Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 01, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Rhinebeck Bancorp, Inc. | ||
Entity Central Index Key | 0001751783 | ||
Trading Symbol | rbkb | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Common Stock, Shares Outstanding | 11,133,290 | ||
Entity Public Float | $ 0 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Assets | |||
Cash and due from banks | $ 50,590 | $ 10,460 | |
Available for sale securities (at fair value) | 101,312 | 113,302 | |
Held to maturity securities (fair value of $0 and $1,928, respectively) | 0 | 1,914 | |
Loans receivable (net of allowance for loan losses of $6,646 and $5,457, respectively | 678,402 | 566,178 | |
Federal Home Loan Bank stock | 1,883 | 1,108 | |
Accrued interest receivable | 2,523 | 2,149 | |
Cash surrender value of life insurance | 18,018 | 17,577 | |
Deferred tax assets (net of valuation allowance of $1,085 and $982, respectively) | 2,934 | 3,021 | |
Premises and equipment, net | 17,040 | 17,025 | |
Other real estate owned | 1,685 | 2,233 | |
Goodwill | 1,410 | 1,505 | |
Intangible assets, net | 284 | 326 | |
Other assets | 6,342 | 5,305 | |
Total assets | 882,423 | 742,103 | |
Deposits | |||
Noninterest bearing | 171,829 | 157,828 | |
Interest bearing | 512,589 | 492,277 | |
Total deposits | 684,418 | 650,105 | |
Mortgagors' escrow accounts | 7,725 | 7,284 | |
Advances from the Federal Home Loan Bank | 31,598 | 14,900 | |
Subordinated debt | 5,155 | 5,155 | |
Other borrowings | 5,000 | ||
Subscription offering proceeds | 79,142 | ||
Accrued expenses and other liabilities | 10,108 | 9,682 | |
Total liabilities | 823,146 | 687,126 | |
Stockholders' Equity | |||
Common stock (par value $0.01 per share; 100 shares) | 0 | 0 | |
Additional paid-in capital | 100 | 100 | |
Retained earnings | 66,189 | 61,832 | |
Accumulated other comprehensive loss: | |||
Net unrealized loss on available for sale securities, net of taxes | (2,576) | (2,322) | |
Defined benefit pension plan, net of taxes | (4,436) | (4,633) | |
Total accumulated other comprehensive loss | [1] | (7,012) | (6,955) |
Total stockholders' equity | 59,277 | 54,977 | |
Total liabilities and stockholders' equity | $ 882,423 | $ 742,103 | |
[1] | All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0 % in Fiscal 2018 and 34.0% in Fiscal 2017. |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Held to maturity securities, fair value | $ 0 | $ 1,928 |
Allowance for loan losses on loans receivable | 6,646 | 5,457 |
Deferred tax valuation allowance | $ 1,085 | $ 982 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares outstanding | 100 | 100 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 31,314 | $ 25,366 |
Interest and dividends on securities | 2,355 | 2,471 |
Other income | 61 | 50 |
Total interest and dividend income | 33,730 | 27,887 |
Interest Expense | ||
Interest expense on deposits | 4,203 | 3,057 |
Interest expense on borrowings | 1,117 | 243 |
Total interest expense | 5,320 | 3,300 |
Net interest income | 28,410 | 24,587 |
Provision for loan losses | 2,100 | 900 |
Net interest income after provision for loan losses | 26,310 | 23,687 |
Noninterest Income | ||
Service charges on deposit accounts | 2,806 | 2,406 |
Net realized loss on sales and calls of securities | (22) | (27) |
Net gain on sales of loans | 621 | 571 |
Increase in cash surrender value of insurance | 401 | 460 |
Net gain from sale of other real estate owned | 1 | |
Write-downs of other real estate owned | (387) | (306) |
Other real estate owned income | 42 | 42 |
Gain on sale of subsidiary | 1,834 | |
Loss on disposal of premises and equipment | 16 | (106) |
Insurance related income | 1,518 | |
Investment advisory income | 809 | 749 |
Other | 895 | 915 |
Total noninterest income | 5,181 | 8,057 |
Noninterest Expenses | ||
Salaries and employee benefits | 14,384 | 13,536 |
Sales commissions | 260 | |
Occupancy | 3,405 | 3,397 |
Data processing | 1,162 | 1,159 |
Professional fees | 933 | 798 |
Advertising | 724 | 625 |
FDIC deposit insurance and other insurance | 845 | 794 |
Other real estate owned expense | 186 | 111 |
Amortization of intangible assets | 42 | 67 |
Impairment loss on goodwill | 95 | |
Other | 4,344 | 4,397 |
Total noninterest expenses | 26,120 | 25,144 |
Income before income taxes | 5,371 | 6,600 |
Provision for income taxes | 1,014 | 3,598 |
Net income | $ 4,357 | $ 3,002 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | |||
Net Income | $ 4,357 | $ 3,002 | |
Other Comprehensive Loss: | |||
Unrealized holding losses arising during the period | (343) | (518) | |
Reclassification adjustment for losses included in net realized loss on sales and calls of securities on the consolidated statement of income | 22 | 27 | |
Net unrealized losses on available for sale securities | (321) | (491) | |
Tax effect | [1] | 68 | 167 |
Unrealized losses on available for sale securities, net of tax | (253) | (324) | |
Defined benefit pension plan: | |||
Actuarial loss arising during the period | (126) | (677) | |
Reclassification adjustment for amortization of net actuarial loss (b) | [2] | 374 | 347 |
Total | 248 | (330) | |
Tax effect | [3] | (52) | 112 |
Defined benefit pension plan gain (loss), net of tax | 196 | (218) | |
Other comprehensive loss | (57) | (542) | |
Total Comprehensive Income | $ 4,300 | $ 2,460 | |
[1] | Includes $5 for the year ended 2018 for tax effect of realized losses and $9 for the year ended 2017 for tax effect of realized gains which are included in the provision for income taxes on the consolidated statement of income. | ||
[2] | Included in salaries and benefits on the consolidated statement of income. | ||
[3] | Includes $79 in 2018 and $118 in 2017 for tax effect of amortization of net actuarial loss included in the provision for income taxes on the consolidated statement of income. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Available-for-sale Securities, gross realized losses | [1] | $ (68) | $ (167) |
Amortization of net actuarial loss | [2] | (52) | 112 |
Income tax expense provision | |||
Available-for-sale Securities, gross realized losses | 5 | 9 | |
Amortization of net actuarial loss | $ 79 | $ 118 | |
[1] | Includes $5 for the year ended 2018 for tax effect of realized losses and $9 for the year ended 2017 for tax effect of realized gains which are included in the provision for income taxes on the consolidated statement of income. | ||
[2] | Includes $79 in 2018 and $118 in 2017 for tax effect of amortization of net actuarial loss included in the provision for income taxes on the consolidated statement of income. |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Total |
Balance at Dec. 31, 2016 | $ 0 | $ 100 | $ 57,686 | $ (5,269) | $ 52,517 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 3,002 | 3,002 | |||
Other comprehensive loss | (542) | (542) | |||
Reclassification due to adoption of ASU 2018 - 02 Note 1 | 1,144 | (1,144) | |||
Balance at Dec. 31, 2017 | 0 | 100 | 61,832 | (6,955) | 54,977 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,357 | 4,357 | |||
Other comprehensive loss | (57) | (57) | |||
Balance at Dec. 31, 2018 | $ 0 | $ 100 | $ 66,189 | $ (7,012) | $ 59,277 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows From Operating Activities | ||
Net income | $ 4,357 | $ 3,002 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization and accretion of premiums and discounts on investments, net | 337 | 385 |
Net realized loss on sales and calls of securities | 22 | 27 |
Provision for loan losses | 2,100 | 900 |
Loans originated for sale | (37,582) | (38,968) |
Proceeds from sale of loans | 39,375 | 37,962 |
Net gain on sale of mortgage loans | (621) | (571) |
Net gain on sale of other real estate owned | (1) | |
Amortization of intangible assets | 42 | 67 |
Gain on sale of subsidiary | (1,834) | |
Impairment loss on goodwill | 95 | |
Depreciation and amortization | 1,147 | 1,142 |
Write-down of other real estate owned | 387 | 306 |
(Gain) loss from disposal of premises and equipment | (16) | 106 |
Deferred income tax expense | 102 | 1,919 |
Increase in cash surrender value of insurance | (401) | (460) |
Decrease in accrued interest receivable | (374) | (171) |
(Decrease) increase in other assets | (1,037) | 877 |
Increase in accrued expenses and other liabilities | 675 | 699 |
Net cash provided by operating activities | 8,608 | 5,387 |
Cash Flows from Investing Activities | ||
Proceeds from sales and calls of securities | 2,113 | 30,786 |
Proceeds from maturities and principal repayments of securities | 14,995 | 18,693 |
Purchases of securities | (3,885) | (23,696) |
Net purchases of FHLB Stock | (775) | (211) |
Net increase in loans | (115,496) | (53,045) |
Purchases of bank owned life insurance policies | (40) | (41) |
Purchases of bank premises and equipment | (1,146) | (697) |
Proceeds from disposal of premises and equipment | 525 | |
Net decrease of other real estate owned | 2 | |
Proceeds from sale of other real estate owned | 162 | 281 |
Proceeds from sale of subsidiary | 3,443 | |
Net cash used in investing activities | (104,072) | (23,960) |
Cash Flows from Financing Activities | ||
Net increase in demand deposits, NOW, money market and savings accounts | 20,840 | 19,654 |
Net increase (decrease) in time deposits | 13,473 | (9,225) |
Increase in mortgagors' escrow accounts | 441 | 228 |
Net increase in short-term debt | 13,826 | 5,400 |
Net increase in long-term debt | 7,872 | |
Increase in offering subscriptions | 79,142 | |
Net cash provided by financing activities | 135,594 | 16,057 |
Net increase (decrease) in cash and due from banks | 40,130 | (2,516) |
Cash and Due from Banks | ||
Beginning balance | 10,460 | 12,976 |
Ending balance | 50,590 | 10,460 |
Cash paid for: | ||
Interest | 5,139 | 3,299 |
Income taxes | 625 | 1,406 |
Noncash Investing and Financing Activities | ||
Unrealized holding loss on available for sale securities arising during the period | (321) | (491) |
Transfer of loans to other real estate owned | 139 | |
Increase (decrease) in defined benefit plan liability included in other comprehensive loss | $ 248 | $ (330) |
Nature of Business and Signific
Nature of Business and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Nature of Business and Significant Accounting Policies | 1. Nature of Business and Significant Accounting Policies Rhinebeck Bancorp, MHC (“Company”) is a mutual holding company whose subsidiary is Rhinebeck Bank (“Bank”), a New York chartered stock savings bank. The Company provides a full range of banking and financial services to consumer and commercial customers through its eleven branches and two representative offices located in Dutchess, Ulster, Orange, and Albany counties. Financial services including investment advisory and financial product sales are offered through a division of the Bank doing business as Rhinebeck Asset Management (“RAM”). A description of the Company’s significant accounting policies are presented below. Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for lease and loan losses, the valuation of securities and other real estate owned, the evaluation of investment securities for other-than-temporary impairment, the evaluation of goodwill for impairment, the valuation of deferred tax assets and the determination of pension obligations. Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, Columbia, Putnam, and Albany. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ abilities to repay their loans is dependent on the economic conditions in the territories in which the Company operates. Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Investment in Debt and Marketable Equity Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase premiums and discounts are recognized in interest income using the interest method over the maturity terms of the securities. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities for other-than temporary impairment on a regular basis. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the credit standing of the issuer. When the Company does not intend to sell the security and it is likely that the Company will not be required to sell the security before recovery of its cost basis, the credit loss determined due to a permanent impairment will be recognized in earnings. The credit loss component recognized is identified as the amount of future principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow estimates discounted at the applicable original yield of the security. Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for lease and loan losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer automobile and installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on nonaccrual status or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for lease and loan losses The allowance for lease and loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines all or part of the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for lease and loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance calculation methodology involves segregation of the total loan portfolio into segments. The Company’s loans receivable portfolio is comprised of the following segments: commercial real estate, residential real estate, commercial and industrial and consumer. The segments of the Company’s loans receivable portfolio are further disaggregated into classes based on identified associated risks within those segments. This allows management to better monitor risk and performance. Commercial real estate loans are separated into the two classes: non-residential and multi-family. Non-residential and multi-family loans include long-term loans financing commercial properties and include both owner and non-owner occupied properties. Construction loans, which include land loans, are comprised mostly of non-owner occupied projects, whereby the property is generally under development and tends to have more risk than the owner occupied loans. The Company grants loans for the construction of residential homes, residential developments and land development projects. Repayment of these loans is mostly dependent upon either the ongoing cash flow of the borrowing entity or the resale or lease of the subject property. Residential real estate loans are secured by the borrower’s residential real estate generally in a first lien position. Residential mortgages have varying loan interest rates depending on the financial condition of the borrower, the loan to value ratio and the term of the loan. The commercial and industrial loan segment consists of loans made for purposes of financing the activities of commercial customers. The assets financed through commercial and industrial loans are used within the business for its ongoing operations. Repayment of commercial and industrial loans predominately comes from the cash flow of the business or the ongoing operations of assets. Consumer loans are classified into the following three classes: indirect automobile loans, home equity loans and other consumer loans. Indirect automobile loans are secured by the borrowers’ automobiles and originated through the Company’s relationships with the automobile dealers in the various counties in the Company’s service area. Home equity loans are secured by the borrower’s residential real estate in a first or second lien position. Other direct consumer loans may be unsecured. The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral at the date of the credit extension, depending on the borrowers’ creditworthiness and the type of collateral. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial and industrial and commercial real estate loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, automobiles, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower, past experience with the borrower, the nature of the collateral, competitive offerings and/or term of the loan. The market value of collateral is monitored on an ongoing basis and additional collateral may be obtained when warranted. While collateral provides some assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower’s ability to generate continuing sufficient cash flows. The Company’s policy for collateral requires that, generally, the amount of the loan may not exceed 90% of the original appraised value of the property. Private mortgage insurance is usually required for that portion of the loan in excess of 80% of the appraised value of the property. 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 collateral, if appropriate, are evaluated at least quarterly or when credit deficiencies arise, such as when loan payments are delinquent. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for lease and loan losses. Loans not classified are rated pass. The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such impaired loans, an allowance is established when the discounted cash flows (or observable market price or collateral value if the loan is collateral dependent) of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans, segregated generally by loan type and is based on historical loss experience with adjustments for qualitative factors which are made after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss data. These qualitative risk factors generally include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. 2. National, regional and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Size and composition of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as loan modifications. 5. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 6. Effect of external factors, such as competition and legal and regulatory requirements. 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 are not necessarily classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loans’ collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the size of the loan, age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted for expected sales costs to arrive at the estimated recognizable value of the collateral, which is considered to be the estimated fair value. The recorded investment in consumer mortgages and loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $526 and $97 on December 31, 2018 and 2017, respectively. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring (“TDR”). These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for lease and loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, negative trends, or specific conditions that may result in a payment default in the near future. Regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for lease and 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 lease and loan losses is adequate. Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in noninterest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Mortgage service rights are recorded and amortized over the life of the loan. Transfers of Financial Assets Transfers of financial assets 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 — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (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 transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is recognized through a valuation allowance and charged to noninterest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Other real estate owned included $935 and $1,323 of residential real estate and $750 and $911 of commercial property on December 31, 2018 and 2017, respectively. Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Rent expense is charged to operations over the expected lease term using the straight-line method. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and trustees. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of noninterest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. Significant One-Time Business Transactions At the close of business on August 15, 2017, the Bank sold all of its interest in its subsidiary Brinckerhoff and Neuville, Inc. (“B&N”) in a stock transaction for net proceeds of $3,443. As a result, the Company realized a $1,834 net gain on the sale, which is separately reported on the consolidated statements of income. B&N had pre-tax profit of $437 in 2017. Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. These assets are amortized on a straight-line basis over the related estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply 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 in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. When tax returns are filed, it is highly expected that most positions taken would be sustained upon examination by the taxing authorities, while others may be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company has no liabilities for uncertain tax positions at December 31, 2018 and 2017. Interest and penalties associated with unrecognized tax benefits, if any, would be classified as an additional provision for income taxes in the consolidated statements of income. Comprehensive Income (Loss) GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and the net actuarial loss of the defined benefit pension plan, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income (loss). Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in certain instances, there are no quoted market prices for certain assets or liabilities. 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. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. Fair value measurements focus on exit prices in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The Company’s fair value measurements are classified into a fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The three categories within the hierarchy are as follows: Level 1 Level 2 Level 3 Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. Impact of Recent Accounting Pronouncements Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU No. 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The Company used the modified retrospective method for transition with the cumulative effect recognized as of the date of initial application with no restatement of prior periods. The adoption did not have a significant effect on the Company’s financial statements as the recognition of interest income has been scoped out of the guidance and noninterest income recognition is similar to current revenue recognition practices. See Note 16 for additional information related to the adoption of ASU No. 2014-09. In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)”. This ASU requires lessees to recognize the assets and liabilities that arise from leases with a lease term of more than 12 months on the balance sheet. A lessee should recognize in the statements of financial position a right-of-use asset representing its right to use the underlying asset for the lease term and a liability to make lease payments. This ASU is effective for the Company in 2019. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 on “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU requires credit losses on most financial assets be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The measurement of expected credit losses is based upon relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU is effective for the Company in 2021. Early adoption is permitted in 2019. The Company is currently assessing the effect that ASU No. 2016-13 will have on its results of operations, financial position and cash flows. Effective January 1, 2018, the Company adopted ASU 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities”. This makes significant changes in U.S. GAAP related to certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The changes provided for in this Update that are applicable to the Company are as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus o |
Available for Sale Securities
Available for Sale Securities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Abstract] | |
