan [Abstract] | |
EMPLOYEE STOCK OWNERSHIP PLAN | NOTE 16: EMPLOYEE STOCK OWNERSHIP PLAN The Bank established the Pathfinder Bank Employee Stock Ownership Plan (“Plan”) to purchase stock of the Company for the benefit of its employees. In July 2011, the Plan received a $1.1 million loan from Community Bank, N.A., guaranteed by the Company, to fund the Plan’s purchase of 125,000 shares of the Company’s treasury stock. The loan was being repaid in equal quarterly installments of principal plus interest over ten years beginning October 1, 2011. Interest accrued at the Wall Street Journal Prime Rate plus 1.00%, and was secured by the unallocated shares of the ESOP stock. This loan was refinanced in connection with the Conversion and Offering that occurred on October 16, 2014. In connection with the Conversion and Offering, the ESOP purchased 105,442 shares issued in the offering by obtaining a loan from the Company which was used to purchase both the additional shares and refinance the remaining outstanding balance on the loan from Community Bank N.A. There were 138,982.5 shares associated with the refinanced loan resulting in a total of 244,424.5 shares associated with the new loan provided by the Company. The ESOP loan from the Company has a ten year term and is being repaid in equal payments of principal and interest under a fixed rate of interest equal to 3.25% which was the prime rate of interest on the date of the closing of the offering. This ESOP loan from the Company, also referred to as an internally leveraged ESOP, does not appear as a liability on the Company’s consolidated statement of condition as of December 31, 2019 in accordance with ASC 718-40-25-9d . In accordance with the payment of principal on the loan, a proportionate number of shares are allocated to the employees over the ten year time horizon of the loan. Participants’ vesting interest in the shares of Company stock is at the rate of 20% per year. Compensation expense is recorded based on the number of shares released to the participants times the average market value of the Company’s stock over that same period. Dividends on unallocated shares, recorded as compensation expense on the income statement, are made available to the participants' account. The Company recorded $369,000 $30,000 116,102 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 17: Income Taxes The provision for income taxes for the years ended December 31, is as follows: (In thousands) 2019 2018 Current $ 1,181 $ 203 Deferred (16 ) 343 $ 1,165 $ 546 The provision for income taxes includes the following (In thousands) 2019 2018 Federal Income Tax $ 1,244 $ 714 State Tax (79 ) (168 ) $ 1,165 $ 546 The components of the net deferred tax asset, included in other assets as of December 31, are as follows: (In thousands) 2019 2018 Assets: Deferred compensation $ 970 $ 895 Allowance for loan losses 2,266 1,909 Postretirement benefits 108 119 Subordinated loan interest 22 23 Investment securities 77 1,002 Loan origination fees - 35 Held-to-maturity securities 14 21 Stock-based compensation 101 166 Community service activities 22 153 Other 587 374 Total 4,167 4,697 Liabilities: Prepaid pension (1,331 ) (1,157 ) Depreciation (1,667 ) (1,441 ) Accretion (118 ) (177 ) Intangible assets (1,004 ) (1,004 ) Mortgage servicing rights (5 ) (4 ) Prepaid expenses and transaction fees (103 ) (69 ) Loan origination fees (29 ) - Total (4,257 ) (3,852 ) (90 ) 845 Less: deferred tax asset valuation allowance (136 ) - Net deferred tax (liability) asset $ (226 ) $ 845 Realization of deferred tax assets is dependent upon the generation of future taxable income or the existence of sufficient taxable income within the carry back period. A valuation allowance is provided when it is more likely than not that some portion, or all of the deferred tax assets, will not be realized. In assessing the need for a valuation allowance, management considers the scheduled reversal of the deferred tax liabilities, the level of historical taxable income and the projected future level of taxable income over the periods in which the temporary differences comprising the deferred tax assets will be deductible. Deferred income tax assets and liabilities are determined using the liability method. Under this method, the net deferred tax asset or liability is recognized for the future tax consequences. This is attributable to the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating and capital loss carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates applied to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. If current available evidence about the future raises doubt about the likelihood of a deferred tax asset being realized, a valuation allowance is established. The judgment about the level of future taxable income, including that which is considered capital, is inherently subjective and is reviewed on a continual basis as regulatory and business factors change. Banking corporations operating in New York State are taxed under the New York State General Business Corporation Franchise Tax provisions. Under this New York tax law, the tax rate on the business income base is 6.5%. However, various modifications are available to community banks (defined as banks with less than $8 billion in total assets) regarding certain deductions associated with interest income. However, various modifications are available to community banks (defined as banks with less than $8 billion in total assets) regarding certain deductions associated with interest income. Commencing on January 1, 2018, the Company changed its elected interest income subtraction methodology under which its New York income tax expense is calculated. This change in the Company’s interest income subtraction election was adopted following changes to the New York State Tax Code enacted in 2015 and resulted in a reduction of the Company’s effective income tax rate in New York beginning in 2018. It is anticipated that the Company’s New York effective income tax rate will remain substantially at 0.0% in future periods under current law. In the first quarter of 2019, the Company established, through a charge to earnings, a valuation allowance in the amount of $136,000 in order to establish a reserve against deferred tax assets related to New York income taxes. The establishment of this reserve increased the Company’s effective tax rate by 2.5% in 2019. This reserve was established as the items giving rise to the deferred tax assets related to New York taxes are unlikely to further reduce the Company’s income taxes in the future following the adoption of the new subtraction methodology. There were no valuation allowances against deferred tax assets at December 31, 2018. In 2019, the Company’s effective tax rate was 21.4%, as compared to 11.9% in 2018. A reconciliation of the federal statutory income tax rate to the effective income tax rate for the years ended December 31, is as follows: 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % State tax, net of federal benefit (1.5 ) (3.7 ) Tax-exempt interest income (0.9 ) (4.3 ) Increase in value of bank owned life insurance less premiums paid (1.7 ) (1.9 ) Change in valuation allowance 2.5 - Other 1.9 0.9 Effective income tax rate - Pathfinder Bancorp, Inc. 21.3 % 12.0 % Minority interest 0.1 (0.1 ) Effective income tax rate 21.4 % 11.9 % |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18: Commitments and Contingencies The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated statement of condition. The contractual amount of those commitments to extend credit reflects the extent of involvement the Company has in this particular class of financial instrument. The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of the instrument. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments. At December 31, 2019 and 2018, the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount (In thousands) 2019 2018 Commitments to grant loans $ 47,606 $ 37,354 Unfunded commitments under lines of credit 81,038 74,284 Unfunded commitments related to construction loans in progress 3,214 5,058 Standby letters of credit 2,082 2,007 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitment amounts are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter party. Collateral held varies but may include residential real estate and income-producing commercial properties. Loan commitments outstanding at December 31, 2019 with variable interest rates and fixed interest rates amounted to approximately $122.8 million and $11.1 million, respectively. These outstanding loan commitments carry current market rates. Unfunded commitments under standby letters of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. Letters of credit written are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Generally, all letters of credit, when issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers. The Company generally holds collateral and/or personal guarantees supporting these commitments. Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payments required under the corresponding guarantees. |
Dividends and Restrictions
Dividends and Restrictions | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Restrictions On Dividends Loans And Advances Disclosure [Abstract] | |
DIVIDENDS AND RESTRICTIONS | NOTE 19: Dividends and Restrictions The Company's ability to pay dividends to its shareholders is largely dependent on the Bank's ability to pay dividends to the Company. In addition to state law requirements and the capital requirements discussed in Note 20, federal statutes, regulations and policies limit the circumstances under which the Bank may pay dividends. The amount of retained earnings legally available under these regulations approximated $14.1 million as of December 31, 2019. Dividends paid by the Bank to the Company would be prohibited if the effect thereof would cause the Bank’s capital to be reduced below applicable minimum capital requirements. The Bank made no dividend payments to the Company in the years ended December 31, 2019, December 31, 2018 or December 31, 2017. Capital adequacy is evaluated primarily by the use of ratios which measure capital against total assets, as well as against total assets that are weighted based on defined risk characteristics. The Company’s goal is to maintain a strong capital position, consistent with the risk profile of its banking operations. This strong capital position serves to support growth and expansion activities while at the same time exceeding regulatory standards. At December 31, 2019, the Bank met the regulatory definition of a “well-capitalized” institution, i.e. a leverage capital ratio exceeding 5%, a Tier 1 risk-based capital ratio exceeding 8%, Tier 1 common equity exceeding 6.5%, and a total risk-based capital ratio exceeding 10%. In addition to establishing the minimum regulatory capital requirements, the regulations limit capital distributions and certain discretionary bonus payments to management if the institution does not hold a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The buffer is separate from the capital ratios required under the Prompt Corrective Action (“PCA”) standards. In order to avoid these restrictions, the capital conservation buffer effectively increases the minimum levels of the following capital to risk-weighted assets ratios: (1) Core Capital, (2) Total Capital and (3) Common Equity. The capital conservation buffer requirement is now fully implemented at 2.5% of risk-weighted assets as of January 1, 2019. At December 31, 2019, the Bank exceeded all regulatory required minimum capital ratios, including the capital buffer requirements. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
REGULATORY MATTERS | NOTE 20: Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain amounts and ratios (set forth in the table below) of total and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). As of December 31, 2019, the Bank’s most recent notification from the Federal Deposit Insurance Corporation categorized the Bank as “well-capitalized”, under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized”, the Bank must maintain total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the tables below. There are no conditions or events since that notification that management believes have changed the Bank’s category. As noted above, the regulations also impose a “capital conservation buffer” consisting of 2.5% of common equity Tier 1 capital to risk-weighted assets above the amount necessary to meet its minimum risk-based capital requirements. The buffer is separate from the capital ratios required under the Prompt Corrective Action (“PCA”) standards and imposes restrictions on dividend distributions and discretionary bonuses. In order to avoid these restrictions, the capital conservation buffer effectively increases the minimum levels of the following capital to risk-weighted assets ratios: (1) Core Capital, (2) Total Capital and (3) Common Equity. The capital conservation buffer requirement is now fully implemented at 2.5% of risk-weighted assets as of January 1, 2019. At December 31, 2019, the Bank exceeded all regulatory required minimum capital ratios, including the capital buffer requirements. The Bank’s actual capital amounts and ratios as of December 31, 2019 and 2018 are presented in the following table. Actual Minimum For Capital Adequacy Purposes Minimum To Be "Well-Capitalized" Under Prompt Corrective Provisions Minimum for Capital Adequacy With Buffer (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total Core Capital (to Risk-Weighted Assets) $ 95,093 12.28 % $ 61,934 8.00 % $ 77,418 10.00 % $ 81,289 10.50 % Tier 1 Capital (to Risk-Weighted Assets) $ 86,424 11.16 % $ 46,451 6.00 % $ 61,934 8.00 % $ 65,805 8.50 % Tier 1 Common Equity (to Risk-Weighted Assets) $ 86,424 11.16 % $ 34,838 4.50 % $ 50,322 6.50 % $ 54,192 7.00 % Tier 1 Capital (to Assets) $ 86,424 8.20 % $ 42,175 4.00 % $ 52,719 5.00 % $ 52,719 5.00 % As of December 31, 2018: Total Core Capital (to Risk-Weighted Assets) $ 83,177 13.69 % $ 48,593 8.00 % $ 60,741 10.00 % $ 63,778 10.50 % Tier 1 Capital (to Risk-Weighted Assets) $ 75,871 12.49 % $ 36,445 6.00 % $ 48,593 8.00 % $ 51,630 8.50 % Tier 1 Common Equity (to Risk-Weighted Assets) $ 75,871 12.49 % $ 27,334 4.50 % $ 39,482 6.50 % $ 42,519 7.00 % Tier 1 Capital (to Assets) $ 75,871 8.31 % $ 36,522 4.00 % $ 45,652 5.00 % $ 45,652 5.00 % The Company’s goal is to maintain a strong capital position, consistent with the risk profile of its subsidiary banks that supports growth and expansion activities while at the same time exceeding regulatory standards . The Bank is required to maintain average balances on hand or with the Federal Reserve Bank. At December 31, 2019 and 2018, these reserve balances amounted to $-0- |
Interest Rate Derivative
Interest Rate Derivative | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
INTEREST RATE DERIVATIVE | NOTE 21: INTEREST RATE DERIVATIVE The Company is exposed to certain risks from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through the management of its core business activities. As part of the Company’s overall risk management processes, the Company manages its economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of certain balance sheet assets and liabilities. In the normal course of business, the Company also uses derivative financial instruments as an additional risk management tool. Financial derivatives are recorded at fair value as other assets. Among the array of interest rate derivative transactions potentially available to the Company are interest rate swaps. The Company uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps, designated as fair value hedges, involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed payments over the life of the agreements without the exchange of the underlying notional amount. The gain or loss on the derivative as well as the offsetting gain of loss on the hedged item attributable to the hedged risk are recognized in earnings. The Company entered into a pay-fixed/receive variable interest rate swap with a notional amount of $9.2 million in April 2019, which was designated as a fair value hedge associated with specific pools within the Company’s fixed-rate consumer loan portfolio. As of December 31, 2019, the following amounts were recorded on the balance sheet related to the cumulative basis adjustments for fair value hedges: (In thousands) Carrying Amount of the Hedged Assets at December 31, 2019 Cumulative Amount of Fair Value Hedging Adjustment Included in The Carrying Amount of the Hedged Assets at December 31, 2019 Line item on the balance sheet in which the hedged item is included: Loans receivable (1) $ 19,254 $ 75 (1) These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the remaining amortized cost of the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost of the basis of the closed portfolio used in the hedging relationship was $19.3 million, the cumulative basis adjustment associated with the hedging relationship was $75,000, and the amount of the designated hedged item was $9.2 million. At December 31, 2019, the fair value of the derivative resulted in a net liability position of $92,000 The Company manages its potential credit exposure on interest rate swap transactions by entering into a bilateral credit support agreements with each counterparty. These agreements require collateralization of credit exposures beyond specified minimum threshold amounts. The Company’s agreement with its interest rate swap counterparty contains a provision whereby if either party defaults on any of its indebtedness, then that party could also be declared in default on its derivative obligations. The agreement with the Company’s derivative counterparty also includes certain other provisions that if not met, could result in the Company or the counterparty being declared in default. If either the Company or the counterparty were to be declared in default, the other party to the agreement can terminate the derivative position and require settlement of all obligations as specifically outlined within the terms of the agreement. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS AND DISCLOSURES | NOTE 22: Fair Value MEASUREMENTS AND DISCLOSURES Accounting guidance related to fair value measurements and disclosures specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company’s market assumptions. These two types of inputs have created the following fair value hierarchy: Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 – Quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. In determining fair value, the Company utilizes valuation techniques that maximize the use of observable inputs, minimize the use of unobservable inputs, to the extent possible, and considers counterparty credit risk in its assessment of fair value. The Company used the following methods and significant assumptions to estimate fair value: Investment securities: The fair values of securities available-for-sale are obtained from an independent third party and are based on quoted prices on nationally recognized securities exchanges where available (Level 1). If quoted prices are not available, fair values are measured by utilizing matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management made no adjustment to the fair value quotes that were received from the independent third party pricing service. Level 3 securities are assets whose fair value cannot be determined by using observable measures, such as market prices or pricing models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges. Management applies known factors, such as currently applicable discount rates, to the valuation of those investments in order to determine fair value at the reporting date. The Company holds two corporate investment securities with an aggregate amortized historical cost of $4.8 million and an aggregate fair market value of $4.9 million as of December 31, 2019. These securities have valuations that are determined using published net asset values (NAV) derived by analyses of the securities’ underlying assets. These securities are comprised primarily of broadly-diversified real estate and adjustable-rate senior secured business loans and are traded in secondary markets on an infrequent basis. While these securities are redeemable at least annually through tender offers made by their respective issuers, the liquidation value of the securities may be below their stated NAVs and also subject to restrictions as to the amount of securities that can be redeemed at any single scheduled redemption. The Company anticipates that these securities will be redeemed by their respective issuers on indeterminate future dates as a consequence of the ultimate liquidation strategies employed by the management of these investments. Interest rate swap derivative: The fair value of the interest rate swap derivative is calculated based on a discounted cash flow model. All future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date. The curve utilized for discounting and projecting is built by obtaining publicly available third party market quotes for various swap maturity terms. Impaired loans: Impaired loans are those loans in which the Company has measured impairment based on the fair value of the loan’s collateral or the discounted value of expected future cash flows. Fair value is generally determined based upon market value evaluations by third parties of the properties and/or estimates by management of working capital collateral or discounted cash flows based upon expected proceeds. These appraisals may include up to three approaches to value: the sales comparison approach, the income approach (for income-producing property), and the cost approach. Management modifies the appraised values, if needed, to take into account recent developments in the market or other factors, such as, changes in absorption rates or market conditions from the time of valuation and anticipated sales values considering management’s plans for disposition. Such modifications to the appraised values could result in lower valuations of such collateral. Estimated costs to sell are based on current amounts of disposal costs for similar assets. These measurements are classified as Level 3 within the valuation hierarchy. Impaired loans are subject to nonrecurring fair value adjustment upon initial recognition or subsequent impairment. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. Foreclosed real estate: Fair values for foreclosed real estate are initially recorded based on market value evaluations by third parties, less costs to sell (“initial cost basis”). Any write-downs required when the related loan receivable is exchanged for the underlying real estate collateral at the time of transfer to foreclosed real estate are charged to the allowance for loan losses. Values are derived from appraisals, similar to impaired loans, of underlying collateral or discounted cash flow analysis. Subsequent to foreclosure, valuations are updated periodically and assets are marked to current fair value, not to exceed the initial cost basis. In the determination of fair value subsequent to foreclosure, management also considers other factors or recent developments, such as, changes in absorption rates and market conditions from the time of valuation and anticipated sales values considering management’s plans for disposition. Either change could result in adjustment to lower the property value estimates indicated in the appraisals. These measurements are classified as Level 3 within the fair value hierarchy. The following tables summarize assets measured at fair value on a recurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value: December 31, 2019 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ - $ 16,820 $ - $ 16,820 State and political subdivisions - 1,736 - 1,736 Corporate - 7,631 - 7,631 Asset backed securities - 13,232 - 13,232 Residential mortgage-backed - US agency - 18,980 - 18,980 Collateralized mortgage obligations - US agency - 30,785 - 30,785 Collateralized mortgage obligations - Private label - 16,821 - 16,821 Total - 106,005 - 106,005 Corporate measured at NAV - - - 4,923 Total available-for-sale securities $ - $ 106,005 $ - $ 110,928 Marketable equity securities $ - $ 534 $ - $ 534 Interest rate swap derivative $ - $ (92 ) $ - $ (92 ) December 31, 2018 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ - $ 17,031 $ - $ 17,031 State and political subdivisions - 23,065 - 23,065 Corporate - 12,141 - 12,141 Asset backed securities - 18,119 - 18,119 Residential mortgage-backed - US agency - 31,666 - 31,666 Collateralized mortgage obligations - US agency - 46,441 - 46,441 Collateralized mortgage obligations - Private label - 23,936 - 23,936 Total - 172,399 - 172,399 Corporate measured at NAV - - - 5,059 Total available-for-sale securities $ - $ 172,399 $ - $ 177,458 Marketable equity securities $ - $ 453 $ - $ 453 The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value: December 31, 2019 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Impaired loans $ - $ - $ 3,105 $ 3,105 Foreclosed real estate $ - $ - $ - $ - December 31, 2018 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Impaired loans $ - $ - $ 1,098 $ 1,098 Foreclosed real estate $ - $ - $ 1,173 $ 1,173 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were used to determine fair value. Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable Range Techniques Input (Weighted Avg.) At December 31, 2019 Impaired loans Appraisal of collateral Appraisal Adjustments 5% - 20% (9%) (Sales Approach) Costs to Sell 7% - 13% (11%) Discounted Cash Flow Foreclosed real estate Appraisal of collateral Appraisal Adjustments 15% - 15% (15%) (Sales Approach) Costs to Sell 6% - 9% (8%) Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable Range Techniques Input (Weighted Avg.) At December 31, 2018 Impaired loans Appraisal of collateral Appraisal Adjustments 5% - 15% (6%) (Sales Approach) Costs to Sell 5% - 13% (11%) Discounted Cash Flow Foreclosed real estate Appraisal of collateral Appraisal Adjustments 15% - 15% (15%) (Sales Approach) Costs to Sell 6% - 8% (7%) There have been no transfer of assets into or out of any fair value measurement during the year ended December 31, 2019. Required disclosures include fair value information of financial instruments, whether or not recognized in the consolidated statement of condition, for which it is practicable to estimate that value. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets and, in many cases, could not be realized in immediate settlement of the instrument. The Company has various processes and controls in place to ensure that fair value is reasonably estimated. The Company performs due diligence procedures over third-party pricing service providers in order to support their use in the valuation process. While the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Management uses its best judgment in estimating the fair value of the Company’s financial instruments; however, there are inherent weaknesses in any estimation technique. Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in a sales transaction on the dates indicated. The estimated fair value amounts have been measured as of their respective period-ends, and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates. As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at each period-end. FASB ASC Topic 820 for Fair Value Measurements and Disclosures, the financial assets and liabilities were valued at a price that represents the Company’s exit price or the price at which these instruments would be sold or transferred. The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. The Company, in estimating its fair value disclosures for financial instruments, used the following methods and assumptions: Cash and cash equivalents – The carrying amounts of these assets approximate their fair value and are classified as Level 1. Interest earning time deposits – The carrying amounts of these assets approximate their fair value and are classified as Level 1. Investment securities – The fair values of securities available-for-sale and held-to-maturity are obtained from an independent third party and are based on quoted prices on nationally recognized exchange where available (Level 1). If quoted prices are not available, fair values are measured by utilizing matrix pricing, which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted prices for specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2). Management made no adjustment to the fair value quotes that were received from the independent third party pricing service. Level 3 securities are assets whose fair value cannot be determined by using observable measures, such as market prices or pricing models. Level 3 assets are typically very illiquid, and fair values can only be calculated using estimates or risk-adjusted value ranges. Management applies known factors, such as currently applicable discount rates, to the valuation of those investments in order to determine fair value at the reporting date. The Company holds two corporate investment securities with an aggregate amortized historical cost of $4.8 million and an aggregate fair market value of $4.9 million as of December 31, 2019. These securities have valuations that are determined using published net asset values (NAV) derived by analyses of the securities’ underlying assets. These securities are comprised primarily of broadly-diversified real estate and adjustable-rate senior secured business loans and are traded in secondary markets on an infrequent basis. While these securities are redeemable at least annually through tender offers made by their respective issuers, the liquidation value of the securities may be below their stated NAVs and also subject to restrictions as to the amount of securities that can be redeemed at any single scheduled redemption. The Company anticipates that these securities will be redeemed by their respective issuers on indeterminate future dates as a consequence of the ultimate liquidation strategies employed by the management of these investments. Federal Home Loan Bank stock – The carrying amount of these assets approximates their fair value and are classified as Level 2. Net loans – For variable-rate loans that re-price frequently, fair value is based on carrying amounts. The fair value of other loans (for example, fixed-rate commercial real estate loans, mortgage loans, and commercial and industrial loans) is estimated using discounted cash flow analysis, based on interest rates currently being offered in the market for loans with similar terms to borrowers of similar credit quality. Loan value estimates include judgments based on expected prepayment rates. The measurement of the fair value of loans, including impaired loans, is classified within Level 3 of the fair value hierarchy. Accrued interest receivable and payable – The carrying amount of these assets approximates their fair value and are classified as Level 1. Deposits – The fair values disclosed for demand deposits (e.g., interest-bearing and noninterest-bearing checking, passbook savings and certain types of money management accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts) and are classified within Level 1 of the fair value hierarchy. Fair values for fixed-rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates of deposits to a schedule of aggregated expected monthly maturities on time deposits. Measurements of the fair value of time deposits are classified within Level 2 of the fair value hierarchy. Borrowings – Fixed/variable term “bullet” structures are valued using a replacement cost of funds approach. These borrowings are discounted to the FHLBNY advance curve. Option structured borrowings’ fair values are determined by the FHLB for borrowings that include a call or conversion option. If market pricing is not available from this source, current market indications from the FHLBNY are obtained and the borrowings are discounted to the FHLBNY advance curve less an appropriate spread to adjust for the option. These measurements are classified as Level 2 within the fair value hierarchy. Subordinated loans – The Company secures quotes from its pricing service based on a discounted cash flow methodology or utilizes observations of recent highly-similar transactions which result in a Level 2 classification. Interest rate swap derivative: The fair value of the interest rate swap derivative is calculated based on a discounted cash flow model. All future floating cash flows are projected and both floating and fixed cash flows are discounted to the valuation date. The curve utilized for discounting and projecting is built by obtaining publicly available third party market quotes for various swap maturity terms. The carrying amounts and fair values of the Company’s financial instruments as of December 31 are presented in the following table: December 31, 2019 December 31, 2018 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 20,160 $ 20,160 $ 26,316 $ 26,316 Investment securities - available-for-sale 2 106,005 106,005 172,399 172,399 Investment securities - available-for-sale NAV 4,923 4,923 5,059 5,059 Investment securities - marketable equity 2 534 534 453 453 Investment securities - held-to-maturity 2 122,988 124,148 53,908 53,769 Federal Home Loan Bank stock 2 4,834 4,834 5,937 5,937 Net loans 3 772,782 767,654 612,964 601,789 Accrued interest receivable 1 3,712 3,712 3,068 3,068 Financial liabilities: Demand Deposits, Savings, NOW and MMDA 1 $ 460,293 $ 460,293 $ 450,267 $ 450,267 Time Deposits 2 421,600 422,409 276,793 275,727 Borrowings 2 93,125 93,643 118,534 118,379 Subordinated loans 2 15,128 14,921 15,094 14,485 Accrued interest payable 2 396 396 304 304 Interest rate swap derivative 2 92 92 - - |
Parent Company - Financial Info
