Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Mar. 12, 2018 | Jun. 30, 2017 | |
Entity Information [Line Items] | |||
Entity Registrant Name | UNION BANKSHARES INC | ||
Entity Central Index Key | 706,863 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 4,465,647 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 183,447,500 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 3,857 | $ 4,272 |
Federal funds sold and overnight deposits | 34,651 | 35,003 |
Cash and cash equivalents | 38,508 | 39,275 |
Interest bearing deposits in banks | 9,352 | 9,504 |
Investment securities available-for-sale | 65,439 | 65,556 |
Investment securities held-to-maturity (fair value $999 thousand at December 31, 2017 and December 31, 2016) | 1,000 | 999 |
Loans held for sale | 7,947 | 7,803 |
Loans | 586,615 | 533,290 |
Allowance for loan losses | (5,408) | (5,247) |
Net deferred loan costs | 795 | 649 |
Net loans | 582,002 | 528,692 |
Accrued interest receivable | 2,500 | 2,259 |
Premises and equipment, net | 14,255 | 13,525 |
Core deposit intangible | 583 | 754 |
Goodwill | 2,223 | 2,223 |
Investment in real estate limited partnerships | 3,166 | 2,783 |
Company-owned life insurance | 8,861 | 8,617 |
Other assets | 9,995 | 9,391 |
Total assets | 745,831 | 691,381 |
Deposits | ||
Noninterest bearing | 127,824 | 112,384 |
Interest bearing | 418,621 | 382,083 |
Time | 101,129 | 103,193 |
Total deposits | 647,574 | 597,660 |
Borrowed funds | 31,581 | 31,595 |
Accrued interest and other liabilities | 8,015 | 5,847 |
Total liabilities | 687,170 | 635,102 |
Commitments and Contingencies (Notes 8, 14, 15, 17, 18 and 21) | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,940,961 shares issued at December 31, 2017 and 4,936,652 shares issued at December 31, 2016 | 9,882 | 9,874 |
Additional-paid-in capital | 755 | 620 |
Retained earnings | 57,197 | 53,086 |
Treasury stock at cost; 475,385 shares at December 31, 2017 and 474,517 shares at December 31, 2016 | (4,077) | (4,022) |
Accumulated other comprehensive loss | (5,096) | (3,279) |
Total stockholders' equity | 58,661 | 56,279 |
Total liabilities and stockholders' equity | $ 745,831 | $ 691,381 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||
Investment securities held-to-maturity, fair value | $ 999 | $ 999 |
Stockholders' Equity | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 4,940,961 | 4,936,652 |
Treasury stock, shares | 475,385 | 474,517 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and dividend income | |||
Interest and fees on loans | $ 26,978 | $ 25,056 | $ 23,531 |
Interest on debt securities: | |||
Taxable | 977 | 885 | 950 |
Tax exempt | 634 | 589 | 436 |
Dividends | 167 | 95 | 43 |
Interest on federal funds sold and overnight deposits | 114 | 51 | 15 |
Interest on interest bearing deposits in banks | 147 | 160 | 169 |
Total interest and dividend income | 29,017 | 26,836 | 25,144 |
Interest expense | |||
Interest on deposits | 1,771 | 1,622 | 1,682 |
Interest on short-term borrowed funds | 12 | 8 | 9 |
Interest on long-term borrowed funds | 472 | 431 | 334 |
Total interest expense | 2,255 | 2,061 | 2,025 |
Net interest income | 26,762 | 24,775 | 23,119 |
Provision for loan losses | 200 | 150 | 550 |
Net interest income after provision for loan losses | 26,562 | 24,625 | 22,569 |
Noninterest income | |||
Trust income | 739 | 737 | 719 |
Service fees | 5,951 | 5,871 | 5,568 |
Net gains on sales of investment securities available-for-sale | 17 | 71 | 53 |
Net gains on sales of loans held for sale | 2,303 | 2,898 | 2,871 |
Other income | 385 | 563 | 581 |
Total noninterest income | 9,395 | 10,140 | 9,792 |
Noninterest expenses | |||
Salaries and wages | 10,257 | 10,203 | 9,517 |
Pension and other employee benefits | 3,708 | 3,525 | 2,977 |
Occupancy expense, net | 1,415 | 1,263 | 1,279 |
Equipment expense | 2,208 | 2,115 | 1,875 |
Other expenses | 6,317 | 6,550 | 6,172 |
Total noninterest expenses | 23,905 | 23,656 | 21,820 |
Income before provision for income taxes | 12,052 | 11,109 | 10,541 |
Provision for income taxes | 3,603 | 2,598 | 2,663 |
Net income | $ 8,449 | $ 8,511 | $ 7,878 |
Earnings per common share | $ 1.89 | $ 1.91 | $ 1.77 |
Dividends per common share | $ 1.16 | $ 1.11 | $ 1.08 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Net Income | $ 8,449 | $ 8,511 | $ 7,878 |
Investment securities available-for-sale: | |||
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale | 423 | (590) | (184) |
Reclassification adjustments for net gains on investment securities available-for-sale realized in net income | (11) | (47) | (35) |
Total | 412 | (637) | (219) |