Available for Sale Securities | 2. Available for Sale Securities The amortized cost, gross unrealized gains and losses and fair values of available for sale securities are as follows: December 31, 2018 Amortized Cost Gross Gross Fair Value U.S. Treasury securities $ 3,036 $ — $ (65 ) $ 2,971 U.S. government agency mortgage-backed securities – residential 82,965 8 (2,757 ) 80,216 U.S. government agency securities 16,919 — (451 ) 16,468 Municipal securities (1) 1,228 4 — 1,232 Other 425 — — 425 Total $ 104,573 $ 12 $ (3,273 ) $ 101,312 December 31, 2017 U.S. Treasury securities $ 3,048 $ — $ (47 ) $ 3,001 U.S. government agency mortgage-backed securities – residential 93,858 1 (2,470 ) 91,389 U.S. government agency securities 16,935 — (409 ) 16,526 Municipal securities (1) 2,401 1 (16 ) 2,386 Total $ 116,242 $ 2 $ (2,942 ) $ 113,302 (1) The issuers of municipal securities are all within New York State. The following table presents the fair value and unrealized losses of the Company’s available for sale securities with gross unrealized losses aggregated by the length of time the individual securities have been in a continuous unrealized loss position: Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized December 31, 2018 U.S. Treasury securities $ — $ — $ 2,971 $ (65 ) $ 2,971 $ (65 ) U.S. government agency mortgage-backed securities – residential 1,669 (4 ) 76,586 (2,753 ) 78,255 (2,757 ) U.S. government agency securities — — 16,468 (451 ) 16,468 (451 ) Total $ 1,669 $ (4 ) $ 96,025 $ (3,269 ) $ 97,694 $ (3,273 ) December 31, 2017 U.S. Treasury securities $ 3,001 $ (47 ) $ — $ — $ 3,001 $ (47 ) U.S. government agency mortgage-backed securities – residential 34,601 (542 ) 56,170 (1,928 ) 90,771 (2,470 ) U.S. government agency securities 3,923 (50 ) 12,603 (359 ) 16,526 (409 ) Municipal Securities 593 (3 ) 977 (13 ) 1,570 (16 ) Total $ 42,118 $ (642 ) $ 69,750 $ (2,300 ) $ 111,868 $ (2,942 ) At December 31, 2018 and 2017, the Company had 96 and 100 individual available-for-sale securities with unrealized losses totaling $3,273 and $2,942, respectively, with an aggregate depreciation of 3.35% and 2.63%, respectively, from the Company’s amortized cost. Management believes that none of the unrealized losses on available for sale securities are other-than-temporary because substantially all of the unrealized losses in the Company’s investment portfolio relate to market interest rate changes on debt and mortgage-backed securities issued either directly by the government or from government sponsored enterprises. Because the Company does not intend to sell the securities and it is not likely that the Company will be required to sell the securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired either at December 31, 2018 or 2017. The amortized cost and fair value of available for sale debt securities at December 31, 2018 and 2017, by contractual maturities, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without any penalties. Because mortgage-backed securities are not due at a single maturity date, they are not included in the maturity categories in the following maturity summary: December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 1,221 $ 1,210 $ 335 $ 336 After 1 but within 5 years 17,253 16,780 20,074 19,623 After 5 but within 10 years 1,975 1,945 1,975 1,954 After 10 years 734 736 — — Total Maturities 21,183 20,671 22,384 21,913 Mortgage-backed securities 82,965 80,216 93,858 91,389 Other 425 425 — — Total $ 104,573 $ 101,312 $ 116,242 $ 113,302 At December 31, 2018 and 2017, available for sale securities with a carrying value of $27,465 and $1,285, respectively, were pledged to secure Federal Home Loan Bank of New York (“FHLBNY”) borrowings. In addition $1,032 and $2,350, respectively, were pledged to secure borrowings at the Federal Reserve Bank of New York (“FRBNY”). Proceeds from the sale of available for sale securities and calls aggregated $2,113 and $30,786 for the years ended December 31, 2018 and 2017, respectively. During the period ending December 31, 2018, there were no gross gains recorded while for the year ended December 31, 2017, there were gross gains of $45. During these two reported periods there were gross losses of $22 and $72 realized on the sales of available for sale securities and calls, respectively. |
Held to Maturity Securities
Held to Maturity Securities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | |
Held to Maturity Securities | 3. Held to Maturity Securities The amortized cost, gross unrealized gains and losses and fair values of held to maturity securities are as follows: December 31, 2018 Amortized Gross Gross Fair Other $ — $ — $ — $ — Municipal securities (1) — — — — Total $ — $ — $ — $ — December 31, 2017 Other $ 332 $ — $ — $ 332 Municipal securities (1) 1,582 15 (1 ) 1,596 Total $ 1,914 $ 15 $ (1 ) $ 1,928 (1) The issuers of municipal securities are all within New York State. The amortized cost and fair value of held to maturity debt securities at December 31, 2018 and 2017, by contractual maturities, are presented below. Actual maturities of mortgage-backed securities may differ from contractual maturities because the mortgages underlying the securities may be called or repaid without any penalties: December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ — $ — $ 252 $ 252 After 1 but within 5 years — — 576 575 After 5 but within 10 years — — — — After 10 years — — 754 769 Other — — 332 332 Total $ — $ — $ 1,914 $ 1,928 At December 31, 2018 and 2017, held to maturity securities with an amortized cost of $0 and $1,362, respectively, were pledged at the FRBNY for borrowings. During 2018, as part of an effort to increase the performance of our investment portfolio, seven underperforming bonds were swapped for better yielding instruments. It was later discovered that in the group sold were two bonds, totaling $575 in book value, which were designated as held to maturity (“HTM”). As part of that transaction, a loss on disposition of $4 was recognized. As a further consequence of this action, in accordance with ASC 320-10-35, the four remaining HTM securities that totaled $1,163 were reclassified as available for sale (“AFS”) and the unrealized holding loss of $1 was recognized in AOCI, net of the applicable taxes for the period ended December 31, 2018. As a result of the sale and subsequent reclassification, the whole of our investment portfolio is now AFS. Securities purchased in the future will be designated as AFS. |
Loans and Allowance for lease a
Loans and Allowance for lease and loan losses | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Loans and Allowance for lease and loan losses | 4. Loans and Allowance for lease and loan losses A summary of the Company’s loan portfolio is as follows: At December 31, 2018 2017 Commercial Real Estate Loans: Construction $ 12,870 $ 5,621 Non-residential 197,499 192,469 Multi-family 12,661 13,103 Residential Real Estate Loans 43,534 43,300 Commercial Loans: 83,203 67,650 Consumer Loans: Indirect automobile 297,144 214,823 Home equity 19,269 19,452 Other consumer 10,826 9,929 Total gross loans 677,006 566,347 Net deferred loan costs 8,042 5,288 Allowance for loan losses (6,646 ) (5,457 ) Total net loans $ 678,402 $ 566,178 At December 31, 2018 and 2017, the unpaid principal balances of loans held for sale, included in the residential real estate category above, were $888 and $2,059. The following tables present the classes of the loan portfolio summarized by the pass category and the criticized categories of special mention, substandard and doubtful within the internal risk system: December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial real estate: Construction $ 12,870 $ — $ — $ — $ 12,870 Non-residential 186,020 6,840 4,639 — 197,499 Multifamily 12,261 — 400 — 12,661 Residential 41,249 — — 2,285 43,534 Commercial and industrial 81,111 965 1,124 3 83,203 Consumer: Indirect automobile 296,692 — — 452 297,144 Home equity 19,071 — — 198 19,269 Other consumer 10,816 — — 10 10,826 Total $ 660,090 $ 7,805 $ 6,163 $ 2,948 $ 677,006 December 31, 2017 Pass Special Mention Substandard Doubtful Total Commercial real estate: Construction $ 4,495 $ — $ 1,126 $ — $ 5,621 Non-residential 181,720 3,485 7,264 — 192,469 Multifamily 13,103 — — — 13,103 Residential 41,115 — — 2,185 43,300 Commercial and industrial 65,351 125 2,156 18 67,650 Consumer: Indirect automobile 214,381 — — 442 214,823 Home equity 19,334 — — 118 19,452 Other consumer 9,925 — — 4 9,929 Total $ 549,424 $ 3,610 $ 10,546 $ 2,767 $ 566,347 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The past due status of all classes of loans is determined based on contractual due dates for loan payments. The following table presents the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans: December 31, 2018 Current 30 – 59 Days 60 – 89 Days Greater Than Total Loans Nonaccrual Commercial real estate: Construction $ 12,870 $ — $ — $ — $ 12,870 $ — Non-residential 193,273 1,466 253 2,507 197,499 2,507 Multifamily 12,487 174 — — 12,661 — Residential 42,083 305 615 531 43,534 2,208 Commercial and industrial 82,992 206 1 4 83,203 297 Consumer: Indirect automobile 291,369 4,429 915 431 297,144 452 Home equity 18,905 264 — 100 19,269 198 Other consumer 10,601 186 29 10 10,826 10 Total $ 664,580 $ 7,030 $ 1,813 $ 3,583 $ 677,006 $ 5,672 December 31, 2017 Current 30 – 59 Days 60 – 89 Days Greater Than Total Loans Nonaccrual Commercial real estate: Construction $ 4,494 $ — $ — $ 1,127 $ 5,621 $ 1,127 Non-residential 184,877 2,229 921 4,442 192,469 4,442 Multifamily 12,637 — 466 — 13,103 — Residential 41,989 450 422 439 43,300 2,100 Commercial and industrial 66,542 69 19 1,020 67,650 1,237 Consumer: Indirect automobile 209,574 4,022 808 419 214,823 442 Home equity 18,637 676 127 12 19,452 12 Other consumer 9,742 176 7 4 9,929 4 Total $ 548,492 $ 7,622 $ 2,770 $ 7,463 $ 566,347 $ 9,364 The following tables summarize information in regards to impaired loans by loan portfolio class: December 31, 2018 Recorded Unpaid Principal Related Average Recorded With no related allowance recorded: Commercial real estate: Construction $ — $ — $ — $ 563 Non-residential 2,507 2,601 — 3,023 Multifamily — — — — Residential 2,285 2,841 — 2,235 Commercial and industrial 297 421 — 758 Consumer: Indirect automobile 274 320 — 242 Home equity 198 211 — 158 Other consumer 10 10 — 5 Total $ 5,571 $ 6,404 $ — $ 6,984 December 31, 2018 Recorded Unpaid Principal Related Average Recorded With an allowance recorded: Commercial real estate: Construction $ — $ — $ — $ — Non-residential — — — 451 Multifamily — — — — Residential — — — — Commercial and industrial — — — 9 Consumer: Indirect automobile 178 191 50 205 Home equity — — — — Other consumer — — — 2 Total $ 178 $ 191 $ 50 $ 667 Total: Commercial real estate: Construction $ — $ — $ — $ 563 Non-residential 2,507 2,601 — 3,474 Multifamily — — — — Residential 2,285 2,841 — 2,235 Commercial and industrial 297 421 — 767 Consumer: Indirect automobile 452 511 50 447 Home equity 198 211 — 158 Other consumer 10 10 — 7 Total $ 5,749 $ 6,595 $ 50 $ 7,651 December 31, 2017 Recorded Unpaid Principal Related Average Recorded With no related allowance recorded: Commercial real estate: Construction $ 1,127 $ 1,137 $ — $ 1,127 Non-residential 3,539 3,584 — 2,878 Multifamily — — — — Residential 2,184 2,741 — 2,114 Commercial and industrial 1,219 1,700 — 1,325 Consumer: Indirect automobile 210 237 — 179 Home equity 118 119 — 182 Other consumer — 1 — 2 Total $ 8,397 $ 9,519 $ — $ 7,807 December 31, 2017 Recorded Unpaid Principal Related Average Recorded With an allowance recorded: Commercial real estate: Construction $ — $ — $ — $ — Non-residential 903 903 300 451 Multifamily — — — — Residential — — — — Commercial and industrial 19 447 19 221 Consumer: Indirect automobile 232 247 75 292 Home equity — — — — Other consumer 3 3 3 18 Total $ 1,157 $ 1,600 $ 397 $ 982 Total: Commercial real estate: Construction $ 1,127 $ 1,137 $ — $ 1,127 Non-residential 4,442 4,487 300 3,330 Multifamily — — — — Residential 2,184 2,741 — 2,114 Commercial and industrial 1,238 2,147 19 1,546 Consumer: Indirect automobile 442 484 75 471 Home equity 118 119 — 182 Other consumer 3 4 3 19 Total $ 9,554 $ 11,119 $ 397 $ 8,789 A loan is considered impaired when based on current information and events it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans and loans modified as troubled debt restructurings (“TDRs”). Loan modifications, which resulted in these loans being considered TDRs, are primarily in the form of rate concessions and extensions of maturity dates. The Company does not generally recognize interest income on a loan in an impaired status. At December 31, 2018 and 2017, three loans totaling $1,774 and four loans totaling $1,815, respectively, which were included in impaired loans, were identified as TDRs. In 2018, the Company restructured two loans, a residential mortgage and home equity loan, into a single residential mortgage, with a carrying value of $117, which included both rate and term modifications. In 2017, the Company modified a residential loan and a commercial loan with carrying amounts of $1,661 and $19, respectively, through rate and term modifications. Interest income on impaired loans was immaterial during each of the periods presented. At December 31, 2018 and 2017, all loans were performing in accordance with their restructured terms. During the year ended December 31, 2018, one loan for $19 had defaulted in its modified terms and was charged off. At December 31, 2018 and 2017, the Company had no commitments to advance additional funds to borrowers under TDR loans. The Company services certain loans that it has sold without recourse to third parties. The aggregate balances of loans serviced for others were $255,892 and $244,765 as of December 31, 2018 and 2017, respectively. The balance of capitalized servicing rights, included in other assets at December 31, 2018 and 2017, were $2,278 and $2,260, respectively. Fair value exceeds carrying value. No impairment charges related to servicing rights were recognized during the years ended December 31, 2018 and 2017. The following tables summarize the segments of the loan portfolio and the allowance for lease and loan losses, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment and the activity in the allowance for lease and loan losses for the periods then ended: Commercial Real Estate Commercial Residential Commercial Indirect Consumer Totals December 31, 2018 Allowance for loan losses: Beginning balance $ 1,305 $ 455 $ 879 $ 2,150 $ 668 $ 5,457 Provision for loan losses (113 ) (182 ) 491 1,794 110 2,100 Loans charged-off (303 ) — (37 ) (1,607 ) (66 ) (2,013 ) Recoveries 123 5 122 833 19 1,102 Ending balance $ 1,012 $ 278 $ 1,455 $ 3,170 $ 731 $ 6,646 Ending balance: Individually evaluated for impairment $ — $ — $ — $ 50 $ — $ 50 Collectively evaluated for impairment $ 1,012 $ 278 $ 1,455 $ 3,120 $ 731 $ 6,596 Loan receivables: Ending balance $ 223,030 $ 43,534 $ 83,203 $ 297,144 $ 30,095 $ 677,006 Ending balance: Individually evaluated for impairment $ 2,507 $ 2,285 $ 297 $ 452 $ 208 $ 5,749 Collectively evaluated for impairment $ 220,523 $ 41,249 $ 82,906 $ 296,692 $ 29,887 $ 671,257 Commercial Residential Commercial Indirect Consumer Totals December 31, 2017 Allowance for loan losses: Beginning balance $ 1,092 $ 1,231 $ 775 $ 2,028 $ 750 $ 5,876 Provision for loan losses 137 (707 ) 698 807 (35 ) 900 Loans charged-off (16 ) (78 ) (596 ) (1,637 ) (87 ) (2,414 ) Recoveries 92 9 2 952 40 1,095 Ending balance $ 1,305 $ 455 $ 879 $ 2,150 $ 668 $ 5,457 Ending balance: Individually evaluated for impairment $ 300 $ — $ 19 $ 75 $ 3 $ 397 Collectively evaluated for impairment $ 1,005 $ 455 $ 860 $ 2,075 $ 665 $ 5,060 Loan receivables: Ending balance $ 211,193 $ 43,300 $ 67,650 $ 214,823 $ 29,381 $ 566,347 Ending balance: Individually evaluated for impairment $ 5,569 $ 2,184 $ 1,238 $ 442 $ 121 $ 9,554 Collectively evaluated for impairment $ 205,624 $ 41,116 $ 66,412 $ 214,381 $ 29,260 $ 556,793 In the normal course of business, the Company grants loans to officers, trustees and other related parties. Balances and activity of such loans during the years presented were not material. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 5. Premises and Equipment Premises and equipment are summarized as follows: December 31, 2018 2017 Land and land improvements $ 3,536 $ 3,536 Buildings and leasehold improvements 23,534 23,409 Furniture, fixtures and equipment 11,708 10,725 Construction in process 51 43 Total 38,829 37,713 Less accumulated depreciation (21,789 ) (20,688 ) Net $ 17,040 $ 17,025 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill, Impaired [Abstract] | |
Goodwill | 6. Goodwill The changes in the carrying value of goodwill are as follows: December 31, 2018 B&N RAM Total Beginning balance $ — $ 1,505 $ 1,505 Impairment — (95 ) (95 ) Ending balance $ — $ 1,410 $ 1,410 Accumulated impairment $ — $ 1,116 $ 1,116 December 31, 2017 B&N RAM Total Beginning balance $ 1,276 $ 1,505 $ 2,781 Relief due to asset sale (1,276 ) — (1,276 ) Ending balance $ — $ 1,505 $ 1,505 Accumulated impairment $ — $ 1,021 $ 1,021 As discussed in Note 1, in 2017 the Bank sold its entire interest in B&N resulting in the removal of the remaining goodwill. At June 30, 2018 the Company tested the goodwill recorded for RAM and determined that a write-down of $95 was required to reflect impairment due to the loss of expected revenue. The similar test done at December 31, 2018 determined that no additional write-down was necessary. At year end 2017 the Company tested the goodwill recorded for RAM and determined that no impairment charge was required. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Intangible Assets | 7. Intangible Assets The changes in the carrying value of customer list intangible are as follows: December 31, 2018 B&N RAM Total Beginning balance $ — $ 326 $ 326 Amortization — (42 ) (42 ) Ending balance $ — $ 284 $ 284 Accumulated amortization and impairment $ — $ 663 $ 663 December 31, 2017 B&N RAM Total Beginning balance $ 359 $ 368 $ 727 Amortization (25 ) (42 ) (67 ) Relief due to asset sale (334 ) — (334 ) Ending balance $ — $ 326 $ 326 Accumulated amortization and impairment $ — $ 621 $ 621 The value assigned to customer list intangible is based upon a multiple of the amount of commission revenue generated from the identified premiums. The customer lists are expected to have useful lives of 13 years and 4 months. The Company recognized $42,000 and $42,000 of amortization expense related to its intangible assets for the years ended December 31, 2018 and 2017, respectively. As discussed in Note 1, in 2017 the Bank sold its entire interest in B&N resulting in the removal of the remaining related intangibles. At December 31, 2018, based upon the amount of future commission revenue available from the then existing RAM customer premiums on hand, the Company determined that the fair value of the amortizable intangible assets exceeded their carrying values recorded at year end. As of December 31, 2018 the future amortization expense for amortizable intangible assets for the respective years is as follows: 2019 42 2020 42 2021 42 2022 42 2023 42 Thereafter 74 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Deposits | 8. Deposits Deposits balances are summarized as follows: December 31, 2018 December 31, 2017 Noninterest bearing demand deposits $ 171,829 $ 157,828 Interest bearing accounts: NOW 99,715 101,167 Savings 126,822 125,244 Money market 130,356 123,643 Time certificates of deposit 155,696 142,223 Total interest bearing accounts 512,589 492,277 Total deposits $ 684,418 $ 650,105 Included in time certificates of deposit at December 31, 2018 and 2017 were reciprocal deposits totaling $21,515 and $20,673, respectively, with original maturities of one to three years. Time certificates of deposit in denominations of $250 or greater were $16,644 and $13,920 as of December 31, 2018 and 2017, respectively. Contractual maturities of time certificates of deposit at December 31, 2018 are summarized below: Within 1 year $ 102,311 1 – 2 years 31,670 2 – 3 years 7,964 3 – 4 years 9,549 4 – 5 years 4,202 Total $ 155,696 |
Long-Term Debt and FHLBNY Stock
Long-Term Debt and FHLBNY Stock | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and FHLB Stock | 9. Long-Term Debt and FHLB Stock FHLB Borrowings and Stock The Company is a member of the FHLB. At December 31, 2018 and 2017, the Company had access to a preapproved secured line of credit with the FHLB of $441,134 and $370,974, respectively. Borrowings under this line require collateralization through the pledge of specific loans and securities. At December 31, 2018 and 2017, the Company had pledged assets of $145,805 and $25,608, respectively. At December 31, 2018 and 2017, the Company had outstanding overnight line of credit balances with FHLBNY of $0 and $14,900, respectively. These borrowings mature the following business day. The interest rate was 1.53% at December 31, 2017. At December 31, 2018, the Company also had structured borrowings in the amount of $31,598. The outstanding principal amounts and the related terms and rates at December 31, 2018 were as follows: Term Principal Maturity Rate Due in one year Long term 5 month bullet $ 10,000 February 26, 2019 2.64 % $ 10,000 $ — 1 year amortizing 2,516 May 15, 2019 2.50 % 2,516 — 1 year amortizing 2,932 June 7, 2019 2.53 % 2,932 — 2 year amortizing 3,776 May 15, 2020 2.78 % 2,500 1,276 2 year amortizing 3,981 June 8, 2020 2.76 % 2,494 1,487 3 year amortizing 8,393 May 17, 2021 2.92 % 3,284 5,109 Total $ 31,598 Weighted Average Rate 2.72 % $ 23,726 $ 7,872 At December 31, 2017, the Company did not have any structured advances with the FHLB. The Company is required to maintain an investment in capital stock of the FHLBNY, as collateral, in an amount equal to a certain percentage of its outstanding debt. FHLB stock is considered restricted stock and is carried at cost. The Company evaluates for impairment based on the ultimate recovery ability of the cost. No impairment was recognized at either December 31, 2018 or 2017. Subordinated Debt During 2005, the Company formed RSB Capital Trust I (“Trust”) and owns all of the Trust’s common securities. The Trust has no independent assets or operations and was created for the sole purpose of issuing trust securities and investing the proceeds thereof in an equivalent amount of junior subordinated debentures issued by the Company. Trust preferred securities are currently considered Tier 1 capital for purposes of determining the Bank’s capital ratios. The trust securities also bear interest at 3-month LIBOR plus 2.00%. The duration of the Trust is 30 years. The subordinated debt securities of $5,155 are unsecured obligations of the Company and are subordinate and junior in right of payment to all present and future senior indebtedness of the Company. The Company has entered into a guarantee, which together with its obligations under the subordinated debt securities and the declaration of trust governing the Trust, including its obligations to pay costs, expenses, debts and liabilities, other than trust securities, provides a full and unconditional guarantee of amounts on the capital securities. The subordinated debentures, which bear interest at 3-month LIBOR plus 2.00% (4.800% at December 31, 2018 and 3.454% at December 31, 2017) mature on May 23, 2035. Other Borrowings In December 2018 the Company entered into an agreement with Atlantic Community Bankers Bank to provide it with a $5,000 bank holding company line of credit at a rate equal to the Wall Street Journal prime rate of interest, floating, plus 0.50%. The term of this line is the earlier of the closing of the reorganization or 90 days from the loan closing. The purpose of the line was to provide short term availability of funds which strategically would be down-streamed to the Bank to be used as capital to support year end capital ratios that were impacted by the reorganization and stock offering (refer to Note 18). After the closing of the offering, the facility will convert to Rhinebeck Bancorp, Inc. and remain in place for backstop liquidity purposes. At December 31, 2018, the Company had $5,000 of advances outstanding. The Company also has an unsecured, uncommitted $10,000 line of credit with Zions Bank. There were no advances outstanding under this line of credit at December 31, 2018 and 2017. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 10. Income Taxes The components of the provision for income taxes are as follows: Years Ended December 31, 2018 2017 Current expense (benefit): Federal $ 900 $ 1,740 State 12 (61 ) Total 912 1,679 Deferred expense: Federal 102 1,919 (1) Total provision for income taxes $ 1,014 $ 3,598 (1) Includes $1,870 due to 2017 federal rate change. The following is a reconciliation between the expected federal statutory income tax rate of 21% (2018) and 34% (2017) and the Company’s actual income tax expense and rate: Years ended December 31, 2018 2017 Provision at statutory rate $ 1,128 21 % $ 2,244 34 % Tax exempt income (92 ) (1 %) (170 ) (3 %) State income taxes, net of federal income tax benefit 18 0 % 23 1 % Write-off of deferred tax assets due to tax reform — 0 % 1,870 28 % Tax basis difference on sale of B&N — 0 % (295 ) (5 %) Other, net (40 ) (1 %) (74 ) 0 % Effective income tax and rate $ 1,014 19 % $ 3,598 55 % The tax effects of temporary differences that give rise to significant components of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are presented below: December 31, 2018 2017 Deferred tax assets: Allowance for loan losses $ 1,794 $ 1,473 Deferred expenses 783 717 Depreciation and amortization — 105 Unrecognized pension liability 1,179 1,232 Postretirement liability 914 901 Deferred loss on OREO 187 83 Unrealized loss on securities 685 617 State tax NOLs 779 647 Other 134 232 Gross deferred tax assets 6,455 6,007 Deferred tax liabilities: Prepaid expenses (241 ) (181 ) Prepaid pension (1,305 ) (1,148 ) Deferred loan fees (170 ) (65 ) Depreciation and amortization (105 ) — Mortgage servicing rights (615 ) (610 ) Gross deferred tax liabilities (2,436 ) (2,004 ) Net deferred tax asset 4,019 4,003 Deferred tax valuation allowance (1,085 ) (982) Deferred tax assets, net of allowance $ 2,934 $ 3,021 The 2015 – 16 New York Tax State (“NYS”) Budget enacted on March 31, 2015 contained a significant reform of NYS’s corporate tax system (Part A of Chapter 59 of the Laws of 2015). The budget enacted on April 13, 2016 presented technical and clarifying amendments to the previously enacted tax reform statutes (Part T of Chapter 59 of the Laws of 2016) which were effective for tax years effective on or after January 1, 2016. Among the many changes related to the Company, the separate tax article 32 that used to apply to financial institutions became no longer applicable and the Company was required to file as a general business corporation (Article 9-A) starting in 2015. The new tax law provided for a permanent deduction of income from “qualified” loans from taxable income for community banks. As such, management determined that the Company would most likely not pay any income tax but rather generate New York net operating losses (“NOLs”) for the foreseeable future. The Company would likely pay the NYS capital based tax until the phase out of that tax which is scheduled for the year ended December 31, 2020. While the change was positive for the Company (it would likely pay less cash taxes in future years due to the permanent deduction afforded), one immediate negative impact was the reduced value of the Company’s NYS deferred tax assets (“DTAs”). In management’s opinion, it is expected that in future years there will be no opportunity to reverse the NYS DTAs to provide for a reduction in NYS income taxes. Therefore, at year end 2015 management established a full valuation allowance to recognize the fully diminished value of these DTAs. Retained earnings at December 31, 2018 and 2017 include a contingency reserve for loan losses of $1,534 which represents the tax reserve balance existing at December 31, 1987 and is maintained in accordance with provisions of the Internal Revenue Code applicable to mutual savings banks. Amounts transferred to the reserve have been claimed as deductions from taxable income and, if the reserve is used for purposes other than to absorb losses on loans, a federal income tax liability could be incurred. It is not anticipated that the Company will incur a federal income tax liability relating to this reserve balance and accordingly, deferred income taxes of $414 at December 31, 2018 and $614 at December 31, 2017 have not been recognized. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |
Employee Benefits | 11. Employee Benefits Pension Plan The Bank maintains a noncontributory defined benefit pension plan covering substantially all of its employees 21 years of age or older who have completed at least one year of service. On April 24, 2012, the Board of Directors of Rhinebeck Bank voted to freeze the Bank’s defined benefit plan as of June 30, 2012. The following table sets forth the plan’s funded status and amounts recognized in the Company’s consolidated statements of financial condition: Years ended December 31, 2018 2017 Projected and accumulated benefit obligation $ (18,241 ) $ (19,777 ) Plan assets at fair value 17,459 18,166 Funded status included in other liabilities $ (782 ) $ (1,611 ) Amounts recognized in accumulated other comprehensive loss consisted of the following: Years ended December 31, 2018 2017 Net actuarial loss $ 5,616 $ 5,864 The net periodic pension (benefit) cost and amounts recognized in other comprehensive income (loss) are as follows: Years ended December 31, 2018 2017 Interest cost $ 689 $ 717 Expected return on plan assets (1,074 ) (988 ) Amortization of unrecognized loss 374 347 Net periodic (benefit) cost $ (11 ) $ 76 In 2018 and 2017, net actuarial (gain) loss resulted primarily from changes in the discount rate. Estimated net actuarial loss of $359 will be amortized from accumulated other comprehensive loss into net periodic pension cost in 2018. Weighted-average assumptions used by the Company to determine the pension benefit obligation consisted of the following: Years ended December 31, 2018 2017 Discount rate 4.14 % 3.53 % Rate of compensation increase N/A N/A Weighted-average assumptions used by the Company to determine the net periodic pension cost consisted of the following: Years ended December 31, 2018 2017 Discount rate 3.53 % 4.06 % Expected long-term return on plan assets 6.00 % 6.00 % Rate of compensation increase N/A N/A The expected long-term rate of return on plan assets has been determined by applying historical average investment returns from published indexes relating to the current allocation of assets in the plan. Plan assets are invested in pooled separate accounts consisting of underlying investments in nine diversified investment funds. As of December 31, 2018, the investment funds include six equity funds, three bond funds and a real estate fund, each with its own investment objectives, investment strategies and risks, as detailed in the Company’s investment policy statement. At December 31, 2017, the investment funds included five equity funds, three bond funds and a taxable money market fund, each with its own investment objectives, investment strategies and risks, as detailed in the Company’s investment policy statement. The Company determines the appropriate strategic asset allocation versus plan liabilities, as governed by the investment policy statement. The assets of the plan are invested under the supervision of the Company’s investment committee in accordance with the investment policy statement. The investment options of the plan are chosen in a manner consistent with generally accepted standards of fiduciary responsibility. The investment performance of the Company’s individual investment managers, with the assistance of the Company’s investment consultant, is monitored on a quarterly basis and is reviewed at least annually relative to the objectives and guidelines as stated in the Company’s investment policy statement. The fair value of the Company’s pension plan assets, by fair value hierarchy, are as follows: December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ — $ 13,638 $ — $ 13,638 Equity — 3,821 — 3,821 Total assets at fair value $ — $ 17,459 $ — $ 17,459 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ — $ 10,136 $ — $ 10,136 Equity — 8,030 — 8,030 Total assets at fair value $ — $ 18,166 $ — $ 18,166 The pooled separate accounts are valued at the net asset per unit based on either the observable net asset value of the underlying investment or the net asset value of the underlying pool of securities. Net asset value is based on the value of the underlying assets owned by the fund, minus its liabilities and then divided by the number of shares outstanding. Pooled separate accounts are classified within level 2 of the valuation hierarchy described in Note 1. Employer contributions and benefit payments are as follows: Year ended December 31, 2018 2017 Employer Contribution $ 570 $ — Benefits paid $ 453 $ 429 As of December 31, 2018 the following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: Fiscal Year Ending Pension Benefits 2019 $ 594 2020 665 2021 694 2022 725 2023 744 2024 – 2028 4,512 On August 14, 2018, the Company made a contribution to the plan in the amount of $570. The contribution was made to reduce the underfunded status of the plan and realize a higher tax deduction before the decrease of the federal tax rate in 2018. Defined Contribution Plan The Company sponsors a 401(k) defined contribution plan. Participants are permitted, in accordance with the provisions of Section 401(k) of the Internal Revenue Code, to contribute up to 25% of their earnings (as defined) into the plan with the Company matching up to 6%, subject to Internal Revenue Service limitations. The Company’s contributions charged to operations amounted to $782 and $686 for the years ended December 31, 2018 and 2017, respectively. Bank Owned Life Insurance The Company has an investment in and is the beneficiary of, life insurance policies on the lives of certain officers and trustees. The purpose of these life insurance policies is to provide income through the appreciation in cash surrender value of the policies, which is expected to offset the cost of the deferred compensation plans. These policies have aggregate cash surrender values of $18,018 and $17,577 at December 31, 2018 and 2017, respectively. Net earnings on these policies aggregated $401 and $460 for the years ended December 31, 2018 and 2017, respectively, which are included in noninterest income in the consolidated statements of income. Deferred Compensation Arrangements Trustees’ Plan The Company’s 1991 Plan (the “Trustees’ Plan”) covers Trustees who elect to defer fees earned. Under the terms of the Trustees’ Plan, each participant may elect to defer all or part of their annual director’s fees. Upon resignation, retirement, or death, the participants’ total deferred compensation, including earnings thereon, will be paid out. At December 31, 2018 and 2017, $1,687 and $1,648, respectively, are included in accrued expenses and other liabilities, which represents cumulative amounts deferred and earnings thereon. Total expense related to the Trustees’ Plan years ended December 31, 2018 and 2017 were $129 and $62, respectively, which are included in noninterest expense in the consolidated statements of income. Executive Long-Term Incentive and Retention Plan The Company maintains an Executive Long-Term Incentive and Retention Plan (the “Executive Plan”). Participation in the Executive Plan is limited to officers of the Company designated as participants by the Board of Trustees and who filed a properly completed and executed participation agreement in accordance with the terms of the Executive Plan. Under the Executive Plan, the Board of Trustees may grant annual incentive awards equal to a percentage of a participant’s base salary at the rate in effect on the last day of the Plan year, as determined by the Board of Trustees based on the attainment of criteria established annually by the Board of Trustees. Incentive awards under the Executive Plan are credited to the participant’s incentive benefit account as of the last day of the Executive Plan year to which the award relates and earn interest at a rate determined annually by the Board of Trustees. Participants vest in their benefit accounts in accordance with the vesting schedule approved by the Board of Trustees, which ranges from one to five years of service. At December 31, 2018 and 2017, $975 and $813, respectively, is included in accrued expenses and other liabilities, which represents the cumulative amounts deferred and earnings thereon. The Company recognized expenses of $177 and $76 for the years ended December 31, 2018 and 2017, respectively, related to this plan and which are included in salaries and employee benefits expense in the consolidated statements of income. Group Term Replacement Plan Under the terms of the “Group Term Replacement Plan”, the Company provides postretirement life insurance benefits to certain officers. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $1,276 and $1,260, respectively, at December 31, 2018 and 2017. The Company recognized expenses of $16 and $71 for the years ended December 31, 2018 and 2017, respectively, related to this plan which are included in salaries and employee benefits expense in the consolidated statements of income. Other Director and Officer Postretirement Benefits The Company has individual fee continuation agreements with certain directors and a supplemental retirement agreement with an executive officer which provide for fixed postretirement benefits to be paid to the directors and the officer, or their beneficiaries, for periods ranging from 15 to 20 years. In addition, the Company has agreements with certain directors which provide for certain postretirement life insurance benefits. The liability related to these postretirement benefits is being accrued over the individual participants’ service period and aggregated $2,108 and $2,078, respectively, at December 31, 2018 and 2017. The Company recognized expenses of $94 and $292 for the years ended December 31, 2018 and 2017, respectively, related to these benefits which are included in other noninterest expenses in the consolidated statements of income. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 12. Commitments and Contingencies Leases and Subleases The Company leases certain branch offices and equipment under operating lease agreements which expire at various dates through 2025. The Company has the option to renew the leases for its branch offices at fair rental values. In addition to rental payments, the branch leases require payments for property taxes in excess of base year taxes. As of December 31, 2018, future minimum rental commitments under the terms of these leases, by year and in the aggregate, are as follows: Years ending December 31: 2019 $ 673 2020 641 2021 564 2022 509 2023 486 2024 and beyond 477 Total $ 3,350 Total rental expense charged to operations for cancelable and non-cancelable operating leases were $642 and $626 for the years ended December 31, 2018 and 2017, respectively. Rental income under subleases was $297 and $319 for the years ended December 31, 2018 and 2017, respectively. Legal Matters The Company is involved in various legal proceedings which have arisen in the normal course of business. Management believes that resolution of these matters will not have a material effect on the Company’s financial condition or results of operations. Employment Agreements The Company has entered into employment agreements with certain officers. The agreements provide for base salaries and incentive compensation based on performance criteria outlined in the agreements. The agreements also provide for insurance and various other benefits. |
Financial Instruments with Off-
Financial Instruments with Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Financial Instruments with Off-Balance-Sheet Risk | 13. Financial Instruments with Off-Balance-Sheet Risk In the normal course of business, the Company is a party to financial instruments with off-balance-sheet risk to meet the financing needs of its customers. These financial instruments include standby letters of credit and commitments to extend credit, which include new loan commitments and undisbursed portions of construction loans and other lines of credit. These financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amounts recognized in the statements of financial condition. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The contractual amounts of commitments to extend credit represent the amounts of potential accounting loss should the contract be fully drawn upon, the customer defaults and the value of any existing collateral become worthless. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. Financial instruments whose contract amounts represent off-balance sheet credit risk are as follows: Years ended December 31, 2018 2017 Commitments to extend credit summarized as follows: Future loan commitments $ 3,157 $ 3,805 Undisbursed construction loans 16,289 7,175 Undisbursed home equity lines of credit 9,532 11,185 Undisbursed commercial and other line of credit 50,773 60,897 Standby letters of credit 1,785 3,429 Total $ 81,536 $ 86,491 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. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Since these commitments could 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 counterparty. Collateral held varies but may include residential and commercial property, deposits and securities. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | 14. Regulatory Matters The Company and the Bank are 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 financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. The final rules implementing the BASEL Committee on Banking Supervisor’s Capital Guidance for U.S. Banks (BASEL III) became effective for the Company and Bank on January 1, 2016. Compliance with the requirements is being phased in over a four year period with full compliance as of January 1, 2019. All presented capital ratios are calculated using BASEL III rules. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the tables below) of total, common equity Tier 1 and Tier I capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier I capital (as defined) to average assets (as defined). Management believes, as of December 31, 2018 and December 31, 2017, that the Company and the Bank met all capital adequacy requirements to which they are subject. The most recent notification from the FDIC categorized the Bank as “well capitalized” under the regulatory framework. To be categorized as well capitalized, the Bank must maintain minimum total risk-based, common equity Tier 1, Tier I risk-based and Tier I leverage ratios as set forth in the table below. There are no conditions or events since then, which management believes have changed the Bank’s category. The Company’s and Bank’s actual capital amounts and ratios were: Actual For Capital Adequacy Purposes To be Well Capitalized under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Rhinebeck Bancorp, MHC Total capital (to risk-weighted assets) $ 71,243 9.71 % $ 58,707 8.00 % $ 73,383 10.00 % Tier 1 capital (to risk-weighted assets) 64,597 8.80 % 44,030 6.00 % 58,707 8.00 % Common equity tier one capital (to risk weighted assets) 64,597 8.80 % 33,023 4.50 % 47,699 6.50 % Tier 1 capital (to average assets) 64,597 7.63 % 33,849 4.00 % 42,311 5.00 % Rhinebeck Bank Total capital (to risk-weighted assets) $ 81,222 11.07 % $ 58,694 8.00 % $ 73,368 10.00 % Tier 1 capital (to risk-weighted assets) 74,576 10.16 % 44,021 6.00 % 58,694 8.00 % Common equity tier one capital (to risk weighted assets) 74,576 10.16 % 33,016 4.50 % 47,689 6.50 % Tier 1 capital (to average assets) 74,576 8.80 % 33,901 4.00 % 42,376 5.00 % December 31, 2017 Rhinebeck Bancorp, MHC Total capital (to risk-weighted assets) $ 65,623 10.94 % $ 47,977 8.00 % $ 59,971 10.00 % Tier 1 capital (to risk-weighted assets) 60,166 10.03 % 35,983 6.00 % 47,977 8.00 % Common equity tier one capital (to risk weighted assets) 60,166 10.03 % 26,987 4.50 % 38,891 6.50 % Tier 1 capital (to average assets) 60,166 8.16 % 29,488 4.00 % 36,860 5.00 % Rhinebeck Bank Total capital (to risk-weighted assets) $ 68,631 11.45 % $ 47,964 8.00 % $ 59,955 10.00 % Tier 1 capital (to risk-weighted assets) 63,174 10.54 % 35,973 6.00 % 47,964 8.00 % Common equity tier one capital (to risk weighted assets) 63,174 10.54 % 26,980 4.50 % 38,971 6.50 % Tier 1 capital (to average assets) 63,174 8.57 % 29,488 4.00 % 36,860 5.00 % |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value | 15. Fair Value As described in Note 1, the Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. A description of the valuation methodologies used for assets and liabilities recorded at fair value and for estimating fair value for financial and non-financial instruments not recorded at fair value, is set forth below. Cash and Due from Banks, Accrued Interest Receivable and Mortgagors’ Escrow Accounts The carrying amount is a reasonable estimate of fair value. Available for Sale and Held to Maturity Securities Where quoted prices are available in an active market for identical securities, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include marketable equity securities and U.S. Treasury obligations. If quoted prices are not available, then fair values are estimated by using pricing models (i.e., matrix pricing) or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency bonds, mortgage-backed securities and municipal bonds. The Company does not have any Level 3 securities for which significant unobservable inputs are utilized. Available for sale securities are recorded at fair value on a recurring basis and held to maturity securities are only disclosed at fair value. FHLBNY Stock The carrying value of FHLBNY stock approximates fair value based on the redemption provisions of the FHLBNY. Loans Loans receivable are carried at cost. For variable rate loans which reprice frequently and have no significant change in credit risk, carrying values are a reasonable estimate of fair values, adjusted for credit losses inherent in the portfolios. The fair value of fixed rate loans is estimated by discounting the future cash flows using the year end rates, estimated using local market data, at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities, adjusted for credit losses inherent in the portfolios. The Company does not record loans at fair value on a recurring basis. However, from time to time, nonrecurring fair value adjustments to collateral-dependent impaired loans are recorded to reflect partial write-downs based on the observable market price or current appraised value of collateral. The fair value of loans held for sale is estimated using quoted market prices. Other Real Estate Owned Other real estate owned represents real estate acquired through foreclosure and is carried at the lower of cost or fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. These assets are included as Level 3 fair values, based upon the lowest level of input that is utilized in the fair value measurements. Mortgage Servicing Rights The fair value of mortgage servicing rights is based on a valuation model that calculates the present value of estimated future net servicing income. Deposits Deposit liabilities are carried at cost. The fair value of NOW, savings and money market deposits is the amount