Parent Company - Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY - FINANCIAL INFORMATION | NOTE 23: Parent Company – Financial Information The following represents the condensed financial information of Pathfinder Bancorp, Inc. as of and for the years ended December 31: Statements of Condition 2019 2018 (In thousands) Assets Cash $ 14,514 $ 3,063 Investments 534 453 Investment in bank subsidiary 88,372 74,769 Investment in non-bank subsidiary 155 193 Other assets 3,193 1,961 Total assets $ 106,768 $ 80,439 Liabilities and Shareholders' Equity Accrued liabilities $ 971 $ 886 Subordinated loans 15,128 15,094 Shareholders' equity 90,669 64,459 Total liabilities and shareholders' equity $ 106,768 $ 80,439 Statements of Income 2019 2018 (In thousands) Income Dividends from non-bank subsidiary $ 6 $ 6 Gains (losses) on marketable equity securities 81 (62 ) Operating, net 79 - Total income (loss) 166 (56 ) Expenses Interest 863 846 Operating, net 337 175 Total expenses 1,200 1,021 Loss before taxes and equity in undistributed net income of subsidiaries (1,034 ) (1,077 ) Tax benefit 235 340 Loss before equity in undistributed net income of subsidiaries (799 ) (737 ) Equity in undistributed net income of subsidiaries 5,075 4,768 Net income $ 4,276 $ 4,031 Statements of Cash Flows 2019 2018 (In thousands) Operating Activities Net Income $ 4,276 $ 4,031 Equity in undistributed net income of subsidiaries (5,075 ) (4,768 ) Stock based compensation and ESOP expense 630 773 Amortization of deferred financing from subordinated loan 34 35 Net change in other assets and liabilities (1,256 ) (1,372 ) Net cash flows from operating activities (1,391 ) (1,301 ) Investing Activities Capital contributed to wholly-owned bank subsidiary (5,700 ) - Net cash flows from investing activities (5,700 ) - Financing activities Proceeds from exercise of stock options 218 385 Net proceeds from common stock private placement 4,199 - Net proceeds from preferred stock private placement 15,370 - Cash dividends paid to common shareholders (1,091 ) (1,025 ) Cash dividends paid to preferred shareholders (139 ) - Cash dividends paid on warrants (15 ) - Net cash flows from financing activities 18,542 (640 ) Change in cash and cash equivalents 11,451 (1,941 ) Cash and cash equivalents at beginning of year 3,063 5,004 Cash and cash equivalents at end of year $ 14,514 $ 3,063 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 24: RELATED PARTY TRANSACTIONS In the ordinary course of business, the Company has granted loans to certain directors, executive officers and their affiliates (collectively referred to as “related parties”). These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated parties and do not involve more than normal risk of collectability. The following represents the activity associated with loans to related parties during the year ended December 31, 2019: (In thousands) Balance at the beginning of the year $ 10,512 Originations and Officer additions 1,685 Principal payments and Officer removals (3,425 ) Balance at the end of the year $ 8,772 Deposits of related parties at December 31, 2019 and December 31, 2018 were $4.5 million and $3.9 million, respectively. |
Conversion and Reorganization
Conversion and Reorganization | 12 Months Ended |
Dec. 31, 2019 | |
Conversion And Reorganization [Abstract] | |
CONVERSION AND REORGANIZATION | NOTE 25: CONVERSION AND REORGANIZATION On October 16, 2014, the former Pathfinder Bancorp (“former Pathfinder”) completed the conversion and reorganization pursuant to which Pathfinder Bancorp, MHC converted to the stock holding company form of organization under a “second step” conversion (the “Conversion”), and the Bank reorganized from the two-tier mutual holding company structure to the stock holding company structure. Prior to the completion of the Conversion, the MHC owned approximately 60.4% of the common stock of the Company. The Company, the new stock holding company for Pathfinder Bank, sold 2,636,053 shares of common stock at $10.00 per share, for gross offering proceeds of $26.4 million in its stock offering. In addition, $197,000 in cash was received by the Company from the MHC upon it ceasing to exist. Concurrent with the completion of the offering, shares of common stock of the Company owned by the public were exchanged for shares of the Company’s common stock so that the shareholders now own approximately the same percentage of the Company’s common stock as they owned of the former Pathfinder’s common stock immediately prior to the Conversion. Shareholders of the former Pathfinder received 1.6472 shares of the Company’s common stock for each share of the former Pathfinder’s common stock that they owned immediately prior to completion of the transaction. As a result of the offering and the exchange of shares, the Company had 4,353,850 shares outstanding at December 31, 2014. The Company has 4,362,328 and 4,709,238 shares outstanding at December 31, 2018 and December 31, 2019, respectively. The Conversion was accounted for as a change in corporate form with no resulting change in the historical basis of the Company’s assets, liabilities, and equity. Costs related to the offering were primarily marketing fees paid to the Company’s investment banking firm, legal and professional fees, registration fees, printing and mailing costs and totaled $1.5 million. Accordingly, net proceeds were $24.9 million. In addition, as part of the Conversion and dissolution of the MHC, the Company received $197,000 of cash previously held by the MHC. As a result of the Conversion and Offering, Pathfinder Bancorp, Inc., a federal corporation, was succeeded by a new fully public Maryland corporation with the same name and the MHC ceased to exist. The shares of common stock sold in the offering and issued began trading on the NASDAQ Capital Market on October 17, 2014 under the trading symbol “PBHC.” In accordance with Board of Governors of the Federal Reserve System regulations, at the time of the reorganization, the Company substantially restricted retained earnings by establishing a liquidation account. The liquidation account will be maintained for the benefit of eligible account holders who continue to maintain their accounts at the Bank after conversion. The Bank will establish a parallel liquidation account to support the Company’s liquidation account in the event the Company does not have sufficient assets to fund its obligations under its liquidation account. The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Subsequent increases will not restore an eligible account holder’s interest in the liquidation accounts. In the event of a complete liquidation of the Bank or the Company, each account holder will be entitled to receive a distribution in an amount proportionate to the adjusted qualifying account balances then held. The Bank may not pay dividends if those dividends would reduce equity capital below the required liquidation account amount. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | NOTE 26: ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the periods indicated are summarized in the table below. For the years ended December 31, 2019 (In thousands) Retirement Plans Unrealized Gains and Losses on Available-for- Sale Securities Unrealized Loss on Securities Transferred to Held-to- Maturity Total Beginning balance $ (3,152 ) $ (2,832 ) $ (58 ) $ (6,042 ) Other comprehensive income before reclassifications 188 2,859 20 3,067 Amounts reclassified from AOCI 247 (243 ) - 4 Ending balance $ (2,717 ) $ (216 ) $ (38 ) $ (2,971 ) For the years ended December 31, 2018 (In thousands) Retirement Plans Unrealized Gains and Losses on Available-for- Sale Securities Unrealized Loss on Securities Transferred to Held-to- Maturity Total Beginning balance $ (2,220 ) $ (1,558 ) $ (430 ) $ (4,208 ) Other comprehensive income before reclassifications (1,058 ) (1,471 ) 129 (2,400 ) Amounts reclassified from AOCI 126 134 - 260 Cumulative effect of change in measurement of equity securities (1) - (53 ) - (53 ) Cumulative effect of change in investment securities transfer (2) - 116 243 359 Ending balance $ (3,152 ) $ (2,832 ) $ (58 ) $ (6,042 ) (1) Cumulative effect of unrealized gain on marketable equity securities based on the adoption of ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. (2) Cumulative effect of unrealized gains on the transfer of 52 investment securities from held-to-maturity classification to available-for-sale classification based on the adoption of ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The following table presents the amounts reclassified out of each component of AOCI for the indicated annual period: (In thousands) For the years ended Details about AOCI 1 December 31, 2019 December 31, 2018 Affected Line Item in the Statement of Income Retirement plan items Retirement plan net losses recognized in plan expenses 2 $ (335 ) $ (171 ) Salaries and employee benefits 88 45 Provision for income taxes $ (247 ) $ (126 ) Net Income Available-for-sale securities Realized gain (loss) on sale of securities $ 329 $ (182 ) Net gains on sales and redemptions of investment securities (86 ) 48 Provision for income taxes $ 243 $ (134 ) Net Income (1) Amounts in parentheses indicates debits in net income. (2) These items are included in net periodic pension cost. See Note 14 for additional information. |
Noninterest Income
Noninterest Income | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Noninterest Income | NOTE 27: NONINTEREST INCOME The Company has included the following table regarding the Company’s noninterest income for the periods presented. Years Ended December 31, (In thousands) 2019 2018 Service fees Insufficient funds fees $ 1,122 $ 852 Deposit related fees 179 202 ATM fees 90 94 Total service fees 1,391 1,148 Fee Income Insurance commissions 828 831 Investment services revenue 267 288 ATM fees surcharge 226 232 Banking house rents collected 195 134 Total fee income 1,516 1,485 Card income Debit card interchange fees 657 576 Merchant card fees 80 72 Total card income 737 648 Mortgage fee income and realized gain on sale of loans and foreclosed real estate Loan servicing fees 211 170 Net gains on sales of loans and foreclosed real estate 64 50 Total mortgage fee income and realized gain on sale of loans and foreclosed real estate 275 220 Total 3,919 3,501 Earnings and gain on bank owned life insurance 462 427 Net gains (losses) on sales and redemptions of investment securities 329 (182 ) Gains (losses) on marketable equity securities 81 (62 ) Other miscellaneous income 126 151 Total noninterest income $ 4,917 $ 3,835 The following is a discussion of key revenues within the scope of the new revenue guidance: • Service fees – Revenue is earned through insufficient funds fees, customer initiated activities or passage of time for deposit related fees, and ATM service fees. Transaction-based fees are recognized at the time the transaction is executed, which is the same time the Company’s performance obligation is satisfied. Account maintenance fees are earned over the course of the month as the monthly maintenance performance obligation to the customer is satisfied. • Fee income – Revenue is earned through commissions on insurance and securities sales, ATM surcharge fees, and banking house rents collected. The Company earns investment advisory fee income by providing investment management services to customers under investment management contracts. As the direction of investment management accounts is provided over time, the performance obligation to investment management customers is satisfied over time, and therefore, revenue is recognized over time. • Card income – Card income consists of interchange fees from consumer debit card networks and other related services. Interchange rates are set by the card networks. Interchange fees are based on purchase volumes and other factors and are recognized as transactions occur. • Mortgage fee income and realized gain on sale of loans and foreclosed real estate – Revenue from mortgage fee income and realized gain on sale of loans and foreclosed real estate is earned through the origination of residential and commercial mortgage loans, sales of one-to-four family residential mortgage loans, sales of government guarantees portions of SBA loans, and sales of foreclosed real estate, and is earned as the transaction occurs. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | NOTE 28: LEASES The Company has operating and finance leases for certain banking offices and land under noncancelable agreements. Our leases have remaining lease terms that vary from less than one year up to 31 years, some of which include options to extend the leases for various renewal periods. All options to renew are included in the current lease term when we believe it is reasonably certain that the renewal options will be exercised. The Company elected to adopt the transition relief under Topic 842, Leases, using the modified retrospective transition method. The periods presented prior to January 1, 2019 continue to be in accordance with ASC 840. The components of lease expense are as follows: For the years ended December 31, (In thousands) 2019 Operating lease cost $ 240 Finance lease cost $ 51 Supplemental cash flow information related to leases was as follows: For the years ended December 31, (In thousands) 2019 Cash paid for amount included in the measurement of lease liabilities: Operating cash flows from operating leases $ 215 Operating cash flows from finance leases $ 51 Financing cash flows from finance leases $ 46 Supplemental balance sheet information related to leases was as follows: December 31, (In thousands, except lease term and discount rate) 2019 Operating Leases: Operating lease right-of-use assets $ 2,386 Operating lease liabilities $ 2,650 Finance Leases: Financial Liability $ 578 Weighted Average Remaining Lease Term: Operating Leases 19.58 years Finance Leases 29.42 years Weighted Average Discount Rate: Operating Leases 3.71 % Finance Leases 13.75 % Maturities of lease liabilities were as follows: Years Ending December 31, (In thousands) 2020 $ 116 2021 99 2022 99 2023 110 2024 118 Thereafter 2,686 Total minimum lease payments $ 3,228 The Company owns certain properties that it leases to unaffiliated third parties at market rates. Lease rental income was $195,000 and $134,000 for the twelve months ended December 31, 2019 and 2018, respectively. All lease agreements are accounted for as operating leases. The Company has no unamortized initial direct costs related to the establishment of these lease agreements at January 1, 2019. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 29: SUBSEQUENT EVENTS The outbreak of Coronavirus Disease 2019 (“COVID-19”) could adversely impact a broad range of industries in which the Company’s customers operate and impair their ability to fulfill their financial obligations to the Company. The World Health Organization has declared Covid-19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak will likely cause significant disruptions in the U.S. economy and is highly likely to disrupt banking and other financial activity in the areas in which the Company operates and could also potentially create widespread business continuity issues for the Company. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID-19 escalates or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. The Company’s management routinely evaluates the overall characteristics of its loan portfolio. Such evaluations may include analyses of certain loans for potential sales to unaffiliated third parties. Loan sales may be made in response to a variety of factors such as changes in market conditions or changes in the level of certain loan-type concentrations. Such sales, when executed, would typically be made in order to improve certain characteristics within the overall loan portfolio, viewed individually or in combination, related to factors such as cash flow, liquidity, duration or potential interest rate risk. On January 28, 2020, the Company completed the sale of 267 residential mortgage loans, on a servicing-retained basis, that were categorized as loans held-for-sale as of December 31, 2019. The loans had been previously held in portfolio from two to five years. The loans were acquired by FNMA in a transaction arranged and managed by an independent third party. The sold loans had an aggregate unpaid principal balance of $35.7 million and a weighted average coupon of 4.08%. Loan sales of this specific type are executed with the intention of reducing the overall duration of the loan portfolio and the Company’s potential exposure to the effects of rising interest rates as well as to provide liquidity for other lending activities. As a result of the sale, the Company recognized a pre-tax gain of $370,000 on the sale and capitalized an additional $289,000 in retained mortgage servicing rights. In total, therefore, pretax revenue was increased by $659,000 in January 2020 as a result of this transaction. The proceeds of the sale will be used on an interim basis to improve overall balance sheet liquidity by reducing the Company’s aggregate level of borrowed funds and/or brokered certificates of deposit in the remainder of the first quarter of 2020. Ultimately, it is expected that the proceeds of the transaction will be used to fund growth in the Company’s commercial and commercial real estate loan portfolios. On March 23, 2020, the Company announced that its Board of Directors had declared a cash dividend of $0.06 per common and preferred share, and a cash dividend of $0.06 per notional share for the issued common stock Warrant. The dividend will be payable on May 8, 2020 to shareholders of record on April 16, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations The accompanying consolidated financial statements include the accounts of Pathfinder Bancorp, Inc. (the “Company”) and its wholly owned subsidiary, Pathfinder Bank (the “Bank”). The Company is a Maryland corporation headquartered in Oswego, New York. On October 16, 2014, the Company completed its conversion from the mutual holding company structure and the related public offering and is now a stock holding company that is fully owned by the public. As a result of the conversion, the mutual holding company and former mid-tier holding company were merged into Pathfinder Bancorp, Inc. The primary business of the Company is its investment in Pathfinder Bank (the "Bank") which is 100% owned by the Company. The Bank has two wholly owned operating subsidiaries, Pathfinder Risk Management Company, Inc. (“PRMC”) and Whispering Oaks Development Corp. All significant inter-company accounts and activity have been eliminated in consolidation. Although the Company owns, through its subsidiary PRMC, 51% of the membership interest in FitzGibbons Agency, LLC (“FitzGibbons”), the Company is required to consolidate 100% of FitzGibbons within the consolidated financial statements. The 49% of which the Company does not own is accounted for separately as noncontrolling interests within the consolidated financial statements. The Company received $24.9 million in net proceeds from the sale of approximately 2.6 million shares of common stock as a result of the Conversion in October 2014. In October 2015, the Company executed the issuance of the $10.0 million non-amortizing Subordinated Loan and subsequently used those proceeds in February 2016 to substantially fund the full retirement of $13.0 million in SBLF Preferred stock. The Company received $19.6 million in net proceeds from the sale of 37,700 shares of common stock and 1,155,283 shares of preferred stock as a result of the Private Placement in May 2019. The Company has seven branch offices located in Oswego County, three branch offices in Onondaga County and one limited purpose office in Oneida County. The Company is primarily engaged in the business of attracting deposits from the general public in the Company’s market area, and investing such deposits, together with other sources of funds, in loans secured by commercial real estate, business assets, one-to-four family residential real estate and investment securities. |
Use of Estimates in the Preparation of Consolidated Financial Statements | Use of Estimates in the Preparation of Consolidated Financial Statements The preparation of consolidated financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management has identified the allowance for loan losses, deferred income taxes, pension obligations, the annual evaluation of the Company’s goodwill for possible impairment and the evaluation of investment securities for other than temporary impairment and the estimation of fair values for accounting and disclosure purposes to be the accounting areas that require the most subjective and complex judgments, and as such, could be the most subject to revision as new information becomes available. The Company is subject to the regulations of various governmental agencies. The Company also undergoes periodic examinations by the regulatory agencies which may subject it to further changes with respect to asset valuations, amounts of required loss allowances, and operating restrictions resulting from the regulators' judgments based on information available to them at the time of their examinations. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located primarily in Oswego and Onondaga counties of New York State. A large portion of the Company’s portfolio is centered in residential and commercial real estate. The Company closely monitors real estate collateral values and requires additional reviews of commercial real estate appraisals by a qualified third party for commercial real estate loans in excess of $400,000. All residential loan appraisals are reviewed by an individual or third party who is independent of the loan origination or approval process and was not involved in the approval of appraisers or selection of the appraiser for the transaction, and has no direct or indirect interest, financial or otherwise in the property or the transaction. |
Advertising | Advertising The Company generally follows the policy of charging the costs of advertising to expense as incurred. Expenditures for new marketing and advertising material designs and/or media content, related to specifically-identifiable marketing campaigns are capitalized and expensed over the estimated life of the campaign. Such periods of time are generally 12-24 months in duration and do not exceed 36 months. |
Noncontrolling Interest | Noncontrolling Interest Noncontrolling interest represents the portion of ownership and profit or loss that is attributable to the minority owners of FitzGibbons. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash on hand, amounts due from banks and interest-bearing deposits (with original maturity of three months or less). |
Investment Securities | Investment Securities The Company classifies investment securities as either available-for-sale or held-to-maturity. The Company does not hold any securities considered to be trading. Available-for-sale securities are reported at fair value, with net unrealized gains and losses reflected as a separate component of shareholders’ equity, net of the applicable income tax effect. Held-to-maturity securities are those that the Company has the ability and intent to hold until maturity and are reported at amortized cost. Gains or losses on investment security transactions are based on the amortized cost of the specific securities sold. Premiums and discounts on securities are amortized and accreted into income using the interest method over the period to maturity. The Company records its investment in marketable equity securities (“MES”) at fair value. Changes in the fair value of MES are recorded as additions to, or subtractions from, net income in the period that the change occurs. These changes in fair value are separately disclosed as gains (losses) on equity securities on the Consolidated Statements of Income. Note 4 to the consolidated financial statements includes additional information about the Company’s accounting policies with respect to the impairment of investment securities. |
Federal Home Loan Bank Stock | Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. The stock is carried at cost. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including sales of loans and loan participations, are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Loans | Loans The Company grants mortgage, commercial, municipal, and consumer loans to customers. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are stated at their outstanding unpaid principal balances, less the allowance for loan losses plus net deferred loan origination costs. The ability of the Company’s debtors to honor their contracts is dependent upon the real estate and general economic conditions in the market area. Interest income is generally recognized when income is earned using the interest method. Nonrefundable loan fees received and related direct origination costs incurred are deferred and amortized over the life of the loan using the interest method, resulting in a constant effective yield over the loan term. Deferred fees are recognized into income and deferred costs are charged to income immediately upon prepayment of the related loan. The loans receivable portfolio is segmented into residential mortgage, commercial and consumer loans. The residential mortgage segment consists of one-to-four family first-lien residential mortgages and construction loans. Commercial loans consist of the following classes: real estate, lines of credit, other commercial and industrial, and tax-exempt loans. Consumer loans include both home equity lines of credit and loans with junior liens and other consumer loans. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses represents management’s estimate of losses inherent in the loan portfolio as of the date of the statement of condition and it is recorded as a reduction of loans. The allowance is increased by the provision for loan losses, and decreased by charge-offs, net of recoveries. Loans deemed to be uncollectible are charged against the allowance for loan losses, and subsequent recoveries, if any, are credited to the allowance. All, or part, of the principal balance of loans receivable are charged off to the allowance as soon as it is determined that the repayment of all, or part, of the principal balance is highly unlikely. Non-residential consumer loans are generally charged off no later than 120 days past due on a contractual basis, unless productive collection efforts are providing results. Consumer loans may be charged off earlier in the event of bankruptcy, or if there is an amount that is deemed uncollectible. No portion of the allowance for loan losses is restricted to any individual loan product and the entire allowance is available to absorb any and all loan losses. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can be reasonably anticipated. Management performs a quarterly evaluation of the adequacy of the allowance. The allowance is based on three major components which are; specific components for larger loans, recent historical losses and several qualitative factors applied to a general pool of loans, and an unallocated component. The first component is the specific component that relates to loans that are classified as impaired. For these loans, an allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. The second or general component covers pools of loans, by loan class, not considered impaired, smaller balance homogeneous loans, such as residential real estate, home equity and other consumer loans. These pools of loans are evaluated for loss exposure first based on historical loss rates for each of these categories of loans. The ratio of net charge-offs to loans outstanding within each product class, over the most recent eight quarters, lagged by one quarter, is used to generate the historical loss rates. In addition, qualitative factors are added to the historical loss rates in arriving at the total allowance for loan loss need for this general pool of loans. The qualitative factors include changes in national and local economic trends, the rate of growth in the portfolio, trends of delinquencies and nonaccrual balances, changes in loan policy, and changes in lending management experience and related staffing. Each factor is assigned a value to reflect improving, stable or declining conditions based on management’s best judgment using relevant information available at the time of the evaluation. These qualitative factors, applied to each product class, make the evaluation inherently subjective, as it requires material estimates that may be susceptible to significant revision as more information becomes available. Adjustments to the factors are supported through documentation of changes in conditions in a narrative accompanying the allowance for loan loss analysis and calculation. The third or unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio and generally comprises less than 10% of the total allowance for loan loss. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and shortfalls on a case-by case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length and reason for the delay, the borrower’s prior payment record and the amount of shortfall in relation to what is owed. Impairment is measured by either the present value of the expected future cash flows discounted at the loan’s effective interest rate or the fair value of the underlying collateral, if the loan is collateral dependent. The majority of the Company’s loans utilize the fair value of the underlying collateral. An allowance for loan loss is established for an impaired loan if its carrying value exceeds its estimated fair value. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loan’s collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals, less costs to sell. Appraised values are discounted to arrive at the estimated selling price of the collateral, which is considered to be the estimated fair value. The discounts also include estimated costs to sell the property. For commercial and industrial loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable agings or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. Large groups of homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual residential mortgage loans less than $300,000, home equity and other consumer loans for impairment disclosures, unless such loans are related to borrowers with impaired commercial loans or they are subject to a troubled debt restructuring agreement. Loans that are related to borrowers with impaired commercial loans or are subject to a troubled debt restructuring agreement are evaluated individually for impairment. Commercial loans whose terms are modified are classified as troubled debt restructurings if the Company grants such borrowers concessions and it is deemed that those borrowers are experiencing financial difficulty. Concessions granted under a troubled debt restructuring generally include but are not limited to a temporary reduction in the interest rate or an extension of a loan’s stated maturity date. Commercial loans classified as troubled debt restructurings are designated as impaired and evaluated individually as discussed above. The allowance calculation methodology includes further segregation of loan classes into risk rating categories. The borrower’s overall financial condition, repayment sources, guarantors and value of the collateral, if appropriate, are evaluated not less than annually for commercial loans or when credit deficiencies arise on all loans. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. See Note 5 for a description of these regulatory classifications. In addition, Federal and State regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for loan losses and may require the Company to recognize additions to the allowance based on their judgments about information available to them at the time of their examination, which may not be currently available to management. Based on management’s comprehensive analysis of the loan portfolio, management believes the current level of the allowance for loan losses is adequate. |
Income Recognition on Impaired and Nonaccrual Loans | Income Recognition on Impaired and Nonaccrual Loans For all classes of loans receivable, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due or management has serious doubts about further collectability of principal or interest, even though the loan may be currently performing. A loan may remain on accrual status if it is either well secured or guaranteed and in the process of collection. When a loan is placed on nonaccrual status, unpaid interest is reversed and charged to interest income. Interest received on nonaccrual loans, including impaired loans, generally is either applied against principal or reported as interest income, according to management’s judgment as to the collectability of principal. Generally, loans are restored to accrual status when the obligation is brought current, has performed in accordance with the contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Nonaccrual troubled debt restructurings are restored to accrual status if principal and interest payments, under the modified terms, are current for six consecutive months after modification. For nonaccrual loans, when future collectability of the recorded loan balance is expected, interest income may be recognized on a cash basis. In the case where a nonaccrual loan had been partially charged off, recognition of interest on a cash basis is limited to that which would have been recognized on the recorded loan balance at the contractual interest rate. Cash interest receipts in excess of that amount are recorded as recoveries to the allowance for loan losses until prior charge-offs have been fully recovered. |
Off-Balance Sheet Credit Related Financial Instruments | Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under standby letters of credit. Such financial instruments are recorded when they are funded. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets, ranging up to 40 years for premises and 10 years for equipment. Maintenance and repairs are charged to operating expenses as incurred. The asset cost and accumulated depreciation are removed from the accounts for assets sold or retired and any resulting gain or loss is included in the determination of income. |