Defined benefit pension plan: | |||
Net actuarial loss arising during the year | (1,525) | (449) | (740) |
Reclassification adjustment for amortization of net actuarial loss realized in net income | 134 | 109 | 37 |
Total | (1,391) | (340) | (703) |
Total other comprehensive loss | (979) | (977) | (922) |
Total comprehensive income | $ 7,470 | $ 7,534 | $ 6,956 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained Earnings | Treasury Stock | Accumulated other comprehensive loss |
Balances at Dec. 31, 2014 | $ 51,434 | $ 9,859 | $ 418 | $ 46,462 | $ (3,925) | $ (1,380) |
Common Stock, Shares, net of treasury at Dec. 31, 2014 | 4,458,430 | |||||
Net income | 7,878 | 7,878 | ||||
Other comprehensive loss | (922) | (922) | ||||
Dividend reinvestment plan | 0 | |||||
Cash dividends declared ($1.16, $1.11 and $1.08 per share for the year ended December 31, 2017, 2016 and 2015, respectively) | (4,816) | (4,816) | ||||
Stock based compensation expense | 35 | 35 | ||||
Exercise of stock options | 53 | $ 5 | 48 | |||
Exercise of stock options, shares | 2,500 | |||||
Purchase of treasury stock | (94) | (94) | ||||
Purchase of treasury stock, shares | (3,753) | |||||
Balances at Dec. 31, 2015 | 53,568 | $ 9,864 | 501 | 49,524 | (4,019) | (2,302) |
Common Stock, Shares, net of treasury at Dec. 31, 2015 | 4,457,177 | |||||
Net income | 8,511 | 8,511 | ||||
Other comprehensive loss | (977) | (977) | ||||
Dividend reinvestment plan | 10 | 7 | 3 | |||
Dividend reinvestment plan, shares | 315 | |||||
Cash dividends declared ($1.16, $1.11 and $1.08 per share for the year ended December 31, 2017, 2016 and 2015, respectively) | (4,949) | (4,949) | ||||
Stock based compensation expense | 66 | $ 5 | 61 | |||
Stock based compensation expense, shares | 2,356 | |||||
Exercise of stock options | 56 | $ 5 | 51 | |||
Exercise of stock options, shares | 2,500 | |||||
Purchase of treasury stock | (6) | (6) | ||||
Purchase of treasury stock, shares | (213) | |||||
Balances at Dec. 31, 2016 | 56,279 | $ 9,874 | 620 | 53,086 | (4,022) | (3,279) |
Common Stock, Shares, net of treasury at Dec. 31, 2016 | 4,462,135 | |||||
Net income | 8,449 | 8,449 | ||||
Other comprehensive loss | (979) | (979) | ||||
Reclassifcation adjustment for effect of enacted tax law changes | 838 | (838) | ||||
Dividend reinvestment plan | 25 | 20 | 5 | |||
Dividend reinvestment plan, shares | 562 | |||||
Cash dividends declared ($1.16, $1.11 and $1.08 per share for the year ended December 31, 2017, 2016 and 2015, respectively) | (5,176) | (5,176) | ||||
Stock based compensation expense | 104 | $ 6 | 98 | |||
Stock based compensation expense, shares | 3,309 | |||||
Exercise of stock options | 19 | $ 2 | 17 | |||
Exercise of stock options, shares | 1,000 | |||||
Purchase of treasury stock | (60) | (60) | ||||
Purchase of treasury stock, shares | (1,430) | |||||
Balances at Dec. 31, 2017 | $ 58,661 | $ 9,882 | $ 755 | $ 57,197 | $ (4,077) | $ (5,096) |
Common Stock, Shares, net of treasury at Dec. 31, 2017 | 4,465,576 |
Consolidated Statements of Cha7
Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Dividends per common share | $ 1.16 | $ 1.11 | $ 1.08 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows From Operating Activities | |||
Net income | $ 8,449 | $ 8,511 | $ 7,878 |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation | 1,223 | 1,255 | 1,080 |
Provision for loan losses | 200 | 150 | 550 |
Deferred income tax provision | 993 | 566 | 341 |
Net amortization of investment securities | 423 | 384 | 214 |
Equity in losses of limited partnerships | 627 | 565 | 484 |
Stock based compensation expense | 104 | 66 | 35 |
Net increase in unamortized loan costs | (146) | (134) | (160) |
Proceeds from sales of loans held for sale | 124,514 | 138,443 | 134,578 |
Origination of loans held for sale | (122,355) | (137,713) | (126,599) |
Net gains on sales of loans held for sale | (2,303) | (2,898) | (2,871) |
Net loss on disposals of premises and equipment | 34 | 13 | 7 |
Net gains on sales of investment securities available-for-sale | (17) | (71) | (53) |
Write-downs of impaired assets | 0 | 0 | 42 |
Net gains on sales of other real estate owned | 0 | 0 | (29) |
(Increase) decrease in accrued interest receivable | (241) | (427) | 22 |
Amortization of core deposit intangible | 171 | 171 | 171 |
Increase in other assets | (1,323) | (1,202) | (1,387) |
Contribution to defined benefit pension plan | (750) | (750) | 0 |
Increase (decrease) in other liabilities | 265 | 715 | (1,173) |
Net cash provided by operating activities | 9,868 | 7,644 | 13,130 |
Interest bearing deposits in banks | |||