payable on demand at the reporting date. The fair value of time certificates of deposit is estimated using a discounted cash flow calculation that applies interest rates currently being offered for deposits of similar remaining maturities estimated using local market data to a schedule of aggregated expected maturities on such deposits. Advances from the FHLBNY The fair value of the advances is estimated using a discounted cash flow calculation that applies current FHLBNY interest rates for advances of similar maturity to a schedule of maturities of such advances. Subordinated Debt Based on the floating rate characteristic of these instruments, the carrying value is considered to approximate fair value. Other Borrowings Based on the floating rate characteristic of these instruments, the carrying value is considered to approximate fair value. Off-Balance-Sheet Instruments Fair values for off-balance-sheet lending commitments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standings. Such amounts are not significant. The following tables detail the assets that are carried at fair value on a recurring basis as of the periods shown and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 U.S. Treasury securities $ 2,971 $ 2,971 $ — $ — U.S. government agency mortgage-backed securities – residential 80,216 — 80,216 — U.S. government agency securities 16,468 — 16,468 — Municipal securities 1,232 — 1,232 — Other 425 — 425 — Total $ 101,312 $ 2,971 $ 98,341 $ — December 31, 2017 U.S. Treasury securities $ 3,001 $ 3,001 $ — $ — U.S. government agency mortgage-backed securities – residential 91,389 — 91,389 — U.S. government agency securities 16,526 — 16,526 — Municipal securities 2,386 — 2,386 — Total $ 113,302 3,001 $ 110,301 $ — The following tables detail the assets carried at fair value and measured at fair value on a nonrecurring basis as of December 31, 2018 and 2017 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine the fair value: Balance Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2018 Impaired loans $ 128 $ — $ — $ 128 Other real estate owned 935 — — 935 Total $ 1,063 $ — $ — $ 1,063 December 31, 2017 Impaired loans $ 760 $ — $ — $ 760 Other real estate owned 773 — — 773 Total $ 1,533 $ — $ — $ 1,533 The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information About Level 3 Fair Value Measurements Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2018 Impaired loans $ 128 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 20% Other real estate owned 935 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% December 31, 2017 Impaired loans $ 760 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 20% Other real estate owned 773 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% (1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. (3) Estimated costs to sell. The Company discloses fair value information about financial instruments, whether or not recognized in the statements of financial condition, for which it is practicable to estimate that value. Certain financial instruments are excluded from disclosure requirements. Accordingly, the aggregate fair value amounts presented do not represent the underlying value of the Company. The estimated fair value amounts for 2018 and 2017 have been measured as of their respective reporting dates and have not been reevaluated 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 amounts reported at each year-end. The information presented should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only required for a limited portion of the Company’s assets and liabilities. Due to the 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. December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 2) $ 50,590 $ 50,590 $ 10,460 $ 10,460 Available for sale securities (Level 2) 101,312 101,312 113,302 113,302 Held to maturity securities (Level 2) — — 1,914 1,928 FHLBNY stock (Level 2) 1,883 1,883 1,108 1,108 Loans, net (Level 3) 678,402 674,287 566,178 565,765 Accrued interest receivable (Level 2) 2,523 2,523 2,149 2,149 Mortgage servicing rights (Level 3) 2,278 4,667 2,260 4,122 Financial Liabilities: Deposits (Level 2) 684,418 683,163 650,105 649,517 Mortgagors escrow accounts (Level 2) 7,725 7,725 7,284 7,284 FHLBNY advances (Level 2) 31,598 31,598 14,900 14,900 Subordinated debt and other borrowings (Level 2) 10,155 10,155 5,155 5,155 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | 16. Revenue Recognition The Company generally fully satisfies its performance obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within the consolidated statements of operations are as follows: • Fees for services to customers include service charges on deposits which are included as liabilities in the consolidated statements of financial condition and consist of transaction-based fees: stop payment fees, Automated Clearing House (ACH) fees, account maintenance fees, wire fees, official check fees and overdraft services fees for various retail and business checking customers. These fees are charged as earned on the day of the transaction or within the month of the service. Service charges on deposits are withdrawn directly from the customer’s account balance. ATM and debit card fees are recognized at the time the transaction is executed as that is the point in time the Company fulfills the customer’s request. Sales of checks to depositors earn fees as a contractual discount to the retail price of the sale from a third-party provider. These fees earned are remitted by the third-party to the Company quarterly. • The Company earns interchange fee income from credit/debit cardholder transactions conducted through MasterCard payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized monthly, concurrently with the transaction processing services provided to the cardholder within the month. • The Company records a gain or loss from the sale of other real estate owned (OREO) when control of the property transfers to the buyer, which generally occurs at the time of an executed deed; at this time the OREO asset is derecognized and the gain or loss on the sale is recorded. Rental income received from leased OREO property is recognized during the month it is earned. • Retail brokerage and advisory fee income is accrued monthly to properly record the revenues in the month they are earned. Advisory fees are collected in advance on a quarterly basis. These advisory fees are recorded in the first month of the quarter for which the service is being performed. Investments into mutual funds and annuities generate fees that are recorded as revenue at the time of the initial sale. In subsequent years the mutual funds and variable annuities generate recurring fees (referred to as 12B-1 fees) that are paid in advance on the anniversary of the original transaction. Fees that are transaction based are recognized at the point in time that the transaction is executed (i.e. trade date). Life insurance products are sold on a commission basis that generates a fee that is recorded as revenue within the month of the approved transaction. • Other income includes rental income, mortgage origination and service fees and late fees on serviced mortgages. All items are recorded as revenue within the month that the service is provided. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax | |
Accumulated Other Comprehensive Loss | 17. Accumulated Other Comprehensive Loss The activity in accumulated other comprehensive loss for the years ended December 31, 2018 and 2017, is as follows (in thousands): Accumulated Other Comprehensive Loss (1) Defined Benefit Pension Plan Unrealized Losses on available for sale securities Total Balance at December 31, 2017 $ (534 ) $ (6,421 ) $ (6,955 ) Other comprehensive loss before reclassifications (100 ) (271 ) (371 ) Amounts reclassified from accumulated other comprehensive loss 295 19 314 Period change 195 (252 ) (57 ) Balance at December 31, 2018 $ (339 ) $ (6,673 ) $ (7,012 ) Balance at December 31, 2016 $ (316 ) $ (4,953 ) $ (5,269 ) Other comprehensive loss before reclassifications (447 ) (342 ) (789 ) Amounts reclassified from accumulated other comprehensive loss 229 18 247 Period change (218 ) (324 ) (542 ) Reclassification of certain income tax effects from other comprehensive loss (1,144 ) (1,144 ) Balance at December 31, 2017 $ (534 ) $ (6,421 ) $ (6,955 ) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0 % in Fiscal 2018 and 34.0% in Fiscal 2017. Details about accumulated other comprehensive loss components are as follows (in thousands): Amount Reclassified from Accumulated Other Comprehensive Loss For the Year Ended December 31, Affected Line Item in the Consolidated Statement of Income 2018 2017 Securities available for sale (1) Net securities losses reclassified into earnings $ (22 ) $ (27 ) Gain on sale of investments, net Related income tax expense 4 9 Income taxes Net effect on accumulated other other comprehensive loss for the period (18 ) (18 ) Defined benefit pension plan (2) Amortization of net loss and prior service costs (374 ) (347 ) Compensation and employee benefits Related income tax expense 78 118 Income taxes Net effect on accumulated other other comprehensive loss for the period (296 ) (229 ) Total reclassifications for the period $ (314 ) $ (247 ) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, “Available for Sale Securities.” (2) Included in the computation of net periodic pension cost. See Note 11, “Employee Benefits” for additional details. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Events On January 15, 2019, the Bank paid $5.1 million in dividends to the Company. On January 16, 2019, Rhinebeck Bancorp, Inc., (NASDAQ: RBKB) became the holding company of the Bank when it closed its stock offering in connection with the completion of the reorganization of the Bank and Company into a two-tier mutual holding company form of organization. Rhinebeck Bancorp, Inc. sold 4,787,315 shares of common stock at a price of $10.00 per share, for net proceeds of $46.1 million, and issued 6,345,975 shares to the Company in exchange for certain assets of the Company (including all of the stock of its subsidiary trust and associated subordinated debentures) and its interest in the Bank. Additionally, the remaining amount of subscription proceeds received and recorded as a liability on December 31, 2018, was refunded to subscribers. As stated in the Plan, the Bank established an ESOP which purchased 436,425 shares. The Company presently owns 57% of the common stock of Rhinebeck Bancorp, Inc.. |
Nature of Business and Signif_2
Nature of Business and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of Financial Statements Presentation | Basis of Financial Statements Presentation The consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and general practices within the banking industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities, as of the date of the consolidated statements of financial condition and reported amounts of revenues and expenses for the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for lease and loan losses, the valuation of securities and other real estate owned, the evaluation of investment securities for other-than-temporary impairment, the evaluation of goodwill for impairment, the valuation of deferred tax assets and the determination of pension obligations. |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located in the New York State counties of Dutchess, Ulster, Orange, Columbia, Putnam, and Albany. Although the Company has a diversified loan portfolio, a substantial portion of its customers’ abilities to repay their loans is dependent on the economic conditions in the territories in which the Company operates. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and due from banks and federal funds sold are recognized as cash equivalents in the consolidated statements of financial condition and cash flows. Federal funds sold generally mature in one day. The Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. |
Investment in Debt and Marketable Equity Securities | Investment in Debt and Marketable Equity Securities Debt securities that management has the positive intent and ability to hold to maturity are classified as “held to maturity” and are recorded at amortized cost. “Trading” securities, if any, are carried at fair value, with unrealized gains and losses recognized in earnings. Securities not classified as held to maturity or trading, including equity securities with readily determinable fair values, are classified as “available for sale” and are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive loss, net of taxes. Purchase premiums and discounts are recognized in interest income using the interest method over the maturity terms of the securities. Realized gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company evaluates securities for other-than temporary impairment on a regular basis. The evaluation considers several factors including the amount of the unrealized loss, the period of time the security has been in a loss position and the credit standing of the issuer. When the Company does not intend to sell the security and it is likely that the Company will not be required to sell the security before recovery of its cost basis, the credit loss determined due to a permanent impairment will be recognized in earnings. The credit loss component recognized is identified as the amount of future principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow estimates discounted at the applicable original yield of the security. |
Loans Receivable | Loans Receivable Loans that the Company has the intent and ability to hold for the foreseeable future or until maturity or payoff generally are reported at their outstanding unpaid principal balances adjusted for unearned income, including any allowance for lease and loan losses and any unamortized deferred fees or costs. Interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and amortized as a level yield adjustment over the respective term of the loan. The accrual of interest on loans is discontinued at the time the loan is 90 days past due. Consumer automobile and installment loans are typically charged off no later than 180 days past due. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued, but not collected, for loans that are placed on nonaccrual status or charged off, is reversed against interest income. The interest on these loans is accounted for on the cash-basis method until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for lease and loan losses | Allowance for lease and loan losses The allowance for lease and loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management determines all or part of the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for lease and loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the size and composition of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance calculation methodology involves segregation of the total loan portfolio into segments. The Company’s loans receivable portfolio is comprised of the following segments: commercial real estate, residential real estate, commercial and industrial and consumer. The segments of the Company’s loans receivable portfolio are further disaggregated into classes based on identified associated risks within those segments. This allows management to better monitor risk and performance. Commercial real estate loans are separated into the two classes: non-residential and multi-family. Non-residential and multi-family loans include long-term loans financing commercial properties and include both owner and non-owner occupied properties. Construction loans, which include land loans, are comprised mostly of non-owner occupied projects, whereby the property is generally under development and tends to have more risk than the owner occupied loans. The Company grants loans for the construction of residential homes, residential developments and land development projects. Repayment of these loans is mostly dependent upon either the ongoing cash flow of the borrowing entity or the resale or lease of the subject property. Residential real estate loans are secured by the borrower’s residential real estate generally in a first lien position. Residential mortgages have varying loan interest rates depending on the financial condition of the borrower, the loan to value ratio and the term of the loan. The commercial and industrial loan segment consists of loans made for purposes of financing the activities of commercial customers. The assets financed through commercial and industrial loans are used within the business for its ongoing operations. Repayment of commercial and industrial loans predominately comes from the cash flow of the business or the ongoing operations of assets. Consumer loans are classified into the following three classes: indirect automobile loans, home equity loans and other consumer loans. Indirect automobile loans are secured by the borrowers’ automobiles and originated through the Company’s relationships with the automobile dealers in the various counties in the Company’s service area. Home equity loans are secured by the borrower’s residential real estate in a first or second lien position. Other direct consumer loans may be unsecured. The Company has established credit policies applicable to each type of lending activity in which it engages. The Company evaluates the creditworthiness of each customer and, in most cases, extends credit of up to 80% of the market value of the collateral at the date of the credit extension, depending on the borrowers’ creditworthiness and the type of collateral. The Company’s credit policies determine advance rates against the different forms of collateral that can be pledged against commercial and industrial and commercial real estate loans. Typically, the majority of loans will be limited to a percentage of their underlying collateral values such as real estate values, automobiles, equipment, eligible accounts receivable and inventory. Individual loan advance rates may be higher or lower depending upon the financial strength of the borrower, past experience with the borrower, the nature of the collateral, competitive offerings and/or term of the loan. The market value of collateral is monitored on an ongoing basis and additional collateral may be obtained when warranted. While collateral provides some assurance as a secondary source of repayment, the Company ordinarily requires the primary source of repayment to be based on the borrower’s ability to generate continuing sufficient cash flows. The Company’s policy for collateral requires that, generally, the amount of the loan may not exceed 90% of the original appraised value of the property. Private mortgage insurance is usually required for that portion of the loan in excess of 80% of the appraised value of the property. 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 collateral, if appropriate, are evaluated at least quarterly or when credit deficiencies arise, such as when loan payments are delinquent. Credit quality risk ratings include regulatory classifications of special mention, substandard, doubtful and loss. Loans classified as special mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of the repayment prospects. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for lease and loan losses. Loans not classified are rated pass. The allowance consists of specific and general components. The specific component relates to loans that are considered impaired. For such impaired loans, an allowance is established when the discounted cash flows (or observable market price or collateral value if the loan is collateral dependent) of the impaired loan is lower than the carrying value of that loan. The general component covers all other loans, segregated generally by loan type and is based on historical loss experience with adjustments for qualitative factors which are made after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss data. These qualitative risk factors generally include: 1. Lending policies and procedures, including underwriting standards and collection, charge-off and recovery practices. 2. National, regional and local economic and business conditions as well as the condition of various market segments, including the value of underlying collateral for collateral dependent loans. 3. Size and composition of the portfolio and terms of loans. 4. Volume and severity of past due, classified and nonaccrual loans as well as loan modifications. 5. Existence and effect of any concentrations of credit and changes in the level of such concentrations. 6. Effect of external factors, such as competition and legal and regulatory requirements. 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 are not necessarily classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. The estimated fair values of substantially all of the Company’s impaired loans are measured based on the estimated fair value of the loans’ collateral. For loans secured by real estate, estimated fair values are determined primarily through third-party appraisals. When a real estate secured loan becomes impaired, a decision is made regarding whether an updated certified appraisal of the real estate is necessary. This decision is based on various considerations, including the size of the loan, age of the most recent appraisal, the loan-to-value ratio based on the original appraisal and the condition of the property. Appraised values are discounted for expected sales costs to arrive at the estimated recognizable value of the collateral, which is considered to be the estimated fair value. The recorded investment in consumer mortgages and loans secured by residential real estate properties for which formal foreclosure proceedings are in process was $526 and $97 on December 31, 2018 and 2017, respectively. For loans secured by non-real estate collateral, such as accounts receivable, inventory and equipment, estimated fair values are determined based on the borrower’s financial statements, inventory reports, accounts receivable aging or equipment appraisals or invoices. Indications of value from these sources are generally discounted based on the age of the financial information or the quality of the assets. The evaluation of the need and amount of the allowance for impaired loans and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan which is then identified as a troubled debt restructuring (“TDR”). These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for lease and loan losses. The Company identifies loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions, negative trends, or specific conditions that may result in a payment default in the near future. Regulatory agencies, as an integral part of their examination process, periodically review the Company’s allowance for lease and 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 lease and loan losses is adequate. |
Loans Held for Sale | Loans Held for Sale Loans held for sale are those mortgage loans the Company has the intent to sell in the foreseeable future and are carried at the lower of aggregate cost or market value, with valuation changes recorded in noninterest income. Gains and losses on sales of loans are recognized at the trade dates and are determined by the difference between the sales proceeds and the carrying value of the loans. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold. Mortgage service rights are recorded and amortized over the life of the loan. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets 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 — put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership, (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 transferor does not maintain effective control over the transferred assets through either (a) an agreement that both entitles and obligates the transferor to repurchase or redeem the assets before maturity or (b) the ability to unilaterally cause the holder to return specific assets, other than through a cleanup call. |