Foreclosed Real Estate | Foreclosed Real Estate Physical possession of residential real estate property collateralizing a residential mortgage loan occurs when legal title is obtained upon completion of foreclosure or when the borrower conveys all interest in the property to satisfy the loan through completion of a deed-in-lieu of foreclosure or through a similar legal agreement. Properties acquired through foreclosure, or by deed-in-lieu of foreclosure, are recorded at their fair value less estimated costs to sell. Fair value is typically determined based on evaluations by third parties. Costs incurred in connection with preparing the foreclosed real estate for disposition are capitalized to the extent that they enhance the overall fair value of the property. Any write-downs on the asset’s fair value less costs to sell at the date of acquisition are charged to the allowance for loan losses. Subsequent write downs and expenses of foreclosed real estate are included as a valuation allowance and recorded in noninterest expense. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill represents the excess cost of an acquisition over the fair value of the net assets acquired. Goodwill is not amortized, but is evaluated annually for impairment. Intangible assets, such as customer lists, are amortized over their useful lives, generally 15 years. |
Mortgage Servicing Rights | Mortgage Servicing Rights Originated mortgage servicing rights are recorded at their fair value at the time of transfer of the related loans and are amortized in proportion to, and over the period of, estimated net servicing income or loss. The carrying value of the originated mortgage servicing rights is periodically evaluated for impairment or between annual evaluations under certain circumstances. |
Stock-Based Compensation | Stock-Based Compensation Compensation costs related to share-based payment transactions are recognized based on the grant-date fair value of the stock-based compensation issued. Compensation costs are recognized over the period that an employee provides service in exchange for the award. Compensation costs related to the Employee Stock Ownership Plan are dependent upon the average stock price and the shares committed to be released to plan participants through the period in which income is reported. |
Retirement Benefits | Retirement Benefits The Company has a non-contributory defined benefit pension plan that covered substantially all employees. On May 14, 2012, the Company informed its employees of its decision to freeze participation and benefit accruals under the plan, primarily to reduce some of the volatility in earnings that can accompany the maintenance of a defined benefit plan. The plan was frozen on June 30, 2012. Compensation earned by employees up to June 30, 2012 is used for purposes of calculating benefits under the plan but there will be no future benefit accruals after this date. Participants as of June 30, 2012 will continue to earn vesting credit with respect to their frozen accrued benefits as they continue to work. Pension expense under these plans is charged to current operations and consists of several components of net pension cost based on various actuarial assumptions regarding future experience under the plans. Gains and losses, prior service costs and credits, and any remaining transition amounts that have not yet been recognized through net periodic benefit cost are recognized in accumulated other comprehensive loss, net of tax effects, until they are amortized as a component of net periodic cost. Plan assets and obligations are measured as of the Company’s statement of condition date. The Company has unfunded deferred compensation and supplemental executive retirement plans for selected current and former employees and officers that provide benefits that cannot be paid from a qualified retirement plan due to Internal Revenue Code restrictions. These plans are nonqualified under the Internal Revenue Code, and assets used to fund benefit payments are not segregated from other assets of the Company, therefore, in general, a participant's or beneficiary's claim to benefits under these plans is as a general creditor. The Bank sponsors an Employee Stock Ownership Plan (“ESOP”) covering substantially all full time employees. The cost of shares issued to the ESOP but not committed to be released to the participants is presented in the consolidated statement of condition as a reduction of shareholders’ equity. ESOP shares are released to the participants on an annual basis in accordance with a predetermined schedule. The Company records ESOP compensation expense based on the shares committed to be released and allocated to the participant’s accounts multiplied by the average share price of the Company’s stock over the period. Dividends related to unallocated shares are recorded as compensation expense. |
Derivative Financial Instruments | Derivative Financial Instruments Derivatives are recorded on the statement of condition as assets and liabilities measured at their fair value. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. The specific accounting treatment for increases and decreases in the value of derivatives depends upon the use of the specific derivatives. There are two primary types of interest rate derivatives that may be employed by the Company: • Fair Value Hedge - As a result of interest rate fluctuations, fixed-rate assets and liabilities will appreciate or depreciate in fair value. When effectively hedged, this appreciation or depreciation will generally be offset by fluctuations in the fair value of derivative instruments that are linked to the hedged assets and liabilities. This strategy is referred to as a fair value hedge. For a fair value hedge, changes in the fair value of the derivative instrument and changes in the fair value of the hedged asset or liability are recognized currently in earnings. • Cash Flow Hedge - Cash flows related to floating rate assets and liabilities will fluctuate with changes in the underlying rate index. When effectively hedged, the increases or decreases in cash flows related to the floating-rate asset or liability will generally be offset by changes in cash flows of the derivative instrumnets designated as a hedge. This strategy is referred to as a cash flow hedge. For a cash flow hedge, changes in the fair value of the derivative instrument, to the extent that it is effective, are recorded in other comprehensive income and subsequently reclassified to earnings as the hedged transaction impacts net income. Any ineffective portion of a cash flow hedge is recognized currently in earnings. |
Income Taxes | Income Taxes Provisions for income taxes are based on taxes currently payable or refundable and deferred income taxes on temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. Deferred tax assets and liabilities are reported in the consolidated financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. |
Earning Per Share | Earnings Per Share Basic net income per share was calculated using the two-class method by dividing net income (less any dividends on participating securities) by the weighted average number of shares of common stock and participating securities outstanding for the period. Diluted earnings per share may include the additional effect of other securities, if dilutive, in which case the dilutive effect of such securities is calculated by applying either the two-class method or the Treasury Stock method to the assumed exercise or vesting of potentially dilutive common shares. The method yielding the more dilutive result is ultimately reported for the applicable period. Potentially dilutive common stock equivalents primarily consist of employee stock options and restricted stock units. Unallocated common shares held by the ESOP are not included in the weighted average number of common shares outstanding for purposes of calculating earnings per common share until they are committed to be released to plan participants. Note 3 provides more information related to earnings per share. |
Segment Reporting | Segment Reporting The Company has evaluated the activities relating to its strategic business units. The controlling interest in the FitzGibbons Agency is dissimilar in nature and management when compared to the Company’s other strategic business units which are judged to be similar in nature and management. The Company has determined that the FitzGibbons Agency is below the reporting threshold in size in accordance with Accounting Standards Codification 280. Accordingly, the Company has determined it has no reportable segments. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities are reported as a separate component of the equity section of the statement of condition, such items, along with net income, are components of comprehensive income. Accumulated other comprehensive loss represents the sum of these items, with the exception of net income, as of the balance sheet date and is represented in the table below. As of December 31, Accumulated Other Comprehensive Loss By Component: 2019 2018 Unrealized loss for pension and other postretirement obligations $ (3,677 ) $ (4,266 ) Tax effect 960 1,114 Net unrealized loss for pension and other postretirement obligations (2,717 ) (3,152 ) Unrealized loss on available-for-sale securities (293 ) (3,833 ) Tax effect 77 1,001 Net unrealized loss on available-for-sale securities (216 ) (2,832 ) Unrealized loss on securities transferred to held-to-maturity (54 ) (82 ) Tax effect 16 24 Net unrealized loss on securities transferred to held-to-maturity (38 ) (58 ) Accumulated other comprehensive loss $ (2,971 ) $ (6,042 ) |
Reclassifications | Reclassifications Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on net income as previously reported. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss represents the sum of these items, with the exception of net income, as of the balance sheet date and is represented in the table below. As of December 31, Accumulated Other Comprehensive Loss By Component: 2019 2018 Unrealized loss for pension and other postretirement obligations $ (3,677 ) $ (4,266 ) Tax effect 960 1,114 Net unrealized loss for pension and other postretirement obligations (2,717 ) (3,152 ) Unrealized loss on available-for-sale securities (293 ) (3,833 ) Tax effect 77 1,001 Net unrealized loss on available-for-sale securities (216 ) (2,832 ) Unrealized loss on securities transferred to held-to-maturity (54 ) (82 ) Tax effect 16 24 Net unrealized loss on securities transferred to held-to-maturity (38 ) (58 ) Accumulated other comprehensive loss $ (2,971 ) $ (6,042 ) |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculations of Basic and Diluted Earnings per Share | The following table sets forth the calculation of basic and diluted earnings per share. Years ended December 31, (In thousands, except per share data) 2019 2018 Net income attributable to Pathfinder Bancorp, Inc. $ 4,276 $ 4,031 Convertible preferred stock dividends 208 - Warrant dividends 23 - Undistributed earnings allocated to participating securities 467 - Net income available to common shareholders $ 3,578 $ 4,031 Basic weighted average common shares outstanding 4,464 4,171 Effect of assumed exercise of stock options and unvested restricted stock units - 95 Diluted weighted average common shares outstanding 4,464 4,266 Basic earnings per common share $ 0.80 $ 0.97 Diluted earnings per common share $ 0.80 $ 0.94 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Amortized Cost and Estimated Fair Value of Investment Securities | The amortized cost and estimated fair value of investment securities are summarized as follows: December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 16,850 $ - $ (30 ) $ 16,820 State and political subdivisions 1,735 1 - 1,736 Corporate 12,347 230 (23 ) 12,554 Asset backed securities 13,190 61 (19 ) 13,232 Residential mortgage-backed - US agency 19,012 56 (88 ) 18,980 Collateralized mortgage obligations - US agency 31,320 35 (570 ) 30,785 Collateralized mortgage obligations - Private label 16,767 97 (43 ) 16,821 Total 111,221 480 (773 ) 110,928 Equity investment securities: Common stock - financial services industry 206 - - 206 Total 206 - - 206 Total available-for-sale $ 111,427 $ 480 $ (773 ) $ 111,134 Held-to-Maturity Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 1,998 $ 2 $ - $ 2,000 State and political subdivisions 8,534 124 (4 ) 8,654 Corporate 25,779 584 (29 ) 26,334 Asset backed securities 23,099 101 (115 ) 23,085 Residential mortgage-backed - US agency 13,715 247 (3 ) 13,959 Collateralized mortgage obligations - US agency 19,607 300 (29 ) 19,878 Collateralized mortgage obligations - Private label 30,256 35 (53 ) 30,238 Total held-to-maturity $ 122,988 $ 1,393 $ (233 ) $ 124,148 December 31, 2018 Gross Gross Estimated Amortized Unrealized Unrealized Fair (In thousands) Cost Gains Losses Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 17,171 $ 18 $ (158 ) $ 17,031 State and political subdivisions 23,661 6 (602 ) 23,065 Corporate 17,389 220 (409 ) 17,200 Asset backed securities 18,243 13 (137 ) 18,119 Residential mortgage-backed - US agency 32,409 34 (777 ) 31,666 Collateralized mortgage obligations - US agency 48,101 31 (1,691 ) 46,441 Collateralized mortgage obligations - Private label 24,317 17 (398 ) 23,936 Total 181,291 339 (4,172 ) 177,458 Equity investment securities: Common stock - financial services industry 206 - - 206 Total 206 - - 206 Total available-for-sale $ 181,497 $ 339 $ (4,172 ) $ 177,664 Held-to-Maturity Portfolio Debt investment securities: US Treasury, agencies and GSEs $ 3,987 $ - $ (35 ) $ 3,952 State and political subdivisions 5,089 22 (84 ) 5,027 Corporate 9,924 4 (182 ) 9,746 Asset backed securities 1,509 - (13 ) 1,496 Residential mortgage-backed - US agency 11,601 124 (47 ) 11,678 Collateralized mortgage obligations - US agency 13,972 93 (13 ) 14,052 Collateralized mortgage obligations - Private label 7,826 17 (25 ) 7,818 Total held-to-maturity $ 53,908 $ 260 $ (399 ) $ 53,769 |
Amortized Cost and Estimated Fair Value of Debt Investments by Contractual Maturity | The amortized cost and estimated fair value of debt investments at December 31, 2019 by contractual maturity are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (In thousands) Cost Fair Value Cost Fair Value Due in one year or less $ 10,252 $ 10,250 $ 1,308 $ 1,312 Due after one year through five years 11,452 11,620 24,674 24,947 Due after five years through ten years 15,809 15,854 17,540 17,945 Due after ten years 6,609 6,618 15,888 15,869 Sub-total 44,122 44,342 59,410 60,073 Residential mortgage-backed - US agency 19,012 18,980 13,715 13,959 Collateralized mortgage obligations - US agency 31,320 30,785 19,607 19,878 Collateralized mortgage obligations - Private label 16,767 16,821 30,256 30,238 Totals $ 111,221 $ 110,928 $ 122,988 $ 124,148 |
Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category and Length of Time that Individual Securities Have Continuous Unrealized Loss Position | The Company’s investment securities’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, is as follows: December 31, 2019 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale Portfolio US Treasury, agencies and GSE's 4 $ (30 ) $ 16,820 - $ - $ - 4 $ (30 ) $ 16,820 Corporate 1 (23 ) 786 - - - 1 (23 ) 786 Asset backed securities 3 (7 ) 5,211 1 (12 ) 594 4 (19 ) 5,805 Residential mortgage-backed - US agency 10 (77 ) 10,709 4 (11 ) 2,543 14 (88 ) 13,252 Collateralized mortgage obligations - US agency 10 (67 ) 15,791 10 (503 ) 10,034 20 (570 ) 25,825 Collateralized mortgage obligations - Private label 2 (7 ) 3,818 5 (36 ) 3,959 7 (43 ) 7,777 Totals 30 $ (211 ) $ 53,135 20 $ (562 ) $ 17,130 50 $ (773 ) $ 70,265 Held-to-Maturity Portfolio State and political subdivisions 1 $ (4 ) 3,027 - $ - - 1 $ (4 ) 3,027 Corporate 2 (29 ) 2,974 - - - 2 (29 ) 2,974 Asset backed securities 6 (115 ) 11,091 - - - 6 (115 ) 11,091 Residential mortgage-backed - US agency - - - 1 (3 ) 198 1 (3 ) 198 Collateralized mortgage obligations - US agency 2 (29 ) 4,907 - - - 2 (29 ) 4,907 Collateralized mortgage obligations - Private label 6 (49 ) 9,396 2 (4 ) 1,132 8 (53 ) 10,528 Totals 17 $ (226 ) $ 31,395 3 $ (7 ) $ 1,330 20 $ (233 ) $ 32,725 December 31, 2018 Less than Twelve Months Twelve Months or More Total Number of Number of Number of Individual Unrealized Fair Individual Unrealized Fair Individual Unrealized Fair (Dollars in thousands) Securities Losses Value Securities Losses Value Securities Losses Value Available-for-Sale Portfolio US Treasury, agencies and GSE's 1 $ (22 ) $ 977 2 $ (136 ) $ 12,017 3 $ (158 ) $ 12,994 State and political subdivisions 5 (76 ) 5,213 26 (526 ) 14,206 31 (602 ) 19,419 Corporate 10 (137 ) 8,266 4 (272 ) 3,374 14 (409 ) 11,640 Asset backed securities 7 (91 ) 10,470 2 (46 ) 3,059 9 (137 ) 13,529 Residential mortgage-backed - US agency 6 (83 ) 3,519 21 (694 ) 24,154 27 (777 ) 27,673 Collateralized mortgage obligations - US agency 3 (98 ) 2,792 28 (1,593 ) 35,765 31 (1,691 ) 38,557 Collateralized mortgage obligations - Private label 7 (275 ) 14,011 5 (123 ) 5,907 12 (398 ) 19,918 Totals 39 $ (782 ) $ 45,248 88 $ (3,390 ) $ 98,482 127 $ (4,172 ) $ 143,730 Held-to-Maturity Portfolio US Treasury, agencies and GSE's 1 $ (8 ) $ 982 3 $ (27 ) $ 2,970 4 $ (35 ) $ 3,952 State and political subdivisions - - - 6 (84 ) 2,310 6 (84 ) 2,310 Corporate 4 (41 ) 3,214 2 (141 ) 2,507 6 (182 ) 5,721 Asset backed securities 1 (13 ) 1,496 - - - 1 (13 ) 1,496 Residential mortgage-backed - US agency 3 (8 ) 1,447 2 (39 ) 1,769 5 (47 ) 3,216 Collateralized mortgage obligations - US agency 4 (13 ) 3,972 - - - 4 (13 ) 3,972 Collateralized mortgage obligations - Private label - - - 2 (25 ) 1,874 2 (25 ) 1,874 Totals 13 $ (83 ) $ 11,111 15 $ (316 ) $ 11,430 28 $ (399 ) $ 22,541 |
Gross Realized Gains (Losses) on Sale of Securities | Proceeds of $103.0 million and $35.6 million, respectively on sales and redemptions of securities for the years ended December 31 resulted in gross realized gains (losses) detailed below (In thousands) 2019 2018 Realized gains on investments $ 707 $ 242 Realized losses on investments (378 ) (424 ) $ 329 $ (182 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Major Classification of Loans | Major classifications of loans are as follows: December 31, December 31, (In thousands) 2019 2018 Residential mortgage loans: 1-4 family first-lien residential mortgages $ 209,559 $ 232,523 Construction 3,963 7,121 Loans held-for-sale (1) 35,790 - Total residential mortgage loans 249,312 239,644 Commercial loans: Real estate 254,257 212,314 Lines of credit 58,617 44,235 Other commercial and industrial 82,092 63,359 Tax exempt loans 8,067 9,320 Total commercial loans 403,033 329,228 Consumer loans: Home equity and junior liens 46,389 26,109 Other consumer 82,607 25,424 Total consumer loans 128,996 51,533 Total loans 781,341 620,405 Net deferred loan fees 110 (135 ) Less allowance for loan losses (8,669 ) (7,306 ) Loans receivable, net $ 772,782 $ 612,964 (1) Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Summary of Classes of Loan Portfolio | The following table presents the segments and classes of the loan portfolio summarized by the aggregate pass rating and the criticized and classified ratings of special mention, substandard and doubtful within the Company's internal risk rating system: As of December 31, 2019 Special (In thousands) Pass Mention Substandard Doubtful Total Residential mortgage loans: 1-4 family first-lien residential mortgages $ 205,554 $ 1,093 $ 1,731 $ 1,181 $ 209,559 Construction 3,963 - - - 3,963 Loans held-for-sale 35,790 - - - 35,790 Total residential mortgage loans 245,307 1,093 1,731 1,181 249,312 Commercial loans: Real estate 238,288 12,473 3,194 302 254,257 Lines of credit 50,396 7,945 276 - 58,617 Other commercial and industrial 72,653 8,473 923 43 82,092 Tax exempt loans 8,067 - - - 8,067 Total commercial loans 369,404 28,891 4,393 345 403,033 Consumer loans: Home equity and junior liens 45,414 191 477 307 46,389 Other consumer 82,252 167 188 - 82,607 Total consumer loans 127,666 358 665 307 128,996 Total loans $ 742,377 $ 30,342 $ 6,789 $ 1,833 $ 781,341 As of December 31, 2018 Special (In thousands) Pass Mention Substandard Doubtful Total Residential mortgage loans: 1-4 family first-lien residential mortgages $ 228,563 $ 999 $ 1,190 $ 1,771 $ 232,523 Construction 7,121 - - - 7,121 Total residential mortgage loans 235,684 999 1,190 1,771 239,644 Commercial loans: Real estate 201,997 8,299 1,947 71 212,314 Lines of credit 42,489 1,491 233 22 44,235 Other commercial and industrial 59,344 3,268 612 135 63,359 Tax exempt loans 9,320 - - - 9,320 Total commercial loans 313,150 13,058 2,792 228 329,228 Consumer loans: Home equity and junior liens 25,706 144 173 86 26,109 Other consumer 25,294 95 35 - 25,424 Total consumer loans 51,000 239 208 86 51,533 Total loans $ 599,834 $ 14,296 $ 4,190 $ 2,085 $ 620,405 |
Age Analysis of Past Due Loans Segregated by Portfolio Segment and Class of Loans | An age analysis of past due loans, not including net deferred loan costs, segregated by portfolio segment and class of loans, for the years ended December 31, are detailed in the following tables: As of December 31, 2019 30-59 Days 60-89 Days 90 Days Past Due Past Due and Total Total Loans (In thousands) and Accruing and Accruing Over Past Due Current Receivable Residential mortgage loans: 1-4 family first-lien residential mortgages $ 947 $ 744 $ 1,613 $ 3,304 $ 206,255 $ 209,559 Construction - - - - 3,963 3,963 Loans held-for-sale - - - - 35,790 35,790 Total residential mortgage loans 947 744 1,613 3,304 246,008 249,312 Commercial loans: Real estate 953 100 2,271 3,324 250,933 254,257 Lines of credit 4,464 25 68 4,557 54,060 58,617 Other commercial and industrial 2,747 315 591 3,653 78,439 82,092 Tax exempt loans - - - - 8,067 8,067 Total commercial loans 8,164 440 2,930 11,534 391,499 403,033 Consumer loans: Home equity and junior liens 315 130 480 925 45,464 46,389 Other consumer 335 50 151 536 82,071 82,607 Total consumer loans 650 180 631 1,461 127,535 128,996 Total loans $ 9,761 $ 1,364 $ 5,174 $ 16,299 $ 765,042 $ 781,341 As of December 31, 2018 30-59 Days 60-89 Days 90 Days Past Due Past Due and Total Total Loans (In thousands) and Accruing and Accruing Over Past Due Current Receivable Residential mortgage loans: 1-4 family first-lien residential mortgages $ 1,507 $ 505 $ 1,176 $ 3,188 $ 229,335 $ 232,523 Construction - - - - 7,121 7,121 Total residential mortgage loans 1,507 505 1,176 3,188 236,456 239,644 Commercial loans: Real estate 4,261 364 323 4,948 207,366 212,314 Lines of credit 1,033 111 22 1,166 43,069 44,235 Other commercial and industrial 814 44 387 1,245 62,114 63,359 Tax exempt loans - - - - 9,320 9,320 Total commercial loans 6,108 519 732 7,359 321,869 329,228 Consumer loans: Home equity and junior liens 247 6 35 288 25,821 26,109 Other consumer 226 65 107 398 25,026 25,424 Total consumer loans 473 71 142 686 50,847 51,533 Total loans $ 8,088 $ 1,095 $ 2,050 $ 11,233 $ 609,172 $ 620,405 |
Nonaccrual Loans Segregated by Class of Loan | Year-end nonaccrual loans, segregated by class of loan, were as follows: December 31, December 31, (In thousands) 2019 2018 Residential mortgage loans: 1-4 family first-lien residential mortgages $ 1,613 $ 1,176 Total residential mortgage loans 1,613 1,176 Commercial loans: Real estate 2,343 415 Lines of credit 68 28 Other commercial and industrial 591 387 Total commercial loans 3,002 830 Consumer loans: Home equity and junior liens 480 35 Other consumer 151 107 Total consumer loans 631 142 Total nonaccrual loans $ 5,246 $ 2,148 |
Troubled Debt Restructurings on Financing Receivables | The table below details loans that had been modified as TDRs for the year ended December 31, 2019. For the year ended December 31, 2019 (In thousands) Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Additional provision for loan losses Residential real estate loans 1 $ 205 $ 250 $ - The TDR evaluated for impairment for the twelve months ended December 31, 2019 has been classified as a TDR due to economic concessions granted, which consisted of additional funds advanced without associated increases in collateral and an extended maturity date that will result in a delay in payment from the original contractual maturity. The table below details loans that have been modified as TDRs for the year ended December 31, 2018. For the year ended December 31, 2018 (In thousands) Number of loans Pre-modification outstanding recorded investment Post-modification outstanding recorded investment Additional provision for loan losses Other commercial and industrial loans 1 $ 300 $ 300 $ - Commercial real estate loans 1 $ 123 $ 137 $ 14 |
Summary of Impaired Loans Information by Portfolio Class | The following table summarizes impaired loans information by portfolio class: December 31, 2019 December 31, 2018 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (In thousands) Investment Balance Allowance Investment Balance Allowance With no related allowance recorded: 1-4 family first-lien residential mortgages $ 1,027 $ 1,027 $ - $ 1,221 $ 1,226 $ - Commercial real estate 3,996 4,067 - 2,387 2,448 - Commercial lines of credit 86 86 - 228 228 - Other commercial and industrial 69 77 - 451 452 - Home equity and junior liens 40 40 - - - - Other consumer 55 55 - - - - With an allowance recorded: 1-4 family first-lien residential mortgages 584 584 97 606 606 108 Commercial real estate 450 450 78 486 486 100 Commercial lines of credit 98 98 98 28 28 28 Other commercial and industrial 866 866 406 373 373 255 Home equity and junior liens 180 180 150 207 207 140 Other consumer 36 36 1 - - - Total: 1-4 family first-lien residential mortgages 1,611 1,611 97 1,827 1,832 108 Commercial real estate 4,446 4,517 78 2,873 2,934 100 Commercial lines of credit 184 184 98 256 256 28 Other commercial and industrial 935 943 406 824 825 255 Home equity and junior liens 220 220 150 207 207 140 Other consumer 91 91 1 - - - Totals $ 7,487 $ 7,566 $ 830 $ 5,987 $ 6,054 $ 631 |
Average Recorded Investment In Impaired Loans | The following table presents the average recorded investment in impaired loans for years ended December 31: (In thousands) 2019 2018 1-4 family first-lien residential mortgages $ 1,622 $ 1,842 Commercial real estate 3,868 4,555 Commercial lines of credit 295 343 Other commercial and industrial 1,015 965 Home equity and junior liens 220 224 Other consumer 76 - Total $ 7,096 $ 7,929 |
Cash Basis Interest Income Recognized On Impaired Loans | The following table presents the cash basis interest income recognized on impaired loans for the years ended December 31: (In thousands) 2019 2018 1-4 family first-lien residential mortgages $ 62 $ 61 Commercial real estate 190 175 Commercial lines of credit 16 28 Other commercial and industrial 66 38 Home equity and junior liens 11 12 Other consumer 7 - Total $ 352 $ 314 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Allowance For Loan Losses [Abstract] | |
Changes in the Allowance for Loan Losses | An allocation of a portion of the allowance to a given portfolio class does not limit the Company’s ability to absorb losses in another portfolio class. December 31, 2019 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Allowance for loan losses: Beginning Balance $ 766 $ - $ 3,578 $ 730 $ 1,285 Charge-offs (11 ) - - (136 ) (158 ) Recoveries 2 - - - 1 Provisions (credits) (177 ) - 432 601 517 Ending balance $ 580 $ - $ 4,010 $ 1,195 $ 1,645 Ending balance: related to loans individually evaluated for impairment $ 97 $ - $ 78 $ 98 $ 406 Ending balance: related to loans collectively evaluated for impairment $ 483 $ - $ 3,932 $ 1,097 $ 1,239 Loans receivables: Ending balance $ 209,559 $ 3,963 $ 254,257 $ 58,617 $ 82,092 Ending balance: individually evaluated for impairment $ 1,611 $ - $ 4,446 $ 184 $ 935 Ending balance: collectively evaluated for impairment $ 207,948 $ 3,963 $ 249,811 $ 58,433 $ 81,157 Home equity Other Tax exempt and junior liens consumer Unallocated (1) Total Allowance for loan losses: Beginning Balance $ 1 $ 409 $ 385 $ 152 $ 7,306 Charge-offs - (7 ) (354 ) - (666 ) Recoveries - - 60 - 63 Provisions - 151 322 120 1,966 Ending balance $ 1 $ 553 $ 413 $ 272 $ 8,669 Ending balance: related to loans individually evaluated for impairment $ - $ 150 $ 1 $ - $ 830 Ending balance: related to loans collectively evaluated for impairment $ 1 $ 403 $ 412 $ 272 $ 7,839 Loans receivables: Ending balance $ 8,067 $ 46,389 $ 82,607 $ 35,790 $ 781,341 Ending balance: individually evaluated for impairment $ - $ 220 $ 91 $ - $ 7,487 Ending balance: collectively evaluated for impairment $ 8,067 $ 46,169 $ 82,516 $ 35,790 $ 773,854 (1) December 31, 2018 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Allowance for loan losses: Beginning Balance $ 865 $ - $ 3,589 $ 735 $ 1,214 Charge-offs (245 ) - (643 ) (102 ) (207 ) Recoveries 21 - - 66 - Provisions 125 - 632 31 278 Ending balance $ 766 $ - $ 3,578 $ 730 $ 1,285 Ending balance: related to loans individually evaluated for impairment $ 108 $ - $ 100 $ 28 $ 255 Ending balance: related to loans collectively evaluated for impairment $ 658 $ - $ 3,478 $ 702 $ 1,030 Loans receivables: Ending balance $ 232,523 $ 7,121 $ 212,314 $ 44,235 $ 63,359 Ending balance: individually evaluated for impairment $ 1,827 $ - $ 2,873 $ 256 $ 824 Ending balance: collectively evaluated for impairment $ 230,696 $ 7,121 $ 209,441 $ 43,979 $ 62,535 Home equity Other Tax exempt and junior liens consumer Unallocated Total Allowance for loan losses: Beginning Balance $ 1 $ 514 $ 208 $ - $ 7,126 Charge-offs - (17 ) (248 ) - (1,462 ) Recoveries - 7 51 - 145 Provisions (credits) - (95 ) 374 152 1,497 Ending balance $ 1 $ 409 $ 385 $ 152 $ 7,306 Ending balance: related to loans individually evaluated for impairment $ - $ 140 $ - $ - $ 631 Ending balance: related to loans collectively evaluated for impairment $ 1 $ 269 $ 385 $ 152 $ 6,675 Loans receivables: Ending balance $ 9,320 $ 26,109 $ 25,424 $ 620,405 Ending balance: individually evaluated for impairment $ - $ 207 $ - $ 5,987 Ending balance: collectively evaluated for impairment $ 9,320 $ 25,902 $ 25,424 $ 614,418 |
Schedule of Allowance for Loan Losses on Basis of Calculation Methodology | The allocation of the allowance for loan losses summarized on the basis of the Company’s calculation methodology was as follows: December 31, 2019 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Specifically reserved $ 97 $ - $ 78 $ 98 $ 406 Historical loss rate 43 - 98 106 34 Qualitative factors 440 - 3,834 991 1,205 Total $ 580 $ - $ 4,010 $ 1,195 $ 1,645 Home equity Other Tax exempt and junior liens consumer Unallocated Total Specifically reserved $ - $ 150 $ 1 $ - $ 830 Historical loss rate - 85 167 - 533 Qualitative factors 1 318 245 - 7,034 Other - - - 272 272 Total $ 1 $ 553 $ 413 $ 272 $ 8,669 December 31, 2018 1-4 family first-lien Other residential Commercial Commercial commercial (In thousands) mortgage Construction real estate lines of credit and industrial Specifically reserved $ 108 $ - $ 100 $ 28 $ 255 Historical loss rate 87 - 85 20 24 Qualitative factors 571 - 3,393 682 1,006 Total $ 766 $ - $ 3,578 $ 730 $ 1,285 Home equity Other Tax exempt and junior liens consumer Unallocated Total Specifically reserved $ - $ 140 $ - $ - $ 631 Historical loss rate - 15 155 - 386 Qualitative factors 1 254 230 - 6,137 Other - - - 152 152 Total $ 1 $ 409 $ 385 $ 152 $ 7,306 |
Servicing (Tables)
Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Servicing Asset [Abstract] | |
Mortgage Servicing Rights Capitalized and Amortized | The following summarizes mortgage servicing rights capitalized and amortized: (In thousands) 2019 2018 Mortgage servicing rights capitalized $ 16 $ - Mortgage servicing rights amortized $ 13 $ 12 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Summary of Premises and Equipment | A summary of premises and equipment at December 31, is as follows: (In thousands) 2019 2018 Land $ 2,268 $ 2,205 Buildings 17,673 16,094 Furniture, fixtures and equipment 15,936 15,029 Construction in progress 4,575 3,599 40,452 36,927 Less: Accumulated depreciation 17,753 16,304 $ 22,699 $ 20,623 |
Foreclosed Real Estate (Tables)
Foreclosed Real Estate (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | |
Carrying Amount Of Foreclosed Residential Real Estate Properties Held | The Company is required to disclose the carrying amount of foreclosed residential real estate properties held at each reporting period as a result of obtaining physical possession of the property. (Dollars in thousands) Number of properties December 31, 2019 Number of properties December 31, 2018 Foreclosed residential real estate - $ - 2 $ 73 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Gross Carrying Amount and Accumulated Amortization for Identifiable Intangible Asset | The gross carrying amount and annual amortization for this identifiable intangible asset are as follows: December 31, (In thousands) 2019 2018 Gross carrying amount $ 243 $ 243 Accumulated amortization (94 ) (78 ) Net amortizing intangibles $ 149 $ 165 |
Estimated Amortization Expense for Each of the Five Succeeding Years | The estimated amortization expense for each of the five succeeding years ended December 31, is as follows: (In thousands) 2020 $ 16 2021 16 2022 16 2023 16 2024 16 Thereafter 69 Total $ 149 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Summary of Deposits | A summary of deposits at December 31 is as follows: (In thousands) 2019 2018 Savings accounts $ 81,926 $ 80,545 Time accounts 301,193 199,598 Time accounts of $250,000 or more 120,450 77,224 Money management accounts 14,388 13,180 MMDA accounts 185,402 189,679 Demand deposit interest-bearing 64,533 57,407 Demand deposit noninterest-bearing 107,501 103,124 Mortgage escrow funds 6,500 6,303 Total Deposits $ 881,893 $ 727,060 |
Scheduled Maturities of Time Deposits | At December 31, 2019, the scheduled maturities of time deposits are as follows: (In thousands) Year of Maturity: 2020 $ 386,920 2021 24,456 2022 4,639 2023 2,360 2024 1,499 Thereafter 1,769 Total $ 421,643 |
Summary of Deposits by Type | In addition to deposits obtained from its business operations within its target market areas, the Bank also obtains brokered deposits through various programs administered by Promontory Interfinancial Network and through other unaffiliated third-party financial institutions. At December 31, 2019 2018 (In thousands) Non-Brokered Brokered Total Non-Brokered Brokered Total Savings accounts $ 81,926 $ - $ 81,926 $ 80,545 $ - $ 80,545 Time accounts 190,685 110,508 301,193 158,207 41,391 199,598 Time accounts of $250,000 or more 94,455 25,995 120,450 77,224 - 77,224 Money management accounts 14,388 - 14,388 13,180 - 13,180 MMDA accounts 185,356 46 185,402 189,625 54 189,679 Demand deposit interest-bearing 64,533 - 64,533 57,407 - 57,407 Demand deposit noninterest-bearing 107,501 - 107,501 103,124 - 103,124 Mortgage escrow funds 6,500 - 6,500 6,303 - 6,303 Total Deposits $ 745,344 $ 136,549 $ 881,893 $ 685,615 $ 41,445 $ 727,060 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Composition of Borrowings | The composition of borrowings (excluding subordinated loans) at December 31 is as follows: (In thousands) 2019 2018 Short-term: FHLB Advances $ 25,138 $ 39,000 Total short-term borrowings $ 25,138 $ 39,000 Long-term: FHLB advances $ 67,987 $ 79,534 Total long-term borrowings $ 67,987 $ 79,534 |