Proceeds from maturities and redemptions | 4,882 | 4,244 | 3,579 |
Purchases | (4,730) | (996) | (4,080) |
Investment securities held-to-maturity | |||
Proceeds from maturities, calls and paydowns | 0 | 4,220 | 2,000 |
Investment securities available-for-sale | |||
Proceeds from sales | 14,409 | 6,620 | 11,540 |
Proceeds from maturities, calls and paydowns | 6,926 | 9,754 | 7,020 |
Purchases | (21,001) | (29,098) | (27,416) |
Purchase of nonmarketable stock | (518) | (1,143) | (269) |
Redemption of nonmarketable stock | 541 | 722 | 389 |
Net increase in loans | (53,568) | (32,947) | (20,713) |
Recoveries of loans charged off | 168 | 59 | 83 |
Purchases of premises and equipment | (1,987) | (1,938) | (2,289) |
Investments in limited partnerships | (465) | (948) | (32) |
Purchase of Company-owned life insurance | 0 | 0 | (5,000) |
Proceeds of Company-owned life insurance death benefit | 0 | 527 | 0 |
Proceeds from sales of other real estate owned | 0 | 0 | 342 |
Proceeds from sales of premises and equipment | 0 | 200 | 0 |
Net cash used in investing activities | (55,343) | (40,724) | (34,846) |
Cash Flows From Financing Activities | |||
Advances of long-term borrowings | 10,000 | 25,451 | 0 |
Repayment of long-term debt | (10,279) | (2,898) | (294) |
Net increase (decrease) in short-term borrowings outstanding | 265 | (522) | (5,260) |
Net increase in noninterest bearing deposits | 15,440 | 12,558 | 9,441 |
Net increase in interest bearing deposits | 36,538 | 71,880 | 7,481 |
Net decrease in time deposits | (2,064) | (47,186) | (8,578) |
Issuance of common stock | 19 | 56 | 53 |
Purchase of treasury stock | (60) | (6) | (94) |
Dividends paid | (5,151) | (4,939) | (4,816) |
Net cash provided by (used in) financing activities | 44,708 | 54,394 | (2,067) |
Net (decrease) increase in cash and cash equivalents | (767) | 21,314 | (23,783) |
Cash and cash equivalents | |||
Beginning of year | 39,275 | 17,961 | 41,744 |
End of year | 38,508 | 39,275 | 17,961 |
Supplemental Disclosures of Cash Flow Information | |||
Interest paid | 2,249 | 2,239 | 2,060 |
Income taxes paid | 1,520 | 1,505 | 2,040 |
Supplemental Schedule of Noncash Investing and Financing Activities | |||
Other real estate acquired in settlement of loans | 36 | 0 | 59 |
Investment in limited partnerships acquired by capital contributions payable | 546 | 27 | 0 |
Dividends paid on Common Stock | |||
Dividends declared | 5,176 | 4,949 | 4,816 |
Dividends reinvested | (25) | (10) | 0 |
Dividends paid on Common Stock | $ 5,151 | $ 4,939 | $ 4,816 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and the Subsidiary (the Company) are in conformity with GAAP and general practices within the banking industry. The following is a description of the more significant policies. The consolidated financial statements include the accounts of Union Bankshares, Inc., and its wholly owned subsidiary, Union Bank headquartered in Morrisville, Vermont. All significant intercompany transactions and balances have been eliminated. The Company utilizes the accrual method of accounting for financial reporting purposes. Certain amounts in the 2016 and 2015 consolidated financial statements have been reclassified to conform to the current year presentation. The acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-K, including Part I, Part II and III. The following is provided to aid the reader and provide a reference page when reviewing this Form 10-K: AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OREO: Other real estate owned CFPB: Consumer Financial Protection Bureau OTTI: Other-than-temporary impairment COLI: Company-Owned Life Insurance OTT: Other-than-temporary Company: Union Bankshares, Inc. and Subsidiary Plan: The Union Bank Pension Plan DFR: Vermont Department of Financial Regulation RD: USDA Rural Development Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 RSU: Restricted Stock Units DRIP: Dividend Reinvestment and Stock Purchase Plan SBA: U.S. Small Business Administration FASB: Financial Accounting Standards Board SEC: U.S. Securities and Exchange Commission FDIC: Federal Deposit Insurance Corporation SOX Act: Sarbanes Oxley Act of 2002 FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 Tax Act: Tax Cut and Jobs Act FHA: U.S. Federal Housing Administration TDR: Troubled-debt restructuring FHLB: Federal Home Loan Bank of Boston Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FRB: Federal Reserve Board USDA: U.S. Department of Agriculture Fannie Mae: Federal National Mortgage Association VA: U.S. Veterans Administration FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2006 