Servicing | Servicing Servicing assets are recognized as separate assets developed through the sale of residential mortgages. Servicing rights are initially recorded at fair value with the income statement effect recorded in gain or loss on sales of loans. Fair value is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. Capitalized servicing rights are reported in other assets and are amortized into noninterest income in proportion to and over the period of the estimated future net servicing income of the underlying financial assets. Servicing assets are evaluated for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is recognized through a valuation allowance and charged to noninterest income, to the extent that fair value is less than the capitalized amount. If the Company later determines that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as an increase to income. |
Other Real Estate Owned | Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in operations. Costs relating to the development and improvement of the property are capitalized, subject to the resulting limit of fair value of the collateral. Gains or losses are included in operations upon disposal. Other real estate owned included $935 and $1,323 of residential real estate and $750 and $911 of commercial property on December 31, 2018 and 2017, respectively. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is charged to operations using the straight-line method over the estimated useful lives of the related assets. Rent expense is charged to operations over the expected lease term using the straight-line method. Leasehold improvements are amortized over the shorter of the improvements’ estimated economic lives or the related lease terms. Gains and losses on dispositions are recognized upon realization. Maintenance and repairs are expensed as incurred and improvements are capitalized. |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company purchased bank owned life insurance (“BOLI”) on a chosen group of employees and trustees. The Company is the owner and sole beneficiary of the policies. Earnings from BOLI are recognized as part of noninterest income. BOLI is carried at cash surrender value. Death benefit proceeds received in excess of the policies cash surrender values are recognized in income upon receipt. The Company does not intend to surrender these policies and, accordingly, no deferred taxes have been provided. |
Significant One-Time Business Transactions | Significant One-Time Business Transactions At the close of business on August 15, 2017, the Bank sold all of its interest in its subsidiary Brinckerhoff and Neuville, Inc. (“B&N”) in a stock transaction for net proceeds of $3,443. As a result, the Company realized a $1,834 net gain on the sale, which is separately reported on the consolidated statements of income. B&N had pre-tax profit of $437 in 2017. |
Goodwill and Amortizable Intangible Assets | Goodwill and Amortizable Intangible Assets The excess of the purchase price of an acquisition over the net fair value of the identifiable tangible and intangible assets and liabilities is assigned to goodwill. Goodwill is not amortizable, but is subject to at least an annual assessment, or more frequently in the presence of certain circumstances, for impairment. Other intangible assets are stated at cost, less accumulated amortization and consist of purchased customer accounts. Purchased customer accounts primarily consist of records and files that contain information about investment holdings. These assets are amortized on a straight-line basis over the related estimated lives of 13 years. In the presence of certain circumstances, intangible assets may be assessed for impairment as well. Impairment exists when carrying value exceeds its fair value. In such circumstances a charge for the relevant impairment is recognized and the net book value is reduced to the appropriate value. |
Income Taxes | Income Taxes The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply 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 in the period that includes the enactment date. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that all or some portion of the deferred tax assets will not be realized. When tax returns are filed, it is highly expected that most positions taken would be sustained upon examination by the taxing authorities, while others may be subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the consolidated financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company has no liabilities for uncertain tax positions at December 31, 2018 and 2017. Interest and penalties associated with unrecognized tax benefits, if any, would be classified as an additional provision for income taxes in the consolidated statements of income. |
Comprehensive Income (Loss) | Comprehensive Income (Loss) GAAP requires that recognized revenue, expenses, gains and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities and the net actuarial loss of the defined benefit pension plan, are reported as a separate component of the stockholders’ equity section of the consolidated statements of financial condition, such items, along with net income, are components of comprehensive income (loss). |
Fair Value | Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in certain instances, there are no quoted market prices for certain assets or liabilities. 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. Accordingly, the fair value estimates may not be realized in an immediate settlement of the asset or liability. Fair value measurements focus on exit prices in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The Company’s fair value measurements are classified into a fair value hierarchy based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The three categories within the hierarchy are as follows: Level 1 Level 2 Level 3 |
Reclassifications | Reclassifications Certain amounts in the prior year consolidated financial statements have been reclassified to conform to the current year’s presentation. |
Impact of Recent Accounting Pronouncements | Impact of Recent Accounting Pronouncements Effective January 1, 2018, the Company adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)”. ASU No. 2014-09 establishes principles for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services. The Company used the modified retrospective method for transition with the cumulative effect recognized as of the date of initial application with no restatement of prior periods. The adoption did not have a significant effect on the Company’s financial statements as the recognition of interest income has been scoped out of the guidance and noninterest income recognition is similar to current revenue recognition practices. See Note 16 for additional information related to the adoption of ASU No. 2014-09. In February 2016, the FASB issued ASU No. 2016-02 “Leases (Topic 842)”. This ASU requires lessees to recognize the assets and liabilities that arise from leases with a lease term of more than 12 months on the balance sheet. A lessee should recognize in the statements of financial position a right-of-use asset representing its right to use the underlying asset for the lease term and a liability to make lease payments. This ASU is effective for the Company in 2019. Early adoption is permitted. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13 on “Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. This ASU requires credit losses on most financial assets be measured at amortized cost and certain other instruments to be measured using an expected credit loss model (referred to as the current expected credit loss (“CECL”) model). Under this model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications unless reasonable expectation of a troubled debt restructuring exists) from the date of initial recognition of that instrument. The measurement of expected credit losses is based upon relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. This ASU is effective for the Company in 2021. Early adoption is permitted in 2019. The Company is currently assessing the effect that ASU No. 2016-13 will have on its results of operations, financial position and cash flows. Effective January 1, 2018, the Company adopted ASU 2016-01 “Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities”. This makes significant changes in U.S. GAAP related to certain aspects of recognition, measurement, presentation and disclosure of financial instruments. The changes provided for in this Update that are applicable to the Company are as follows: (1) require equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income; however, an entity may choose to measure equity investments that do not have readily determinable fair values at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer; (2) for equity investments without readily determinable fair values, require a qualitative assessment to identify impairment and if a qualitative assessment indicates that impairment exists, requiring an entity to measure the investment at fair value; (3) eliminate the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost on the balance sheet; (4) require public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes; (5) require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; (6) require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or the accompanying notes to the financial statements; and (7) clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For the Company, the adoption of ASU 2016-01 resulted in the use of an exit price to determine the fair value of financial instruments not measured at fair value in the consolidated statements of financial condition. Accordingly, we refined the calculation used to determine the disclosed fair value of the Company’s loans held for investment as part of adopting this standard. The refined calculation did not have a significant impact on the Company’s fair value disclosures. In January 2017, the FASB issued ASU 2017-04, “Intangibles — Goodwill and Other” to simplify the accounting for goodwill impairment. This guidance, among other things, removes step 2 of the goodwill impairment test thus eliminating the need to determine the fair value of individual assets and liabilities of the reporting unit. Upon adoption of this ASU, goodwill impairment will be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. This may result in more or less impairment being recognized than under current guidance. This will become effective for the Company’s annual goodwill impairment test in 2020. The Company is currently assessing the effect that ASU No. 2017-04 will have on its results of operations, financial position and cash flows. In February 2018, the FASB issued ASU 2018-02, “Income Statement-Reporting Comprehensive Income (Topic 220).” ASU 2018-02 permits a reclassification from accumulated other comprehensive loss to retained earnings for stranded tax effects resulting from the reduction in the corporate income tax rate to 21% with the newly enacted Tax Cuts and Jobs Act. As required by GAAP, the Company had re-measured all deferred tax amounts at 21% at December 31, 2017 with the change included in provision for income taxes in 2017, the period of enactment. This left deferred tax items in accumulated other comprehensive loss at the old rate of 34% used by the Company. The reclassification allows the Company to transfer an amount equal to the change in the rate related to those deferred tax items included in accumulated other comprehensive loss to retained earnings. ASU 2018-02 is effective for the Company in 2019 but early adoption is permitted. The Company elected to adopt this guidance at December 31, 2017. In May 2018, the FASB issued ASU No. 2018-06, “Codification Improvements to Topic 942, Financial Services — Depository and Lending”. This update superseded outdated guidance related to the Office of the Comptroller of the Currency’s Banking Circular 202, Accounting for Net Deferred Tax Charges. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In June 2018, the FASB issued ASU No. 2018-07, “Compensation- Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting”. This update expands the scope of Topic 718 to include share- based payment transactions for acquiring goods and services from nonemployees. As a result, nonemployee share- based payment awards will be measured at the grant-date fair value of the equity instruments that an entity is obligated to issue when the service has been rendered, subject to the probability of satisfying performance conditions when applicable. This update is effective for the Company in 2019. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-09, “Codification Improvements” to address stakeholder suggestions for minor corrections and clarifications within the codification. The transition and effective date guidance is based on the facts and circumstances of each amendment. Some of the amendments in this update do not require transition guidance and will be effective upon issuance of this update. However, many of the amendments in this update do have transition guidance with effective dates for annual periods beginning after December 15, 2018, for public business entities. The Company does not expect the new guidance to have a material impact on the consolidated financial statements. In July 2018, the FASB issued ASU No. 2018-10, “Codification Improvements to Topic 842, Leases” to address certain narrow aspects of the guidance issued in ASU No. 2016-02. This guidance did not change the Company’s assessment of the impact of ASU No. 2016-02 on the consolidated financial statements as described above. In July 2018, the FASB issued ASU No. 2018-11, “Leases (Topic 842): Targeted Improvements”, which amends Topic 842, Leases, to (1) add an optional transition method that would permit entities to apply the new requirements by recognizing a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption, and (2) provide a practical expedient for lessors regarding the separation of the lease and non-lease components of a contract. This guidance did not change the Company’s assessment of the impact of ASU No. 2016-02 on the consolidated financial statements as described above. In August 2018, the FASB issued ASU No. 2018-14, “Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20)”. The amendments in this ASU remove disclosures that no longer are considered cost beneficial, clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant. Although narrow in scope, the amendments are considered an important part of FASB’s efforts to improve the effectiveness of disclosures in the notes to financial statements. ASU 2018-14 is effective for the Company in 2021. Early adoption is permitted. The Company has not evaluated the new guidance for its effect on the consolidated financial statements. |
Emerging Growth Company Status | Emerging Growth Company Status As an emerging growth company, the Company may delay adoption of new or revised financial accounting standards until such date that the standards are required to be adopted by non-issuer companies. If such standards would not apply to non-issuer companies, no deferral would be applicable. The Company intends to take advantage of the benefits of the extended transition periods allowed under the Jumpstart Our Business Startups Act. Accordingly, the Company’s financial statements may not be comparable to those of public companies that adopt new or revised financial accounting standards as of an earlier date. The effective dates of the following recent accounting standards reflect those that relate to non-issuer companies. |
Available for Sale Securities (
Available for Sale Securities (Tables) - Available-for-sale Securities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of available for sale securities | December 31, 2018 Amortized Cost Gross Gross Fair Value U.S. Treasury securities $ 3,036 $ — $ (65 ) $ 2,971 U.S. government agency mortgage-backed securities – residential 82,965 8 (2,757 ) 80,216 U.S. government agency securities 16,919 — (451 ) 16,468 Municipal securities (1) 1,228 4 — 1,232 Other 425 — — 425 Total $ 104,573 $ 12 $ (3,273 ) $ 101,312 December 31, 2017 U.S. Treasury securities $ 3,048 $ — $ (47 ) $ 3,001 U.S. government agency mortgage-backed securities – residential 93,858 1 (2,470 ) 91,389 U.S. government agency securities 16,935 — (409 ) 16,526 Municipal securities (1) 2,401 1 (16 ) 2,386 Total $ 116,242 $ 2 $ (2,942 ) $ 113,302 (1) The issuers of municipal securities are all within New York State. |
Schedule of gross unrealized losses and fair value, securities in continuous unrealized loss position | Less Than 12 Months 12 Months or Longer Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized December 31, 2018 U.S. Treasury securities $ — $ — $ 2,971 $ (65 ) $ 2,971 $ (65 ) U.S. government agency mortgage-backed securities – residential 1,669 (4 ) 76,586 (2,753 ) 78,255 (2,757 ) U.S. government agency securities — — 16,468 (451 ) 16,468 (451 ) Total $ 1,669 $ (4 ) $ 96,025 $ (3,269 ) $ 97,694 $ (3,273 ) December 31, 2017 U.S. Treasury securities $ 3,001 $ (47 ) $ — $ — $ 3,001 $ (47 ) U.S. government agency mortgage-backed securities – residential 34,601 (542 ) 56,170 (1,928 ) 90,771 (2,470 ) U.S. government agency securities 3,923 (50 ) 12,603 (359 ) 16,526 (409 ) Municipal Securities 593 (3 ) 977 (13 ) 1,570 (16 ) Total $ 42,118 $ (642 ) $ 69,750 $ (2,300 ) $ 111,868 $ (2,942 ) |
Schedule of maturities of debt securities | December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ 1,221 $ 1,210 $ 335 $ 336 After 1 but within 5 years 17,253 16,780 20,074 19,623 After 5 but within 10 years 1,975 1,945 1,975 1,954 After 10 years 734 736 — — Total Maturities 21,183 20,671 22,384 21,913 Mortgage-backed securities 82,965 80,216 93,858 91,389 Other 425 425 — — Total $ 104,573 $ 101,312 $ 116,242 $ 113,302 |
Held to Maturity Securities (Ta
Held to Maturity Securities (Tables) - Held to Maturity Securities | 12 Months Ended |
Dec. 31, 2018 | |
Debt Securities, Available-for-sale [Line Items] | |
Schedule of amortized cost, gross unrealized gains and losses and fair values of held to maturity securities | December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Other $ — $ — $ — $ — Municipal securities (1) — — — — Total $ — $ — $ — $ — December 31, 2017 Other $ 332 $ — $ — $ 332 Municipal securities (1) 1,582 15 (1 ) 1,596 Total $ 1,914 $ 15 $ (1 ) $ 1,928 (1) The issuers of municipal securities are all within New York State. |
Schedule of amortized cost and fair value of held to maturity debt securities by contractual maturities | December 31, 2018 December 31, 2017 Amortized Cost Fair Value Amortized Cost Fair Value Maturity: Within 1 year $ — $ — $ 252 $ 252 After 1 but within 5 years — — 576 575 After 5 but within 10 years — — — — After 10 years — — 754 769 Other — — 332 332 Total $ — $ — $ 1,914 $ 1,928 |
Loans and Allowance for lease_2
Loans and Allowance for lease and loan losses (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Receivables [Abstract] | |
Schedule of summary loan portfolio | At December 31, 2018 2017 Commercial Real Estate Loans: Construction $ 12,870 $ 5,621 Non-residential 197,499 192,469 Multi-family 12,661 13,103 Residential Real Estate Loans 43,534 43,300 Commercial Loans: 83,203 67,650 Consumer Loans: Indirect automobile 297,144 214,823 Home equity 19,269 19,452 Other consumer 10,826 9,929 Total gross loans 677,006 566,347 Net deferred loan costs 8,042 5,288 Allowance for loan losses (6,646 ) (5,457 ) Total net loans $ 678,402 $ 566,178 |
Schedule of loans by risk rating and portfolio segment | December 31, 2018 Pass Special Mention Substandard Doubtful Total Commercial real estate: Construction $ 12,870 $ — $ — $ — $ 12,870 Non-residential 186,020 6,840 4,639 — 197,499 Multifamily 12,261 — 400 — 12,661 Residential 41,249 — — 2,285 43,534 Commercial and industrial 81,111 965 1,124 3 83,203 Consumer: Indirect automobile 296,692 — — 452 297,144 Home equity 19,071 — — 198 19,269 Other consumer 10,816 — — 10 10,826 Total $ 660,090 $ 7,805 $ 6,163 $ 2,948 $ 677,006 December 31, 2017 Pass Special Mention Substandard Doubtful Total Commercial real estate: Construction $ 4,495 $ — $ 1,126 $ — $ 5,621 Non-residential 181,720 3,485 7,264 — 192,469 Multifamily 13,103 — — — 13,103 Residential 41,115 — — 2,185 43,300 Commercial and industrial 65,351 125 2,156 18 67,650 Consumer: Indirect automobile 214,381 — — 442 214,823 Home equity 19,334 — — 118 19,452 Other consumer 9,925 — — 4 9,929 Total $ 549,424 $ 3,610 $ 10,546 $ 2,767 $ 566,347 |
Schedule of classes of the loan portfolio by the aging categories of performing loans and nonaccrual loans | December 31, 2018 Current 30 – 59 Days 60 – 89 Days Greater Than Total Loans Nonaccrual Commercial real estate: Construction $ 12,870 $ — $ — $ — $ 12,870 $ — Non-residential 193,273 1,466 253 2,507 197,499 2,507 Multifamily 12,487 174 — — 12,661 — Residential 42,083 305 615 531 43,534 2,208 Commercial and industrial 82,992 206 1 4 83,203 297 Consumer: Indirect automobile 291,369 4,429 915 431 297,144 452 Home equity 18,905 264 — 100 19,269 198 Other consumer 10,601 186 29 10 10,826 10 Total $ 664,580 $ 7,030 $ 1,813 $ 3,583 $ 677,006 $ 5,672 December 31, 2017 Current 30 – 59 Days 60 – 89 Days Greater Than Total Loans Nonaccrual Commercial real estate: Construction $ 4,494 $ — $ — $ 1,127 $ 5,621 $ 1,127 Non-residential 184,877 2,229 921 4,442 192,469 4,442 Multifamily 12,637 — 466 — 13,103 — Residential 41,989 450 422 439 43,300 2,100 Commercial and industrial 66,542 69 19 1,020 67,650 1,237 Consumer: Indirect automobile 209,574 4,022 808 419 214,823 442 Home equity 18,637 676 127 12 19,452 12 Other consumer 9,742 176 7 4 9,929 4 Total $ 548,492 $ 7,622 $ 2,770 $ 7,463 $ 566,347 $ 9,364 |
Schedule of information to impaired loans by loan portfolio class | December 31, 2018 Recorded Unpaid Principal Related Average Recorded With no related allowance recorded: Commercial real estate: Construction $ — $ — $ — $ 563 Non-residential 2,507 2,601 — 3,023 Multifamily — — — — Residential 2,285 2,841 — 2,235 Commercial and industrial 297 421 — 758 Consumer: Indirect automobile 274 320 — 242 Home equity 198 211 — 158 Other consumer 10 10 — 5 Total $ 5,571 $ 6,404 $ — $ 6,984 December 31, 2018 Recorded Unpaid Principal Related Average Recorded With an allowance recorded: Commercial real estate: Construction $ — $ — $ — $ — Non-residential — — — 451 Multifamily — — — — Residential — — — — Commercial and industrial — — — 9 Consumer: Indirect automobile 178 191 50 205 Home equity — — — — Other consumer — — — 2 Total $ 178 $ 191 $ 50 $ 667 Total: Commercial real estate: Construction $ — $ — $ — $ 563 Non-residential 2,507 2,601 — 3,474 Multifamily — — — — Residential 2,285 2,841 — 2,235 Commercial and industrial 297 421 — 767 Consumer: Indirect automobile 452 511 50 447 Home equity 198 211 — 158 Other consumer 10 10 — 7 Total $ 5,749 $ 6,595 $ 50 $ 7,651 December 31, 2017 Recorded Unpaid Principal Related Average Recorded With no related allowance recorded: Commercial real estate: Construction $ 1,127 $ 1,137 $ — $ 1,127 Non-residential 3,539 3,584 — 2,878 Multifamily — — — — Residential 2,184 2,741 — 2,114 Commercial and industrial 1,219 1,700 — 1,325 Consumer: Indirect automobile 210 237 — 179 Home equity 118 119 — 182 Other consumer — 1 — 2 Total $ 8,397 $ 9,519 $ — $ 7,807 December 31, 2017 Recorded Unpaid Principal Related Average Recorded With an allowance recorded: Commercial real estate: Construction $ — $ — $ — $ — Non-residential 903 903 300 451 Multifamily — — — — Residential — — — — Commercial and industrial 19 447 19 221 Consumer: Indirect automobile 232 247 75 292 Home equity — — — — Other consumer 3 3 3 18 Total $ 1,157 $ 1,600 $ 397 $ 982 Total: Commercial real estate: Construction $ 1,127 $ 1,137 $ — $ 1,127 Non-residential 4,442 4,487 300 3,330 Multifamily — — — — Residential 2,184 2,741 — 2,114 Commercial and industrial 1,238 2,147 19 1,546 Consumer: Indirect automobile 442 484 75 471 Home equity 118 119 — 182 Other consumer 3 4 3 19 Total $ 9,554 $ 11,119 $ 397 $ 8,789 |