Scheduled Maturities of Debt | The principal balances, interest rates and maturities of the outstanding long-term borrowings, all of which are at a fixed rate, at December 31, 2019 are as follows: Term Principal Rates (Dollars in thousands) Advances with FHLB Due within 1 year $ 30,193 1.62 - 3.03% Due within 2 years 25,969 1.74 - 3.10% Due within 10 years 11,825 1.68 - 3.17% Total advances with FHLB $ 67,987 Total long-term fixed rate borrowings $ 67,987 At December 31, 2019, scheduled repayments of long-term debt are as follows: (In thousands) 2020 $ 30,193 2021 25,969 2022 11,000 2023 825 2024 - Thereafter - Total $ 67,987 |
Subordinated Loans (Tables)
Subordinated Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Subordinated Borrowings [Abstract] | |
Composition of Subordinated Loans | The composition of subordinated loans at December 31 is as follows: (In thousands) 2019 2018 Subordinated loans: Junior subordinated debenture $ 5,155 $ 5,155 Subordinated loan 9,973 9,939 Total subordinated loans $ 15,128 $ 15,094 |
Schedule of Principal Balances, Interest Rates and Maturities of the Subordinated Loans | The principal balances, interest rates and maturities of the subordinated loans at December 31, 2019 are as follows: Term Principal Rates (Dollars in thousands) Subordinated loans: Due within 10 years $ 9,973 6.48% Due within 18 years 5,155 3-Month Libor + 1.65% Total subordinated loans $ 15,128 |
Scheduled Repayments of the Subordinated Loans | At December 31, 2019, scheduled repayments of the subordinated loans: (In thousands) 2020 $ - 2021 - 2022 - 2023 - 2024 - Thereafter 15,128 Total $ 15,128 |
Employee Benefits and Deferre_2
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation And Retirement Disclosure [Abstract] | |
Changes in Plan Benefit Obligations, Fair Value of Plan Assets and Plans' Funded Status | The following tables set forth the changes in the plans’ benefit obligations, fair value of plan assets and the plans’ funded status as of December 31: Pension Benefits Postretirement Benefits (In thousands) 2019 2018 2019 2018 Change in benefit obligations: Benefit obligations at beginning of year $ 10,095 $ 10,469 $ 454 $ 481 Service cost - - - - Interest cost 494 473 22 21 Plan participants' contribution - - 8 9 Actuarial loss (gain) 1,558 (581 ) (27 ) (16 ) Benefits paid (255 ) (266 ) (43 ) (41 ) Benefit obligations at end of year 11,892 10,095 414 454 Change in plan assets: Fair value of plan assets at beginning of year 14,522 14,956 - - Actual return on plan assets 2,718 (993 ) - - Benefits paid (255 ) (266 ) (43 ) (41 ) Plan participants' contribution - - 8 9 Employer contributions - 825 35 32 Fair value of plan assets at end of year 16,985 14,522 - - Funded (unfunded) status - asset (liability) $ 5,093 $ 4,427 $ (414 ) $ (454 ) |
Amounts Recognized in Other Comprehensive Loss | Amounts recognized in accumulated other comprehensive loss as of December 31 are as follows: Pension Benefits Postretirement Benefits (In thousands) 2019 2018 2019 2018 Net loss $ 3,557 $ 4,112 $ 117 $ 151 Tax Effect 929 1,074 31 40 $ 2,628 $ 3,038 $ 86 $ 111 |
Significant Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Plan Cost | The significant assumptions used in determining the benefit obligations as of December 31, are as follows: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Weighted average discount rate 3.97 % 4.97 % 3.97 % 4.97 % Rate of increase in future compensation levels - - - - The significant assumptions used in determining the net periodic benefit plan cost for years ended December 31, were as follows: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Weighted average discount rate 3.97 % 4.97 % 3.97 % 4.97 % Expected long term rate of return on plan assets 6.50 % 6.50 % - - Rate of increase in future compensation levels - - - - |
Composition of Net Periodic Benefit Plan (Benefit) Cost | The composition of the net periodic benefit plan (benefit) cost for the years ended December 31 is as follows: Pension Benefits Postretirement Benefits (In thousands) 2019 2018 2019 2018 Service cost $ - $ - $ - $ - Interest cost 494 473 22 21 Expected return on plan assets (934 ) (1,037 ) - - Amortization of transition obligation - - - - Amortization of net losses 328 164 12 13 Amortization of unrecognized past service liability - - (5 ) (5 ) Net periodic benefit plan (benefit) cost $ (112 ) $ (400 ) $ 29 $ 29 |
Pension Plan Assets Measured at Fair Value | Pension plan assets measured at fair value are summarized below: At December 31, 2019 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Asset Category: Mutual Funds - Equity Large-cap value (a) $ - $ 1,432 $ - $ 1,432 Large-cap Growth (b) - 1,470 - 1,470 Large-cap Core (c) - 1,075 - 1,075 Mid-cap Value (d) - 307 - 307 Mid-cap Growth (e) - 328 - 328 Mid-cap Core (f) - 314 - 314 Small-cap Value (g) - 220 - 220 Small-cap Growth (h) - 466 - 466 Small-cap Core (i) - 211 - 211 International Equity (j) - 1,733 - 1,733 Equity -Total - 7,556 - 7,556 Fixed Income Funds Fixed Income - US Core (k) - 2,356 - 2,356 Intermediate Duration (l) - 3,708 - 3,708 Long Duration (m) - 3,084 - 3,084 Fixed Income-Total - 9,148 - 9,148 Company Common Stock - - - - Cash Equivalents-Money market* 48 233 - 281 Total $ 48 $ 16,937 $ - $ 16,985 At December 31, 2018 (In thousands) Level 1 Level 2 Level 3 Total Fair Value Asset Category: Mutual Funds - Equity Large-cap value (a) $ - $ 1,132 $ - $ 1,132 Large-cap Growth (b) - 1,157 - 1,157 Large-cap Core (c) - 821 - 821 Mid-cap Value (d) - 242 - 242 Mid-cap Growth (e) - 247 - 247 Mid-cap Core (f) - 250 - 250 Small-cap Value (g) - 193 - 193 Small-cap Growth (h) - 337 - 337 Small-cap Core (i) - 189 - 189 International Equity (j) - 1,409 - 1,409 Equity -Total - 5,977 - 5,977 Fixed Income Funds Fixed Income-US Core (k) - 2,207 - 2,207 Intermediate Duration (l) - 3,255 - 3,255 Long Duration (m) - 2,521 - 2,521 Fixed Income-Total - 7,983 - 7,983 Company Common Stock - - - - Cash Equivalents-Money market* 271 291 - 562 Total $ 271 $ 14,251 $ - $ 14,522 *Includes cash equivalents investments in equity and fixed income strategies a) This category contains large-cap stocks with above-average yield. The portfolio typically holds between 60 and 70 stocks. b) This category seeks long-term capital appreciation by investing primarily in large growth companies based in the U.S. c) This fund tracks the performance of the S&P 500 index by purchasing the securities represented in the index in approximately the same weightings as the index. d) This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Value Index. e) This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Growth Index. f) This category seeks to track the performance of the S&P Midcap 400 Index. g) This category consists of a selection of investments based on the Russell 2000 Value Index. h) This category consists of a mutual fund invested in smallcap growth companies along with a fund invested in a selection of investments based on the Russell 2000 Growth Index. i) This category consists of a mutual fund investing in readily marketable securities of U.S. companies with market capitalizations within the smallest 10% of the market universe, or smaller than the 1000th largest US company. j) This category invests primarily in medium to large non-US companies in developed and emerging markets. Under normal circumstances, at least 80% of total assets will be invested in equity securities, including common stocks, preferred stocks, and convertible securities. k) This category currently includes equal investments in three mutual funds, two of which usually hold at least 80% of fund assets in investment grade fixed income securities, seeking to outperform the Barclays US Aggregate Bond Index while maintaining a similar duration to that index. The third fund targets investments of 50% or more in mortgage-backed securities guaranteed by the US government and its agencies. l) This category consists mostly of a fund which seeks to track the Barclays Capital US Corporate A or Better 5-20 Year, Bullets only Index, along with a diversified mutual fund holding fixed income securities rated A or better. m) This category consists of a fund that seeks to approximate the performance of the Barclays Capital US Corporate A or Better, 20+ Year Bullets Only Index over the long term. |
Expected Future Service Benefit Payments | The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid from both retirement plans: Pension Postretirement (In thousands) Benefits Benefits Total Years ending December 31: 2020 $ 320 $ 36 $ 356 2021 333 37 370 2022 374 38 412 2023 451 25 476 2024 470 25 495 Years 2025-2029 3,170 118 3,288 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Activity in the Stock Option Plans | Activity in the stock option plans is as follows: Options Outstanding Shares Exercisable Number of Weighted Average Number of Weighted Average (Shares in thousands) Shares Exercise Price Shares Exercise Price Outstanding at December 31, 2017 395 $ 9.68 168 $ 7.61 Granted - $ - - $ - Newly vested - 11.05 52 - Exercised (67 ) - (67 ) - Expired (3 ) 11.35 - - Outstanding at December 31, 2018 325 $ 10.50 153 $ 9.65 Granted - $ - - $ - Newly vested - 11.10 62 - Exercised (21 ) - (21 ) - Expired (1 ) 11.35 - - Outstanding at December 31, 2019 303 $ 10.51 194 $ 10.04 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The provision for income taxes for the years ended December 31, is as follows: (In thousands) 2019 2018 Current $ 1,181 $ 203 Deferred (16 ) 343 $ 1,165 $ 546 The provision for income taxes includes the following (In thousands) 2019 2018 Federal Income Tax $ 1,244 $ 714 State Tax (79 ) (168 ) $ 1,165 $ 546 |
Components of the Net Deferred Tax Asset Included in Other Assets | The components of the net deferred tax asset, included in other assets as of December 31, are as follows: (In thousands) 2019 2018 Assets: Deferred compensation $ 970 $ 895 Allowance for loan losses 2,266 1,909 Postretirement benefits 108 119 Subordinated loan interest 22 23 Investment securities 77 1,002 Loan origination fees - 35 Held-to-maturity securities 14 21 Stock-based compensation 101 166 Community service activities 22 153 Other 587 374 Total 4,167 4,697 Liabilities: Prepaid pension (1,331 ) (1,157 ) Depreciation (1,667 ) (1,441 ) Accretion (118 ) (177 ) Intangible assets (1,004 ) (1,004 ) Mortgage servicing rights (5 ) (4 ) Prepaid expenses and transaction fees (103 ) (69 ) Loan origination fees (29 ) - Total (4,257 ) (3,852 ) (90 ) 845 Less: deferred tax asset valuation allowance (136 ) - Net deferred tax (liability) asset $ (226 ) $ 845 |
Reconciliation of the Federal Statutory Income Tax Rate to the Effective Income Tax Rate | A reconciliation of the federal statutory income tax rate to the effective income tax rate for the years ended December 31, is as follows: 2019 2018 Federal statutory income tax rate 21.0 % 21.0 % State tax, net of federal benefit (1.5 ) (3.7 ) Tax-exempt interest income (0.9 ) (4.3 ) Increase in value of bank owned life insurance less premiums paid (1.7 ) (1.9 ) Change in valuation allowance 2.5 - Other 1.9 0.9 Effective income tax rate - Pathfinder Bancorp, Inc. 21.3 % 12.0 % Minority interest 0.1 (0.1 ) Effective income tax rate 21.4 % 11.9 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of the Contractual Amounts of Financial Instruments with Credit Risk | At December 31, 2019 and 2018, the following financial instruments were outstanding whose contract amounts represent credit risk: Contract Amount (In thousands) 2019 2018 Commitments to grant loans $ 47,606 $ 37,354 Unfunded commitments under lines of credit 81,038 74,284 Unfunded commitments related to construction loans in progress 3,214 5,058 Standby letters of credit 2,082 2,007 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Capital Requirements [Abstract] | |
Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios as of December 31, 2019 and 2018 are presented in the following table. Actual Minimum For Capital Adequacy Purposes Minimum To Be "Well-Capitalized" Under Prompt Corrective Provisions Minimum for Capital Adequacy With Buffer (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019: Total Core Capital (to Risk-Weighted Assets) $ 95,093 12.28 % $ 61,934 8.00 % $ 77,418 10.00 % $ 81,289 10.50 % Tier 1 Capital (to Risk-Weighted Assets) $ 86,424 11.16 % $ 46,451 6.00 % $ 61,934 8.00 % $ 65,805 8.50 % Tier 1 Common Equity (to Risk-Weighted Assets) $ 86,424 11.16 % $ 34,838 4.50 % $ 50,322 6.50 % $ 54,192 7.00 % Tier 1 Capital (to Assets) $ 86,424 8.20 % $ 42,175 4.00 % $ 52,719 5.00 % $ 52,719 5.00 % As of December 31, 2018: Total Core Capital (to Risk-Weighted Assets) $ 83,177 13.69 % $ 48,593 8.00 % $ 60,741 10.00 % $ 63,778 10.50 % Tier 1 Capital (to Risk-Weighted Assets) $ 75,871 12.49 % $ 36,445 6.00 % $ 48,593 8.00 % $ 51,630 8.50 % Tier 1 Common Equity (to Risk-Weighted Assets) $ 75,871 12.49 % $ 27,334 4.50 % $ 39,482 6.50 % $ 42,519 7.00 % Tier 1 Capital (to Assets) $ 75,871 8.31 % $ 36,522 4.00 % $ 45,652 5.00 % $ 45,652 5.00 % |
Interest Rate Derivative (Table
Interest Rate Derivative (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Cumulative Basis Adjustments for Fair Value Hedges | As of December 31, 2019, the following amounts were recorded on the balance sheet related to the cumulative basis adjustments for fair value hedges: (In thousands) Carrying Amount of the Hedged Assets at December 31, 2019 Cumulative Amount of Fair Value Hedging Adjustment Included in The Carrying Amount of the Hedged Assets at December 31, 2019 Line item on the balance sheet in which the hedged item is included: Loans receivable (1) $ 19,254 $ 75 (1) These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the remaining amortized cost of the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost of the basis of the closed portfolio used in the hedging relationship was $19.3 million, the cumulative basis adjustment associated with the hedging relationship was $75,000, and the amount of the designated hedged item was $9.2 million. |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Assets on Recurring Basis Segregated by Level of Valuation Inputs | The following tables summarize assets measured at fair value on a recurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value: December 31, 2019 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ - $ 16,820 $ - $ 16,820 State and political subdivisions - 1,736 - 1,736 Corporate - 7,631 - 7,631 Asset backed securities - 13,232 - 13,232 Residential mortgage-backed - US agency - 18,980 - 18,980 Collateralized mortgage obligations - US agency - 30,785 - 30,785 Collateralized mortgage obligations - Private label - 16,821 - 16,821 Total - 106,005 - 106,005 Corporate measured at NAV - - - 4,923 Total available-for-sale securities $ - $ 106,005 $ - $ 110,928 Marketable equity securities $ - $ 534 $ - $ 534 Interest rate swap derivative $ - $ (92 ) $ - $ (92 ) December 31, 2018 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Available-for-Sale Portfolio Debt investment securities: US Treasury, agencies and GSEs $ - $ 17,031 $ - $ 17,031 State and political subdivisions - 23,065 - 23,065 Corporate - 12,141 - 12,141 Asset backed securities - 18,119 - 18,119 Residential mortgage-backed - US agency - 31,666 - 31,666 Collateralized mortgage obligations - US agency - 46,441 - 46,441 Collateralized mortgage obligations - Private label - 23,936 - 23,936 Total - 172,399 - 172,399 Corporate measured at NAV - - - 5,059 Total available-for-sale securities $ - $ 172,399 $ - $ 177,458 Marketable equity securities $ - $ 453 $ - $ 453 |
Summary of Fair Value Assets Measured on Nonrecurring Basis | The following tables summarize assets measured at fair value on a nonrecurring basis as of December 31, segregated by the level of valuation inputs within the hierarchy utilized to measure fair value: December 31, 2019 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Impaired loans $ - $ - $ 3,105 $ 3,105 Foreclosed real estate $ - $ - $ - $ - December 31, 2018 Total Fair (In thousands) Level 1 Level 2 Level 3 Value Impaired loans $ - $ - $ 1,098 $ 1,098 Foreclosed real estate $ - $ - $ 1,173 $ 1,173 |
Fair Value Inputs, Quantitative Information | The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were used to determine fair value. Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable Range Techniques Input (Weighted Avg.) At December 31, 2019 Impaired loans Appraisal of collateral Appraisal Adjustments 5% - 20% (9%) (Sales Approach) Costs to Sell 7% - 13% (11%) Discounted Cash Flow Foreclosed real estate Appraisal of collateral Appraisal Adjustments 15% - 15% (15%) (Sales Approach) Costs to Sell 6% - 9% (8%) Quantitative Information about Level 3 Fair Value Measurements Valuation Unobservable Range Techniques Input (Weighted Avg.) At December 31, 2018 Impaired loans Appraisal of collateral Appraisal Adjustments 5% - 15% (6%) (Sales Approach) Costs to Sell 5% - 13% (11%) Discounted Cash Flow Foreclosed real estate Appraisal of collateral Appraisal Adjustments 15% - 15% (15%) (Sales Approach) Costs to Sell 6% - 8% (7%) |
Carrying Amounts and Fair Value of Financial Instruments | The carrying amounts and fair values of the Company’s financial instruments as of December 31 are presented in the following table: December 31, 2019 December 31, 2018 Fair Value Carrying Estimated Carrying Estimated (In thousands) Hierarchy Amounts Fair Values Amounts Fair Values Financial assets: Cash and cash equivalents 1 $ 20,160 $ 20,160 $ 26,316 $ 26,316 Investment securities - available-for-sale 2 106,005 106,005 172,399 172,399 Investment securities - available-for-sale NAV 4,923 4,923 5,059 5,059 Investment securities - marketable equity 2 534 534 453 453 Investment securities - held-to-maturity 2 122,988 124,148 53,908 53,769 Federal Home Loan Bank stock 2 4,834 4,834 5,937 5,937 Net loans 3 772,782 767,654 612,964 601,789 Accrued interest receivable 1 3,712 3,712 3,068 3,068 Financial liabilities: Demand Deposits, Savings, NOW and MMDA 1 $ 460,293 $ 460,293 $ 450,267 $ 450,267 Time Deposits 2 421,600 422,409 276,793 275,727 Borrowings 2 93,125 93,643 118,534 118,379 Subordinated loans 2 15,128 14,921 15,094 14,485 Accrued interest payable 2 396 396 304 304 Interest rate swap derivative 2 92 92 - - |
Parent Company - Financial In_2
Parent Company - Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Financial Information | The following represents the condensed financial information of Pathfinder Bancorp, Inc. as of and for the years ended December 31: Statements of Condition 2019 2018 (In thousands) Assets Cash $ 14,514 $ 3,063 Investments 534 453 Investment in bank subsidiary 88,372 74,769 Investment in non-bank subsidiary 155 193 Other assets 3,193 1,961 Total assets $ 106,768 $ 80,439 Liabilities and Shareholders' Equity Accrued liabilities $ 971 $ 886 Subordinated loans 15,128 15,094 Shareholders' equity 90,669 64,459 Total liabilities and shareholders' equity $ 106,768 $ 80,439 Statements of Income 2019 2018 (In thousands) Income Dividends from non-bank subsidiary $ 6 $ 6 Gains (losses) on marketable equity securities 81 (62 ) Operating, net 79 - Total income (loss) 166 (56 ) Expenses Interest 863 846 Operating, net 337 175 Total expenses 1,200 1,021 Loss before taxes and equity in undistributed net income of subsidiaries (1,034 ) (1,077 ) Tax benefit 235 340 Loss before equity in undistributed net income of subsidiaries (799 ) (737 ) Equity in undistributed net income of subsidiaries 5,075 4,768 Net income $ 4,276 $ 4,031 Statements of Cash Flows 2019 2018 (In thousands) Operating Activities Net Income $ 4,276 $ 4,031 Equity in undistributed net income of subsidiaries (5,075 ) (4,768 ) Stock based compensation and ESOP expense 630 773 Amortization of deferred financing from subordinated loan 34 35 Net change in other assets and liabilities (1,256 ) (1,372 ) Net cash flows from operating activities (1,391 ) (1,301 ) Investing Activities Capital contributed to wholly-owned bank subsidiary (5,700 ) - Net cash flows from investing activities (5,700 ) - Financing activities Proceeds from exercise of stock options 218 385 Net proceeds from common stock private placement 4,199 - Net proceeds from preferred stock private placement 15,370 - Cash dividends paid to common shareholders (1,091 ) (1,025 ) Cash dividends paid to preferred shareholders (139 ) - Cash dividends paid on warrants (15 ) - Net cash flows from financing activities 18,542 (640 ) Change in cash and cash equivalents 11,451 (1,941 ) Cash and cash equivalents at beginning of year 3,063 5,004 Cash and cash equivalents at end of year $ 14,514 $ 3,063 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Loans to Related Parties | The following represents the activity associated with loans to related parties during the year ended December 31, 2019: (In thousands) Balance at the beginning of the year $ 10,512 Originations and Officer additions 1,685 Principal payments and Officer removals (3,425 ) Balance at the end of the year $ 8,772 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax | Changes in the components of accumulated other comprehensive income (loss) (“AOCI”), net of tax, for the periods indicated are summarized in the table below. For the years ended December 31, 2019 (In thousands) Retirement Plans Unrealized Gains and Losses on Available-for- Sale Securities Unrealized Loss on Securities Transferred to Held-to- Maturity Total Beginning balance $ (3,152 ) $ (2,832 ) $ (58 ) $ (6,042 ) Other comprehensive income before reclassifications 188 2,859 20 3,067 Amounts reclassified from AOCI 247 (243 ) - 4 Ending balance $ (2,717 ) $ (216 ) $ (38 ) $ (2,971 ) For the years ended December 31, 2018 (In thousands) Retirement Plans Unrealized Gains and Losses on Available-for- Sale Securities Unrealized Loss on Securities Transferred to Held-to- Maturity Total Beginning balance $ (2,220 ) $ (1,558 ) $ (430 ) $ (4,208 ) Other comprehensive income before reclassifications (1,058 ) (1,471 ) 129 (2,400 ) Amounts reclassified from AOCI 126 134 - 260 Cumulative effect of change in measurement of equity securities (1) - (53 ) - (53 ) Cumulative effect of change in investment securities transfer (2) - 116 243 359 Ending balance $ (3,152 ) $ (2,832 ) $ (58 ) $ (6,042 ) (1) Cumulative effect of unrealized gain on marketable equity securities based on the adoption of ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. (2) Cumulative effect of unrealized gains on the transfer of 52 investment securities from held-to-maturity classification to available-for-sale classification based on the adoption of ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. |
Schedule of Amounts Reclassified Out of Each Component of AOCI | The following table presents the amounts reclassified out of each component of AOCI for the indicated annual period: (In thousands) For the years ended Details about AOCI 1 December 31, 2019 December 31, 2018 Affected Line Item in the Statement of Income Retirement plan items Retirement plan net losses recognized in plan expenses 2 $ (335 ) $ (171 ) Salaries and employee benefits 88 45 Provision for income taxes $ (247 ) $ (126 ) Net Income Available-for-sale securities Realized gain (loss) on sale of securities $ 329 $ (182 ) Net gains on sales and redemptions of investment securities (86 ) 48 Provision for income taxes $ 243 $ (134 ) Net Income (1) Amounts in parentheses indicates debits in net income. (2) These items are included in net periodic pension cost. See Note 14 for additional information. |
Noninterest Income (Tables)
Noninterest Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Noninterest Income | The Company has included the following table regarding the Company’s noninterest income for the periods presented. Years Ended December 31, (In thousands) 2019 2018 Service fees Insufficient funds fees $ 1,122 $ 852 Deposit related fees 179 202 ATM fees 90 94 Total service fees 1,391 1,148 Fee Income Insurance commissions 828 831 Investment services revenue 267 288 ATM fees surcharge 226 232 Banking house rents collected 195 134 Total fee income 1,516 1,485 Card income Debit card interchange fees 657 576 Merchant card fees 80 72 Total card income 737 648 Mortgage fee income and realized gain on sale of loans and foreclosed real estate Loan servicing fees 211 170 Net gains on sales of loans and foreclosed real estate 64 50 Total mortgage fee income and realized gain on sale of loans and foreclosed real estate 275 220 Total 3,919 3,501 Earnings and gain on bank owned life insurance 462 427 Net gains (losses) on sales and redemptions of investment securities 329 (182 ) Gains (losses) on marketable equity securities 81 (62 ) Other miscellaneous income 126 151 Total noninterest income $ 4,917 $ 3,835 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense are as follows: For the years ended December 31, (In thousands) 2019 Operating lease cost $ 240 Finance lease cost $ 51 |
Supplemental Cash Flow Information Related to Leases | Supplemental cash flow information related to leases was as follows: For the years ended December 31, (In thousands) 2019 Cash paid for amount included in the measurement of lease liabilities: Operating cash flows from operating leases $ 215 Operating cash flows from finance leases $ 51 Financing cash flows from finance leases $ 46 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: December 31, (In thousands, except lease term and discount rate) 2019 Operating Leases: Operating lease right-of-use assets $ 2,386 Operating lease liabilities $ 2,650 Finance Leases: Financial Liability $ 578 Weighted Average Remaining Lease Term: Operating Leases 19.58 years Finance Leases 29.42 years Weighted Average Discount Rate: Operating Leases 3.71 % Finance Leases 13.75 % |
Maturities of Lease Liabilities | Maturities of lease liabilities were as follows: Years Ending December 31, (In thousands) 2020 $ 116 2021 99 2022 99 2023 110 2024 118 Thereafter 2,686 Total minimum lease payments $ 3,228 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | May 08, 2019USD ($)shares | Feb. 29, 2016USD ($) | Oct. 16, 2014USD ($)shares | Dec. 31, 2019USD ($)SubsidiaryOfficeDerivative | Oct. 15, 2015USD ($) |
Nature of Operations [Abstract] | |||||
Net proceeds from private placement | $ 19,600,000 | ||||
Number of wholly-owned subsidiaries | Subsidiary | 2 | ||||
Consolidation of membership interest in Fitzgibbons | 100.00% | ||||
Number of offices located In Oswego County | Office | 7 | ||||
Number of offices located in Onondaga County | Office | 3 | ||||
Number of loan production office located in Oneida County | Office | 1 | ||||
Significant Group Concentrations of Credit Risk [Abstract] | |||||
Minimum commercial real estate loans amount required for additional review | $ 400,000 | ||||
Advertising Expense [Abstract] | |||||
Advertising contracts maturity description | Expenditures for new marketing and advertising material designs and/or media content, related to specifically-identifiable marketing campaigns are capitalized and expensed over the estimated life of the campaign. Such periods of time are generally 12-24 months in duration and do not exceed 36 months. | ||||
Cash and Cash Equivalents [Abstract] | |||||
Maturity period for classification as cash and cash equivalents, maximum | 3 months | ||||
Allowance for Loan Losses [Abstract] | |||||
Maximum percentage for estimating specific and general losses | 10.00% | ||||
Minimum amount, of residential mortgage loans threshold for evaluations of impairment | $ 300,000 | ||||
Income Recognition on Impaired and Non-accrual Loans [Abstract] | |||||
Number of consecutive months of current payments before non-accrual troubled debt restructured loans are restored to accrual status | 6 months | ||||
Goodwill and Intangible Assets [Abstract] | |||||
Estimated useful life | 15 years | ||||
Interest Rate Derivatives [Member] | |||||
Goodwill and Intangible Assets [Abstract] | |||||
Number of interest rate derivatives | Derivative | 2 | ||||
Maximum [Member] | Premises [Member] | |||||
Premises and Equipment [Abstract] | |||||
Useful life | 40 years | ||||
Maximum [Member] | Equipment [Member] | |||||
Premises and Equipment [Abstract] | |||||
Useful life | 10 years | ||||
SBLF Preferred stock [Member] | |||||
Nature of Operations [Abstract] | |||||
Retirement of preferred stock | $ 13,000,000 | ||||
Common Stock [Member] | Private Placement [Member] | |||||
Nature of Operations [Abstract] | |||||
Sale of stock | shares | 37,700 | ||||
Preferred Stock [Member] | Private Placement [Member] | |||||
Nature of Operations [Abstract] | |||||
Sale of stock | shares | 1,155,283 | ||||
Subordinated Debt [Member] | |||||
Nature of Operations [Abstract] | |||||
Subordinated loan face value | $ 10,000,000 | ||||
Pathfinder Bank [Member] | |||||
Nature of Operations [Abstract] | |||||
Amount received of net proceeds | $ 24,900,000 | ||||
Number of shares of common stock sold (in shares) | shares | 2,636,053 | ||||
FitzGibbons Agency LLC [Member] | Pathfinder Risk Management Company Inc [Member] | |||||
Nature of Operations [Abstract] | |||||
Membership interest own in Fitzgibbons through subsidiary | 51.00% | ||||
Noncontrolling interest by subsidiary | 49.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | ||
Unrealized loss for pension and other postretirement obligations | $ (3,677) | $ (4,266) |
Tax effect | 960 | 1,114 |
Net unrealized loss for pension and other postretirement obligations | (2,717) | (3,152) |
Unrealized loss on available-for-sale securities | (293) | (3,833) |
Tax effect | 77 | 1,001 |
Net unrealized loss on available-for-sale securities | (216) | (2,832) |
Unrealized loss on securities transferred to held-to-maturity | (54) | (82) |
Tax effect | 16 | 24 |
Net unrealized loss on securities transferred to held-to-maturity | (38) | (58) |
Accumulated other comprehensive loss | $ (2,971) | $ (6,042) |
New Accounting Pronouncements -
New Accounting Pronouncements - Additional Information (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | Jan. 01, 2019 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Lessee, operating lease, term of contract | 12 months | ||||
Operating, right-of-use assets | $ 2,386,000 | ||||
Operating, lease liabilities | 2,650,000 | ||||
ASU 2016-02 [Member] | |||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||||
Operating, right-of-use assets | $ 2,500,000 | ||||
Operating, lease liabilities | 2,700,000 | ||||
Cumulative effect adjustment to opening balance of retained earnings | 239,000 | ||||
Operating lease, rental income | $ 195,000 | $ 34,000 | $ 134,000 | $ 30,000 | |
Unamortized initial direct costs | $ 0 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Details) - USD ($) | May 08, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Stock Option [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Anti-dilutive stock options (in shares) | 0 | 0 | |
Securities Purchase Agreement [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Net proceeds from private placement | $ 17,000,000 | ||
Securities Purchase Agreement [Member] | Private Placement [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Warrant to purchase common stock | 125,000 | ||
Fair value of warrants | $ 373,000 | ||
Exercise price of warrant | $ 14.25 | ||
Securities Purchase Agreement [Member] | Series B Preferred Stock [Member] | Private Placement [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Sale of stock | 1,155,283 | ||
Purchase price | $ 14.25 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | ||
Common Stock [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Net proceeds from private placement | $ 4,199,000 | ||
Common Stock [Member] | Securities Purchase Agreement [Member] | Private Placement [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Sale of stock | 37,700 | ||
Common stock, par value (in dollars per share) | $ 0.01 | ||
Purchase price | $ 14.25 |
Earnings per Share - Calculatio
Earnings per Share - Calculations of Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Net income attributable to Pathfinder Bancorp, Inc. | $ 4,276 | $ 4,031 |
Convertible preferred stock dividends | 208 | |
Warrant dividends | 23 | |
Undistributed earnings allocated to participating securities | 467 | |
Net income available to common shareholders | $ 3,578 | $ 4,031 |
Basic weighted average common shares outstanding (in shares) | 4,464 | 4,171 |
Effect of assumed exercise of stock options and unvested restricted stock units (in shares) | 95 | |
Diluted weighted average common shares outstanding (in shares) | 4,464 | 4,266 |
Earnings per common share - basic | $ 0.80 | $ 0.97 |
Earnings per common share - diluted | $ 0.80 | $ 0.94 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | $ 111,221 | $ 181,291 |
Gross Unrealized Gains, Debt investment securities | 480 | 339 |
Gross Unrealized Losses, Debt investment securities | (773) | (4,172) |
Available-for-sale Securities, Debt investment securities | 110,928 | 177,458 |
Amortized cost, equity securities | 206 | 206 |
Gross Unrealized Gains, Equity investment securities | 0 | 0 |
Gross Unrealized Losses, Equity investment securities | 0 | 0 |
Available-for-sale Securities, Equity investment securities | 206 | 206 |
Total investment securities, amortized cost basis | 111,427 | 181,497 |
Gross Unrealized Gains | 480 | 339 |
Gross Unrealized Losses | (773) | (4,172) |
Estimated Fair Value | 111,134 | 177,664 |
Held-to-maturity securities, debt maturities, Amortized Cost | 122,988 | 53,908 |
Held to maturity, gross unrealized gains | 1,393 | 260 |
Held to maturity, gross unrealized losses | (233) | (399) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 124,148 | 53,769 |
US Treasury, Agencies and GSEs [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 16,850 | 17,171 |
Gross Unrealized Gains, Debt investment securities | 0 | 18 |
Gross Unrealized Losses, Debt investment securities | (30) | (158) |
Available-for-sale Securities, Debt investment securities | 16,820 | 17,031 |
Held-to-maturity securities, debt maturities, Amortized Cost | 1,998 | 3,987 |
Held to maturity, gross unrealized gains | 2 | 0 |
Held to maturity, gross unrealized losses | 0 | (35) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 2,000 | 3,952 |