Plan: Executive Nonqualified Excess Plan GAAP: Generally accepted accounting principles in the United States 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company HTM: Held-to-maturity 2014 Equity Plan: 2014 Equity Incentive Plan HUD: U.S. Department of Housing and Urban Development Nature of operations The Company provides a variety of financial services to individuals, municipalities, commercial businesses and nonprofit customers through its branches, ATMs, telebanking, mobile and internet banking systems in northern Vermont and New Hampshire. This market area encompasses primarily retail consumers, small businesses, municipalities, agricultural producers and the tourism industry. The Company's primary deposit products are checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts and its primary lending products are commercial, real estate, municipal and consumer loans. The Company also offers fiduciary and asset management services through its Asset Management Group, an unincorporated division of Union. Significant concentration of credit risk The Bank grants loans primarily to customers in Vermont and New Hampshire. Although the Bank has a diversified loan portfolio, a large portion of Bank's loans are secured by commercial or residential real estate located in Vermont and New Hampshire and is subject to volatility with each state's real estate market. Additionally, the borrower's ability to repay loans is highly dependent upon other economic factors throughout Vermont and New Hampshire. The Bank typically will require the principals of any commercial borrower to obligate themselves personally on the loan. Use of estimates in preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term and involve inherent uncertainties relate to the determination of the ALL on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets, judgments regarding valuation and impairment of investment securities and other assets as well as pension plan accounting. These estimates involve a significant degree of complexity and subjectivity and the amount of the change that is reasonably possible, should any of these estimates prove inaccurate, cannot be estimated. Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. Asset management operations Assets held by Union's Asset Management Group in a fiduciary or agency capacity, other than trust cash on deposit with Union, are not included in these consolidated financial statements because they are not assets of Union or the Company. Fair value measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: AFS securities: Marketable equity securities and mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of the Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Investment securities Debt securities the Company has the positive intent and ability to hold to maturity are classified as HTM and reported at amortized cost. Debt and equity securities not classified as either HTM or trading are classified as AFS. Investments classified as AFS are reported at fair value. Investment securities purchased and held primarily for resale in the near future are classified as trading securities and are reported at fair value with unrealized gains and losses included in earnings. The Company does not generally hold any securities classified as trading. Accretion of discounts and amortization of premiums arising at acquisition on investment securities are included in income using the effective interest method over the life of the securities to the call date. Unrealized gains and losses on investment securities AFS are excluded from earnings and reported in Accumulated OCI, net of tax and reclassification adjustment, as a separate component of stockholders' equity. The specific identification method is used to determine realized gains and losses on sales of AFS or trading securities. The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Declines in the fair values of individual equity securities that are deemed by management to be OTT are reflected in noninterest income when identified. Management considers the following factors in determining whether an OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The estimated fair value of loans held for sale is based on current price quotes that determine the amount that the loans could be sold for in the secondary market. Loans transferred from held for sale to portfolio are transferred at the lower of cost or fair value in the aggregate. Sales are normally made without recourse. Gains and losses on the disposition of loans held for sale are determined on the specific identification basis. Net unrealized losses are recognized through a valuation allowance by charges to income. Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. Allowance for loan losses The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Other real estate owned Real estate properties acquired through or in lieu of loan foreclosure are to be sold and are initially recorded based on an independent appraisal or a broker price opinion at the estimated fair value less estimated selling costs at the date of acquisition, establishing a new carrying basis. Thereafter, valuations are periodically performed by management, and the real estate is carried in Other assets at the lower of carrying amount or fair value, less estimated cost to sell. Costs of significant property improvements are capitalized, if deemed recoverable, whereas revenue and expenses from operations and changes in valuation are charged to Other expenses on the Company's consolidated statements of income. There was one property in OREO at December 31, 2017 valued at $36 thousand . There were no OREO properties at December 31, 2016 . Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statement of income. Maintenance and repairs are charged to current expense as incurred and the costs of major renovations and betterments are capitalized. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. Intangible assets Intangible assets include goodwill, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition , as well as a core deposit intangible related to the deposits acquired (see Note 9). The core deposit intangible is amortized on a straight line basis over the estimated average life of the acquired core deposit base of 10 years. The Company evaluates the valuation and amortization of the core deposit intangible if events occur that could result in possible impairment. With respect to goodwill, in accordance with current authoritative guidance, the Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company is less than its carrying amount, which could result in goodwill impairment. Federal Home Loan Bank stock As a member of the FHLB, Union is required to invest in Class B common stock of the FHLB. The Class B common stock has a five year notice requirement for redemption and there is no guarantee of future redemption. Also, there is the possibility of future capital calls by the FHLB on member banks to ensure compliance with its capital plan. FHLB stock is reported in Other assets at its par value of $2.3 million at December 31, 2017 and December 31, 2016 . The stock is nonmarketable, and is redeemable by the FHLB at par value. Company-owned life insurance COLI represents life insurance on the lives of certain current or former directors or employees who have provided positive consent allowing the Company to be the beneficiary of such policies. The Company utilizes COLI as tax-efficient funding for certain benefit obligations to its employees and directors, including obligations under one of the Company's nonqualified deferred compensation plans. (See Note 14.) The Company is the primary beneficiary of the insurance policies. Increases in the cash value of the policies, as well as any gain on insurance proceeds received, are recorded in Other income, and are not currently subject to income taxes. COLI is recorded at the cash value of the policies, less any applicable cash surrender charges (of which there are currently none). The Company reviews the financial strength of the insurance carriers prior to the purchase of COLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed annually and COLI with any individual carrier is limited by Company policy to 15% of the sum of Tier 1 Capital and allowable Tier 2 capital. Servicing assets Servicing assets are recognized as separate assets when servicing rights are acquired through purchase or through sale of loans with servicing rights retained. Capitalized servicing rights are reported in Other assets, are initially recorded at estimated fair market value and are amortized against noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The estimated fair value of capitalized servicing rights represents the present value of the future servicing fees arising from the right to service loans that have been previously sold. Servicing assets are evaluated regularly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value of a stratum is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that estimated fair value is less than the capitalized amount for the stratum. Investment in real estate limited partnerships