Schedule of loan balances by segment | Commercial Residential Commercial Indirect Consumer Totals December 31, 2018 Allowance for loan losses: Beginning balance $ 1,305 $ 455 $ 879 $ 2,150 $ 668 $ 5,457 Provision for loan losses (113 ) (182 ) 491 1,794 110 2,100 Loans charged-off (303 ) — (37 ) (1,607 ) (66 ) (2,013 ) Recoveries 123 5 122 833 19 1,102 Ending balance $ 1,012 $ 278 $ 1,455 $ 3,170 $ 731 $ 6,646 Ending balance: Individually evaluated for impairment $ — $ — $ — $ 50 $ — $ 50 Collectively evaluated for impairment $ 1,012 $ 278 $ 1,455 $ 3,120 $ 731 $ 6,596 Loan receivables: Ending balance $ 223,030 $ 43,534 $ 83,203 $ 297,144 $ 30,095 $ 677,006 Ending balance: Individually evaluated for impairment $ 2,507 $ 2,285 $ 297 $ 452 $ 208 $ 5,749 Collectively evaluated for impairment $ 220,523 $ 41,249 $ 82,906 $ 296,692 $ 29,887 $ 671,257 Commercial Residential Commercial Indirect Consumer Totals December 31, 2017 Allowance for loan losses: Beginning balance $ 1,092 $ 1,231 $ 775 $ 2,028 $ 750 $ 5,876 Provision for loan losses 137 (707 ) 698 807 (35 ) 900 Loans charged-off (16 ) (78 ) (596 ) (1,637 ) (87 ) (2,414 ) Recoveries 92 9 2 952 40 1,095 Ending balance $ 1,305 $ 455 $ 879 $ 2,150 $ 668 $ 5,457 Ending balance: Individually evaluated for impairment $ 300 $ — $ 19 $ 75 $ 3 $ 397 Collectively evaluated for impairment $ 1,005 $ 455 $ 860 $ 2,075 $ 665 $ 5,060 Loan receivables: Ending balance $ 211,193 $ 43,300 $ 67,650 $ 214,823 $ 29,381 $ 566,347 Ending balance: Individually evaluated for impairment $ 5,569 $ 2,184 $ 1,238 $ 442 $ 121 $ 9,554 Collectively evaluated for impairment $ 205,624 $ 41,116 $ 66,412 $ 214,381 $ 29,260 $ 556,793 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of premises and equipment | December 31, 2018 2017 Land and land improvements $ 3,536 $ 3,536 Buildings and leasehold improvements 23,534 23,409 Furniture, fixtures and equipment 11,708 10,725 Construction in process 51 43 Total 38,829 37,713 Less accumulated depreciation (21,789 ) (20,688 ) Net $ 17,040 $ 17,025 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill, Impaired [Abstract] | |
Schedule of changes in the carrying value of goodwill | December 31, 2018 B&N RAM Total Beginning balance $ — $ 1,505 $ 1,505 Impairment — (95 ) (95 ) Ending balance $ — $ 1,410 $ 1,410 Accumulated impairment $ — $ 1,116 $ 1,116 December 31, 2017 B&N RAM Total Beginning balance $ 1,276 $ 1,505 $ 2,781 Relief due to asset sale (1,276 ) — (1,276 ) Ending balance $ — $ 1,505 $ 1,505 Accumulated impairment $ — $ 1,021 $ 1,021 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Schedule of changes in the carrying value of customer list intangible | December 31, 2018 B&N RAM Total Beginning balance $ — $ 326 $ 326 Amortization — (42 ) (42 ) Ending balance $ — $ 284 $ 284 Accumulated amortization and impairment $ — $ 663 $ 663 December 31, 2017 B&N RAM Total Beginning balance $ 359 $ 368 $ 727 Amortization (25 ) (42 ) (67 ) Relief due to asset sale (334 ) — (334 ) Ending balance $ — $ 326 $ 326 Accumulated amortization and impairment $ — $ 621 $ 621 |
Schedule of future amortization expense for amortizable intangible assets | 2019 42 2020 42 2021 42 2022 42 2023 42 Thereafter 74 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deposits [Abstract] | |
Schedule of deposits | December 31, December 31, Noninterest bearing demand deposits $ 171,829 $ 157,828 Interest bearing accounts: NOW 99,715 101,167 Savings 126,822 125,244 Money market 130,356 123,643 Time certificates of deposit 155,696 142,223 Total interest bearing accounts 512,589 492,277 Total deposits $ 684,418 $ 650,105 |
Schedule of contractual maturities of time certificates of deposit | Within 1 year $ 102,311 1 – 2 years 31,670 2 – 3 years 7,964 3 – 4 years 9,549 4 – 5 years 4,202 Total $ 155,696 |
Long-Term Debt and FHLBNY Sto_2
Long-Term Debt and FHLBNY Stock (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of outstanding principal amounts and related terms of FHLBNY borrowings | Term Principal Maturity Rate Due in one year Long term 5 month bullet $ 10,000 February 26, 2019 2.64 % $ 10,000 $ — 1 year amortizing 2,516 May 15, 2019 2.50 % 2,516 — 1 year amortizing 2,932 June 7, 2019 2.53 % 2,932 — 2 year amortizing 3,776 May 15, 2020 2.78 % 2,500 1,276 2 year amortizing 3,981 June 8, 2020 2.76 % 2,494 1,487 3 year amortizing 8,393 May 17, 2021 2.92 % 3,284 5,109 Total $ 31,598 Weighted Average Rate 2.72 % $ 23,726 $ 7,872 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of the provision for income taxes | Years Ended December 31, 2018 2017 Current expense (benefit): Federal $ 900 $ 1,740 State 12 (61 ) Total 912 1,679 Deferred expense: Federal 102 1,919 (1) Total provision for income taxes $ 1,014 $ 3,598 (1) Includes $1,870 due to 2017 federal rate change. |
Schedule of differences between the provision for income taxes and statutory federal income tax rate | Years ended December 31, 2018 2017 Provision at statutory rate $ 1,128 21 % $ 2,244 34 % Tax exempt income (92 ) (1 %) (170 ) (3 %) State income taxes, net of federal income tax benefit 18 0 % 23 1 % Write-off of deferred tax assets due to tax reform — 0 % 1,870 28 % Tax basis difference on sale of B&N — 0 % (295 ) (5 %) Other, net (40 ) (1 %) (74 ) 0 % Effective income tax and rate $ 1,014 19 % $ 3,598 55 % |
Schedule of tax effects of temporary differences of the deferred tax assets and deferred tax liabilities | December 31, 2018 2017 Deferred tax assets: Allowance for loan losses $ 1,794 $ 1,473 Deferred expenses 783 717 Depreciation and amortization — 105 Unrecognized pension liability 1,179 1,232 Postretirement liability 914 901 Deferred loss on OREO 187 83 Unrealized loss on securities 685 617 State tax NOLs 779 647 Other 134 232 Gross deferred tax assets 6,455 6,007 Deferred tax liabilities: Prepaid expenses (241 ) (181 ) Prepaid pension (1,305 ) (1,148 ) Deferred loan fees (170 ) (65 ) Depreciation and amortization (105 ) — Mortgage servicing rights (615 ) (610 ) Gross deferred tax liabilities (2,436 ) (2,004 ) Net deferred tax asset 4,019 4,003 Deferred tax valuation allowance (1,085 ) (982 ) Deferred tax assets, net of allowance $ 2,934 $ 3,021 |
Employee Benefits (Tables)
Employee Benefits (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |
Schedule of plan's funded status and amounts recognized in consolidated statement of financial condition | Years ended December 31, 2018 2017 Projected and accumulated benefit obligation $ (18,241 ) $ (19,777 ) Plan assets at fair value 17,459 18,166 Funded status included in other liabilities $ (782 ) $ (1,611 ) |
Schedule of amounts recognized in accumulated other comprehensive loss | Years ended December 31, 2018 2017 Net actuarial loss $ 5,616 $ 5,864 |
Schedule of net periodic pension (benefit) cost and amounts recognized in other comprehensive income (loss) | Years ended December 31, 2018 2017 Interest cost $ 689 $ 717 Expected return on plan assets (1,074 ) (988 ) Amortization of unrecognized loss 374 347 Net periodic (benefit) cost $ (11 ) $ 76 |
Schedule of weighted-average assumptions used to determine the pension benefit obligation | Years ended December 31, 2018 2017 Discount rate 4.14 % 3.53 % Rate of compensation increase N/A N/A Years ended December 31, 2018 2017 Discount rate 3.53 % 4.06 % Expected long-term return on plan assets 6.00 % 6.00 % Rate of compensation increase N/A N/A |
Schedule of fair value of pension plan assets, by fair value hierarchy | December 31, 2018 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ — $ 13,638 $ — $ 13,638 Equity — 3,821 — 3,821 Total assets at fair value $ — $ 17,459 $ — $ 17,459 December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Investment in separate accounts Fixed income $ — $ 10,136 $ — $ 10,136 Equity — 8,030 — 8,030 Total assets at fair value $ — $ 18,166 $ — $ 18,166 |
Schedule of employer contributions and benefit payments | Year ended December 31, 2018 2017 Employer Contribution $ 570 $ — Benefits paid $ 453 $ 429 |
Schedule of benefit payments, which reflect expected future service | Fiscal Year Ending Pension Benefits 2019 $ 594 2020 665 2021 694 2022 725 2023 744 2024 – 2028 4,512 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum rental commitments under the terms of these lease | Years ending December 31: 2019 $ 673 2020 641 2021 564 2022 509 2023 486 2024 and beyond 477 Total $ 3,350 |
Financial Instruments with Of_2
Financial Instruments with Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Schedule of contract amounts represent off-balance sheet credit risk | Years ended December 31, 2018 2017 Commitments to extend credit summarized as follows: Future loan commitments $ 3,157 $ 3,805 Undisbursed construction loans 16,289 7,175 Undisbursed home equity lines of credit 9,532 11,185 Undisbursed commercial and other line of credit 50,773 60,897 Standby letters of credit 1,785 3,429 Total $ 81,536 $ 86,491 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of actual capital amounts and ratios | Actual For Capital Adequacy To be Well Capitalized under Amount Ratio Amount Ratio Amount Ratio December 31, 2018 Rhinebeck Bancorp, MHC Total capital (to risk-weighted $ 71,243 9.71 % $ 58,707 8.00 % $ 73,383 10.00 % Tier 1 capital (to risk-weighted assets) 64,597 8.80 % 44,030 6.00 % 58,707 8.00 % Common equity tier one capital (to risk weighted assets) 64,597 8.80 % 33,023 4.50 % 47,699 6.50 % Tier 1 capital (to average assets) 64,597 7.63 % 33,849 4.00 % 42,311 5.00 % Rhinebeck Bank Total capital (to risk-weighted $ 81,222 11.07 % $ 58,694 8.00 % $ 73,368 10.00 % Tier 1 capital (to risk-weighted assets) 74,576 10.16 % 44,021 6.00 % 58,694 8.00 % Common equity tier one capital (to risk weighted assets) 74,576 10.16 % 33,016 4.50 % 47,689 6.50 % Tier 1 capital (to average assets) 74,576 8.80 % 33,901 4.00 % 42,376 5.00 % December 31, 2017 Rhinebeck Bancorp, MHC Total capital (to risk-weighted $ 65,623 10.94 % $ 47,977 8.00 % $ 59,971 10.00 % Tier 1 capital (to risk-weighted assets) 60,166 10.03 % 35,983 6.00 % 47,977 8.00 % Common equity tier one capital (to risk weighted assets) 60,166 10.03 % 26,987 4.50 % 38,891 6.50 % Tier 1 capital (to average assets) 60,166 8.16 % 29,488 4.00 % 36,860 5.00 % Rhinebeck Bank Total capital (to risk-weighted $ 68,631 11.45 % $ 47,964 8.00 % $ 59,955 10.00 % Tier 1 capital (to risk-weighted assets) 63,174 10.54 % 35,973 6.00 % 47,964 8.00 % Common equity tier one capital (to risk weighted assets) 63,174 10.54 % 26,980 4.50 % 38,971 6.50 % Tier 1 capital (to average assets) 63,174 8.57 % 29,488 4.00 % 36,860 5.00 % |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets carried at fair value on a recurring basis | Balance Quoted Prices in Significant Significant December 31, 2018 U.S. Treasury securities $ 2,971 $ 2,971 $ — $ — U.S. government agency mortgage-backed securities – residential 80,216 — 80,216 — U.S. government agency securities 16,468 — 16,468 — Municipal securities 1,232 — 1,232 — Other 425 — 425 — Total $ 101,312 $ 2,971 $ 98,341 $ — December 31, 2017 U.S. Treasury securities $ 3,001 $ 3,001 $ — $ — U.S. government agency mortgage-backed securities – residential 91,389 — 91,389 — U.S. government agency securities 16,526 — 16,526 — Municipal securities 2,386 — 2,386 — Total $ 113,302 3,001 $ 110,301 $ — |
Schedule of assets carried at fair value and measured at fair value on a nonrecurring basis | Balance Quoted Prices in Significant Significant December 31, 2018 Impaired loans $ 128 $ — $ — $ 128 Other real estate owned 935 — — 935 Total $ 1,063 $ — $ — $ 1,063 December 31, 2017 Impaired loans $ 760 $ — $ — $ 760 Other real estate owned 773 — — 773 Total $ 1,533 $ — $ — $ 1,533 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | Quantitative Information About Level 3 Fair Value Measurements Fair Value Estimate Valuation Techniques Unobservable Input Range (Weighted Average) December 31, 2018 Impaired loans $ 128 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 20% Other real estate owned 935 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% December 31, 2017 Impaired loans $ 760 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 20% Other real estate owned 773 Appraisal of collateral (1) Liquidation expenses (3) 0% to 6% Appraisal adjustments (2) 0% to 20% (1) Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. (3) Estimated costs to sell. |
Schedule of carrying value and fair values of the financial instruments | December 31, 2018 December 31, 2017 Carrying Value Fair Value Carrying Value Fair Value Financial Assets: Cash and due from banks (Level 2) $ 50,590 $ 50,590 $ 10,460 $ 10,460 Available for sale securities (Level 2) 101,312 101,312 113,302 113,302 Held to maturity securities (Level 2) — — 1,914 1,928 FHLBNY stock (Level 2) 1,883 1,883 1,108 1,108 Loans, net (Level 3) 678,402 674,287 566,178 565,765 Accrued interest receivable (Level 2) 2,523 2,523 2,149 2,149 Mortgage servicing rights (Level 3) 2,278 4,667 2,260 4,122 Financial Liabilities: Deposits (Level 2) 684,418 683,163 650,105 649,517 Mortgagors escrow accounts (Level 2) 7,725 7,725 7,284 7,284 FHLBNY advances (Level 2) 31,598 31,598 14,900 14,900 Subordinated debt and other borrowings 10,155 10,155 5,155 5,155 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Comprehensive Income (Loss), Net of Tax | |
Schedule of accumulated other comprehensive loss activity | Accumulated Other Comprehensive Loss (1) Defined Benefit Pension Plan Unrealized Losses on available for sale securities Total Balance at December 31, 2017 $ (534 ) $ (6,421 ) $ (6,955 ) Other comprehensive loss before reclassifications (100 ) (271 ) (371 ) Amounts reclassified from accumulated other comprehensive loss 295 19 314 Period change 195 (252 ) (57 ) Balance at December 31, 2018 $ (339 ) $ (6,673 ) $ (7,012 ) Balance at December 31, 2016 $ (316 ) $ (4,953 ) $ (5,269 ) Other comprehensive loss before reclassifications (447 ) (342 ) (789 ) Amounts reclassified from accumulated other comprehensive loss 229 18 247 Period change (218 ) (324 ) (542 ) Reclassification of certain income tax effects from other comprehensive loss (1,144 ) (1,144 ) Balance at December 31, 2017 $ (534 ) $ (6,421 ) $ (6,955 ) (1) All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0 % in Fiscal 2018 and 34.0% in Fiscal 2017. |
Schedule of accumulated other comprehensive loss components | Amount Reclassified from Accumulated Other Comprehensive Loss For the Year Ended December 31, Affected Line Item in the Consolidated Statement of Income 2018 2017 Securities available for sale (1) Net securities losses reclassified into earnings $ (22 ) $ (27 ) Gain on sale of investments, net Related income tax expense 4 9 Income taxes Net effect on accumulated other other comprehensive loss for the period (18 ) (18 ) Defined benefit pension plan (2) Amortization of net loss and prior service costs (374 ) (347 ) Compensation and employee benefits Related income tax expense 78 118 Income taxes Net effect on accumulated other other comprehensive loss for the period (296 ) (229 ) Total reclassifications for the period $ (314 ) $ (247 ) (1) For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, “Available for Sale Securities.” (2) Included in the computation of net periodic pension cost. See Note 11, “Employee Benefits” for additional details. |
Nature of Business and Signif_3
Nature of Business and Significant Accounting Policies (Detail Textuals) $ in Thousands | Aug. 15, 2017USD ($) | Dec. 31, 2018USD ($)Branch | Dec. 31, 2017USD ($) |
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Number of branches | Branch | 11 | ||
Percentage of credit extension | 80.00% | ||
Threshold percentage for loan amount against the original appraised value of the property | 90.00% | ||
Threshold percentage for private mortgage insurance required for that portion of loan | 80.00% | ||
Amount of consumer mortgages and loans secured by residential real estate properties in process of foreclosure | $ 526 | $ 97 | |
Amortization method purchased customer accounts | straight-line basis | ||
Useful life of purchased customer accounts | 13 years | ||
Corporate income tax rate | 21.00% | 34.00% | |
Proceeds from sale of subsidiary | $ 3,443 | ||
Gain on sale of subsidiary | 1,834 | ||
Income before income taxes | $ 5,371 | 6,600 | |
Other real estate owned | 1,685 | 2,233 | |
Brinckerhoff and Neuville, Inc. ("B&N") | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Proceeds from sale of subsidiary | $ 3,443 | ||
Gain on sale of subsidiary | $ 1,834 | ||
Income before income taxes | 437 | ||
Residential real estate | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Other real estate owned | 935 | 1,323 | |
Commercial Real Estate Loans | |||
Nature Of Business And Significant Accounting Policies [Line Items] | |||
Other real estate owned | $ 750 | $ 911 |
Available for Sale Securities_2
Available for Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 104,573 | $ 116,242 | |
Gross Unrealized Gains | 12 | 2 | |
Gross Unrealized Losses | (3,273) | (2,942) | |
Fair Value | 101,312 | 113,302 | |
U.S. Treasury securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 3,036 | 3,048 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (65) | (47) | |
Fair Value | 2,971 | 3,001 | |
U.S. government agency mortgage-backed securities-residential | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 82,965 | 93,858 | |
Gross Unrealized Gains | 8 | 1 | |
Gross Unrealized Losses | (2,757) | (2,470) | |
Fair Value | 80,216 | 91,389 | |
U.S. government agency securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 16,919 | 16,935 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | (451) | (409) | |
Fair Value | 16,468 | 16,526 | |
Municipal securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 1,228 | 2,401 | |
Gross Unrealized Gains | [1] | 4 | 1 |
Gross Unrealized Losses | [1] | 0 | (16) |
Fair Value | [1] | 1,232 | $ 2,386 |
Other | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 425 | ||
Gross Unrealized Gains | 0 | ||
Gross Unrealized Losses | 0 | ||
Fair Value | $ 425 | ||
[1] | The issuers of municipal securities are all within New York State. |
Available for Sale Securities_3
Available for Sale Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | $ 1,669 | $ 42,118 |
Less Than 12 Months Unrealized Losses | (4) | (642) |
12 Months or Longer Fair Value | 96,025 | 69,750 |
12 Months or Longer Unrealized Losses | (3,269) | (2,300) |
Total Fair Value | 97,694 | 111,868 |
Total Unrealized Losses | (3,273) | (2,942) |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 0 | 3,001 |
Less Than 12 Months Unrealized Losses | 0 | (47) |
12 Months or Longer Fair Value | 2,971 | 0 |
12 Months or Longer Unrealized Losses | (65) | 0 |
Total Fair Value | 2,971 | 3,001 |
Total Unrealized Losses | (65) | (47) |
U.S. government agency mortgage-backed securities-residential | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 1,669 | 34,601 |
Less Than 12 Months Unrealized Losses | (4) | (542) |
12 Months or Longer Fair Value | 76,586 | 56,170 |
12 Months or Longer Unrealized Losses | (2,753) | (1,928) |
Total Fair Value | 78,255 | 90,771 |
Total Unrealized Losses | (2,757) | (2,470) |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 0 | 3,923 |
Less Than 12 Months Unrealized Losses | 0 | (50) |
12 Months or Longer Fair Value | 16,468 | 12,603 |
12 Months or Longer Unrealized Losses | (451) | (359) |
Total Fair Value | 16,468 | 16,526 |
Total Unrealized Losses | $ (451) | (409) |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Less Than 12 Months Fair Value | 593 | |
Less Than 12 Months Unrealized Losses | (3) | |
12 Months or Longer Fair Value | 977 | |
12 Months or Longer Unrealized Losses | (13) | |
Total Fair Value | 1,570 | |
Total Unrealized Losses | $ (16) |
Available for Sale Securities_4
Available for Sale Securities (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Within 1 year | $ 1,221 | $ 335 |
After 1 but within 5 years | 17,253 | 20,074 |
After 5 but within 10 years | 1,975 | 1,975 |
After 10 years | 734 | 0 |
Total Maturities | 21,183 | 22,384 |
Mortgage-backed securities | 82,965 | 93,858 |
Other | 425 | 0 |
Amortized Cost | 104,573 | 116,242 |
Fair Value | ||
Within 1 year | 1,210 | 336 |
After 1 but within 5 years | 16,780 | 19,623 |
After 5 but within 10 years | 1,945 | 1,954 |
After 10 years | 736 | 0 |
Total Maturities | 20,671 | 21,913 |
Mortgage-backed securities | 80,216 | 91,389 |
Other | 425 | 0 |
Fair Value | $ 101,312 | $ 113,302 |
Available for Sale Securities_5
Available for Sale Securities (Detail Textuals) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Security | Dec. 31, 2017USD ($)Security | |
Debt Securities, Available-for-sale [Line Items] | ||
Number of individual available-for-sale securities with unrealized losses | Security | 96 | 100 |
Unrealized Losses | $ 3,273 | $ 2,942 |
Aggregate percentage of depreciation | 3.35% | 2.63% |
Proceeds from sales of investment securities and calls | $ 2,113 | $ 30,786 |
Gains on sales of investment securities | 45 | |
Losses on sales of investment securities and calls | 22 | 72 |
Available-for-sale Securities | Federal Reserve Bank of New York ("FRBNY") | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities pledged to secure Federal Reserve Bank of New York ("FRBNY") borrowings | 1,032 | 2,350 |
Federal Home Loan Bank of New York ("FHLBNY") | Available-for-sale Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Available for sale securities pledged to secure Federal Home Loan Bank of New York ("FHLBNY") borrowings | $ 27,465 | $ 1,285 |
Held to Maturity Securities (De
Held to Maturity Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | $ 0 | $ 1,914 | |
Gross Unrealized Gains | 0 | 15 | |
Gross Unrealized Losses | 0 | (1) | |
Fair Value | 0 | 1,928 | |
Other | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | 0 | 332 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 0 | 332 | |
Municipal securities | |||
Schedule of Held-to-maturity Securities [Line Items] | |||
Amortized Cost | [1] | 0 | 1,582 |
Gross Unrealized Gains | [1] | 0 | 15 |
Gross Unrealized Losses | [1] | 0 | (1) |
Fair Value | [1] | $ 0 | $ 1,596 |
[1] | The issuers of municipal securities are all within New York State. |
Held to Maturity Securities (_2
Held to Maturity Securities (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Amortized Cost | ||
Within 1 year | $ 0 | $ 252 |
After 1 but within 5 years | 0 | 576 |
After 5 but within 10 years | 0 | 0 |
After 10 years | 0 | 754 |
Other | 0 | 332 |
Total | 0 | 1,914 |
Fair Value | ||
Within 1 year | 0 | 252 |
After 1 but within 5 years | 0 | 575 |
After 5 but within 10 years | 0 | 0 |
After 10 years | 0 | 769 |
Other | 0 | 332 |
Total | $ 0 | $ 1,928 |
Held to Maturity Securities (_3
Held to Maturity Securities (Detail Textuals) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Securitybond | Dec. 31, 2017USD ($) | |
Schedule of Held-to-maturity Securities [Line Items] | ||
Number of underperforming bonds swap | bond | 7 | |
Number of bonds sold | bond | 2 | |
Held to maturity bonds sold | $ 575 | |
(Loss) on disposal of held to maturity bonds | 4 | |
Amount of HTM securities reclassified to available for sale | $ 1,163 | |
Number of held to maturity securities reclassified to available for sale | Security | 4 | |
Amount of unrealized holding loss recognized in AOCI | $ 1 | |
Held to Maturity Securities | Federal Reserve Bank of New York ("FRBNY") | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Held to maturity securities pledged to secure Federal Reserve Bank of New York ("FRBNY") borrowings | $ 0 | $ 1,362 |