State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 1,735 | 23,661 |
Gross Unrealized Gains, Debt investment securities | 1 | 6 |
Gross Unrealized Losses, Debt investment securities | 0 | (602) |
Available-for-sale Securities, Debt investment securities | 1,736 | 23,065 |
Held-to-maturity securities, debt maturities, Amortized Cost | 8,534 | 5,089 |
Held to maturity, gross unrealized gains | 124 | 22 |
Held to maturity, gross unrealized losses | (4) | (84) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 8,654 | 5,027 |
Corporate [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 12,347 | 17,389 |
Gross Unrealized Gains, Debt investment securities | 230 | 220 |
Gross Unrealized Losses, Debt investment securities | (23) | (409) |
Available-for-sale Securities, Debt investment securities | 12,554 | 17,200 |
Held-to-maturity securities, debt maturities, Amortized Cost | 25,779 | 9,924 |
Held to maturity, gross unrealized gains | 584 | 4 |
Held to maturity, gross unrealized losses | (29) | (182) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 26,334 | 9,746 |
Asset Backed Securities [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 13,190 | 18,243 |
Gross Unrealized Gains, Debt investment securities | 61 | 13 |
Gross Unrealized Losses, Debt investment securities | (19) | (137) |
Available-for-sale Securities, Debt investment securities | 13,232 | 18,119 |
Held-to-maturity securities, debt maturities, Amortized Cost | 23,099 | 1,509 |
Held to maturity, gross unrealized gains | 101 | 0 |
Held to maturity, gross unrealized losses | (115) | (13) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 23,085 | 1,496 |
Residential Mortgage-Backed - US Agency [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 19,012 | 32,409 |
Gross Unrealized Gains, Debt investment securities | 56 | 34 |
Gross Unrealized Losses, Debt investment securities | (88) | (777) |
Available-for-sale Securities, Debt investment securities | 18,980 | 31,666 |
Held-to-maturity securities, debt maturities, Amortized Cost | 13,715 | 11,601 |
Held to maturity, gross unrealized gains | 247 | 124 |
Held to maturity, gross unrealized losses | (3) | (47) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 13,959 | 11,678 |
Collateralized Mortgage Obligations - US Agency [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 31,320 | 48,101 |
Gross Unrealized Gains, Debt investment securities | 35 | 31 |
Gross Unrealized Losses, Debt investment securities | (570) | (1,691) |
Available-for-sale Securities, Debt investment securities | 30,785 | 46,441 |
Held-to-maturity securities, debt maturities, Amortized Cost | 19,607 | 13,972 |
Held to maturity, gross unrealized gains | 300 | 93 |
Held to maturity, gross unrealized losses | (29) | (13) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 19,878 | 14,052 |
Collateralized Mortgage Obligations - Private Label [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Totals, amortized cost | 16,767 | 24,317 |
Gross Unrealized Gains, Debt investment securities | 97 | 17 |
Gross Unrealized Losses, Debt investment securities | (43) | (398) |
Available-for-sale Securities, Debt investment securities | 16,821 | 23,936 |
Held-to-maturity securities, debt maturities, Amortized Cost | 30,256 | 7,826 |
Held to maturity, gross unrealized gains | 35 | 17 |
Held to maturity, gross unrealized losses | (53) | (25) |
Held-to-maturity Securities, Debt Maturities, Fair Value | 30,238 | 7,818 |
Mutual funds Common Stock Financial Services Industry [Member] | ||
Schedule of Available-for-sale Securities and Held-to-Maturity Securities [Line Items] | ||
Amortized cost, equity securities | 206 | 206 |
Gross Unrealized Gains, Equity investment securities | 0 | 0 |
Gross Unrealized Losses, Equity investment securities | 0 | 0 |
Available-for-sale Securities, Equity investment securities | $ 206 | $ 206 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Proceeds on sales and redemptions of securities | $ 103,000,000 | $ 35,600,000 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 20 | |
Held to maturity securities | Security | 3 | |
Months of unrealized loss positions | 12 months | |
Number of securities in unrealized loss positions, twelve months or more | Security | 23 | |
Number of Securities amortized | Security | 15 | |
Percentage of securities amortized | 69.80% | |
Held-to-maturity Securities [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 3 | 15 |
Held to maturity sale securities aggregate fair value | $ 1,330,000 | $ 11,430,000 |
Held-to-maturity securities aggregate unrealized loss | 7,000 | 316,000 |
Gain (Loss) on Sale of Investments [Abstract] | ||
Securities pledged to collateralize deposit | 92,400,000 | 69,800,000 |
Securities pledged to collateralize borrowing | $ 21,300,000 | $ 19,500,000 |
Collateralized Mortgage Obligations of Private Label [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities | Security | 33 | 21 |
Asset Backed Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities | Security | 23 | 14 |
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 1 | 2 |
Available for sale securities fair value | $ 594,000 | $ 3,059,000 |
Available for sale securities unrealized aggregate loss | $ 12,000 | $ 46,000 |
Held-to-maturity Securities [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 0 |
Held to maturity sale securities aggregate fair value | $ 0 | $ 0 |
Held-to-maturity securities aggregate unrealized loss | 0 | 0 |
21 Private-Label Mortgage-Backed Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Investment securities, aggregate book value | 47,000,000 | |
14 Private-Label Asset - Backed Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Investment securities, aggregate book value | $ 36,300,000 | |
17 Private-Label Mortgage-Backed Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Investment securities, aggregate book value | 32,100,000 | |
Six Private-Label Asset - Backed Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Investment securities, aggregate book value | $ 19,800,000 | |
Fixed Rate, Private-label Asset-backed Security Rated [Member] | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 1 | |
Available for sale securities continuous unrealized loss position twelve months or more amortized historical cost basis | $ 606,000 | |
Available for sale securities fair value | 594,000 | |
Available for sale securities unrealized aggregate loss | $ 12,000 | |
Available for sale securities unrealized aggregate loss percentage | 2.06% | |
Fixed Rate, Private-label Mortgage-backed Security not Rated [Member] | ||
Available-for-sale Securities, Amortized Cost Basis [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 5 | |
Available for sale securities continuous unrealized loss position twelve months or more amortized historical cost basis | $ 3,900,000 | |
Available for sale securities fair value | 3,900,000 | |
Available for sale securities unrealized aggregate loss | $ 36,000 | |
Available for sale securities unrealized aggregate loss percentage | 0.92% | |
Held-to-maturity Securities [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 2 | |
Held to maturity securities continuous unrealized loss position greater than twelve months amortized historical cost basis | $ 1,100,000 | |
Held to maturity sale securities aggregate fair value | 1,100,000 | |
Held-to-maturity securities aggregate unrealized loss | $ 4,000 | |
Held-to-maturity securities aggregate unrealized loss percentage | 0.35% |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Estimated Fair Value of Debt Investments by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities, debt maturities, amortized cost [Abstract] | ||
Due in one year or less | $ 10,252 | |
Due after one year through five years | 11,452 | |
Due after five years through ten years | 15,809 | |
Due after ten years | 6,609 | |
Sub-total | 44,122 | |
Amortized cost | 111,221 | $ 181,291 |
Available-for-sale securities, debt maturities, Estimated Fair Value [Abstract] | ||
Due in one year or less | 10,250 | |
Due after one year through five years | 11,620 | |
Due after five years through ten years | 15,854 | |
Due after ten years | 6,618 | |
Sub-total | 44,342 | |
Available-for-sale securities, debt maturities, fair value, totals | 110,928 | |
Held-to-maturity Securities, debt maturities, amortized cost [Abstract] | ||
Due in one year or less | 1,308 | |
Due after one year through five years | 24,674 | |
Due after five years through ten years | 17,540 | |
Due after ten years | 15,888 | |
Sub-total | 59,410 | |
Held-to-maturity securities, debt maturities, Amortized Cost | 122,988 | 53,908 |
Held-to-maturity Securities, debt maturities, Estimated Fair Value [Abstract] | ||
Due in one year or less | 1,312 | |
Due after one year through five years | 24,947 | |
Due after five years through ten years | 17,945 | |
Due after ten years | 15,869 | |
Sub-total | 60,073 | |
Held-to-maturity securities at fair value | 124,148 | 53,769 |
Residential Mortgage-Backed - US Agency [Member] | ||
Available-for-sale securities, debt maturities, amortized cost [Abstract] | ||
Amortized cost | 19,012 | 32,409 |
Available-for-sale securities, debt maturities, Estimated Fair Value [Abstract] | ||
Available-for-sale securities, debt maturities, fair value, totals | 18,980 | |
Held-to-maturity Securities, debt maturities, amortized cost [Abstract] | ||
Held-to-maturity securities, debt maturities, Amortized Cost | 13,715 | 11,601 |
Held-to-maturity Securities, debt maturities, Estimated Fair Value [Abstract] | ||
Held-to-maturity securities at fair value | 13,959 | 11,678 |
Collateralized Mortgage Obligations - US Agency [Member] | ||
Available-for-sale securities, debt maturities, amortized cost [Abstract] | ||
Amortized cost | 31,320 | 48,101 |
Available-for-sale securities, debt maturities, Estimated Fair Value [Abstract] | ||
Available-for-sale securities, debt maturities, fair value, totals | 30,785 | |
Held-to-maturity Securities, debt maturities, amortized cost [Abstract] | ||
Held-to-maturity securities, debt maturities, Amortized Cost | 19,607 | 13,972 |
Held-to-maturity Securities, debt maturities, Estimated Fair Value [Abstract] | ||
Held-to-maturity securities at fair value | 19,878 | 14,052 |
Collateralized Mortgage Obligations - Private Label [Member] | ||
Available-for-sale securities, debt maturities, amortized cost [Abstract] | ||
Amortized cost | 16,767 | 24,317 |
Available-for-sale securities, debt maturities, Estimated Fair Value [Abstract] | ||
Available-for-sale securities, debt maturities, fair value, totals | 16,821 | |
Held-to-maturity Securities, debt maturities, amortized cost [Abstract] | ||
Held-to-maturity securities, debt maturities, Amortized Cost | 30,256 | 7,826 |
Held-to-maturity Securities, debt maturities, Estimated Fair Value [Abstract] | ||
Held-to-maturity securities at fair value | $ 30,238 | $ 7,818 |
Investment Securities - Investm
Investment Securities - Investment Securities' Gross Unrealized Losses and Fair Value by Investment Category and Length of Time that Individual Securities Have Continuous Unrealized Loss Position (Details) $ in Thousands | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, twelve months or more | Security | 20 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 17 | 13 |
Number of securities in unrealized loss positions, twelve months or more | Security | 3 | 15 |
Number of securities in unrealized loss positions | Security | 20 | 28 |
Less than twelve months Fair Value | $ 31,395 | $ 11,111 |
Twelve months or more Fair Value | 1,330 | 11,430 |
Total Fair Value | 32,725 | 22,541 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (226) | (83) |
Twelve months or more Unrealized Losses | (7) | (316) |
Total Unrealized Losses | $ (233) | $ (399) |
US Treasury, Agencies and GSEs [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 4 | 1 |
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 2 |
Number of securities in unrealized loss positions | Security | 4 | 3 |
Less than twelve months Fair Value | $ 16,820 | $ 977 |
Twelve months or more Fair Value | 0 | 12,017 |
Total Fair Value | 16,820 | 12,994 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (30) | (22) |
Twelve months or more Unrealized Losses | 0 | (136) |
Total Unrealized Losses | $ (30) | $ (158) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 1 | |
Number of securities in unrealized loss positions, twelve months or more | Security | 3 | |
Number of securities in unrealized loss positions | Security | 4 | |
Less than twelve months Fair Value | $ 982 | |
Twelve months or more Fair Value | 2,970 | |
Total Fair Value | 3,952 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (8) | |
Twelve months or more Unrealized Losses | (27) | |
Total Unrealized Losses | $ (35) | |
State and Political Subdivisions [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 5 | |
Number of securities in unrealized loss positions, twelve months or more | Security | 26 | |
Number of securities in unrealized loss positions | Security | 31 | |
Less than twelve months Fair Value | $ 5,213 | |
Twelve months or more Fair Value | 14,206 | |
Total Fair Value | 19,419 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (76) | |
Twelve months or more Unrealized Losses | (526) | |
Total Unrealized Losses | $ (602) | |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 1 | 0 |
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 6 |
Number of securities in unrealized loss positions | Security | 1 | 6 |
Less than twelve months Fair Value | $ 3,027 | $ 0 |
Twelve months or more Fair Value | 0 | 2,310 |
Total Fair Value | 3,027 | 2,310 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (4) | 0 |
Twelve months or more Unrealized Losses | 0 | (84) |
Total Unrealized Losses | $ (4) | $ (84) |
Corporate [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 1 | 10 |
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 4 |
Number of securities in unrealized loss positions | Security | 1 | 14 |
Less than twelve months Fair Value | $ 786 | $ 8,266 |
Twelve months or more Fair Value | 0 | 3,374 |
Total Fair Value | 786 | 11,640 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (23) | (137) |
Twelve months or more Unrealized Losses | 0 | (272) |
Total Unrealized Losses | $ (23) | $ (409) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 2 | 4 |
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 2 |
Number of securities in unrealized loss positions | Security | 2 | 6 |
Less than twelve months Fair Value | $ 2,974 | $ 3,214 |
Twelve months or more Fair Value | 0 | 2,507 |
Total Fair Value | 2,974 | 5,721 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (29) | (41) |
Twelve months or more Unrealized Losses | 0 | (141) |
Total Unrealized Losses | $ (29) | $ (182) |
Asset Backed Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 3 | 7 |
Number of securities in unrealized loss positions, twelve months or more | Security | 1 | 2 |
Number of securities in unrealized loss positions | Security | 4 | 9 |
Less than twelve months Fair Value | $ 5,211 | $ 10,470 |
Twelve months or more Fair Value | 594 | 3,059 |
Total Fair Value | 5,805 | 13,529 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (7) | (91) |
Twelve months or more Unrealized Losses | (12) | (46) |
Total Unrealized Losses | $ (19) | $ (137) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 6 | 1 |
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 0 |
Number of securities in unrealized loss positions | Security | 6 | 1 |
Less than twelve months Fair Value | $ 11,091 | $ 1,496 |
Twelve months or more Fair Value | 0 | 0 |
Total Fair Value | 11,091 | 1,496 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (115) | (13) |
Twelve months or more Unrealized Losses | 0 | 0 |
Total Unrealized Losses | $ (115) | $ (13) |
Residential Mortgage-Backed - US Agency [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 10 | 6 |
Number of securities in unrealized loss positions, twelve months or more | Security | 4 | 21 |
Number of securities in unrealized loss positions | Security | 14 | 27 |
Less than twelve months Fair Value | $ 10,709 | $ 3,519 |
Twelve months or more Fair Value | 2,543 | 24,154 |
Total Fair Value | 13,252 | 27,673 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (77) | (83) |
Twelve months or more Unrealized Losses | (11) | (694) |
Total Unrealized Losses | $ (88) | $ (777) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 0 | 3 |
Number of securities in unrealized loss positions, twelve months or more | Security | 1 | 2 |
Number of securities in unrealized loss positions | Security | 1 | 5 |
Less than twelve months Fair Value | $ 0 | $ 1,447 |
Twelve months or more Fair Value | 198 | 1,769 |
Total Fair Value | 198 | 3,216 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | 0 | (8) |
Twelve months or more Unrealized Losses | (3) | (39) |
Total Unrealized Losses | $ (3) | $ (47) |
Collateralized Mortgage Obligations - US Agency [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 10 | 3 |
Number of securities in unrealized loss positions, twelve months or more | Security | 10 | 28 |
Number of securities in unrealized loss positions | Security | 20 | 31 |
Less than twelve months Fair Value | $ 15,791 | $ 2,792 |
Twelve months or more Fair Value | 10,034 | 35,765 |
Total Fair Value | 25,825 | 38,557 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (67) | (98) |
Twelve months or more Unrealized Losses | (503) | (1,593) |
Total Unrealized Losses | $ (570) | $ (1,691) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 2 | 4 |
Number of securities in unrealized loss positions, twelve months or more | Security | 0 | 0 |
Number of securities in unrealized loss positions | Security | 2 | 4 |
Less than twelve months Fair Value | $ 4,907 | $ 3,972 |
Twelve months or more Fair Value | 0 | 0 |
Total Fair Value | 4,907 | 3,972 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (29) | (13) |
Twelve months or more Unrealized Losses | 0 | 0 |
Total Unrealized Losses | $ (29) | $ (13) |
Collateralized Mortgage Obligations - Private Label [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 2 | 7 |
Number of securities in unrealized loss positions, twelve months or more | Security | 5 | 5 |
Number of securities in unrealized loss positions | Security | 7 | 12 |
Less than twelve months Fair Value | $ 3,818 | $ 14,011 |
Twelve months or more Fair Value | 3,959 | 5,907 |
Total Fair Value | 7,777 | 19,918 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (7) | (275) |
Twelve months or more Unrealized Losses | (36) | (123) |
Total Unrealized Losses | $ (43) | $ (398) |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 6 | 0 |
Number of securities in unrealized loss positions, twelve months or more | Security | 2 | 2 |
Number of securities in unrealized loss positions | Security | 8 | 2 |
Less than twelve months Fair Value | $ 9,396 | $ 0 |
Twelve months or more Fair Value | 1,132 | 1,874 |
Total Fair Value | 10,528 | 1,874 |
Held-to-maturity Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (49) | 0 |
Twelve months or more Unrealized Losses | (4) | (25) |
Total Unrealized Losses | $ (53) | $ (25) |
Debt Securities [Member] | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Number of securities in unrealized loss positions, less than twelve months | Security | 30 | 39 |
Number of securities in unrealized loss positions, twelve months or more | Security | 20 | 88 |
Number of securities in unrealized loss positions | Security | 50 | 127 |
Less than twelve months Fair Value | $ 53,135 | $ 45,248 |
Twelve months or more Fair Value | 17,130 | 98,482 |
Total Fair Value | 70,265 | 143,730 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than twelve months Unrealized Losses | (211) | (782) |
Twelve months or more Unrealized Losses | (562) | (3,390) |
Total Unrealized Losses | $ (773) | $ (4,172) |
Investment Securities - Gross R
Investment Securities - Gross Realized Gains (Losses) on Sale of Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Gain Loss On Sale Of Investments [Abstract] | ||
Realized gains on investments | $ 707 | $ 242 |
Realized losses on investments | (378) | (424) |
Total | $ 329 | $ (182) |
Loans - Major Classification of
Loans - Major Classification of Loans (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | $ 781,341,000 | $ 620,405,000 | |
Net deferred loan fees | 110,000 | (135,000) | |
Less allowance for loan losses | (8,669,000) | (7,306,000) | |
Loans receivable, net | 772,782,000 | 612,964,000 | |
Loans Held-For-Sale [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 35,800,000 | ||
Net deferred loan fees | (146,000,000) | ||
Residential Mortgage Loans [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 249,312,000 | 239,644,000 | |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 209,559,000 | 232,523,000 | |
Residential Mortgage Loans [Member] | Construction [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 3,963,000 | 7,121,000 | |
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | [1] | 35,790,000 | |
Net deferred loan fees | (146,000) | ||
Commercial Loans [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 403,033,000 | 329,228,000 | |
Commercial Loans [Member] | Real Estate [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 254,257,000 | 212,314,000 | |
Commercial Loans [Member] | Lines of Credit [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 58,617,000 | 44,235,000 | |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 82,092,000 | 63,359,000 | |
Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 8,067,000 | 9,320,000 | |
Consumer Loans [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 128,996,000 | 51,533,000 | |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | 46,389,000 | 26,109,000 | |
Consumer Loans [Member] | Other Consumer [Member] | |||
Notes, Loans and Financing Receivable, Net [Abstract] | |||
Total loans | $ 82,607,000 | $ 25,424,000 | |
[1] | Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Loans - Major Classification _2
Loans - Major Classification of Loans (Parenthetical) (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | $ 781,341,000 | $ 620,405,000 | |
Net deferred loan fees | (110,000) | 135,000 | |
Loans Held-For-Sale [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 35,800,000 | ||
Net deferred loan fees | 146,000,000 | ||
Loans and leases receivable amortized cost | 35,900,000 | ||
Residential Mortgage Loans [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | 249,312,000 | $ 239,644,000 | |
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Accounts Notes And Loans Receivable [Line Items] | |||
Total loans | [1] | 35,790,000 | |
Net deferred loan fees | 146,000 | ||
Loans and leases receivable amortized cost | $ 35,900,000 | ||
[1] | Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Loans - Additional Information
Loans - Additional Information (Details) | Nov. 30, 2019USD ($)Loan | Aug. 31, 2019USD ($)Loan | Jun. 30, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | Mar. 31, 2019USD ($) | Apr. 30, 2017USD ($) | Jan. 31, 2017USD ($) |
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 24,600,000 | $ 10,200,000 | $ 15,600,000 | ||||||
Participating interest of acquired loan percentage | 90.00% | ||||||||
Number of loans secured by liens on automobiles | Loan | 2,283 | ||||||||
Number of loans outstanding | Loan | 909 | 1,657 | 909 | ||||||
Loans acquired carrying amount | $ 13,300,000 | $ 27,200,000 | $ 13,300,000 | ||||||
Number of acquired loan charged-off as uncollectible | Loan | 29 | ||||||||
Acquired loans cumulative net charge-offs | $ 196,000 | ||||||||
Acquired loans net charge-offs | 77,000 | ||||||||
Unamortized premium included in the carrying value | 534,000 | 930,000 | 534,000 | ||||||
Notes, Loans and Financing Receivable, Net [Abstract] | |||||||||
Ninety days past due and still accruing interest | 0 | $ 0 | $ 0 | ||||||
Troubled Debt Restructuring During Prior Twelve Months [Member] | |||||||||
Notes, Loans and Financing Receivable, Net [Abstract] | |||||||||
Number of loans subsequently defaulted | Loan | 0 | 0 | |||||||
Real Estate [Member] | |||||||||
Notes, Loans and Financing Receivable, Net [Abstract] | |||||||||
Percentage of total loan portfolio | 70.00% | 77.00% | |||||||
Commercial Real Estate Loans [Member] | |||||||||
Notes, Loans and Financing Receivable, Net [Abstract] | |||||||||
Additional provision for loan losses | 14,000 | $ 14,000 | |||||||
Consumer Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 5,000,000 | $ 392,000 | |||||||
Participating interest of acquired loan percentage | 100.00% | ||||||||
Number of loans outstanding | Loan | 87 | ||||||||
Loans acquired carrying amount | $ 5,000,000 | ||||||||
Acquired loans net charge-offs | 0 | ||||||||
Unamortized premium included in the carrying value | 0 | ||||||||
Number of loans unsecured | Loan | 89 | ||||||||
Commercial and Industrial Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 5,000,000 | $ 1,800,000 | |||||||
Participating interest of acquired loan percentage | 100.00% | ||||||||
Number of loans outstanding | Loan | 43 | ||||||||
Loans acquired carrying amount | $ 6,600,000 | ||||||||
Acquired loans net charge-offs | 0 | ||||||||
Unamortized premium included in the carrying value | $ 0 | ||||||||
Number of loans unsecured | Loan | 43 | ||||||||
Home Equity Lines of Credit [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 21,900,000 | ||||||||
Participating interest of acquired loan percentage | 100.00% | ||||||||
Number of loans outstanding | 376 | ||||||||
Loans acquired carrying amount | $ 20,100,000 | ||||||||
Acquired loans net charge-offs | 0 | ||||||||
Unamortized premium included in the carrying value | $ 390,000 | ||||||||
Number of loans secured home equity lines of credit | Loan | 395 | ||||||||
Consumer Loans November 2019 [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 26,600,000 | ||||||||
Participating interest of acquired loan percentage | 59.20% | ||||||||
Number of loans outstanding | Loan | 2,768 | ||||||||
Loans acquired carrying amount | $ 25,800,000 | ||||||||
Acquired loans net charge-offs | 0 | ||||||||
Unamortized premium included in the carrying value | 114,000 | ||||||||
Number of loans unsecured | Loan | 2,787 | ||||||||
Consumer Loans December 2019 | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 10,300,000 | ||||||||
Participating interest of acquired loan percentage | 100.00% | ||||||||
Number of loans outstanding | Loan | 4,259 | ||||||||
Loans acquired carrying amount | $ 10,300,000 | ||||||||
Acquired loans net charge-offs | 0 | ||||||||
Unamortized premium included in the carrying value | $ 245,000 | ||||||||
Number of loans unsecured | Loan | 4,259 | ||||||||
Maturity period of acquired loans description | less than one year to three to seven years | ||||||||
First Lien Residential Mortgages [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Loans acquired | $ 2,100,000 | ||||||||
Participating interest of acquired loan percentage | 100.00% | ||||||||
Number of loans outstanding | Loan | 25 | ||||||||
Loans acquired carrying amount | $ 2,100,000 | ||||||||
Acquired loans net charge-offs | 0 | ||||||||
Unamortized premium included in the carrying value | $ 135,000 | ||||||||
Number of loans secured home equity lines of credit | Loan | 25 | ||||||||
Residential Mortgage Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Residential mortgage loans pledged to FHLBNY as blanket collateral | $ 154,900,000 | $ 136,900,000 | $ 154,900,000 | ||||||
Minimum [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 2 years | ||||||||
Minimum [Member] | Consumer Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 4 years | ||||||||
Minimum [Member] | Commercial and Industrial Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 4 years | ||||||||
Minimum [Member] | Home Equity Lines of Credit [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 4 years | ||||||||
Minimum [Member] | Consumer Loans November 2019 [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 3 years | ||||||||
Minimum [Member] | First Lien Residential Mortgages [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 22 years | ||||||||
Maximum [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 6 years | ||||||||
Maximum [Member] | Consumer Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 10 years | ||||||||
Maximum [Member] | Commercial and Industrial Loans [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 10 years | ||||||||
Maximum [Member] | Home Equity Lines of Credit [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 30 years | ||||||||
Maximum [Member] | Consumer Loans November 2019 [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 5 years | ||||||||
Maximum [Member] | First Lien Residential Mortgages [Member] | |||||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||||
Maturity period of acquired loans | 24 years |
Loans - Credit Quality Indicato
Loans - Credit Quality Indicator (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Special Mention [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of consecutive months current before loan is upgraded | 6 months | 6 months |
Substandard [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of consecutive months current before loan is upgraded | 6 months | 6 months |
Residential Mortgage and Consumer Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Number of days past due before a loan is classified as Special Mention | 60 days | 60 days |
Number of days past due before a loan is classified as Substandard | 90 days | 90 days |
Loans - Summary of Classes of L
Loans - Summary of Classes of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 781,341 | $ 620,405 | |
Loans Held-For-Sale [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 35,800 | ||
Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 249,312 | 239,644 | |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 209,559 | 232,523 | |
Residential Mortgage Loans [Member] | Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 3,963 | 7,121 | |
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | [1] | 35,790 | |
Commercial Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 403,033 | 329,228 | |
Commercial Loans [Member] | Real Estate [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 254,257 | 212,314 | |
Commercial Loans [Member] | Lines of Credit [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 58,617 | 44,235 | |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 82,092 | 63,359 | |
Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 8,067 | 9,320 | |
Consumer Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 128,996 | 51,533 | |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 46,389 | 26,109 | |
Consumer Loans [Member] | Other Consumer [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 82,607 | 25,424 | |
Pass [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 742,377 | 599,834 | |
Pass [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 245,307 | 235,684 | |
Pass [Member] | Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 205,554 | 228,563 | |
Pass [Member] | Residential Mortgage Loans [Member] | Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 3,963 | 7,121 | |
Pass [Member] | Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 35,790 | ||
Pass [Member] | Commercial Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 369,404 | 313,150 | |
Pass [Member] | Commercial Loans [Member] | Real Estate [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 238,288 | 201,997 | |
Pass [Member] | Commercial Loans [Member] | Lines of Credit [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 50,396 | 42,489 | |
Pass [Member] | Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 72,653 | 59,344 | |
Pass [Member] | Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 8,067 | 9,320 | |
Pass [Member] | Consumer Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 127,666 | 51,000 | |
Pass [Member] | Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 45,414 | 25,706 | |
Pass [Member] | Consumer Loans [Member] | Other Consumer [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 82,252 | 25,294 | |
Special Mention [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 30,342 | 14,296 | |
Special Mention [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,093 | 999 | |
Special Mention [Member] | Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,093 | 999 | |
Special Mention [Member] | Residential Mortgage Loans [Member] | Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention [Member] | Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | ||
Special Mention [Member] | Commercial Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 28,891 | 13,058 | |
Special Mention [Member] | Commercial Loans [Member] | Real Estate [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 12,473 | 8,299 | |
Special Mention [Member] | Commercial Loans [Member] | Lines of Credit [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 7,945 | 1,491 | |
Special Mention [Member] | Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 8,473 | 3,268 | |
Special Mention [Member] | Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Special Mention [Member] | Consumer Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 358 | 239 | |
Special Mention [Member] | Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 191 | 144 | |
Special Mention [Member] | Consumer Loans [Member] | Other Consumer [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 167 | 95 | |
Substandard [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 6,789 | 4,190 | |
Substandard [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,731 | 1,190 | |
Substandard [Member] | Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,731 | 1,190 | |
Substandard [Member] | Residential Mortgage Loans [Member] | Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard [Member] | Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | ||
Substandard [Member] | Commercial Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 4,393 | 2,792 | |
Substandard [Member] | Commercial Loans [Member] | Real Estate [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 3,194 | 1,947 | |
Substandard [Member] | Commercial Loans [Member] | Lines of Credit [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 276 | 233 | |
Substandard [Member] | Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 923 | 612 | |
Substandard [Member] | Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Substandard [Member] | Consumer Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 665 | 208 | |