The Company has purchased various limited partnership interests in affordable housing partnerships. These partnerships were established to acquire, own and rent residential housing for elderly, low or moderate income residents in northern Vermont or in New Hampshire. Effective January 1, 2014, the Company adopted ASU 2014-01, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” The amendment permits an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. There were no impairment losses during the year resulting from the forfeiture or ineligibility of tax credits related to qualified affordable housing project investments. See Note 10. Defined benefit pension plan On October 18, 2017, the Company's Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan. Benefit accruals have been frozen and the Plan closed to new participants since October 5, 2012. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the Plan by December 31, 2018. See Note 14. Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statement of income. Earnings per common share Earnings per common share for the period are computed based on the weighted average number of shares of common stock issued during the period, including DRIP shares issuable upon reinvestment of dividends, retroactively adjusted for stock splits and stock dividends, if any, and reduced for shares held in treasury. See Note 16. Income taxes The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on taxable income. The Company recognizes income taxes under the asset and liability method. This involves estimating the Company's actual current tax exposure as well as assessing temporary differences resulting from differing treatment of items, such as timing of the deduction of expenses, for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are netted and included in Other assets. 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 Company must also assess the likelihood that any deferred tax assets will be recovered from future taxable income and to the extent that recovery is not likely, a valuation allowance must be established. A change in enacted federal income tax rates for future periods, such as occurred with enactment of the Tax Cuts and Jobs Act in December, 2017, requires revaluation of deferred taxes. Significant management judgment is required in determining the provision for income taxes and deferred tax assets and liabilities. Affordable housing tax credits are recognized as a reduction of the Provision for income taxes in the year they are earned. See Note 13. Off-balance-sheet financial instruments In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to originate credit, unused lines of credit including commitments under credit card arrangements, commitments to purchase investment securities, commitments to invest in real estate limited partnerships, commercial letters of credit, standby letters of credit and risk-sharing commitments on certain sold loans. Such financial instruments are recorded in the financial statements when they become fixed and certain. Comprehensive income (loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statement of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheet (Accumulated OCI) (See Note 23). OCI, along with net income, comprises the Company's total comprehensive income or loss. 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 the assets have been isolated from the Company, 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 the Company does no |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Restrictions on Cash and Cash Equivalents The nature of the Company's business requires that it maintain amounts due from correspondent banks which, at times, may exceed federally insured limits. The balances in these accounts at December 31, were as follows: 2017 2016 (Dollars in thousands) Noninterest bearing accounts $ 210 $ 289 Federal Reserve Bank of Boston 34,344 34,777 FHLB of Boston 310 572 No losses have been experienced in these accounts and the Company believes it is not exposed to any significant risk with respect to the accounts. The Company had no requirement to maintain contracted clearing balances at December 31, 2017 or 2016 . Balances at the Federal Reserve Bank of Boston and a portion of the funds at the FHLB are classified as overnight deposits as they earn interest. The Company is required to maintain vault cash or noninterest bearing reserve balances with Federal Reserve Bank of Boston. Total reserve balances required at December 31, 2017 and 2016 were $1.4 million and $891 thousand , respectively, which were both satisfied by vault cash. |