Loans and Allowance for lease_3
Loans and Allowance for lease and loan losses (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | $ 677,006 | $ 566,347 | |
Net deferred loan costs | 8,042 | 5,288 | |
Allowance for loan losses | (6,646) | (5,457) | $ (5,876) |
Total net loans | 678,402 | 566,178 | |
Commercial Real Estate Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 223,030 | 211,193 | |
Allowance for loan losses | (1,080) | (1,305) | (1,092) |
Commercial Real Estate Loans | Construction | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 12,870 | 5,621 | |
Commercial Real Estate Loans | Non-residential | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 197,499 | 192,469 | |
Commercial Real Estate Loans | Multi-family | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 12,661 | 13,103 | |
Residential Real Estate Loans | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 43,534 | 43,300 | |
Allowance for loan losses | (320) | (455) | (1,231) |
Commercial loan | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 83,203 | 67,650 | |
Allowance for loan losses | (1,542) | (879) | (775) |
Consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 30,095 | 29,381 | |
Allowance for loan losses | (789) | (668) | (750) |
Consumer | Indirect automobile | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 297,144 | 214,823 | |
Allowance for loan losses | (2,915) | (2,150) | $ (2,028) |
Consumer | Home equity | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | 19,269 | 19,452 | |
Consumer | Other consumer | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total gross loans | $ 10,826 | $ 9,929 |
Loans and Allowance for lease_4
Loans and Allowance for lease and loan losses (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | $ 677,006 | $ 566,347 |
Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 660,090 | 549,424 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 7,805 | 3,610 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 6,163 | 10,546 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 2,948 | 2,767 |
Commercial Real Estate Loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 223,030 | 211,193 |
Commercial Real Estate Loans | Construction | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 12,870 | 5,621 |
Commercial Real Estate Loans | Construction | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 12,870 | 4,495 |
Commercial Real Estate Loans | Construction | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial Real Estate Loans | Construction | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 1,126 |
Commercial Real Estate Loans | Construction | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial Real Estate Loans | Non-residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 197,499 | 192,469 |
Commercial Real Estate Loans | Non-residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 186,020 | 181,720 |
Commercial Real Estate Loans | Non-residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 6,840 | 3,485 |
Commercial Real Estate Loans | Non-residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 4,639 | 7,264 |
Commercial Real Estate Loans | Non-residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial Real Estate Loans | Multi-family | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 12,661 | 13,103 |
Commercial Real Estate Loans | Multi-family | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 12,261 | 13,103 |
Commercial Real Estate Loans | Multi-family | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial Real Estate Loans | Multi-family | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 400 | 0 |
Commercial Real Estate Loans | Multi-family | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Residential | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 43,534 | 43,300 |
Residential | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 41,249 | 41,115 |
Residential | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Residential | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Residential | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 2,285 | 2,185 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 83,203 | 67,650 |
Commercial and industrial | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 81,111 | 65,351 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 965 | 125 |
Commercial and industrial | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 1,124 | 2,156 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 3 | 18 |
Consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 30,095 | 29,381 |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 297,144 | 214,823 |
Consumer | Indirect automobile | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 296,692 | 214,381 |
Consumer | Indirect automobile | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Consumer | Indirect automobile | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Consumer | Indirect automobile | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 452 | 442 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 19,269 | 19,452 |
Consumer | Home equity | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 19,071 | 19,334 |
Consumer | Home equity | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Consumer | Home equity | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Consumer | Home equity | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 198 | 118 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 10,826 | 9,929 |
Consumer | Other consumer | Pass | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 10,816 | 9,925 |
Consumer | Other consumer | Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Consumer | Other consumer | Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | 0 | 0 |
Consumer | Other consumer | Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total gross loans | $ 10 | $ 4 |
Loans and Allowance for lease_5
Loans and Allowance for lease and loan losses (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 664,580 | $ 548,492 |
Total | 677,006 | 566,347 |
Nonaccrual | 5,672 | 9,364 |
30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,030 | 7,622 |
60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,813 | 2,770 |
Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 3,583 | 7,463 |
Commercial Real Estate Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 223,030 | 211,193 |
Commercial Real Estate Loans | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,870 | 4,494 |
Total | 12,870 | 5,621 |
Nonaccrual | 0 | 1,127 |
Commercial Real Estate Loans | Construction | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 0 |
Commercial Real Estate Loans | Construction | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 0 |
Commercial Real Estate Loans | Construction | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 1,127 |
Commercial Real Estate Loans | Non-residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 193,273 | 184,877 |
Total | 197,499 | 192,469 |
Nonaccrual | 2,507 | 4,442 |
Commercial Real Estate Loans | Non-residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1,466 | 2,229 |
Commercial Real Estate Loans | Non-residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 253 | 921 |
Commercial Real Estate Loans | Non-residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 2,507 | 4,442 |
Commercial Real Estate Loans | Multi-family | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 12,487 | 12,637 |
Total | 12,661 | 13,103 |
Nonaccrual | 0 | 0 |
Commercial Real Estate Loans | Multi-family | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 174 | 0 |
Commercial Real Estate Loans | Multi-family | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 466 |
Commercial Real Estate Loans | Multi-family | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 0 |
Residential | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 42,083 | 41,989 |
Total | 43,534 | 43,300 |
Nonaccrual | 2,208 | 2,100 |
Residential | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 305 | 450 |
Residential | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 615 | 422 |
Residential | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 531 | 439 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 82,992 | 66,542 |
Total | 83,203 | 67,650 |
Nonaccrual | 297 | 1,237 |
Commercial and industrial | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 206 | 69 |
Commercial and industrial | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 1 | 19 |
Commercial and industrial | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4 | 1,020 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total | 30,095 | 29,381 |
Consumer | Indirect automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 291,369 | 209,574 |
Total | 297,144 | 214,823 |
Nonaccrual | 452 | 442 |
Consumer | Indirect automobile | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 4,429 | 4,022 |
Consumer | Indirect automobile | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 915 | 808 |
Consumer | Indirect automobile | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 431 | 419 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 18,905 | 18,637 |
Total | 19,269 | 19,452 |
Nonaccrual | 198 | 12 |
Consumer | Home equity | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 264 | 676 |
Consumer | Home equity | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 0 | 127 |
Consumer | Home equity | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 100 | 12 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 10,601 | 9,742 |
Total | 10,826 | 9,929 |
Nonaccrual | 10 | 4 |
Consumer | Other consumer | 30-59 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 186 | 176 |
Consumer | Other consumer | 60-89 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 29 | 7 |
Consumer | Other consumer | Greater Than 90 Days Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | $ 10 | $ 4 |
Loans and Allowance for lease_6
Loans and Allowance for lease and loan losses (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
With no related allowance recorded: | ||
Recorded Investment | $ 5,571 | $ 8,397 |
Unpaid Principal Balance | 6,404 | 9,519 |
Average Recorded Investment | 6,984 | 7,807 |
With an allowance recorded: | ||
Recorded Investment | 178 | 1,157 |
Unpaid Principal Balance | 191 | 1,600 |
Related Allowance | 50 | 397 |
Average Recorded Investment | 667 | 982 |
Total: | ||
Recorded Investment | 5,749 | 9,554 |
Unpaid Principal Balance | 6,595 | 11,119 |
Related Allowance | 50 | 397 |
Average Recorded Investment | 7,651 | 8,789 |
Commercial Real Estate Loans | Construction | ||
With no related allowance recorded: | ||
Recorded Investment | 0 | 1,127 |
Unpaid Principal Balance | 0 | 1,137 |
Average Recorded Investment | 563 | 1,127 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Total: | ||
Recorded Investment | 0 | 1,127 |
Unpaid Principal Balance | 0 | 1,137 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 563 | 1,127 |
Commercial Real Estate Loans | Non-residential | ||
With no related allowance recorded: | ||
Recorded Investment | 2,507 | 3,539 |
Unpaid Principal Balance | 2,601 | 3,584 |
Average Recorded Investment | 3,023 | 2,878 |
With an allowance recorded: | ||
Recorded Investment | 0 | 903 |
Unpaid Principal Balance | 0 | 903 |
Related Allowance | 0 | 300 |
Average Recorded Investment | 451 | 451 |
Total: | ||
Recorded Investment | 2,507 | 4,442 |
Unpaid Principal Balance | 2,601 | 4,487 |
Related Allowance | 0 | 300 |
Average Recorded Investment | 3,474 | 3,330 |
Commercial Real Estate Loans | Multi-family | ||
With no related allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Total: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Residential | ||
With no related allowance recorded: | ||
Recorded Investment | 2,285 | 2,184 |
Unpaid Principal Balance | 2,841 | 2,741 |
Average Recorded Investment | 2,235 | 2,114 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Total: | ||
Recorded Investment | 2,285 | 2,184 |
Unpaid Principal Balance | 2,841 | 2,741 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 2,235 | 2,114 |
Commercial and industrial | ||
With no related allowance recorded: | ||
Recorded Investment | 297 | 1,219 |
Unpaid Principal Balance | 421 | 1,700 |
Average Recorded Investment | 758 | 1,325 |
With an allowance recorded: | ||
Recorded Investment | 0 | 19 |
Unpaid Principal Balance | 0 | 447 |
Related Allowance | 0 | 19 |
Average Recorded Investment | 9 | 221 |
Total: | ||
Recorded Investment | 297 | 1,238 |
Unpaid Principal Balance | 421 | 2,147 |
Related Allowance | 0 | 19 |
Average Recorded Investment | 767 | 1,546 |
Consumer | Indirect automobile | ||
With no related allowance recorded: | ||
Recorded Investment | 274 | 210 |
Unpaid Principal Balance | 320 | 237 |
Average Recorded Investment | 242 | 179 |
With an allowance recorded: | ||
Recorded Investment | 178 | 232 |
Unpaid Principal Balance | 191 | 247 |
Related Allowance | 50 | 75 |
Average Recorded Investment | 205 | 292 |
Total: | ||
Recorded Investment | 452 | 442 |
Unpaid Principal Balance | 511 | 484 |
Related Allowance | 50 | 75 |
Average Recorded Investment | 447 | 471 |
Consumer | Home equity | ||
With no related allowance recorded: | ||
Recorded Investment | 198 | 118 |
Unpaid Principal Balance | 211 | 119 |
Average Recorded Investment | 158 | 182 |
With an allowance recorded: | ||
Recorded Investment | 0 | 0 |
Unpaid Principal Balance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 0 | 0 |
Total: | ||
Recorded Investment | 198 | 118 |
Unpaid Principal Balance | 211 | 119 |
Related Allowance | 0 | 0 |
Average Recorded Investment | 158 | 182 |
Consumer | Other consumer | ||
With no related allowance recorded: | ||
Recorded Investment | 10 | 0 |
Unpaid Principal Balance | 10 | 1 |
Average Recorded Investment | 5 | 2 |
With an allowance recorded: | ||
Recorded Investment | 0 | 3 |
Unpaid Principal Balance | 0 | 3 |
Related Allowance | 0 | 3 |
Average Recorded Investment | 2 | 18 |
Total: | ||
Recorded Investment | 10 | 3 |
Unpaid Principal Balance | 10 | 4 |
Related Allowance | 0 | 3 |
Average Recorded Investment | $ 7 | $ 19 |
Loans and Allowance for lease_7
Loans and Allowance for lease and loan losses (Details 4) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | ||
Beginning balance | $ 5,457 | $ 5,876 |
Provision for loan losses | 2,100 | 900 |
Loans charged-off | (2,013) | (2,414) |
Recoveries | 1,102 | 1,095 |
Ending balance | 6,646 | 5,457 |
Ending balance | ||
Individually evaluated for impairment | 50 | 397 |
Collectively evaluated for impairment | 6,596 | 5,060 |
Loan receivables: | ||
Ending balance | 677,006 | 566,347 |
Individually evaluated for impairment | 5,749 | 9,554 |
Collectively evaluated for impairment | 671,257 | 556,793 |
Commercial Real Estate | ||
Allowance for loan losses: | ||
Beginning balance | 1,305 | 1,092 |
Provision for loan losses | (113) | 137 |
Loans charged-off | (303) | (16) |
Recoveries | 123 | 92 |
Ending balance | 1,080 | 1,305 |
Ending balance | ||
Individually evaluated for impairment | 0 | 300 |
Collectively evaluated for impairment | 1,012 | 1,005 |
Loan receivables: | ||
Ending balance | 223,030 | 211,193 |
Individually evaluated for impairment | 2,507 | 5,569 |
Collectively evaluated for impairment | 220,523 | 205,624 |
Residential | ||
Allowance for loan losses: | ||
Beginning balance | 455 | 1,231 |
Provision for loan losses | (140) | (707) |
Loans charged-off | 0 | (78) |
Recoveries | 5 | 9 |
Ending balance | 320 | 455 |
Ending balance | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 278 | 455 |
Loan receivables: | ||
Ending balance | 43,534 | 43,300 |
Individually evaluated for impairment | 2,285 | 2,184 |
Collectively evaluated for impairment | 41,249 | 41,116 |
Commercial and industrial | ||
Allowance for loan losses: | ||
Beginning balance | 879 | 775 |
Provision for loan losses | 491 | 698 |
Loans charged-off | (37) | (596) |
Recoveries | 122 | 2 |
Ending balance | 1,542 | 879 |
Ending balance | ||
Individually evaluated for impairment | 0 | 19 |
Collectively evaluated for impairment | 1,455 | 860 |
Loan receivables: | ||
Ending balance | 83,203 | 67,650 |
Individually evaluated for impairment | 297 | 1,238 |
Collectively evaluated for impairment | 82,906 | 66,412 |
Consumer | ||
Allowance for loan losses: | ||
Beginning balance | 668 | 750 |
Provision for loan losses | 110 | (35) |
Loans charged-off | (66) | (87) |
Recoveries | 19 | 40 |
Ending balance | 789 | 668 |
Ending balance | ||
Individually evaluated for impairment | 0 | 3 |
Collectively evaluated for impairment | 731 | 665 |
Loan receivables: | ||
Ending balance | 30,095 | 29,381 |
Individually evaluated for impairment | 208 | 121 |
Collectively evaluated for impairment | 29,887 | 29,260 |
Consumer | Indirect | ||
Allowance for loan losses: | ||
Beginning balance | 2,150 | 2,028 |
Provision for loan losses | 1,794 | 807 |
Loans charged-off | (1,607) | (1,637) |
Recoveries | 833 | 952 |
Ending balance | 2,915 | 2,150 |
Ending balance | ||
Individually evaluated for impairment | 50 | 75 |
Collectively evaluated for impairment | 3,120 | 2,075 |
Loan receivables: | ||
Ending balance | 297,144 | 214,823 |
Individually evaluated for impairment | 452 | 442 |
Collectively evaluated for impairment | $ 296,692 | $ 214,381 |
Loans and Allowance for lease_8
Loans and Allowance for lease and loan losses (Detail Textuals) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Loan | Dec. 31, 2017USD ($)Loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans default | Loan | 3 | 4 |
Amount of loan | $ 1,774 | $ 1,815 |
Number of charge off loans | Loan | 1 | |
Loan modified as default | $ 19 | |
Aggregate balances of loans serviced to third party | 255,892 | 244,765 |
Balance of capitalized servicing rights | $ 2,278 | 2,260 |
Home equity loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans default | Loan | 2 | |
Amount of loan | $ 117 | |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of loans default | Loan | 2 | |
Amount of loan | $ 117 | |
Loan modified as default | 1,661 | |
Residential Real Estate Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Unpaid principal balances of loans held for sale | $ 888 | 2,059 |
Commercial loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Amount of loan | $ 19 |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 38,829 | $ 37,713 |
Less accumulated depreciation | (21,789) | (20,688) |
Net | 17,040 | 17,025 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 3,536 | 3,536 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total | 23,534 | 23,409 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total | 11,708 | 10,725 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 51 | $ 43 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 1,505 | $ 2,781 |
Relief due to asset sale | (1,276) | |
Impairment | (95) | |
Ended balance | 1,410 | 1,505 |
Accumulated impairment | 1,116 | 1,021 |
RAM | ||
Goodwill [Roll Forward] | ||
Beginning balance | 1,505 | 1,505 |
Relief due to asset sale | 0 | |
Impairment | (95) | |
Ended balance | 1,410 | 1,505 |
Accumulated impairment | 1,116 | 1,021 |
B&N | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 1,276 |
Relief due to asset sale | (1,276) | |
Impairment | 0 | |
Ended balance | 0 | 0 |
Accumulated impairment | $ 0 | $ 0 |
Goodwill (Detail Textuals)
Goodwill (Detail Textuals) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Goodwill, Impaired [Abstract] | |
Impairment loss on goodwill | $ 95 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | $ 326 | $ 727 |
Amortization | (42) | (67) |
Relief due to asset sale | (334) | |
Ended balance | 284 | 326 |
Accumulated amortization and impairment | 663 | 621 |
RAM | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 326 | 368 |
Amortization | (42) | (42) |
Relief due to asset sale | 0 | |
Ended balance | 284 | 326 |
Accumulated amortization and impairment | 663 | 621 |
B&N | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 0 | 359 |
Amortization | 0 | (25) |
Relief due to asset sale | (334) | |
Ended balance | 0 | 0 |
Accumulated amortization and impairment | $ 0 | $ 0 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) $ in Thousands | Dec. 31, 2018USD ($) |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
2019 | $ 42 |
2020 | 42 |
2021 | 42 |
2022 | 42 |
2023 | 42 |
Thereafter | $ 74 |
Intangible Assets (Detail Textu
Intangible Assets (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Expected useful lives of customer lists | 13 years | |
Amortization expense related to intangible assets | $ 42 | $ 67 |
Customer lists | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Expected useful lives of customer lists | 13 years 4 months |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
Noninterest bearing demand deposits | $ 171,829 | $ 157,828 |
Interest bearing accounts: | ||
NOW | 99,715 | 101,167 |
Savings | 126,822 | 125,244 |
Money market | 130,356 | 123,643 |
Time certificates of deposit | 155,696 | 142,223 |
Total interest bearing accounts | 512,589 | 492,277 |
Total deposits | $ 684,418 | $ 650,105 |
Deposits (Details 1)
Deposits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deposits [Abstract] | ||
within 1 year | $ 102,311 | |
1 - 2 years | 31,670 | |
2 - 3 years | 7,964 | |
3 - 4 years | 9,549 | |
4 - 5 years | 4,202 | |
Total | $ 155,696 | $ 142,223 |
Deposits (Detail Textuals)
Deposits (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits [Line Items] | ||
Brokered Deposits | $ 21,515 | $ 20,673 |
Time certificates of deposit in denominations of $250 or greater | $ 16,644 | $ 13,920 |
Minimum | ||
Deposits [Line Items] | ||
Maturity terms | 1 year | |
Maximum | ||
Deposits [Line Items] | ||
Maturity terms | 3 years |
Long-Term Debt and FHLBNY Sto_3
Long-Term Debt and FHLBNY Stock (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Rate | 0.00% |
FHLBNY | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 31,598 |
Rate | 2.72% |
Due in one year | $ 23,726 |
Long term | 7,872 |
FHLBNY | 5 month bullet on February 26, 2019 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 10,000 |
Rate | 2.64% |
Due in one year | $ 10,000 |
Long term | 0 |
FHLBNY | 1 year amortizing on May 15, 2019 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 2,516 |
Rate | 2.50% |
Due in one year | $ 2,516 |
Long term | 0 |
FHLBNY | 1 year amortizing on June 7, 2019 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 2,932 |
Rate | 2.53% |
Due in one year | $ 2,932 |
Long term | 0 |
FHLBNY | 2 year amortizing on May 15, 2020 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 3,776 |
Rate | 2.78% |
Due in one year | $ 2,500 |
Long term | 1,276 |
FHLBNY | 2 year amortizing on June 8, 2020 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 3,981 |
Rate | 2.76% |
Due in one year | $ 2,494 |
Long term | 1,487 |
FHLBNY | 3 year amortizing on May 17, 2021 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
Principal amount | $ 8,393 |
Rate | 2.92% |
Due in one year | $ 3,284 |
Long term | $ 5,109 |
Long-Term Debt and FHLBNY Sto_4
Long-Term Debt and FHLBNY Stock (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Atlantic Community Bankers Bank | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Outstanding amount secured line of credit | $ 5,000 | ||
Interest rate, description | Wall Street Journal prime rate of interest, floating, plus 0.50% | ||
Unsecured, uncommitted line of credit | $ 5,000 | $ 5,000 | |
Subordinated Debt | RSB Capital Trust I | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Interest rate | 4.80% | 4.80% | 3.454% |
Interest rate, description | 3-month LIBOR plus 2.00% | ||
Interest LIBOR rate | 2.00% | ||
Trust term | 30 years | 30 years | |
Subordinated debt securities | $ 5,155 | $ 5,155 | |
Stated maturity date | May 23, 2035 | ||