Substandard [Member] | Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 477 | 173 | |
Substandard [Member] | Consumer Loans [Member] | Other Consumer [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 188 | 35 | |
Doubtful [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,833 | 2,085 | |
Doubtful [Member] | Residential Mortgage Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,181 | 1,771 | |
Doubtful [Member] | Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 1,181 | 1,771 | |
Doubtful [Member] | Residential Mortgage Loans [Member] | Construction [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful [Member] | Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | ||
Doubtful [Member] | Commercial Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 345 | 228 | |
Doubtful [Member] | Commercial Loans [Member] | Real Estate [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 302 | 71 | |
Doubtful [Member] | Commercial Loans [Member] | Lines of Credit [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 22 | |
Doubtful [Member] | Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 43 | 135 | |
Doubtful [Member] | Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Doubtful [Member] | Consumer Loans [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 307 | 86 | |
Doubtful [Member] | Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | 307 | 86 | |
Doubtful [Member] | Consumer Loans [Member] | Other Consumer [Member] | |||
Financing Receivable Recorded Investment [Line Items] | |||
Total loans | $ 0 | $ 0 | |
[1] | Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Loans - Age Analysis of Past Du
Loans - Age Analysis of Past Due Loans Segregated by Portfolio Segment and Class of Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | |
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 16,299 | $ 11,233 | |
Current | 765,042 | 609,172 | |
Total Loans Receivable | 781,341 | 620,405 | |
30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 9,761 | 8,088 | |
60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,364 | 1,095 | |
90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 5,174 | 2,050 | |
Loans Held-For-Sale [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Loans Receivable | 35,800 | ||
Residential Mortgage Loans [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,304 | 3,188 | |
Current | 246,008 | 236,456 | |
Total Loans Receivable | 249,312 | 239,644 | |
Residential Mortgage Loans [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 947 | 1,507 | |
Residential Mortgage Loans [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 744 | 505 | |
Residential Mortgage Loans [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,613 | 1,176 | |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,304 | 3,188 | |
Current | 206,255 | 229,335 | |
Total Loans Receivable | 209,559 | 232,523 | |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 947 | 1,507 | |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 744 | 505 | |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,613 | 1,176 | |
Residential Mortgage Loans [Member] | Construction [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 3,963 | 7,121 | |
Total Loans Receivable | 3,963 | 7,121 | |
Residential Mortgage Loans [Member] | Construction [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Residential Mortgage Loans [Member] | Construction [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Residential Mortgage Loans [Member] | Construction [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Current | 35,790 | ||
Total Loans Receivable | [1] | 35,790 | |
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Residential Mortgage Loans [Member] | Loans Held-For-Sale [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | ||
Commercial Loans [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 11,534 | 7,359 | |
Current | 391,499 | 321,869 | |
Total Loans Receivable | 403,033 | 329,228 | |
Commercial Loans [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 8,164 | 6,108 | |
Commercial Loans [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 440 | 519 | |
Commercial Loans [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,930 | 732 | |
Commercial Loans [Member] | Real Estate [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,324 | 4,948 | |
Current | 250,933 | 207,366 | |
Total Loans Receivable | 254,257 | 212,314 | |
Commercial Loans [Member] | Real Estate [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 953 | 4,261 | |
Commercial Loans [Member] | Real Estate [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 100 | 364 | |
Commercial Loans [Member] | Real Estate [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,271 | 323 | |
Commercial Loans [Member] | Lines of Credit [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,557 | 1,166 | |
Current | 54,060 | 43,069 | |
Total Loans Receivable | 58,617 | 44,235 | |
Commercial Loans [Member] | Lines of Credit [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 4,464 | 1,033 | |
Commercial Loans [Member] | Lines of Credit [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 25 | 111 | |
Commercial Loans [Member] | Lines of Credit [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 68 | 22 | |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 3,653 | 1,245 | |
Current | 78,439 | 62,114 | |
Total Loans Receivable | 82,092 | 63,359 | |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 2,747 | 814 | |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 315 | 44 | |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 591 | 387 | |
Commercial Loans [Member] | Tax Exempt Loans [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Current | 8,067 | 9,320 | |
Total Loans Receivable | 8,067 | 9,320 | |
Commercial Loans [Member] | Tax Exempt Loans [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Loans [Member] | Tax Exempt Loans [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Commercial Loans [Member] | Tax Exempt Loans [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 0 | 0 | |
Consumer Loans [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 1,461 | 686 | |
Current | 127,535 | 50,847 | |
Total Loans Receivable | 128,996 | 51,533 | |
Consumer Loans [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 650 | 473 | |
Consumer Loans [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 180 | 71 | |
Consumer Loans [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 631 | 142 | |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 925 | 288 | |
Current | 45,464 | 25,821 | |
Total Loans Receivable | 46,389 | 26,109 | |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 315 | 247 | |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 130 | 6 | |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 480 | 35 | |
Consumer Loans [Member] | Other Consumer [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 536 | 398 | |
Current | 82,071 | 25,026 | |
Total Loans Receivable | 82,607 | 25,424 | |
Consumer Loans [Member] | Other Consumer [Member] | 30-59 Days Past Due and Accruing [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 335 | 226 | |
Consumer Loans [Member] | Other Consumer [Member] | 60-89 Days Past Due and Accruing[Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | 50 | 65 | |
Consumer Loans [Member] | Other Consumer [Member] | 90 Days and Over [Member] | |||
Recorded Investment, Past Due [Line Items] | |||
Total Past Due | $ 151 | $ 107 | |
[1] | Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Loans - Nonaccrual Loans Segreg
Loans - Nonaccrual Loans Segregated by Class of Loan (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | $ 5,246 | $ 2,148 |
Residential Mortgage Loans [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 1,613 | 1,176 |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 1,613 | 1,176 |
Commercial Loans [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 3,002 | 830 |
Commercial Loans [Member] | Real Estate [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 2,343 | 415 |
Commercial Loans [Member] | Lines of Credit [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 68 | 28 |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 591 | 387 |
Consumer Loans [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 631 | 142 |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | 480 | 35 |
Consumer Loans [Member] | Other Consumer [Member] | ||
Nonaccrual loans, Segregated by class of loans [Abstract] | ||
Nonaccrual status loans | $ 151 | $ 107 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings on Financing Receivables (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Residential Real Estate Loans [Member] | |||
Troubled Debt Restructuring, Modified [Abstract] | |||
Number of loans | Loan | 1 | ||
Pre-modification outstanding recorded investment | $ 205,000 | ||
Post-modification outstanding recorded investment | 250,000 | ||
Additional provision for loan losses | $ 0 | ||
Other Commercial and Industrial [Member] | |||
Troubled Debt Restructuring, Modified [Abstract] | |||
Number of loans | Loan | 1 | ||
Pre-modification outstanding recorded investment | $ 300,000 | ||
Post-modification outstanding recorded investment | 300,000 | ||
Additional provision for loan losses | $ 0 | ||
Commercial Real Estate Loans [Member] | |||
Troubled Debt Restructuring, Modified [Abstract] | |||
Number of loans | Loan | 1 | ||
Pre-modification outstanding recorded investment | $ 123,000 | ||
Post-modification outstanding recorded investment | 137,000 | ||
Additional provision for loan losses | $ 14,000 | $ 14,000 |
Loans - Summary of Impaired Loa
Loans - Summary of Impaired Loans Information by Portfolio Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
With an allowance recorded [Abstract] | ||
Related Allowance | $ 830 | $ 631 |
Total [Abstract] | ||
Recorded Investment | 7,487 | 5,987 |
Unpaid Principal Balance | 7,566 | 6,054 |
Related Allowance | 830 | 631 |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 1,027 | 1,221 |
Unpaid Principal Balance | 1,027 | 1,226 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 584 | 606 |
Unpaid Principal Balance | 584 | 606 |
Related Allowance | 97 | 108 |
Total [Abstract] | ||
Recorded Investment | 1,611 | 1,827 |
Unpaid Principal Balance | 1,611 | 1,832 |
Related Allowance | 97 | 108 |
Commercial Loans [Member] | Real Estate [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 3,996 | 2,387 |
Unpaid Principal Balance | 4,067 | 2,448 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 450 | 486 |
Unpaid Principal Balance | 450 | 486 |
Related Allowance | 78 | 100 |
Total [Abstract] | ||
Recorded Investment | 4,446 | 2,873 |
Unpaid Principal Balance | 4,517 | 2,934 |
Related Allowance | 78 | 100 |
Commercial Loans [Member] | Lines of Credit [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 86 | 228 |
Unpaid Principal Balance | 86 | 228 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 98 | 28 |
Unpaid Principal Balance | 98 | 28 |
Related Allowance | 98 | 28 |
Total [Abstract] | ||
Recorded Investment | 184 | 256 |
Unpaid Principal Balance | 184 | 256 |
Related Allowance | 98 | 28 |
Commercial Loans [Member] | Other Commercial and Industrial [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 69 | 451 |
Unpaid Principal Balance | 77 | 452 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 866 | 373 |
Unpaid Principal Balance | 866 | 373 |
Related Allowance | 406 | 255 |
Total [Abstract] | ||
Recorded Investment | 935 | 824 |
Unpaid Principal Balance | 943 | 825 |
Related Allowance | 406 | 255 |
Commercial Loans [Member] | Other Consumer [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 55 | 0 |
Unpaid Principal Balance | 55 | 0 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 36 | 0 |
Unpaid Principal Balance | 36 | 0 |
Related Allowance | 1 | 0 |
Total [Abstract] | ||
Recorded Investment | 91 | 0 |
Unpaid Principal Balance | 91 | 0 |
Related Allowance | 1 | 0 |
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | ||
With no related allowance recorded [Abstract] | ||
Recorded Investment | 40 | 0 |
Unpaid Principal Balance | 40 | 0 |
With an allowance recorded [Abstract] | ||
Recorded Investment | 180 | 207 |
Unpaid Principal Balance | 180 | 207 |
Related Allowance | 150 | 140 |
Total [Abstract] | ||
Recorded Investment | 220 | 207 |
Unpaid Principal Balance | 220 | 207 |
Related Allowance | $ 150 | $ 140 |
Loans - Summary of Average Reco
Loans - Summary of Average Recorded Investment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | $ 7,096 | $ 7,929 |
1-4 Family First Lien Residential Mortgages [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | 1,622 | 1,842 |
Commercial Real Estate [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | 3,868 | 4,555 |
Commercial Lines of Credit [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | 295 | 343 |
Other Commercial and Industrial [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | 1,015 | 965 |
Home Equity and Junior Liens [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | 220 | 224 |
Other Consumer [Member] | ||
Average recorded investment [Abstract] | ||
Average recorded investment in impaired loans | $ 76 | $ 0 |
Loans - Schedule of Cash Basis
Loans - Schedule of Cash Basis Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | $ 352 | $ 314 |
1-4 Family First Lien Residential Mortgages [Member] | ||
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | 62 | 61 |
Commercial Real Estate [Member] | ||
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | 190 | 175 |
Commercial Lines of Credit [Member] | ||
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | 16 | 28 |
Other Commercial and Industrial [Member] | ||
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | 66 | 38 |
Home Equity and Junior Liens [Member] | ||
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | 11 | 12 |
Other Consumer [Member] | ||
Cash Basis Interest Recognized on Impaired Loans [Abstract] | ||
Cash basis interest income recognized on impaired loans | $ 7 | $ 0 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Changes in the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | |||
Allowance for loan losses: | ||||
Beginning Balance | $ 7,306 | $ 7,126 | ||
Charge-offs | (666) | (1,462) | ||
Recoveries | 63 | 145 | ||
Provisions (credits) | 1,966 | 1,497 | ||
Ending balance | 8,669 | 7,306 | ||
Ending balance: related to loans individually evaluated for impairment | 830 | 631 | ||
Ending balance: related to loans collectively evaluated for impairment | 7,839 | 6,675 | ||
Total Loans Receivable | 781,341 | 620,405 | ||
Ending balance: individually evaluated for impairment | 7,487 | 5,987 | ||
Ending balance: collectively evaluated for impairment | 773,854 | 614,418 | ||
Unallocated [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 152 | [1] | 0 | |
Charge-offs | 0 | [1] | 0 | |
Recoveries | 0 | [1] | 0 | |
Provisions (credits) | 120 | [1] | 152 | |
Ending balance | [1] | 272 | 152 | |
Ending balance: related to loans individually evaluated for impairment | 0 | [1] | 0 | |
Ending balance: related to loans collectively evaluated for impairment | 272 | [1] | 152 | |
Total Loans Receivable | [1] | 35,790 | ||
Ending balance: individually evaluated for impairment | [1] | 0 | ||
Ending balance: collectively evaluated for impairment | [1] | 35,790 | ||
Residential Mortgage Loans [Member] | ||||
Allowance for loan losses: | ||||
Total Loans Receivable | 249,312 | 239,644 | ||
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 766 | 865 | ||
Charge-offs | (11) | (245) | ||
Recoveries | 2 | 21 | ||
Provisions (credits) | (177) | 125 | ||
Ending balance | 580 | 766 | ||
Ending balance: related to loans individually evaluated for impairment | 97 | 108 | ||
Ending balance: related to loans collectively evaluated for impairment | 483 | 658 | ||
Total Loans Receivable | 209,559 | 232,523 | ||
Ending balance: individually evaluated for impairment | 1,611 | 1,827 | ||
Ending balance: collectively evaluated for impairment | 207,948 | 230,696 | ||
Residential Mortgage Loans [Member] | Residential Construction Mortgage [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 0 | 0 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provisions (credits) | 0 | 0 | ||
Ending balance | 0 | 0 | ||
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | ||
Ending balance: related to loans collectively evaluated for impairment | 0 | 0 | ||
Total Loans Receivable | 3,963 | 7,121 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 3,963 | 7,121 | ||
Commercial Loans [Member] | ||||
Allowance for loan losses: | ||||
Total Loans Receivable | 403,033 | 329,228 | ||
Commercial Loans [Member] | Real Estate [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 3,578 | 3,589 | ||
Charge-offs | 0 | (643) | ||
Recoveries | 0 | 0 | ||
Provisions (credits) | 432 | 632 | ||
Ending balance | 4,010 | 3,578 | ||
Ending balance: related to loans individually evaluated for impairment | 78 | 100 | ||
Ending balance: related to loans collectively evaluated for impairment | 3,932 | 3,478 | ||
Total Loans Receivable | 254,257 | 212,314 | ||
Ending balance: individually evaluated for impairment | 4,446 | 2,873 | ||
Ending balance: collectively evaluated for impairment | 249,811 | 209,441 | ||
Commercial Loans [Member] | Lines of Credit [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 730 | 735 | ||
Charge-offs | (136) | (102) | ||
Recoveries | 0 | 66 | ||
Provisions (credits) | 601 | 31 | ||
Ending balance | 1,195 | 730 | ||
Ending balance: related to loans individually evaluated for impairment | 98 | 28 | ||
Ending balance: related to loans collectively evaluated for impairment | 1,097 | 702 | ||
Total Loans Receivable | 58,617 | 44,235 | ||
Ending balance: individually evaluated for impairment | 184 | 256 | ||
Ending balance: collectively evaluated for impairment | 58,433 | 43,979 | ||
Commercial Loans [Member] | Other Commercial and Industrial [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,285 | 1,214 | ||
Charge-offs | (158) | (207) | ||
Recoveries | 1 | 0 | ||
Provisions (credits) | 517 | 278 | ||
Ending balance | 1,645 | 1,285 | ||
Ending balance: related to loans individually evaluated for impairment | 406 | 255 | ||
Ending balance: related to loans collectively evaluated for impairment | 1,239 | 1,030 | ||
Total Loans Receivable | 82,092 | 63,359 | ||
Ending balance: individually evaluated for impairment | 935 | 824 | ||
Ending balance: collectively evaluated for impairment | 81,157 | 62,535 | ||
Commercial Loans [Member] | Tax Exempt Loans [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1 | 1 | ||
Charge-offs | 0 | 0 | ||
Recoveries | 0 | 0 | ||
Provisions (credits) | 0 | 0 | ||
Ending balance | 1 | 1 | ||
Ending balance: related to loans individually evaluated for impairment | 0 | 0 | ||
Ending balance: related to loans collectively evaluated for impairment | 1 | 1 | ||
Total Loans Receivable | 8,067 | 9,320 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 8,067 | 9,320 | ||
Consumer Loans [Member] | ||||
Allowance for loan losses: | ||||
Total Loans Receivable | 128,996 | 51,533 | ||
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 409 | 514 | ||
Charge-offs | (7) | (17) | ||
Recoveries | 0 | 7 | ||
Provisions (credits) | 151 | (95) | ||
Ending balance | 553 | 409 | ||
Ending balance: related to loans individually evaluated for impairment | 150 | 140 | ||
Ending balance: related to loans collectively evaluated for impairment | 403 | 269 | ||
Total Loans Receivable | 46,389 | 26,109 | ||
Ending balance: individually evaluated for impairment | 220 | 207 | ||
Ending balance: collectively evaluated for impairment | 46,169 | 25,902 | ||
Consumer Loans [Member] | Other Consumer [Member] | ||||
Allowance for loan losses: | ||||
Beginning Balance | 385 | 208 | ||
Charge-offs | (354) | (248) | ||
Recoveries | 60 | 51 | ||
Provisions (credits) | 322 | 374 | ||
Ending balance | 413 | 385 | ||
Ending balance: related to loans individually evaluated for impairment | 1 | 0 | ||
Ending balance: related to loans collectively evaluated for impairment | 412 | 385 | ||
Total Loans Receivable | 82,607 | 25,424 | ||
Ending balance: individually evaluated for impairment | 91 | 0 | ||
Ending balance: collectively evaluated for impairment | $ 82,516 | $ 25,424 | ||
[1] | The ending balance of the loans receivable for the unallocated portion of the allowance includes loans held-for-sale. At December 31, 2019, the Bank had loans held-for-sale with a principal balance of $35.8 million. These loans were still part of the portfolio as of December 31, 2019. Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. |
Allowance for Loan Losses - C_2
Allowance for Loan Losses - Changes in the Allowance for Loan Losses (Parenthetical) (Details) $ in Thousands | Dec. 31, 2019USD ($) | |
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans held-for-sale | $ 35,935 | [1] |
Unallocated [Member] | ||
Financing Receivable Allowance For Credit Losses [Line Items] | ||
Loans held-for-sale | $ 35,800 | |
[1] | Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. The loans under contract to be sold had a principal balance of $35.8 million and net deferred fees of $146,000 at December 31, 2019. These loans were transferred at their amortized cost of $35.9 million as of December 31, 2019, as the fair value of these loans was greater than the amortized cost. |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of Allowance for Loan Losses on Basis of Calculation Methodology (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | $ 830 | $ 631 | |||
Historical loss rate | 533 | 386 | |||
Qualitative factors | 7,034 | 6,137 | |||
Other | 272 | 152 | |||
Total | 8,669 | 7,306 | $ 7,126 | ||
Unallocated [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 0 | 0 | |||
Historical loss rate | 0 | 0 | |||
Qualitative factors | 0 | 0 | |||
Other | 272 | 152 | |||
Total | 272 | [1] | 152 | [1] | 0 |
Residential Mortgage Loans [Member] | 1-4 Family First Lien Residential Mortgages [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 97 | 108 | |||
Historical loss rate | 43 | 87 | |||
Qualitative factors | 440 | 571 | |||
Total | 580 | 766 | 865 | ||
Residential Mortgage Loans [Member] | Residential Construction Mortgage [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 0 | 0 | |||
Historical loss rate | 0 | 0 | |||
Qualitative factors | 0 | 0 | |||
Total | 0 | 0 | 0 | ||
Commercial Loans [Member] | Real Estate [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 78 | 100 | |||
Historical loss rate | 98 | 85 | |||
Qualitative factors | 3,834 | 3,393 | |||
Total | 4,010 | 3,578 | 3,589 | ||
Commercial Loans [Member] | Lines of Credit [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 98 | 28 | |||
Historical loss rate | 106 | 20 | |||
Qualitative factors | 991 | 682 | |||
Total | 1,195 | 730 | 735 | ||
Commercial Loans [Member] | Other Commercial and Industrial [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 406 | 255 | |||
Historical loss rate | 34 | 24 | |||
Qualitative factors | 1,205 | 1,006 | |||
Total | 1,645 | 1,285 | 1,214 | ||
Commercial Loans [Member] | Tax Exempt Loans [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 0 | 0 | |||
Historical loss rate | 0 | 0 | |||
Qualitative factors | 1 | 1 | |||
Other | 0 | 0 | |||
Total | 1 | 1 | 1 | ||
Consumer Loans [Member] | Home Equity and Junior Liens [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 150 | 140 | |||
Historical loss rate | 85 | 15 | |||
Qualitative factors | 318 | 254 | |||
Other | 0 | 0 | |||
Total | 553 | 409 | 514 | ||
Consumer Loans [Member] | Other Consumer [Member] | |||||
Allowance For Loan Losses On Basis Of Calculation Methodology Abstract | |||||
Specifically reserved | 1 | 0 | |||
Historical loss rate | 167 | 155 | |||
Qualitative factors | 245 | 230 | |||
Other | 0 | 0 | |||
Total | $ 413 | $ 385 | $ 208 | ||
[1] | The ending balance of the loans receivable for the unallocated portion of the allowance includes loans held-for-sale. At December 31, 2019, the Bank had loans held-for-sale with a principal balance of $35.8 million. These loans were still part of the portfolio as of December 31, 2019. Based on ASC 948, Mortgage Banking, loans shall be classified as held-for-sale once a decision has been made to sell the loans and shall be transferred to the held-for-sale category at lower of cost or fair value. |
Servicing - Additional Informat
Servicing - Additional Information (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)Loan | Dec. 31, 2018USD ($)Loan | |
Accounts Notes And Loans Receivable [Line Items] | ||
Unpaid principal balance of mortgage and other loans | $ 11,800,000 | $ 11,900,000 |
Capitalized servicing rights | $ 19,000 | $ 16,000 |
Residential Mortgage Loans [Member] | ||
Accounts Notes And Loans Receivable [Line Items] | ||
Number of loans | Loan | 195 | 206 |
Servicing - Mortgage Servicing
Servicing - Mortgage Servicing Rights Capitalized and Amortized (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Asset [Abstract] | ||
Mortgage servicing rights capitalized | $ 16 | $ 0 |
Mortgage servicing rights amortized | $ 13 | $ 12 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | $ 40,452 | $ 36,927 |
Less: Accumulated depreciation | 17,753 | 16,304 |
Premises and equipment, net | 22,699 | 20,623 |
Land [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 2,268 | 2,205 |
Buildings [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 17,673 | 16,094 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | 15,936 | 15,029 |
Construction in Progress [Member] | ||
Premises and Equipment [Line Items] | ||
Premises and equipment, gross | $ 4,575 | $ 3,599 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 1,520 | $ 1,180 |
Foreclosed Real Estate - Summar
Foreclosed Real Estate - Summary of Carrying Amount of Foreclosed Residential Real Estate Properties Held (Details) $ in Thousands | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)Property |
Real Estate Properties [Line Items] | ||
Foreclosed real estate | $ 88 | $ 1,173 |
Foreclosed Residential Real Estate [Member] | ||
Real Estate Properties [Line Items] | ||
Number of properties | Property | 2 | |
Foreclosed real estate | $ 73 |
Foreclosed Real Estate - Additi
Foreclosed Real Estate - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Real Estate Owned Disclosure Of Detailed Components [Abstract] | ||
Residential real estate loans in the process of foreclosure | $ 341,000 | $ 951,000 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Goodwill | $ 4,536,000 | $ 4,536,000 |
Identifiable intangible asset | $ 149,000 | |
Weighted average remaining amortization period of intangible asset | 5 years 2 months 12 days | |
Branches [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | $ 3,800,000 | |
Fitzgibbons Agency [Member] | ||
Business Acquisition [Line Items] | ||
Goodwill acquired | $ 696,000 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets - Schedule of Gross Carrying Amount and Accumulated Amortization for Identifiable Intangible Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Gross carrying amount and accumulated amortization for identifiable intangible asset [Abstract] | ||
Gross carrying amount | $ 243 | $ 243 |
Accumulated amortization | (94) | (78) |
Net amortizing intangibles | $ 149 | $ 165 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets - Schedule of Estimated Amortization Expense for Each of the Five Succeeding Years (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Estimated amortization expense for each of the five succeeding years [Abstract] | ||
2020 | $ 16 | |
2021 | 16 | |
2022 | 16 | |
2023 | 16 | |
2024 | 16 | |
Thereafter | 69 | |
Net amortizing intangibles | $ 149 | $ 165 |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of deposits [Abstract] | ||
Savings accounts | $ 81,926 | $ 80,545 |
Time accounts | 301,193 | 199,598 |
Time accounts of $250,000 or more | 120,450 | 77,224 |
Money management accounts | 14,388 | 13,180 |
MMDA accounts | 185,402 | 189,679 |
Demand deposit interest-bearing | 64,533 | 57,407 |
Demand deposit noninterest-bearing | 107,501 | 103,124 |
Mortgage escrow funds | 6,500 | 6,303 |
Total deposits | $ 881,893 | $ 727,060 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Maturities of time deposits [Abstract] | |
2020 | $ 386,920 |
2021 | 24,456 |
2022 | 4,639 |
2023 | 2,360 |
2024 | 1,499 |
Thereafter | 1,769 |
Total | $ 421,643 |
Deposits - Summary of Deposit_2
Deposits - Summary of Deposits by Type (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Line Items] | ||
Savings accounts | $ 81,926 | $ 80,545 |
Time accounts | 301,193 | 199,598 |
Time accounts of $250,000 or more | 120,450 | 77,224 |
Money management accounts | 14,388 | 13,180 |
MMDA accounts | 185,402 | 189,679 |
Demand deposit interest-bearing | 64,533 | 57,407 |
Demand deposit noninterest-bearing | 107,501 | 103,124 |
Mortgage escrow funds | 6,500 | 6,303 |
Total deposits | 881,893 | 727,060 |
Non-Brokered [Member] | ||
Deposits [Line Items] | ||
Savings accounts | 81,926 | 80,545 |
Time accounts | 190,685 | 158,207 |
Time accounts of $250,000 or more | 94,455 | 77,224 |
Money management accounts | 14,388 | 13,180 |
MMDA accounts | 185,356 | 189,625 |
Demand deposit interest-bearing | 64,533 | 57,407 |
Demand deposit noninterest-bearing | 107,501 | 103,124 |
Mortgage escrow funds | 6,500 | 6,303 |
Total deposits | 745,344 | 685,615 |
Brokered [Member] | ||
Deposits [Line Items] | ||
Time accounts | 110,508 | 41,391 |
Time accounts of $250,000 or more | 25,995 | |
MMDA accounts | 46 | 54 |
Total deposits | $ 136,549 | $ 41,445 |
Borrowed Funds - Composition of
Borrowed Funds - Composition of Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Short-term [Abstract] | ||
Total short-term borrowings | $ 25,138 | $ 39,000 |
Long-term [Abstract] | ||
Total long-term borrowings | 67,987 | 79,534 |
FHLB Advances [Member] | ||
Short-term [Abstract] | ||
Total short-term borrowings | 25,138 | 39,000 |
Long-term [Abstract] | ||
Total long-term borrowings | $ 67,987 | $ 79,534 |
Borrowed Funds - Scheduled Prin
Borrowed Funds - Scheduled Principal Balances, Interest Rates and Maturities of Outstanding Long-term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Advances with FHLB [Abstract] | ||
Due within 1 year | $ 30,193 | |
Due within 2 years | 25,969 | |
Due within 10 years | 11,825 | |
Total advances with FHLB | 67,987 | |
Total long-term fixed rate borrowings | $ 67,987 | $ 79,534 |
Minimum [Member] | ||
Federal Home Loan Bank advances interest rate [Abstract] | ||
Due within 1 year interest rate | 1.62% | |
Due within 2 years interest rate | 1.74% | |
Due within 10 years interest rate | 1.68% | |
Maximum [Member] | ||
Federal Home Loan Bank advances interest rate [Abstract] | ||
Due within 1 year interest rate | 3.03% | |
Due within 2 years interest rate | 3.10% | |
Due within 10 years interest rate | 3.17% |
Borrowed Funds - Scheduled Repa
Borrowed Funds - Scheduled Repayments of Long-Term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | $ 30,193 | |
2021 | 25,969 | |
2022 | 11,000 | |
2023 | 825 | |
2024 | 0 | |
Thereafter | 0 | |
Total long-term fixed rate borrowings | $ 67,987 | $ 79,534 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Details) $ in Millions | Dec. 31, 2019USD ($)Bank |
Federal Reserve Bank of New York [Member] | Domestic Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 21.3 |
Other Corresponding Banks [Member] | Domestic Line of Credit [Member] | |
Line of Credit Facility [Line Items] | |
Maximum borrowing capacity | $ 15 |
Number of corresponding banks with a line of credit available | Bank | 2 |
Maximum borrowing capacity, unsecured basis | $ 10 |
Maximum borrowing capacity, requiring collateral | 5 |
FHLB Advances [Member] | |
Line of Credit Facility [Line Items] | |
Carrying value of residential mortgage loans pledged under a blanket collateral agreement | 136.9 |
Carrying value of FHLB stock pledged under a blanket collateral agreement | $ 4.8 |
Subordinated Loans - Additional
Subordinated Loans - Additional Information (Details) - USD ($) | Oct. 15, 2015 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Interest on subordinated loans | $ 863,000 | $ 846,000 | |
Junior Subordinated Debentures [Member] | Pathfinder Statutory Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Ownership interest | 100.00% | ||
Subordinated loan face value | $ 5,000,000 | ||
Term of debt | 30 years | ||
Maturity date | Dec. 31, 2037 | ||
Call provision on trust securities | 5 years | ||
Interest on subordinated loans | $ 213,000 | 199,000 | |
Junior Subordinated Debentures [Member] | 3-Month LIBOR [Member] | Pathfinder Statutory Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Variable rate basis | 3-month LIBOR | ||
Debt instrument, term of variable rate | 3 months | ||
Basis spread on variable rate | 1.65% | ||
Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Subordinated loan face value | $ 10,000,000 | ||
Maturity date | Oct. 1, 2025 | ||
Interest on subordinated loans | $ 650,000 | $ 647,000 | |
Effective interest rate | 6.44% | ||
Subordinated loan interest rate | 6.25% | ||
Origination and legal fees | $ 172,000 | ||
Subordinated Debt [Member] | 3-Month LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.65% |
Subordinated Loans - Compositio
Subordinated Loans - Composition of Subordinated Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total subordinated loans | $ 15,128 | $ 15,094 |
Junior Subordinated Debentures [Member] | ||
Debt Instrument [Line Items] | ||
Total subordinated loans | 5,155 | 5,155 |
Subordinated Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total subordinated loans | $ 9,973 | $ 9,939 |
Subordinated Loans - Schedule o
Subordinated Loans - Schedule of Principal Balances, Interest Rates and Maturities of the Subordinated Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Total subordinated loans | $ 15,128 | $ 15,094 |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Due within 10 years | 9,973 | |
Due within 18 years | 5,155 | |
Total subordinated loans | $ 15,128 | |
Due within 10 years | 6.48% | |
Subordinated Debt [Member] | 3-Month LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Due within 18 years | 1.65% |
Subordinated Loans - Scheduled
Subordinated Loans - Scheduled Repayments of the Subordinated Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | $ 30,193 | |
2021 | 25,969 | |
2022 | 11,000 | |
2023 | 825 | |