Interest Bearing Deposits In Ba
Interest Bearing Deposits In Banks | 12 Months Ended |
Dec. 31, 2017 | |
Interest Bearing Deposits in Banks [Abstract] | |
Investment in interest bearing deposits in banks [Text Block] | Interest Bearing Deposits in Banks Interest bearing deposits in banks consist of certificates of deposit purchased from various financial institutions. Deposits at each institution are generally maintained at or below the FDIC insurable limit of $250 thousand. As of December 31, 2017 , the Company held certificates with rates ranging from 0.55% to 2.55% and various maturity dates through 2028, with $2.5 million scheduled to mature in 2018 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Investment securities as of the balance sheet dates consisted of the following: December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 7,805 $ 12 $ (122 ) $ 7,695 Agency MBS 28,378 12 (274 ) 28,116 State and political subdivisions 24,704 249 (239 ) 24,714 Corporate 4,412 48 (67 ) 4,393 Total debt securities 65,299 321 (702 ) 64,918 Mutual funds 521 — — 521 Total $ 65,820 $ 321 $ (702 ) $ 65,439 Held-to-maturity U.S. Government-sponsored enterprises $ 1,000 $ — $ (1 ) $ 999 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 10,221 $ 15 $ (196 ) $ 10,040 Agency MBS 18,283 27 (269 ) 18,041 State and political subdivisions 27,909 113 (650 ) 27,372 Corporate 9,745 84 (129 ) 9,700 Total debt securities 66,158 239 (1,244 ) 65,153 Mutual funds 403 — — 403 Total $ 66,561 $ 239 $ (1,244 ) $ 65,556 Held-to-maturity U.S. Government-sponsored enterprises $ 999 $ — $ — $ 999 Investment securities with a carrying amount of $4.6 million and $8.4 million at December 31, 2017 and 2016 , respectively, were pledged as collateral for public deposits, customer repurchase agreements and for other purposes as required or permitted by law. Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2017 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 3 $ 1,824 $ (7 ) 9 $ 4,374 $ (116 ) 12 $ 6,198 $ (123 ) Agency MBS 26 19,315 (143 ) 7 5,222 (131 ) 33 24,537 (274 ) State and political subdivisions 8 3,803 (22 ) 18 7,899 (217 ) 26 11,702 (239 ) Corporate 2 870 (31 ) 2 964 (36 ) 4 1,834 (67 ) Total 39 $ 25,812 $ (203 ) 36 $ 18,459 $ (500 ) 75 $ 44,271 $ (703 ) December 31, 2016 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 13 $ 8,351 $ (180 ) 3 $ 1,172 $ (16 ) 16 $ 9,523 $ (196 ) Agency MBS 22 15,141 (261 ) 1 344 (8 ) 23 15,485 (269 ) State and political subdivisions 40 16,481 (650 ) — — — 40 16,481 (650 ) Corporate 8 3,973 (56 ) 4 1,627 (73 ) 12 5,600 (129 ) Total 83 $ 43,946 $ (1,147 ) 8 $ 3,143 $ (97 ) 91 $ 47,089 $ (1,244 ) The Company has the ability to hold the investment securities that had unrealized losses at December 31, 2017 for the foreseeable future and no declines were deemed by management to be OTT. The following table presents the proceeds, gross gains and gross losses from sales of available-for-sale securities: For The Years Ended December 31, 2017 2016 2015 (Dollars in thousands) Proceeds $ 14,409 $ 6,620 $ 11,540 Gross gains 147 131 66 Gross losses (130 ) (60 ) (13 ) Net gains $ 17 $ 71 $ 53 The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2017 , were as follows: Amortized Cost Fair Value (Dollars in thousands) Available-for-sale Due from one to five years $ 3,818 $ 3,871 Due from five to ten years 16,858 16,834 Due after ten years 16,245 16,097 36,921 36,802 Agency MBS 28,378 28,116 Total debt securities available-for-sale $ 65,299 $ 64,918 Held-to-maturity Due in one year or less $ 1,000 $ 999 Total debt securities held-to-maturity $ 1,000 $ 999 Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities may differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and not included in the contractual maturity categories in the above maturity summary. |
Loans Held for Sale and Loan Se
Loans Held for Sale and Loan Servicing | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Loans Held for Sale and Loan Servicing At December 31, 2017 and 2016 , loans held for sale consisted of conventional residential mortgages originated for subsequent sale. At December 31, 2017 and 2016 , the estimated fair value of these loans was in excess of their carrying value, and therefore no valuation reserve was necessary for loans held for sale. Commercial and residential mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of commercial and residential mortgage loans serviced for others was $499.2 million and $452.0 million at December 31, 2017 and 2016 , respectively. Loans sold consisted of the following during