FHLBNY | |||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |||
Preapproved secured line of credit | 441,134 | $ 441,134 | $ 370,974 |
Amount of pledged assets | 145,805 | 145,805 | 25,608 |
Outstanding amount secured line of credit | 0 | $ 14,900 | |
Interest rate | 1.53% | ||
Unsecured, uncommitted line of credit | 10,000 | 10,000 | |
Structured borrowings | $ 31,598 | $ 31,598 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Current expense (benefit): | |||
Federal | $ 900 | $ 1,740 | |
State | 12 | (61) | |
Total | 912 | 1,679 | |
Deferred expense: | |||
Federal | 102 | 1,919 | [1] |
Total provision for income taxes | $ 1,014 | $ 3,598 | |
[1] | Includes $1,870 due to 2017 federal rate change. |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Provision at statutory rate | $ 1,128 | $ 2,244 |
Tax exempt income | (92) | (170) |
State income taxes, net of federal income tax benefit | 18 | 23 |
Write-off of deferred tax assets due to tax reform | 0 | 1,870 |
Tax basis difference on sale of B&N | 0 | (295) |
Other, net | (40) | (74) |
Effective income tax and rate | $ 1,014 | $ 3,598 |
Provision at statutory rate, Percent | 21.00% | 34.00% |
Tax exempt income, percent | (1.00%) | (3.00%) |
State income taxes, net of federal income tax benefit, percent | 0.00% | 1.00% |
Write-off of deferred tax assets due to tax reform, percent | 0.00% | 28.00% |
Tax basis difference on sale of B&N, percent | 0.00% | (5.00%) |
Other, net, percent | 1.00% | 0.00% |
Effective income tax and rate, percent | 19.00% | 55.00% |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Allowance for loan losses | $ 1,794 | $ 1,473 |
Deferred expenses | 783 | 717 |
Depreciation and amortization | 0 | 105 |
Unrecognized pension liability | 1,179 | 1,232 |
Postretirement liability | 914 | 901 |
Deferred loss on OREO | 187 | 83 |
Unrealized loss on securities | 685 | 617 |
State tax NOLs | 779 | 647 |
Other | 134 | 232 |
Gross deferred tax assets | 6,455 | 6,007 |
Deferred tax liabilities: | ||
Prepaid expenses | (241) | (181) |
Prepaid pension | (1,305) | (1,148) |
Deferred loan fees | (170) | (65) |
Depreciation and amortization | (105) | 0 |
Mortgage servicing rights | (615) | (610) |
Gross deferred tax liabilities | (2,436) | (2,004) |
Net deferred tax asset | 4,019 | 4,003 |
Deferred tax valuation allowance | (1,085) | (982) |
Deferred tax assets, net of allowance | $ 2,934 | $ 3,021 |
Income Taxes (Detail Textuals)
Income Taxes (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Amount of federal rate change | $ 1,870 | |
Expected federal statutory income tax rate | 21.00% | 34.00% |
Retained earnings includes contingency reserve for loan losses | $ 1,534 | $ 1,534 |
Reserve balance under deferred income taxes | $ 414 | $ 614 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||
Projected and accumulated benefit obligation | $ (18,241) | $ (19,777) |
Plan assets at fair value | 17,459 | 18,166 |
Funded status included in other liabilities | $ (782) | $ (1,611) |
Employee Benefits (Details 1)
Employee Benefits (Details 1) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||
Net actuarial loss | $ 5,616 | $ 5,864 |
Employee Benefits (Details 2)
Employee Benefits (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||
Interest cost | $ 689 | $ 717 |
Expected return on plan assets | (1,074) | (988) |
Amortization of unrecognized loss | 374 | 347 |
Net periodic (benefit) cost | $ (11) | $ 76 |
Employee Benefits (Details 3)
Employee Benefits (Details 3) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||
Discount rate | 4.14% | 3.53% |
Rate of compensation increase |
Employee Benefits (Details 4)
Employee Benefits (Details 4) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||
Discount rate | 3.53% | 4.06% |
Expected long-term return on plan assets | 6.00% | 6.00% |
Rate of compensation increase |
Employee Benefits (Details 5)
Employee Benefits (Details 5) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 17,459 | $ 18,166 |
Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 13,638 | 10,136 |
Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 3,821 | 8,030 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 0 | 0 |
Inputs (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 17,459 | 18,166 |
Inputs (Level 2) | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 13,638 | 10,136 |
Inputs (Level 2) | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 3,821 | 8,030 |
Inputs (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 0 | 0 |
Inputs (Level 3) | Fixed income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | 0 | 0 |
Inputs (Level 3) | Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan assets at fair value | $ 0 | $ 0 |
Employee Benefits (Details 6)
Employee Benefits (Details 6) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | ||
Employer contribution | $ 570 | $ 0 |
Benefits paid | $ 453 | $ 429 |
Employee Benefits (Details 7)
Employee Benefits (Details 7) $ in Thousands | Dec. 31, 2018USD ($) |
Employee Benefits and Share-based Compensation, Noncash [Abstract] | |
2019 | $ 594 |
2020 | 665 |
2021 | 694 |
2022 | 725 |
2023 | 744 |
2024 - 2028 | $ 4,512 |
Employee Benefits (Detail Textu
Employee Benefits (Detail Textuals) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018USD ($)Equity_FundBond_FundReal_Estate_Fund | Dec. 31, 2017USD ($)Equity_FundBond_FundMoney_Market_Fund | |
Schedule Of Employee Benefits [Line Items] | ||
Estimated net actuarial loss | $ 359 | |
Number of equity funds | Equity_Fund | 6 | 5 |
Number of bond funds | Bond_Fund | 3 | 3 |
Number of real estate fund | Real_Estate_Fund | 1 | |
Number of taxable money market fund | Money_Market_Fund | 1 | |
Percentage of internal revenue contribution | 25.00% | |
Percentage of internal revenue service limitations | 6.00% | |
Employer contribution | $ 570 | $ 0 |
Cash surrender value of life insurance | 18,018 | 17,577 |
Increase in cash surrender value of insurance | 401 | 460 |
Accrued expenses and other liabilities | 10,108 | 9,682 |
Employer contribution in defined contribution plan | 782 | 686 |
Noninterest income | ||
Schedule Of Employee Benefits [Line Items] | ||
Increase in cash surrender value of insurance | 401 | 460 |
Trustees' Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Accrued expenses and other liabilities | 1,687 | 1,648 |
Trustees' Plan | Noninterest expense | ||
Schedule Of Employee Benefits [Line Items] | ||
Employer contribution in defined contribution plan | 129 | 62 |
Executive Long-Term Incentive and Retention Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Accrued expenses and other liabilities | 975 | 813 |
Postemployment benefit expense | $ 177 | 76 |
Executive Long-Term Incentive and Retention Plan | Minimum | ||
Schedule Of Employee Benefits [Line Items] | ||
Terms of services | 1 year | |
Executive Long-Term Incentive and Retention Plan | Maximum | ||
Schedule Of Employee Benefits [Line Items] | ||
Terms of services | 5 years | |
Group Term Replacement Plan | ||
Schedule Of Employee Benefits [Line Items] | ||
Liability related to these postretirement benefits | $ 1,276 | 1,260 |
Postemployment benefit expense | 16 | 71 |
Other Director and Officer Postretirement Benefits | ||
Schedule Of Employee Benefits [Line Items] | ||
Liability related to these postretirement benefits | 2,108 | 2,078 |
Postemployment benefit expense | $ 94 | $ 292 |
Other Director and Officer Postretirement Benefits | Minimum | ||
Schedule Of Employee Benefits [Line Items] | ||
Post retirement benefit period | 15 years | |
Other Director and Officer Postretirement Benefits | Maximum | ||
Schedule Of Employee Benefits [Line Items] | ||
Post retirement benefit period | 20 years |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - Operating lease agreements - Branch offices and equipment $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leased Assets [Line Items] | |
2019 | $ 673 |
2020 | 641 |
2021 | 564 |
2022 | 509 |
2023 | 486 |
2024 and beyond | 477 |
Total | $ 3,350 |
Commitments and Contingencies_3
Commitments and Contingencies (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Total rental expense for cancelable and non-cancelable operating leases | $ 642 | $ 626 |
Rental income under subleases | $ 297 | $ 319 |
Financial Instruments with Of_3
Financial Instruments with Off-Balance-Sheet Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk | $ 81,536 | $ 86,491 |
Future loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk | 3,157 | 3,805 |
Undisbursed construction loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk | 16,289 | 7,175 |
Undisbursed home equity lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk | 9,532 | 11,185 |
Undisbursed commercial and other line of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk | 50,773 | 60,897 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments represent off-balance sheet credit risk | $ 1,785 | $ 3,429 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 71,243 | $ 65,623 |
Total capital (to risk-weighted assets) Actual Ratio | 9.71% | 10.94% |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 58,707 | $ 47,977 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 73,383 | $ 59,971 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) Actual Amount | $ 64,597 | $ 60,166 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 8.80% | 10.03% |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 44,030 | $ 35,983 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 58,707 | $ 47,977 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Common equity tier one capital (to risk weighted assets) Actual Amount | $ 64,597 | $ 60,166 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 8.80% | 10.03% |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 33,023 | $ 26,987 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 47,699 | $ 38,891 |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 capital (to average assets) Actual Amount | $ 64,597 | $ 60,166 |
Tier 1 capital (to average assets) Actual Ratio | 7.63% | 8.16% |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 33,849 | $ 29,488 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 42,311 | $ 36,860 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Rhinebeck Bank | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total capital (to risk-weighted assets) Actual Amount | $ 81,222 | $ 68,631 |
Total capital (to risk-weighted assets) Actual Ratio | 11.07% | 11.45% |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 58,694 | $ 47,964 |
Total capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 73,368 | $ 59,955 |
Total capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 capital (to risk-weighted assets) Actual Amount | $ 74,576 | $ 63,174 |
Tier 1 capital (to risk-weighted assets) Actual Ratio | 10.16% | 10.54% |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Amount | $ 44,021 | $ 35,973 |
Tier 1 capital (to risk-weighted assets) For Capital Adequacy Purposes Ratio | 6.00% | 6.00% |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 58,694 | $ 47,964 |
Tier 1 capital (to risk-weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 8.00% | 8.00% |
Common equity tier one capital (to risk weighted assets) Actual Amount | $ 74,576 | $ 63,174 |
Common equity tier one capital (to risk weighted assets) Actual Ratio | 10.16% | 10.54% |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Amount | $ 33,016 | $ 26,980 |
Common equity tier one capital (to risk weighted assets) For Capital Adequacy Purposes Ratio | 4.50% | 4.50% |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 47,689 | $ 38,971 |
Common equity tier one capital (to risk weighted assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 6.50% | 6.50% |
Tier 1 capital (to average assets) Actual Amount | $ 74,576 | $ 63,174 |
Tier 1 capital (to average assets) Actual Ratio | 8.80% | 8.57% |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Amount | $ 33,901 | $ 29,488 |
Tier 1 capital (to average assets) For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Amount | $ 42,376 | $ 36,860 |
Tier 1 capital (to average assets) To be Well Capitalized under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
Fair Value (Details)
Fair Value (Details) - Recurring basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 101,312 | $ 113,302 |
U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,971 | 3,001 |
U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 80,216 | 91,389 |
U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 16,468 | 16,526 |
Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,232 | 2,386 |
Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 425 | |
Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,971 | 3,001 |
Identical Assets (Level 1) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 2,971 | 3,001 |
Identical Assets (Level 1) | U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Identical Assets (Level 1) | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Identical Assets (Level 1) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Identical Assets (Level 1) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | |
Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 98,341 | 110,301 |
Inputs (Level 2) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Inputs (Level 2) | U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 80,216 | 91,389 |
Inputs (Level 2) | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 16,468 | 16,526 |
Inputs (Level 2) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 1,232 | 2,386 |
Inputs (Level 2) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 425 | |
Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Inputs (Level 3) | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Inputs (Level 3) | U.S. government agency mortgage-backed securities-residential | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Inputs (Level 3) | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | 0 |
Inputs (Level 3) | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | 0 | $ 0 |
Inputs (Level 3) | Other | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total | $ 0 |
Fair Value (Details 1)
Fair Value (Details 1) - Nonrecurring basis - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 1,063 | $ 1,533 |
Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 128 | 760 |
Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 935 | 773 |
Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Identical Assets (Level 1) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Identical Assets (Level 1) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Inputs (Level 2) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Inputs (Level 2) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 0 | 0 |
Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 1,063 | 1,533 |
Inputs (Level 3) | Impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | 128 | 760 |
Inputs (Level 3) | Other real estate owned | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held at fair value | $ 935 | $ 773 |
Fair Value (Details 2)
Fair Value (Details 2) - Nonrecurring basis $ in Thousands | Dec. 31, 2018USD ($)Percent | Dec. 31, 2017USD ($)Percent | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets held at fair value | $ | $ 1,063 | $ 1,533 | |
Impaired loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets held at fair value | $ | 128 | 760 | |
Other real estate owned | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets held at fair value | $ | 935 | 773 | |
Level 3 | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets held at fair value | $ | 1,063 | 1,533 | |
Level 3 | Impaired loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets held at fair value | $ | 128 | 760 | |
Level 3 | Other real estate owned | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Assets held at fair value | $ | $ 935 | $ 773 | |
Level 3 | Appraisal of collateral | Appraisal adjustments | Minimum | Impaired loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | Percent | [1],[2] | 0 | 0 |
Level 3 | Appraisal of collateral | Appraisal adjustments | Minimum | Other real estate owned | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, unobservable input (in percent) | Percent | [1],[2] | 0 | 0 |
Level 3 | Appraisal of collateral | Appraisal adjustments | Maximum | Impaired loans | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Impaired loans, unobservable input (in percent) | Percent | [1],[2] | 20 | 20 |
Level 3 | Appraisal of collateral | Appraisal adjustments | Maximum | Other real estate owned | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, unobservable input (in percent) | Percent | [1],[2] | 20 | 20 |
Level 3 | Appraisal of collateral | Liquidation expenses | Minimum | Other real estate owned | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, unobservable input (in percent) | Percent | [2],[3] | 0 | 0 |
Level 3 | Appraisal of collateral | Liquidation expenses | Maximum | Other real estate owned | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Other real estate owned, unobservable input (in percent) | Percent | [2],[3] | 6 | 6 |
[1] | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range of liquidation expenses and other appraisal adjustments are presented as a percent of the appraised value. | ||
[2] | Fair value is generally through independent appraisals of the underlying collateral that generally include various level 3 inputs which are not identifiable. | ||
[3] | Estimated costs to sell. |
Fair Value (Details 3)
Fair Value (Details 3) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Financial Assets: | |||
Cash and due from banks (Level 2) | $ 50,590 | $ 10,460 | $ 12,976 |
Available for sale securities (Level 2) | 101,312 | 113,302 | |
Held to maturity securities (Level 2) | 0 | 1,914 | |
Accrued interest receivable (Level 2) | 2,523 | 2,149 | |
Financial Liabilities: | |||
Mortgagors escrow accounts (Level 2) | 7,725 | 7,284 | |
Subordinated debt and other borrowings (Level 2) | 5,155 | 5,155 | |
Level 2 | Carrying Value | |||
Financial Assets: | |||
Cash and due from banks (Level 2) | 50,590 | 10,460 | |
Available for sale securities (Level 2) | 101,312 | 113,302 | |
Held to maturity securities (Level 2) | 0 | 1,914 | |
FHLBNY stock (Level 2) | 1,883 | 1,108 | |
Accrued interest receivable (Level 2) | 2,523 | 2,149 | |
Financial Liabilities: | |||
Deposits (Level 2) | 684,418 | 650,105 | |
Mortgagors escrow accounts (Level 2) | 7,725 | 7,284 | |
FHLBNY advances (Level 2) | 31,598 | 14,900 | |
Subordinated debt and other borrowings (Level 2) | 10,155 | 5,155 | |
Level 2 | Fair Value | |||
Financial Assets: | |||
Cash and due from banks (Level 2) | 50,590 | 10,460 | |
Available for sale securities (Level 2) | 101,312 | 113,302 | |
Held to maturity securities (Level 2) | 0 | 1,928 | |
FHLBNY stock (Level 2) | 1,883 | 1,108 | |
Accrued interest receivable (Level 2) | 2,523 | 2,149 | |
Financial Liabilities: | |||
Deposits (Level 2) | 683,163 | 649,517 | |
Mortgagors escrow accounts (Level 2) | 7,725 | 7,284 | |
FHLBNY advances (Level 2) | 31,598 | 14,900 | |
Subordinated debt and other borrowings (Level 2) | 10,155 | 5,155 | |
Level 3 | Carrying Value | |||
Financial Assets: | |||
Loans, net (Level 3) | 678,402 | 566,178 | |
Mortgage servicing rights (Level 3) | 2,278 | 2,260 | |
Level 3 | Fair Value | |||
Financial Assets: | |||
Loans, net (Level 3) | 674,287 | 565,765 | |
Mortgage servicing rights (Level 3) | $ 4,667 | $ 4,122 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | [1] | $ (6,955) | $ (5,269) |
Other comprehensive loss before reclassifications | [1] | (371) | (789) |
Amounts reclassified from accumulated other comprehensive loss | 314 | 247 | |
Period change | [1] | (57) | (542) |
Reclassification of certain income tax effects from other comprehensive loss | [1] | (1,144) | |
Balance | [1] | (7,012) | (6,955) |
Defined Benefit Pension Plan | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | [1] | (534) | (316) |
Other comprehensive loss before reclassifications | [1] | (100) | (447) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 295 | 229 |
Period change | [1] | 195 | (218) |
Balance | [1] | (339) | (534) |
Unrealized Losses on available for sale securities | |||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward] | |||
Balance | [1] | (6,421) | (4,953) |
Other comprehensive loss before reclassifications | [1] | (271) | (342) |
Amounts reclassified from accumulated other comprehensive loss | [1] | 19 | 18 |
Period change | [1] | (252) | (324) |
Reclassification of certain income tax effects from other comprehensive loss | [1] | (1,144) | |
Balance | [1] | $ (6,673) | $ (6,421) |
[1] | All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0 % in Fiscal 2018 and 34.0% in Fiscal 2017. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss (Parentheticals) (Details) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Comprehensive Income (Loss), Net of Tax | ||
Related income tax expense or benefit | 21.00% | 34.00% |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Loss (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Related income tax expense | $ 1,014 | $ 3,598 | |
Net effect on accumulated other other comprehensive loss for the period | (314) | (247) | |
Securities available for sale | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net effect on accumulated other other comprehensive loss for the period | [1] | (19) | (18) |
Defined benefit pension plan | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net effect on accumulated other other comprehensive loss for the period | [1] | (295) | (229) |
Amount Reclassified from Accumulated Other Comprehensive Loss | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net effect on accumulated other other comprehensive loss for the period | (314) | (247) | |
Amount Reclassified from Accumulated Other Comprehensive Loss | Securities available for sale | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net securities losses reclassified into earnings gain (loss) on sale of investments | [2] | (22) | (27) |
Related income tax expense | [2] | 4 | 9 |
Net effect on accumulated other other comprehensive loss for the period | [2] | (18) | (18) |
Amount Reclassified from Accumulated Other Comprehensive Loss | Defined benefit pension plan | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Amortization of net loss and prior service costs compensation and employee benefits | [3] | (374) | (347) |
Related income tax expense | [3] | 78 | 118 |
Net effect on accumulated other other comprehensive loss for the period | [3] | $ (296) | $ (229) |
[1] | All amounts are net of tax. Related income tax expense or benefit is calculated using an income tax rate of 21.0 % in Fiscal 2018 and 34.0% in Fiscal 2017. | ||
[2] | For additional details related to unrealized gains and losses on securities and related amounts reclassified from accumulated other comprehensive loss see Note 2, "Available for Sale Securities." | ||
[3] | Included in the computation of net periodic pension cost. See Note 11, "Employee Benefits" for additional details |
Subsequent Events (Detail Textu
Subsequent Events (Detail Textuals) - Subsequent Events - USD ($) $ / shares in Units, $ in Millions | Jan. 15, 2019 | Jan. 16, 2019 |
Plan of Reorganization and Minority Stock Issuance | ||
Subsequent Event [Line Items] | ||
Number of common stock share sold | 4,787,315 | |
Common stock price per share | $ 10 | |
Proceeds from issuance of common share | $ 46.1 | |
Percentage shares issued to fund the foundation | 2.00% | |
Percentage of ownership interest | 57.00% | |
Rhinebeck Bank | ||
Subsequent Event [Line Items] | ||
Dividends received | $ 5.1 | |
Rhinebeck Bank | Plan of Reorganization and Minority Stock Issuance | ||
Subsequent Event [Line Items] | ||
Number of common stock share sold | 6,345,975 | |
Number of shares held by ESOP | 436,425 |