2024 | 0 | |
Thereafter | 0 | |
Total subordinated loans | 15,128 | $ 15,094 |
Subordinated Debt [Member] | ||
Long-term Debt, Fiscal Year Maturity [Abstract] | ||
2020 | 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 15,128 | |
Total subordinated loans | $ 15,128 |
Employee Benefits and Deferre_3
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)FundPayment | Dec. 31, 2018USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2017USD ($) | ||
Defined Benefit Plans And Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Minimum years of service to participate in the health and life insurance benefits as of January 1, 1995 | 14 years | ||||
Gains or losses greater of the benefit obligation or the fair value of assets amortized over the average remaining service period | 10.00% | ||||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Long-term inflation rate | 2.50% | ||||
Target Allocations [Abstract] | |||||
Number of funds in which plan assets invested | Fund | 3 | ||||
401 (k) Plan [Abstract] | |||||
Employer contribution to 401 (k) plan | $ 393,000 | $ 371,000 | |||
Additional safe harbor contribution | $ 291,000 | $ 273,000 | |||
Deferred Compensation Arrangements [Abstract] | |||||
Period for additional annual contributions following change in control | 24 months | ||||
Number of years the Bank is required to make additional annual contributions | 3 years | ||||
Period for benefit payment in the event of death, disability or termination following change in control | 24 months | ||||
Number of annual installments for benefit payments | Payment | 10 | ||||
Directors and Certain Executive Officers [Member] | |||||
Deferred Compensation Arrangements [Abstract] | |||||
Deferred compensation benefit payments age | 65 years | 70 years | |||
Maximum contractual term | 10 years | ||||
Liability related to deferred compensation | $ 2,800,000 | $ 2,700,000 | |||
Deferred compensation expense | $ 349,000 | $ 258,000 | |||
Equity Securities [Member] | |||||
Target Allocations [Abstract] | |||||
Target plan asset allocations - well-funded | 48.00% | ||||
Mutual Funds - Fixed Income Intermediate duration [Member] | |||||
Target Allocations [Abstract] | |||||
Target plan asset allocations - well-funded | 16.00% | ||||
Estimated retirement life of assets in the trust | 30 years | ||||
Mutual Funds-Fixed Income Long Duration [Member] | |||||
Target Allocations [Abstract] | |||||
Target plan asset allocations - well-funded | 35.00% | ||||
Cash Equivalents [Member] | |||||
Target Allocations [Abstract] | |||||
Target plan asset allocations - well-funded | 1.00% | ||||
Pension Benefits [Member] | |||||
Significant Assumptions Used in Determining Benefit Obligations [Abstract] | |||||
Weighted average discount rate | 3.97% | 4.97% | |||
Change in Benefit Obligation [Roll Forward] | |||||
Accumulated benefit obligation | $ 11,892,000 | $ 10,095,000 | $ 10,469,000 | ||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets | $ 16,985,000 | $ 14,522,000 | 14,956,000 | ||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Expected long term rate of return on plan assets | 6.50% | 6.50% | |||
Expected long term rate of return on plan assets - 2020 | 6.50% | ||||
Expected net periodic benefit cost in next fiscal year | $ 379,000 | ||||
Pension Benefits [Member] | Fixed Income Securities [Member] | |||||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets | 9,148,000 | $ 7,983,000 | |||
Pension Benefits [Member] | Mutual Funds - Fixed Income Intermediate duration [Member] | |||||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets | [1] | 3,708,000 | 3,255,000 | ||
Pension Benefits [Member] | Mutual Funds-Fixed Income Long Duration [Member] | |||||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets | [2] | $ 3,084,000 | $ 2,521,000 | ||
Pension Benefits [Member] | Minimum [Member] | Equity Securities [Member] | |||||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Real rate of return on assets assumption | 6.00% | ||||
Expected long term rate of return on plan assets | 5.00% | ||||
Pension Benefits [Member] | Minimum [Member] | Fixed Income Securities [Member] | |||||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Real rate of return on assets assumption | 3.00% | ||||
Pension Benefits [Member] | Maximum [Member] | Equity Securities [Member] | |||||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Real rate of return on assets assumption | 8.00% | ||||
Expected long term rate of return on plan assets | 7.00% | ||||
Pension Benefits [Member] | Maximum [Member] | Fixed Income Securities [Member] | |||||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Real rate of return on assets assumption | 5.00% | ||||
Postretirement Benefits [Member] | |||||
Significant Assumptions Used in Determining Benefit Obligations [Abstract] | |||||
Weighted average discount rate | 3.97% | 4.97% | |||
Change in Benefit Obligation [Roll Forward] | |||||
Accumulated benefit obligation | $ 414,000 | $ 454,000 | 481,000 | ||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets | $ 0 | $ 0 | $ 0 | ||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Expected long term rate of return on plan assets | 0.00% | 0.00% | |||
Decrease in expected long-term rate of return in basis points | 5.00% | ||||
Decrease in percentage of expected long-term rate of return | 21.00% | ||||
Decrease in expected long-term rate of return | $ 67,000 | ||||
Expected net periodic benefit cost in next fiscal year | $ 379,000 | ||||
Postretirement Benefits [Member] | Scenario Forecast [Member] | |||||
Target Allocations [Abstract] | |||||
Estimated future employer contributions in next fiscal year | $ 36,000 | ||||
Postretirement Health Care Plan [Member] | |||||
Assumed Health Care Cost Trend Rates [Abstract] | |||||
Health care cost trend rate assumption | 4.50% | ||||
Ultimate health care cost trend rate | 4.20% | ||||
Year that rate reaches ultimate trend rate | 2023 | ||||
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | |||||
Amounts that will be amortized from accumulated other comprehensive income (loss) in next fiscal year | $ 228,000 | ||||
Estimated amortization of the unrecognized transition obligation and actuarial loss in next fiscal year | 10,000 | ||||
Supplemental Executive Retirement Plans [Member] | |||||
Target Allocations [Abstract] | |||||
Cash surrender value of life insurance | 17,400,000 | $ 16,900,000 | |||
Other accrued liabilities | $ 836,000 | $ 745,000 | |||
[1] | This category consists mostly of a fund which seeks to track the Barclays Capital US Corporate A or Better 5-20 Year, Bullets only Index, along with a diversified mutual fund holding fixed income securities rated A or better. | ||||
[2] | This category consists of a fund that seeks to approximate the performance of the Barclays Capital US Corporate A or Better, 20+ Year Bullets Only Index over the long term. |
Employee Benefits and Deferre_4
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Changes in the Plans Benefit Obligations, Fair Value of Plan Assets and the Plans' Funded Status (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits [Member] | ||
Change in Benefit Obligation [Roll Forward] | ||
Benefit obligations at beginning of year | $ 10,095,000 | $ 10,469,000 |
Service cost | 0 | 0 |
Interest cost | 494,000 | 473,000 |
Plan participants' contribution | 0 | 0 |
Actuarial loss (gain) | 1,558,000 | (581,000) |
Benefits paid | (255,000) | (266,000) |
Benefit obligations at end of year | 11,892,000 | 10,095,000 |
Change in Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 14,522,000 | 14,956,000 |
Actual return on plan assets | 2,718,000 | (993,000) |
Benefits paid | (255,000) | (266,000) |
Plan participants' contribution | 0 | 0 |
Employer contributions | 0 | 825,000 |
Fair value of plan assets at end of year | 16,985,000 | 14,522,000 |
Funded (unfunded) status - asset (liability) | 5,093,000 | 4,427,000 |
Postretirement Benefits [Member] | ||
Change in Benefit Obligation [Roll Forward] | ||
Benefit obligations at beginning of year | 454,000 | 481,000 |
Service cost | 0 | 0 |
Interest cost | 22,000 | 21,000 |
Plan participants' contribution | 8,000 | 9,000 |
Actuarial loss (gain) | (27,000) | (16,000) |
Benefits paid | (43,000) | (41,000) |
Benefit obligations at end of year | 414,000 | 454,000 |
Change in Plan Assets [Roll Forward] | ||
Fair value of plan assets at beginning of year | 0 | 0 |
Actual return on plan assets | 0 | 0 |
Benefits paid | (43,000) | (41,000) |
Plan participants' contribution | 8,000 | 9,000 |
Employer contributions | 35,000 | 32,000 |
Fair value of plan assets at end of year | 0 | 0 |
Funded (unfunded) status - asset (liability) | $ (414,000) | $ (454,000) |
Employee Benefits and Deferre_5
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Amounts Recognized in Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | ||
Accumulated other comprehensive income after tax | $ 2,717 | $ 3,152 |
Pension Benefits [Member] | ||
Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | ||
Net loss | 3,557 | 4,112 |
Tax Effect | 929 | 1,074 |
Accumulated other comprehensive income after tax | 2,628 | 3,038 |
Postretirement Benefits [Member] | ||
Amounts Recognized in Accumulated Other Comprehensive Loss [Abstract] | ||
Net loss | 117 | 151 |
Tax Effect | 31 | 40 |
Accumulated other comprehensive income after tax | $ 86 | $ 111 |
Employee Benefits and Deferre_6
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Significant Assumptions Used in Determining Benefit Obligations and Net Periodic Benefit Plan Cost (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits [Member] | ||
Significant Assumptions Used in Determining Benefit Obligations [Abstract] | ||
Weighted average discount rate | 3.97% | 4.97% |
Rate of increase in future compensation levels | 0.00% | 0.00% |
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | ||
Weighted average discount rate | 3.97% | 4.97% |
Expected long term rate of return on plan assets | 6.50% | 6.50% |
Rate of increase in future compensation levels | 0.00% | 0.00% |
Postretirement Benefits [Member] | ||
Significant Assumptions Used in Determining Benefit Obligations [Abstract] | ||
Weighted average discount rate | 3.97% | 4.97% |
Rate of increase in future compensation levels | 0.00% | 0.00% |
Significant Assumptions Used in Determining Net Periodic Benefit Plan Cost [Abstract] | ||
Weighted average discount rate | 3.97% | 4.97% |
Expected long term rate of return on plan assets | 0.00% | 0.00% |
Rate of increase in future compensation levels | 0.00% | 0.00% |
Employee Benefits and Deferre_7
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Composition of Net Periodic Benefit Plan (Benefit) Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits [Member] | ||
Composition of Net Periodic Benefit Plan Cost [Abstract] | ||
Service cost | $ 0 | $ 0 |
Interest cost | 494 | 473 |
Expected return on plan assets | (934) | (1,037) |
Amortization of transition obligation | 0 | 0 |
Amortization of net losses | 328 | 164 |
Amortization of unrecognized past service liability | 0 | 0 |
Net periodic benefit plan (benefit) cost | (112) | (400) |
Postretirement Benefits [Member] | ||
Composition of Net Periodic Benefit Plan Cost [Abstract] | ||
Service cost | 0 | 0 |
Interest cost | 22 | 21 |
Expected return on plan assets | 0 | 0 |
Amortization of transition obligation | 0 | 0 |
Amortization of net losses | 12 | 13 |
Amortization of unrecognized past service liability | (5) | (5) |
Net periodic benefit plan (benefit) cost | $ 29 | $ 29 |
Employee Benefits and Deferre_8
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Pension Plan Assets Fair Value (Details) - Pension Benefits [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | $ 16,985 | $ 14,522 | $ 14,956 | |
Equities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 7,556 | 5,977 | ||
Mutual Funds - Equity - Large-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 1,432 | 1,132 | |
Mutual Funds - Equity - Large-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 1,470 | 1,157 | |
Mutual Funds - Equity - Large-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 1,075 | 821 | |
Mutual Funds - Equity - Mid-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [4] | 307 | 242 | |
Mutual Funds - Equity - Mid-Cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [5] | 328 | 247 | |
Mutual Funds - Equity - Mid-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [6] | 314 | 250 | |
Mutual Funds - Equity - Small-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [7] | 220 | 193 | |
Mutual Funds - Equity - Small-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [8] | 466 | 337 | |
Mutual Funds - Equity - Small-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [9] | 211 | 189 | |
International Equity [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [10] | 1,733 | 1,409 | |
Fixed Income Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 9,148 | 7,983 | ||
Mutual Funds Fixed Income US Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [11] | 2,356 | 2,207 | |
Mutual Funds - Fixed Income Intermediate duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [12] | 3,708 | 3,255 | |
Mutual Funds-Fixed Income Long Duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [13] | 3,084 | 2,521 | |
Company Common Stock [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash Equivalents-Money Market [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 281 | 562 | ||
Level 1 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 48 | 271 | ||
Level 1 [Member] | Equities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 1 [Member] | Mutual Funds - Equity - Large-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Large-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Large-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Mid-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Mid-Cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [5] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Mid-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [6] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Small-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [7] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Small-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [8] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Equity - Small-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [9] | 0 | 0 | |
Level 1 [Member] | International Equity [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [10] | 0 | 0 | |
Level 1 [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 1 [Member] | Mutual Funds Fixed Income US Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [11] | 0 | 0 | |
Level 1 [Member] | Mutual Funds - Fixed Income Intermediate duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [12] | 0 | 0 | |
Level 1 [Member] | Mutual Funds-Fixed Income Long Duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [13] | 0 | 0 | |
Level 1 [Member] | Company Common Stock [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 1 [Member] | Cash Equivalents-Money Market [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 48 | 271 | ||
Level 2 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 16,937 | 14,251 | ||
Level 2 [Member] | Equities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 7,556 | 5,977 | ||
Level 2 [Member] | Mutual Funds - Equity - Large-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 1,432 | 1,132 | |
Level 2 [Member] | Mutual Funds - Equity - Large-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 1,470 | 1,157 | |
Level 2 [Member] | Mutual Funds - Equity - Large-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 1,075 | 821 | |
Level 2 [Member] | Mutual Funds - Equity - Mid-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [4] | 307 | 242 | |
Level 2 [Member] | Mutual Funds - Equity - Mid-Cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [5] | 328 | 247 | |
Level 2 [Member] | Mutual Funds - Equity - Mid-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [6] | 314 | 250 | |
Level 2 [Member] | Mutual Funds - Equity - Small-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [7] | 220 | 193 | |
Level 2 [Member] | Mutual Funds - Equity - Small-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [8] | 466 | 337 | |
Level 2 [Member] | Mutual Funds - Equity - Small-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [9] | 211 | 189 | |
Level 2 [Member] | International Equity [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [10] | 1,733 | 1,409 | |
Level 2 [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 9,148 | 7,983 | ||
Level 2 [Member] | Mutual Funds Fixed Income US Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [11] | 2,356 | 2,207 | |
Level 2 [Member] | Mutual Funds - Fixed Income Intermediate duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [12] | 3,708 | 3,255 | |
Level 2 [Member] | Mutual Funds-Fixed Income Long Duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [13] | 3,084 | 2,521 | |
Level 2 [Member] | Company Common Stock [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 2 [Member] | Cash Equivalents-Money Market [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 233 | 291 | ||
Level 3 [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Equities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Mutual Funds - Equity - Large-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [1] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Large-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [2] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Large-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [3] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Mid-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [4] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Mid-Cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [5] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Mid-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [6] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Small-cap Value [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [7] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Small-cap Growth [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [8] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Equity - Small-cap Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [9] | 0 | 0 | |
Level 3 [Member] | International Equity [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [10] | 0 | 0 | |
Level 3 [Member] | Fixed Income Securities [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Mutual Funds Fixed Income US Core [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [11] | 0 | 0 | |
Level 3 [Member] | Mutual Funds - Fixed Income Intermediate duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [12] | 0 | 0 | |
Level 3 [Member] | Mutual Funds-Fixed Income Long Duration [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | [13] | 0 | 0 | |
Level 3 [Member] | Company Common Stock [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | 0 | 0 | ||
Level 3 [Member] | Cash Equivalents-Money Market [Member] | ||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||||
Fair value of plan assets | $ 0 | $ 0 | ||
[1] | This category contains large-cap stocks with above-average yield. The portfolio typically holds between 60 and 70 stocks. | |||
[2] | This category seeks long-term capital appreciation by investing primarily in large growth companies based in the U.S. | |||
[3] | This fund tracks the performance of the S&P 500 index by purchasing the securities represented in the index in approximately the same weightings as the index. | |||
[4] | This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Value Index. | |||
[5] | This category employs an indexing investment approach designed to track the performance of the CRSP US Mid-Cap Growth Index. | |||
[6] | This category seeks to track the performance of the S&P Midcap 400 Index. | |||
[7] | This category consists of a selection of investments based on the Russell 2000 Value Index. | |||
[8] | This category consists of a mutual fund invested in smallcap growth companies along with a fund invested in a selection of investments based on the Russell 2000 Growth Index. | |||
[9] | This category consists of a mutual fund investing in readily marketable securities of U.S. companies with market capitalizations within the smallest 10% of the market universe, or smaller than the 1000th largest US company. | |||
[10] | This category invests primarily in medium to large non-US companies in developed and emerging markets. Under normal circumstances, at least 80% of total assets will be invested in equity securities, including common stocks, preferred stocks, and convertible securities. | |||
[11] | This category currently includes equal investments in three mutual funds, two of which usually hold at least 80% of fund assets in investment grade fixed income securities, seeking to outperform the Barclays US Aggregate Bond Index while maintaining a similar duration to that index. The third fund targets investments of 50% or more in mortgage-backed securities guaranteed by the US government and its agencies. | |||
[12] | This category consists mostly of a fund which seeks to track the Barclays Capital US Corporate A or Better 5-20 Year, Bullets only Index, along with a diversified mutual fund holding fixed income securities rated A or better. | |||
[13] | This category consists of a fund that seeks to approximate the performance of the Barclays Capital US Corporate A or Better, 20+ Year Bullets Only Index over the long term. |
Employee Benefits and Deferre_9
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Pension Plan Assets Fair Value (Parenthetical) (Details) | 12 Months Ended | |
Dec. 31, 2019FundStock | Dec. 31, 2018FundStock | |
Minimum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Approximate or typical number of stocks held in the portfolio | Stock | 60 | 60 |
Maximum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Approximate or typical number of stocks held in the portfolio | Stock | 70 | 70 |
Mutual Funds - Equity - Small-cap Core [Member] | Maximum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Market capitalizations | 10.00% | 10.00% |
Mutual Funds - Fixed Income Intermediate duration [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Assets category consist of number of funds | Fund | 3 | 3 |
Mutual Funds - Fixed Income Intermediate duration [Member] | Minimum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Maturity Period of debt security | 5 years | 5 years |
Mutual Funds - Fixed Income Intermediate duration [Member] | Maximum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Maturity Period of debt security | 20 years | 20 years |
Mutual Funds-Fixed Income Long Duration [Member] | Minimum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Maturity Period of debt security | 20 years | 20 years |
International Equity [Member] | Minimum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Percentage of total assets invested in equity securities, including common stocks, preferred stocks, and convertible securities | 80.00% | 80.00% |
Mutual Funds Fixed Income US Core [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Number of investments in fund assets in investment grade fixed income securities | Fund | 2 | 2 |
Mutual Funds Fixed Income US Core [Member] | Maximum [Member] | ||
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | ||
Percentage of fund assets in investment grade fixed income securities | 80.00% | 80.00% |
Percentage of target investments in mortgage-backed securities | 50.00% | 50.00% |
Employee Benefits and Deferr_10
Employee Benefits and Deferred Compensation and Supplemental Retirement Plans - Expected Future Service Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Expected Benefit Payments [Abstract] | |
2020 | $ 356 |
2021 | 370 |
2022 | 412 |
2023 | 476 |
2024 | 495 |
Years 2025-2029 | 3,288 |
Pension Benefits [Member] | |
Expected Benefit Payments [Abstract] | |
2020 | 320 |
2021 | 333 |
2022 | 374 |
2023 | 451 |
2024 | 470 |
Years 2025-2029 | 3,170 |
Postretirement Benefits [Member] | |
Expected Benefit Payments [Abstract] | |
2020 | 36 |
2021 | 37 |
2022 | 38 |
2023 | 25 |
2024 | 25 |
Years 2025-2029 | $ 118 |
Stock Based Compensation Plan_2
Stock Based Compensation Plans - Additional Information (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
May 31, 2016DirectorSeniorOfficerOfficerExecutiveOfficer$ / sharesshares | Apr. 30, 2016SeniorOfficerOfficer$ / sharesshares | Nov. 30, 2015Director$ / sharesshares | Jul. 31, 2013Director$ / sharesshares | Jun. 30, 2011DirectorSeniorVicePresident$ / sharesshares | Dec. 31, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2014 | |
Stock Option [Member] | ||||||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 0 | 0 | ||||||
Options, Additional Disclosures [Abstract] | ||||||||
Intrinsic value of options exercised | $ | $ 1,000 | $ 1,700 | ||||||
Weighted average remaining contractual term - options outstanding | 5 years 8 months 12 days | |||||||
Weighted average remaining contractual term - shares exercisable | 5 years 3 months 18 days | |||||||
Stock Option Awards and Restricted Stock Units [Member] | ||||||||
Fair Value Assumptions [Abstract] | ||||||||
Compensation expense | $ | $ 291 | $ 398 | ||||||
Estimated Future Compensation Expense [Abstract] | ||||||||
Estimated future compensation expense, 2020 | $ | 289 | |||||||
Estimated future compensation expense, 2021 | $ | 153 | |||||||
Estimated future compensation expense, 2022 | $ | 92 | |||||||
Estimated future compensation expense, 2023 | $ | $ 31 | |||||||
April 2010 Stock Option Grants [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Ratio of conversion of shares | 0.016472 | |||||||
Number of shares authorized (in shares) | 247,080 | |||||||
April 2010 Stock Option Grants [Member] | Stock Option [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | 5 years | 5 years | 5 years | ||||
Award annual vesting | 20.00% | 20.00% | 20.00% | 20.00% | ||||
Term of award | 10 years | 10 years | 10 years | 10 years | ||||
Fair Value Assumptions [Abstract] | ||||||||
Risk free interest rate | 1.60% | 1.90% | 2.00% | 2.20% | ||||
Expected volatility rate | 0.32% | 0.23% | 0.45% | 0.45% | ||||
Expected life | 7 years | 7 years | 7 years | 7 years | ||||
Expected dividend yield | 1.55% | 1.40% | 1.00% | 1.49% | ||||
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 3.17 | $ 2.56 | $ 3.69 | $ 2.29 | ||||
April 2010 Stock Option Grants [Member] | Stock Option [Member] | Directors [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | Director | 2 | 2 | 9 | |||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 16,472 | 16,472 | 74,124 | |||||
April 2010 Stock Option Grants [Member] | Stock Option [Member] | Senior Vice President [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | SeniorVicePresident | 4 | |||||||
April 2010 Stock Option Grants [Member] | Stock Option [Member] | Chief Executive Officer And Senior Vice President [Member] | ||||||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 123,540 | |||||||
April 2010 Stock Option Grants [Member] | Stock Option [Member] | Senior Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | SeniorOfficer | 1 | |||||||
April 2010 Stock Option Grants [Member] | Stock Option [Member] | Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | Officer | 3 | |||||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 47,768 | |||||||
May 2016 Stock Option Grants [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 263,605 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Directors [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | Director | 9 | |||||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 79,083 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Senior Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | SeniorOfficer | 3 | |||||||
Fair Value Assumptions [Abstract] | ||||||||
Number of beneficiaries whose award vested upon retirement | SeniorOfficer | 1 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | Officer | 13 | |||||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 44,812 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Directors and Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Award annual vesting | 20.00% | |||||||
Term of award | 10 years | |||||||
Fair Value Assumptions [Abstract] | ||||||||
Risk free interest rate | 1.60% | |||||||
Expected volatility rate | 0.32% | |||||||
Expected life | 7 years | |||||||
Expected dividend yield | 1.55% | |||||||
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 3.32 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Executive Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | ExecutiveOfficer | 2 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Chief Executive Officer, Executive Officers and Senior Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 7 years | |||||||
Award annual vesting | 14.28% | |||||||
Term of award | 10 years | |||||||
Fair Value Assumptions [Abstract] | ||||||||
Risk free interest rate | 1.70% | |||||||
Expected volatility rate | 0.32% | |||||||
Expected life | 7 years | |||||||
Expected dividend yield | 1.55% | |||||||
Weighted average fair value of options granted (in dollars per share) | $ / shares | $ 3.59 | |||||||
May 2016 Stock Option Grants [Member] | Stock Option [Member] | Chief Executive Officer [Member] | ||||||||
Stock Options Outstanding [Roll Forward] | ||||||||
Granted (in shares) | 92,261 | |||||||
May 2016 Restricted Stock Unit Grants [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 105,442 | |||||||
May 2016 Restricted Stock Unit Grants [Member] | Restricted Stock Units [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Award annual vesting | 20.00% | |||||||
May 2016 Restricted Stock Unit Grants [Member] | Restricted Stock Units [Member] | Directors [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | Director | 9 | |||||||
Options, Additional Disclosures [Abstract] | ||||||||
Granted (in shares) | 31,635 | |||||||
May 2016 Restricted Stock Unit Grants [Member] | Restricted Stock Units [Member] | Senior Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | SeniorOfficer | 3 | |||||||
Fair Value Assumptions [Abstract] | ||||||||
Number of beneficiaries whose award vested upon retirement | SeniorOfficer | 1 | |||||||
May 2016 Restricted Stock Unit Grants [Member] | Restricted Stock Units [Member] | Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | Officer | 2 | |||||||
Options, Additional Disclosures [Abstract] | ||||||||
Granted (in shares) | 8,436 | |||||||
May 2016 Restricted Stock Unit Grants [Member] | Restricted Stock Units [Member] | Executive Officers [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Number of stock awards beneficiaries | ExecutiveOfficer | 2 | |||||||
May 2016 Restricted Stock Unit Grants [Member] | Restricted Stock Units [Member] | Chief Executive Officer, Executive Officers and Senior Officer [Member] | ||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||||||
Vesting period | 7 years | |||||||
Award annual vesting | 14.28% | |||||||
Options, Additional Disclosures [Abstract] | ||||||||
Granted (in shares) | 46,570 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans - Activity in the Stock Option Plans (Details) - Stock Option [Member] - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Stock Options Outstanding, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period (in shares) | 325 | 395 |
Granted (in shares) | 0 | 0 |
Newly vested (in shares) | 0 | 0 |
Exercised (in shares) | (21) | (67) |
Expired (in shares) | (1) | (3) |
Outstanding at end of period (in shares) | 303 | 325 |
Stock Options Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 10.50 | $ 9.68 |
Granted (in dollars per share) | 0 | 0 |
Newly vested (in dollars per share) | 11.10 | 11.05 |
Exercised (in dollars per share) | 0 | 0 |
Expired (in dollars per share) | 11.35 | 11.35 |
Outstanding at end of period (in dollars per share) | $ 10.51 | $ 10.50 |
Stock Options Shares Exercisable, Number of Shares [Abstract] | ||
Options exercisable at beginning of period (in shares) | 153 | 168 |
Options exercisable, Granted (in shares) | 0 | 0 |
Options exercisable, Newly vested (in shares) | 62 | 52 |
Options exercisable, Exercised (in shares) | (21) | (67) |
Options exercisable, Expired (in shares) | 0 | 0 |
Options exercisable at end of period (in shares) | 194 | 153 |
Stock Options Shares Exercisable, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period (in dollars per share) | $ 9.65 | $ 7.61 |
Granted (in dollars per share) | 0 | 0 |
Newly vested (in dollars per share) | 0 | 0 |
Exercised (in dollars per share) | 0 | 0 |
Expired (in dollars per share) | 0 | 0 |
Outstanding at end of period (in dollars per share) | $ 10.04 | $ 9.65 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Details) - ESOP [Member] - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Jul. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Stock Ownership Plan (ESOP) Disclosures [Line Items] | |||
Loan | $ 1,100 | ||
Shares purchased (in shares) | 125,000 | 105,442 | |
Term of loan repayment | 10 years | ||
Basis spread on variable rate | 1.00% | ||
Number of shares from refinanced loan (in shares) | 138,982.5 | ||
Number of shares from new loan (in shares) | 244,424.5 | ||
Fixed interest rate | 3.25% | ||
Award annual vesting | 20.00% | ||
Compensation expense | $ 369 | $ 411 | |
Dividends on unallocated shares | $ 30 | $ 36 | |
Unearned ESOP shares (in shares) | 116,102 | ||
Fair value of unearned ESOP shares | $ 1,600 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Expense [Abstract] | ||
Current | $ 1,181 | $ 203 |
Deferred | (16) | 343 |
Income tax expense | 1,165 | 546 |
Income Tax Expense by Jurisdiction [Abstract] | ||
Federal Income Tax | 1,244 | 714 |
State Tax | (79) | (168) |
Income tax expense | $ 1,165 | $ 546 |
Income Taxes - Components of th
Income Taxes - Components of the Net Deferred Tax Asset Included in Other Assets (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Deferred compensation | $ 970,000 | $ 895,000 |
Allowance for loan losses | 2,266,000 | 1,909,000 |
Postretirement benefits | 108,000 | 119,000 |
Subordinated loan interest | 22,000 | 23,000 |
Investment securities | 77,000 | 1,002,000 |
Loan origination fees | 0 | 35,000 |
Held-to-maturity securities | 14,000 | 21,000 |
Stock-based compensation | 101,000 | 166,000 |
Community service activities | 22,000 | 153,000 |
Other | 587,000 | 374,000 |
Total | 4,167,000 | 4,697,000 |
Liabilities: | ||
Prepaid pension | (1,331,000) | (1,157,000) |
Depreciation | (1,667,000) | (1,441,000) |
Accretion | (118,000) | (177,000) |
Intangible assets | (1,004,000) | (1,004,000) |
Mortgage servicing rights | (5,000) | (4,000) |
Prepaid expenses and transaction fees | (103,000) | (69,000) |
Loan origination fees | (29,000) | 0 |
Total | (4,257,000) | (3,852,000) |
Deferred tax assets liabilities, net before valuation allowance | (90,000) | 845,000 |
Less: deferred tax asset valuation allowance | (136,000) | 0 |
Net deferred tax (liability) asset | $ (226,000) | |
Net deferred tax (liability) asset | $ 845,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | Apr. 01, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2019 |
Income Taxes [Line Items] | ||||
State tax law, rate | (1.50%) | (3.70%) | ||
Effective income tax rate | 21.40% | 11.90% | ||
Deferred tax valuation allowance | $ 136,000 | $ 0 | ||
New York [Member] | ||||
Income Taxes [Line Items] | ||||
State tax law, rate | 6.50% | |||
Modifications available to community banks for maximum amount of assets of banks regarding deductions in interest income | $ 8,000,000,000 | |||
Deferred tax valuation allowance | $ 136,000 | |||
Increase in company's effective tax rate | 2.50% | |||
New York [Member] | Subsequent Event [Member] | ||||
Income Taxes [Line Items] | ||||
State tax law, rate | 0.00% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Federa Statutory Income Tax Rate (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of the Federal Statutory Income Tax Rate to the Effective Income Tax Rate [Abstract] | ||
Federal statutory income tax rate | 21.00% | 21.00% |
State tax, net of federal benefit | (1.50%) | (3.70%) |
Tax-exempt interest income | (0.90%) | (4.30%) |
Increase in value of bank owned life insurance less premiums paid | (1.70%) | (1.90%) |
Change in valuation allowance | 2.50% | 0.00% |
Other | 1.90% | 0.90% |
Effective income tax rate | 21.40% | 11.90% |
Minority interest | 0.10% | (0.10%) |
Pathfinder Bank [Member] | ||
Reconciliation of the Federal Statutory Income Tax Rate to the Effective Income Tax Rate [Abstract] | ||
Effective income tax rate | 21.30% | 12.00% |
Commitments and Contingencies -
Commitments and Contingencies - Summary of the Contractual Amounts of Financial Instruments with Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Commitments to Grant Loans [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual obligation | $ 47,606 | $ 37,354 |
Unfunded Commitments Under Lines Of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual obligation | 81,038 | 74,284 |
Unfunded Commitments Related to Construction Loans in Progress [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual obligation | 3,214 | 5,058 |
Standby Letters of Credit [Member] | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Contractual obligation | $ 2,082 | $ 2,007 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |
Loan commitments outstanding with variable interest rates | $ 122.8 |
Loan commitments outstanding with fixed interest rates | $ 11.1 |
Term of letters of credit, maximum | 1 year |
Dividends and Restrictions - Ad
Dividends and Restrictions - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Restrictions On Dividends Loans And Advances Disclosure [Abstract] | |||
Retained earnings legally available to pay dividends | $ 14,100,000 | ||
Proceeds from dividends received | $ 0 | $ 0 | $ 0 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | |||
Common equity tier 1 capital to risk-weighted assets | 2.50% | ||
Capital conservation buffer percentage of risk weighted assets | 2.50% | ||
Tier 1 Capital (to Assets) | 5.00% | 5.00% | |
Tier 1 Capital (to Risk-Weighted Assets) | 6.00% | 6.00% | |
Total Core Capital (to Risk-Weighted Assets) | 10.00% | 10.00% | |
Average balance of cash on hand or with the Federal Reserve Bank | $ 0 | $ 4 | |
Minimum [Member] | |||
Class of Stock [Line Items] | |||
Tier 1 Capital (to Assets) | 5.00% | ||
Tier 1 Capital (to Risk-Weighted Assets) | 6.00% | ||
Total Core Capital (to Risk-Weighted Assets) | 10.00% |
Regulatory Matters - Actual Cap
Regulatory Matters - Actual Capital Amounts and Ratios (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Actual Amount [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | $ 95,093 | $ 83,177 |
Tier 1 Capital (to Risk-Weighted Assets) | 86,424 | 75,871 |
Tier 1 Common Equity (to Risk-Weighted Assets) | 86,424 | 75,871 |
Tier 1 Capital (to Assets) | $ 86,424 | $ 75,871 |
Actual Ratio [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | 12.28% | 13.69% |
Tier 1 Capital (to Risk-Weighted Assets) | 11.16% | 12.49% |
Tier 1 Common Equity (to Risk-Weighted Assets) | 11.16% | 12.49% |
Tier 1 Capital (to Assets) | 8.20% | 8.31% |
Minimum Capital Adequacy Purposes Amount [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | $ 61,934 | $ 48,593 |
Tier 1 Capital (to Risk-Weighted Assets) | 46,451 | 36,445 |
Tier 1 Common Equity (to Risk-Weighted Assets) | 34,838 | 27,334 |
Tier 1 Capital (to Assets) | $ 42,175 | $ 36,522 |
Minimum Capital Adequacy Purposes Ratio [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | 8.00% | 8.00% |
Tier 1 Capital (to Risk-Weighted Assets) | 6.00% | 6.00% |
Tier 1 Common Equity (to Risk-Weighted Assets) | 4.50% | 4.50% |
Tier 1 Capital (to Assets) | 4.00% | 4.00% |
Minimum To Be "Well Capitalized" Under Prompt Corrective Provisions Amount [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | $ 77,418 | $ 60,741 |
Tier 1 Capital (to Risk-Weighted Assets) | 61,934 | 48,593 |
Tier 1 Common Equity (to Risk-Weighted Assets) | 50,322 | 39,482 |
Tier 1 Capital (to Assets) | $ 52,719 | $ 45,652 |
Minimum To Be "Well Capitalized" Under Prompt Corrective Provisions Ratio [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | 10.00% | 10.00% |
Tier 1 Capital (to Risk-Weighted Assets) | 8.00% | 8.00% |
Tier 1 Common Equity (to Risk-Weighted Assets) | 6.50% | 6.50% |
Tier 1 Capital (to Assets) | 5.00% | 5.00% |
Minimum for Capital Adequacy With Buffer Amount [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | $ 81,289 | $ 63,778 |
Tier 1 Capital (to Risk-Weighted Assets) | 65,805 | 51,630 |
Tier 1 Common Equity (to Risk-Weighted Assets) | 54,192 | 42,519 |
Tier 1 Capital (to Assets) | $ 52,719 | $ 45,652 |
Minimum for Capital Adequacy With Buffer Ratio [Abstract] | ||
Total Core Capital (to Risk-Weighted Assets) | 10.50% | 10.50% |
Tier 1 Capital (to Risk-Weighted Assets) | 8.50% | 8.50% |
Tier 1 Common Equity (to Risk-Weighted Assets) | 7.00% | 7.00% |
Tier 1 Capital (to Assets) | 5.00% | 5.00% |
Interest Rate Derivative - Addi
Interest Rate Derivative - Additional Information (Details) | Dec. 31, 2019USD ($) | Apr. 30, 2019USD ($) | Dec. 31, 2018Derivative |
Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | Fair Value Hedges [Member] | |||
Derivative [Line Items] | |||
Notional amount | $ 9,200,000 | ||
Interest Rate Derivatives [Member] | |||
Derivative [Line Items] | |||
Number of derivative agreements | Derivative | 0 | ||
Interest Rate Derivatives [Member] | Other Liabilities [Member] | |||
Derivative [Line Items] | |||
Fair value of derivative resulted in net liability position | $ 92,000 |
Interest Rate Derivative - Cumu
Interest Rate Derivative - Cumulative Basis Adjustments for Fair Value Hedges (Details) - Interest Rate Derivatives [Member] - Loans Receivable [Member] | Dec. 31, 2019USD ($) | [1] |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Assets | $ 19,254,000 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in The Carrying Amount of the Hedged Assets | $ 75,000 | |
[1] | These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the remaining amortized cost of the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost of the basis of the closed portfolio used in the hedging relationship was $19.3 million, the cumulative basis adjustment associated with the hedging relationship was $75,000, and the amount of the designated hedged item was $9.2 million. |
Interest Rate Derivative - Cu_2
Interest Rate Derivative - Cumulative Basis Adjustments for Fair Value Hedges (Parenthetical) (Details) - Interest Rate Derivatives [Member] - Loans Receivable [Member] | Dec. 31, 2019USD ($) | |
Derivative [Line Items] | ||
Amortized cost of closed portfolio used in hedging relationship | $ 19,300,000 | |
Cumulative basis adjustment associated with hedging relationship | 75,000 | [1] |
Amount of designated hedging item | $ 9,200,000 | |
[1] | These amounts include the amortized cost basis of the closed portfolio used to designate the hedging relationship in which the hedged item is the remaining amortized cost of the last layer expected to be remaining at the end of the hedging relationship. At December 31, 2019, the amortized cost of the basis of the closed portfolio used in the hedging relationship was $19.3 million, the cumulative basis adjustment associated with the hedging relationship was $75,000, and the amount of the designated hedged item was $9.2 million. |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Additional Information (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule Of Available For Sale Securities [Line Items] | ||
Fair value assets transfers between levels amount | $ 0 | |
Corporate [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available for sale securities aggregate market value | 0 | $ 3,374,000 |
Corporate [Member] | Level 2 [Member] | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Available For sale securities continuous unrealized loss position twelve months or more amortized historical cost basis | 4,800,000 | |
Available for sale securities aggregate market value | $ 4,900,000 |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Fair Value of Assets on Recurring Basis Segregated by Level of Valuation Inputs (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt investment securities: | ||
Investment securities - available-for-sale | $ 111,134 | $ 177,664 |
Equity investment securities: | ||
Marketable equity securities | 206 | 206 |
Level 2 [Member] | Total Fair Value [Member] | ||
Debt investment securities: | ||
Investment securities - available-for-sale | 106,005 | 172,399 |
Equity investment securities: | ||
Marketable equity securities | 534 | 453 |
Net Asset Value [Member] | Total Fair Value [Member] | ||
Debt investment securities: | ||
Investment securities - available-for-sale | 4,923 | 5,059 |
Recurring Basis [Member] | Total Fair Value [Member] | ||
Debt investment securities: | ||
Total available-for-sale securities | 111,018 | 177,458 |
Equity investment securities: | ||
Marketable equity securities | 534 | |
Interest rate derivatives, at fair value, net : | ||
Interest rate swap derivative | (92) | |
Recurring Basis [Member] | Level 1 [Member] | ||
Debt investment securities: | ||
US Treasury, agencies and GSEs | 0 | 0 |
State and political subdivisions | 0 | 0 |
Corporate | 0 | 0 |
Asset backed securities | 0 | 0 |
Residential mortgage-backed - US agency | 0 | 0 |
Collateralized mortgage obligations - US agency | 0 | 0 |
Collateralized mortgage obligations - Private label | 0 | 0 |
Investment securities - available-for-sale | 0 | 0 |
Total available-for-sale securities | 0 | 0 |
Equity investment securities: | ||
Marketable equity securities | 0 | 0 |
Interest rate derivatives, at fair value, net : | ||
Interest rate swap derivative | 0 | |
Recurring Basis [Member] | Level 2 [Member] | ||
Debt investment securities: | ||
US Treasury, agencies and GSEs | 16,820 | 17,031 |
State and political subdivisions | 1,736 | 23,065 |
Corporate | 7,631 | 12,141 |
Asset backed securities | 13,232 | 18,119 |
Residential mortgage-backed - US agency | 18,980 | 31,666 |
Collateralized mortgage obligations - US agency | 30,785 | 46,441 |
Collateralized mortgage obligations - Private label | 16,821 | 23,936 |
Investment securities - available-for-sale | 106,005 | 172,399 |
Total available-for-sale securities | 106,005 | 172,399 |
Equity investment securities: | ||
Marketable equity securities | 534 | 453 |
Interest rate derivatives, at fair value, net : | ||
Interest rate swap derivative | (92) | |
Recurring Basis [Member] | Level 3 [Member] | ||
Debt investment securities: | ||
US Treasury, agencies and GSEs | 0 | 0 |
State and political subdivisions | 0 | 0 |
Corporate | 0 | 0 |
Asset backed securities | 0 | 0 |
Residential mortgage-backed - US agency | 0 | 0 |
Collateralized mortgage obligations - US agency | 0 | 0 |
Collateralized mortgage obligations - Private label | 0 | 0 |
Investment securities - available-for-sale | 0 | 0 |
Total available-for-sale securities | 0 | 0 |
Equity investment securities: | ||
Marketable equity securities | 0 | 0 |
Interest rate derivatives, at fair value, net : | ||
Interest rate swap derivative | 0 | |
Recurring Basis [Member] | Level 1, 2 and 3 [Member] | Total Fair Value [Member] | ||
Debt investment securities: | ||
US Treasury, agencies and GSEs | 16,820 | 17,031 |
State and political subdivisions | 1,736 | 23,065 |
Corporate | 7,631 | 12,141 |
Asset backed securities | 13,232 | 18,119 |
Residential mortgage-backed - US agency | 18,980 | 31,666 |
Collateralized mortgage obligations - US agency | 30,785 | 46,441 |
Collateralized mortgage obligations - Private label | 16,821 | 23,936 |
Investment securities - available-for-sale | 106,005 | 172,399 |
Recurring Basis [Member] | Net Asset Value [Member] | Total Fair Value [Member] | ||
Debt investment securities: | ||
Investment securities - available-for-sale | $ 4,923 | $ 5,059 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Summary of Fair Value Assets Measured on Nonrecurring Basis (Details) - Nonrecurring Basis [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Fair Value [Member] | ||
Nonrecurring basis [Abstract] | ||
Impaired loans | $ 3,105 | $ 1,098 |
Foreclosed real estate | 0 | 1,173 |
Level 1 [Member] | ||
Nonrecurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Foreclosed real estate | 0 | 0 |
Level 2 [Member] | ||
Nonrecurring basis [Abstract] | ||
Impaired loans | 0 | 0 |
Foreclosed real estate | 0 | 0 |
Level 3 [Member] | ||
Nonrecurring basis [Abstract] | ||
Impaired loans | 3,105 | 1,098 |
Foreclosed real estate | $ 0 | $ 1,173 |
Fair Value Measurements and D_6
Fair Value Measurements and Disclosures - Fair Value Inputs, Quantitative Information (Details) - Level 3 [Member] - Measurement Input, Discount Rate [Member] | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired Loans [Member] | Minimum [Member] | Appraisal of Collateral - Appraisal Adjustments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 5 | 5 |
Impaired Loans [Member] | Minimum [Member] | Appraisal of Collateral - Cost to Sell [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 7 | 5 |
Impaired Loans [Member] | Maximum [Member] | Appraisal of Collateral - Appraisal Adjustments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 20 | 15 |
Impaired Loans [Member] | Maximum [Member] | Appraisal of Collateral - Cost to Sell [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 13 | 13 |
Impaired Loans [Member] | Weighted Average [Member] | Appraisal of Collateral - Appraisal Adjustments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 9 | 6 |
Impaired Loans [Member] | Weighted Average [Member] | Appraisal of Collateral - Cost to Sell [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 11 | 11 |
Foreclosed Real Estate [Member] | Minimum [Member] | Appraisal of Collateral - Appraisal Adjustments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 15 | 15 |
Foreclosed Real Estate [Member] | Minimum [Member] | Appraisal of Collateral - Cost to Sell [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 6 | 6 |
Foreclosed Real Estate [Member] | Maximum [Member] | Appraisal of Collateral - Appraisal Adjustments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 15 | 15 |
Foreclosed Real Estate [Member] | Maximum [Member] | Appraisal of Collateral - Cost to Sell [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 9 | 8 |
Foreclosed Real Estate [Member] | Weighted Average [Member] | Appraisal of Collateral - Appraisal Adjustments [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 15 | 15 |
Foreclosed Real Estate [Member] | Weighted Average [Member] | Appraisal of Collateral - Cost to Sell [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis Valuation Techniques [Line Items] | ||
Fair value inputs, discount rate | 8 | 7 |
Fair Value Measurements and D_7
Fair Value Measurements and Disclosures - Carrying Amounts and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets: | ||
Investment securities - available-for-sale | $ 111,134 | $ 177,664 |
Investment securities - marketable equity | 206 | 206 |
Investment securities - held-to-maturity | 124,148 | 53,769 |
Level 1 [Member] | Carrying Amounts [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 20,160 | 26,316 |
Accrued interest receivable | 3,712 | 3,068 |
Financial liabilities: | ||
Demand Deposits, Savings, NOW and MMDA | 460,293 | 450,267 |
Level 1 [Member] | Estimated Fair Values [Member] | ||
Financial assets: | ||
Cash and cash equivalents | 20,160 | 26,316 |
Accrued interest receivable | 3,712 | 3,068 |
Financial liabilities: | ||
Demand Deposits, Savings, NOW and MMDA | 460,293 | 450,267 |
Level 2 [Member] | Carrying Amounts [Member] | ||
Financial assets: | ||
Investment securities - available-for-sale | 106,005 | 172,399 |
Investment securities - marketable equity | 534 | 453 |
Investment securities - held-to-maturity | 122,988 | 53,908 |
Federal Home Loan Bank stock | 4,834 | 5,937 |
Financial liabilities: | ||
Time Deposits | 421,600 | 276,793 |
Borrowings | 93,125 | 118,534 |
Subordinated loans | 15,128 | 15,094 |
Accrued interest payable | 396 | 304 |
Interest rate swap derivative | 92 | 0 |
Level 2 [Member] | Estimated Fair Values [Member] | ||
Financial assets: | ||
Investment securities - available-for-sale | 106,005 | 172,399 |
Investment securities - marketable equity | 534 | 453 |
Investment securities - held-to-maturity | 124,148 | 53,769 |
Federal Home Loan Bank stock | 4,834 | 5,937 |
Financial liabilities: | ||
Time Deposits | 422,409 | 275,727 |
Borrowings | 93,643 | 118,379 |
Subordinated loans | 14,921 | 14,485 |
Accrued interest payable | 396 | 304 |
Interest rate swap derivative | 92 | 0 |
Net Asset Value [Member] | Carrying Amounts [Member] | ||
Financial assets: | ||
Investment securities - available-for-sale | 4,923 | 5,059 |
Net Asset Value [Member] | Estimated Fair Values [Member] | ||
Financial assets: | ||
Investment securities - available-for-sale | 4,923 | 5,059 |
Level 3 [Member] | Carrying Amounts [Member] | ||
Financial assets: | ||
Net loans | 772,782 | 612,964 |
Level 3 [Member] | Estimated Fair Values [Member] | ||
Financial assets: | ||
Net loans | $ 767,654 | $ 601,789 |
Parent Company - Financial In_3
Parent Company - Financial Information - Schedule of Condensed Financial Information (Statements of Condition) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS: | ||
Cash and due from banks | $ 8,284 | $ 9,610 |
Available-for-sale securities, at fair value | 111,134 | 177,664 |
Other assets | 10,402 | 9,367 |
Total assets | 1,093,807 | 933,115 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Subordinated loans | 15,128 | 15,094 |
Shareholders' equity | 90,434 | 64,221 |
Total liabilities and shareholders' equity | 1,093,807 | 933,115 |
Pathfinder Bank [Member] | ||
ASSETS: | ||
Cash and due from banks | 14,514 | 3,063 |
Available-for-sale securities, at fair value | 534 | 453 |
Investment in bank subsidiary | 88,372 | 74,769 |
Investment in non-bank subsidiary | 155 | 193 |
Other assets | 3,193 | 1,961 |
Total assets | 106,768 | 80,439 |
LIABILITIES AND SHAREHOLDERS' EQUITY: | ||
Accrued liabilities | 971 | 886 |
Subordinated loans | 15,128 | 15,094 |
Shareholders' equity | 90,669 | 64,459 |
Total liabilities and shareholders' equity | $ 106,768 | $ 80,439 |
Parent Company - Financial In_4
Parent Company - Financial Information - Schedule of Condensed Financial Information (Statements of Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income | ||
Total income (loss) | $ 41,758 | $ 34,810 |
Interest expense: | ||
Interest | 13,528 | 9,044 |
Operating, net | 2,149 | 1,918 |
Tax benefit | (1,165) | (546) |
Net income attributable to Pathfinder Bancorp, Inc. | 4,276 | 4,031 |
Pathfinder Bank [Member] | ||
Income | ||
Dividends from non-bank subsidiary | 6 | 6 |
Gains (losses) on marketable equity securities | 81 | (62) |
Operating, net | 79 | 0 |
Total income (loss) | 166 | (56) |
Interest expense: | ||
Interest | 863 | 846 |
Operating, net | 337 | 175 |
Total expenses | 1,200 | 1,021 |
Loss before taxes and equity in undistributed net income of subsidiaries | (1,034) | (1,077) |
Tax benefit | 235 | 340 |
Loss before equity in undistributed net income of subsidiaries | (799) | (737) |
Equity in undistributed net income of subsidiaries | 5,075 | 4,768 |
Net income attributable to Pathfinder Bancorp, Inc. | $ 4,276 | $ 4,031 |
Parent Company - Financial In_5
Parent Company - Financial Information - Schedule of Condensed Financial Information (Statements of Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | ||
Net Income | $ 4,276 | $ 4,031 |
Stock based compensation and ESOP expense | 630 | 773 |
Net change in other assets and liabilities | 237 | 262 |
Net cash flows from operating activities | 8,120 | 8,982 |
Investing Activities | ||
Net cash flows from investing activities | (162,811) | (52,025) |
Financing activities | ||
Proceeds from exercise of stock options | 218 | 385 |
Cash dividends paid to common shareholders | (1,091) | (1,025) |
Cash dividends paid to preferred shareholders | (139) | |
Cash dividends paid on warrants | (15) | |
Net cash flows from financing activities | 148,535 | 47,368 |
Change in cash and cash equivalents | (6,156) | 4,325 |
Cash and cash equivalents at beginning of period | 26,316 | 21,991 |
Cash and cash equivalents at end of period | 20,160 | 26,316 |
Common Stock [Member] | ||
Financing activities | ||
Net proceeds from private placement | 4,199 | |
Preferred Stock [Member] | ||
Financing activities | ||
Net proceeds from private placement | 15,370 | |
Pathfinder Bank [Member] | ||
Operating Activities | ||
Net Income | 4,276 | 4,031 |
Equity in undistributed net income of subsidiaries | (5,075) | (4,768) |
Stock based compensation and ESOP expense | 630 | 773 |
Amortization of deferred financing from subordinated loan | 34 | 35 |
Net change in other assets and liabilities | (1,256) | (1,372) |
Net cash flows from operating activities | (1,391) | (1,301) |
Investing Activities | ||
Capital contributed to wholly-owned bank subsidiary | (5,700) | 0 |
Net cash flows from investing activities | (5,700) | 0 |
Financing activities | ||
Proceeds from exercise of stock options | 218 | 385 |
Cash dividends paid to common shareholders | (1,091) | (1,025) |
Cash dividends paid to preferred shareholders | (139) | 0 |
Cash dividends paid on warrants | (15) | 0 |
Net cash flows from financing activities | 18,542 | (640) |
Change in cash and cash equivalents | 11,451 | (1,941) |
Cash and cash equivalents at beginning of period | 3,063 | 5,004 |
Cash and cash equivalents at end of period | 14,514 | 3,063 |
Pathfinder Bank [Member] | Common Stock [Member] | ||
Financing activities | ||
Net proceeds from private placement | 4,199 | 0 |
Pathfinder Bank [Member] | Preferred Stock [Member] | ||
Financing activities | ||
Net proceeds from private placement | $ 15,370 | $ 0 |
Related Party Transactions - Sc
Related Party Transactions - Schedule of Loans to Related Parties (Details) - Directors, Executive Officers and Affiliates [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loans to Related Parties [Roll Forward] | |
Balance at the beginning of the year | $ 10,512 |
Originations and Officer additions | 1,685 |
Principal payments and Officer removals | (3,425) |
Balance at the end of the year | $ 8,772 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Directors, Executive Officers and Affiliates [Member] | ||
Related Party Transaction [Line Items] | ||
Deposits of related parties | $ 4.5 | $ 3.9 |
Conversion and Reorganization -
Conversion and Reorganization - Additional Information (Details) | Oct. 16, 2014USD ($)$ / sharesshares | Dec. 31, 2019shares | Dec. 31, 2018shares | Dec. 31, 2014shares |
Conversion Of Stock [Line Items] | ||||
Common stock, shares outstanding (in shares) | shares | 4,709,238 | 4,362,328 | 4,353,850 | |
Pathfinder Bank [Member] | ||||
Conversion Of Stock [Line Items] | ||||
Percentage owned by holding company | 60.40% | |||
Number of shares of common stock sold (in shares) | shares | 2,636,053 | |||
Common stock sold per share (in dollar per share) | $ / shares | $ 10 | |||
Gross offering proceeds of common stock | $ 26,400,000 | |||
Cash received from acquisition | $ 197,000 | |||
Ratio of conversion of shares | 1.6472 | |||
Cost related to offering | $ 1,500,000 | |||
Net offering proceeds of common stock | $ 24,900,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance | $ 64,459 | $ 62,144 | |
Other comprehensive income before reclassifications | 3,067 | (2,400) | |
Amounts reclassified from AOCI | 4 | 260 | |
Balance | 90,669 | 64,459 | |
ASU 2016-01 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [1] | (53) | |
ASU 2017-12 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [2] | 359 | |
Retirement Plans [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance | (3,152) | (2,220) | |
Other comprehensive income before reclassifications | 188 | (1,058) | |
Amounts reclassified from AOCI | 247 | 126 | |
Balance | (2,717) | (3,152) | |
Retirement Plans [Member] | ASU 2016-01 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [1] | 0 | |
Retirement Plans [Member] | ASU 2017-12 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [2] | 0 | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance | (2,832) | (1,558) | |
Other comprehensive income before reclassifications | 2,859 | (1,471) | |
Amounts reclassified from AOCI | (243) | 134 | |
Balance | (216) | (2,832) | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ASU 2016-01 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [1] | (53) | |
Unrealized Gains and Losses on Available-for-Sale Securities [Member] | ASU 2017-12 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [2] | 116 | |
Unrealized Loss on Securities Transferred to Held-to-Maturity [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance | (58) | (430) | |
Other comprehensive income before reclassifications | 20 | 129 | |
Amounts reclassified from AOCI | 0 | 0 | |
Balance | (38) | (58) | |
Unrealized Loss on Securities Transferred to Held-to-Maturity [Member] | ASU 2016-01 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [1] | 0 | |
Unrealized Loss on Securities Transferred to Held-to-Maturity [Member] | ASU 2017-12 [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Cumulative effect of change in measurement | [2] | 243 | |
AOCI Attributable to Parent [Member] | |||
Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||
Balance | (6,042) | (4,208) | |
Balance | $ (2,971) | $ (6,042) | |
[1] | Cumulative effect of unrealized gain on marketable equity securities based on the adoption of ASU 2016-01 - Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities. | ||
[2] | Cumulative effect of unrealized gains on the transfer of 52 investment securities from held-to-maturity classification to available-for-sale classification based on the adoption of ASU 2017-12: Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Changes in the Components of Accumulated Other Comprehensive Income (Loss), Net of Tax (Parenthetical) (Details) | Dec. 31, 2018Security |
ASU 2017-12 [Member] | |
Accumulated Other Comprehensive Income Loss [Line Items] | |
Number of investment securities classified from held-to-maturity to available-for-sale | 52 |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) - Summary of Amounts Reclassified Out of Each Component of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and employee benefits | $ (13,660) | $ (12,704) | |
Provision for income taxes | (1,165) | (546) | |
Net income attributable to Pathfinder Bancorp, Inc. | 4,276 | 4,031 | |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Retirement Plans [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Salaries and employee benefits | [1],[2] | (335) | (171) |
Provision for income taxes | [1] | 88 | 45 |
Net income attributable to Pathfinder Bancorp, Inc. | [1] | (247) | (126) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Available-for-Sale Securities [Member] | |||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | |||
Net gains on sales and redemptions of investment securities | [1] | 329 | (182) |
Provision for income taxes | [1] | (86) | 48 |
Net income attributable to Pathfinder Bancorp, Inc. | [1] | $ 243 | $ (134) |
[1] | Amounts in parentheses indicates debits in net income. | ||
[2] | These items are included in net periodic pension cost. |
Noninterest Income - Summary of
Noninterest Income - Summary of Noninterest Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation Of Revenue [Line Items] | ||
Earnings and gain on bank owned life insurance | $ 462 | $ 427 |
Net gains (losses) on sales and redemptions of investment securities | 329 | (182) |
Gains (losses) on marketable equity securities | 81 | (62) |
Other miscellaneous income | 126 | 151 |
Total noninterest income | 4,917 | 3,835 |
Insufficient Funds Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 1,122 | 852 |
Deposit Related Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 179 | 202 |
ATM Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 90 | 94 |
Service Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 1,391 | 1,148 |
Insurance Commissions [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 828 | 831 |
Investment Services Revenue [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 267 | 288 |
ATM Fees Surcharge [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 226 | 232 |
Banking House Rents Collected [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 195 | 134 |
Fee Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 1,516 | 1,485 |
Debit Card Interchange Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 657 | 576 |
Merchant Card Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 80 | 72 |
Card Income [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 737 | 648 |
Loan Servicing Fees [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 211 | 170 |
Net Gains (Losses) on Sale of Loans and Foreclosed Real Estate [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 64 | 50 |
Total Mortgage Fee Income and Realized Gain on Sale of Loans and Foreclosed Real Estate [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | 275 | 220 |
Service Fees, Fee Income, Card Income and Mortgage Fee Income and Realized Gain on Sale of Loans and Foreclosed Real Estate [Member] | ||
Disaggregation Of Revenue [Line Items] | ||
Noninterest income | $ 3,919 | $ 3,501 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Lessee Lease Description [Line Items] | ||||
Operating and finance lease, option to extend lease term, description | Our leases have remaining lease terms that vary from less than one year up to 31 years, some of which include options to extend the leases for various renewal periods. | |||
Operating and finance lease, option to extend lease term | true | |||
ASU 2016-02 [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Lease rental income | $ 195,000 | $ 34,000 | $ 134,000 | $ 30,000 |
Unamortized initial direct costs | $ 0 | |||
Minimum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating and finance leases remaining lease term | 1 year | |||
Maximum [Member] | ||||
Lessee Lease Description [Line Items] | ||||
Operating and finance leases remaining lease term | 31 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 240 |
Finance lease cost | $ 51 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information Related to Leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amount included in the measurement of lease liabilities: | |
Operating cash flows from operating leases | $ 215 |
Operating cash flows from finance leases | 51 |
Financing cash flows from finance leases | $ 46 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Leases: | |
Operating lease right-of-use assets | $ 2,386 |
Operating lease liabilities | 2,650 |
Finance Leases: | |
Financial Liability | $ 578 |
Weighted Average Remaining Lease Term: | |
Operating Leases | 19 years 6 months 29 days |
Finance Leases | 29 years 5 months 1 day |
Weighted Average Discount Rate: | |
Operating Leases | 3.71% |
Finance Leases | 13.75% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due Rolling Maturity [Abstract] | |
2020 | $ 116 |
2021 | 99 |
2022 | 99 |
2023 | 110 |
2024 | 118 |
Thereafter | 2,686 |
Total minimum lease payments | $ 3,228 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) | Mar. 23, 2020$ / shares | Jan. 28, 2020USD ($)Loan | Dec. 31, 2019Loan$ / shares | Dec. 31, 2018Loan$ / shares |
Subsequent Event [Line Items] | ||||
Dividends per common share | $ 0.24 | $ 0.24 | ||
Dividends per preferred share | $ 0.18 | |||
Residential Mortgage Loans [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of loans | Loan | 195 | 206 | ||
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Cash dividend declared date | Mar. 23, 2020 | |||
Dividends per common share | $ 0.06 | |||
Dividends per preferred share | 0.06 | |||
Cash dividend declared on common stock warrant | $ 0.06 | |||
Cash dividend payable date | May 8, 2020 | |||
Cash dividend record date | Apr. 16, 2020 | |||
FNMA [Member] | Subsequent Event [Member] | Residential Mortgage Loans [Member] | ||||
Subsequent Event [Line Items] | ||||
Number of loans | Loan | 267 | |||
Aggregate unpaid principal balance | $ | $ 35,700,000 | |||
Weighted average coupon | 4.08% | |||
Pre-tax gain on sale of loans | $ | $ 370,000 | |||
Capitalized retained mortgage servicing rights | $ | 289,000 | |||
Increased pre tax revenue | $ | $ 659,000 | |||
FNMA [Member] | Minimum [Member] | Subsequent Event [Member] | Residential Mortgage Loans [Member] | ||||
Subsequent Event [Line Items] | ||||
Loans held in portfolio term | 2 years | |||
FNMA [Member] | Maximum [Member] | Subsequent Event [Member] | Residential Mortgage Loans [Member] | ||||
Subsequent Event [Line Items] | ||||
Loans held in portfolio term | 5 years |