the years ended December 31: 2017 2016 2015 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 121,985 $ 2,279 $ 135,294 $ 2,880 $ 131,706 $ 2,871 Commercial loans 226 24 251 18 — — Total $ 122,211 $ 2,303 $ 135,545 $ 2,898 $ 131,706 $ 2,871 There were no obligations to repurchase loans for any amount at December 31, 2017 , but there were contractual risk sharing commitments on certain sold loans totaling $665 thousand as of such date. The Company generally retains the servicing rights on loans sold. At December 31, 2017 and 2016 , the unamortized balance of servicing rights on loans sold with servicing retained was $1.7 million and $1.6 million , respectively, and is included in Other assets. The estimated fair value of these servicing rights was in excess of their carrying value at December 31, 2017 and 2016 , and therefore no impairment reserve was necessary. The net capitalization and amortization of MSRs is included in Other income. The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2017 2016 2015 (Dollars in thousands) Capitalization of servicing rights $ 770 $ 823 $ 839 Amortization of servicing rights 716 720 670 Net capitalization of servicing rights $ 54 $ 103 $ 169 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivables [Text Block] | Loans The composition of Net loans at December 31, was as follows: 2017 2016 (Dollars in thousands) Residential real estate $ 178,999 $ 172,727 Construction real estate 42,935 34,189 Commercial real estate 254,291 249,063 Commercial 50,719 41,999 Consumer 3,894 3,962 Municipal 55,777 31,350 Gross loans 586,615 533,290 Allowance for loan losses (5,408 ) (5,247 ) Net deferred loan costs 795 649 Net loans $ 582,002 $ 528,692 Qualifying residential first mortgage loans and certain commercial real estate loans held by Union may also be pledged as collateral for borrowings from the FHLB under a blanket lien. During 2017, a separate agreement was established with the FHLB pursuant to which the Company has the authority to collateralize deposits of municipalities, up to its available FHLB borrowing capacity, with letters of credit issued by the FHLB. At December 31, 2017 , $29.6 million of qualifying loans were pledged as collateral to FHLB for these deposits. There were no loans pledged as collateral on deposits of municipalities at December 31, 2016 . A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2017 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 173,914 $ 3,047 $ 750 $ 472 $ 816 $ 178,999 Construction real estate 42,857 — — 22 56 42,935 Commercial real estate 253,266 357 361 — 307 254,291 Commercial 50,675 21 11 — 12 50,719 Consumer 3,884 7 3 — — 3,894 Municipal 55,777 — — — — 55,777 Total $ 580,373 $ 3,432 $ 1,125 $ 494 $ 1,191 $ 586,615 December 31, 2016 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 168,125 $ 1,661 $ 472 $ 672 $ 1,797 $ 172,727 Construction real estate 34,148 17 — — 24 34,189 Commercial real estate 245,402 1,642 153 157 1,709 249,063 Commercial 41,920 12 42 10 15 41,999 Consumer 3,946 12 3 1 — 3,962 Municipal 31,350 — — — — 31,350 Total $ 524,891 $ 3,344 $ 670 $ 840 $ 3,545 $ 533,290 There were no residential real estate loans in process of foreclosure at December 31, 2017 . Aggregate interest on nonaccrual loans not recognized was $1.2 million for the year ended December 31 , 2017 , $1.3 million for the year ended December 31 , 2016 and $1.2 million for the year ended December 31 , 2015 . |
Allowance for loan losses and c
Allowance for loan losses and credit quality | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses [Text Block] | Allowance for Loan Losses and Credit Quality Changes in the ALL, by class of loans, were as follows for the years ended : December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2016 $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 Provision for loan losses 17 73 20 49 16 24 1 200 Recoveries of amounts charged off 138 24 — 4 2 — — 168 1,554 488 2,707 395 44 64 363 5,615 Amounts charged off (193 ) — — — (14 ) — — (207 ) Balance, December 31, 2017 $ 1,361 $ 488 $ 2,707 $ 395 $ 30 $ 64 $ 363 $ 5,408 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2015 $ 1,419 $ 514 $ 2,792 $ 209 $ 28 $ 38 $ 201 $ 5,201 Provision (credit) for loan losses 64 (135 ) (105 ) 158 5 2 161 150 Recoveries of amounts charged off 36 12 — 8 3 — — 59 1,519 391 2,687 375 36 40 362 5,410 Amounts charged off (120 ) — — (33 ) (10 ) — — (163 ) Balance, December 31, 2016 $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 December 31, 2015 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2014 $ 1,330 $ 439 $ 2,417 $ 176 $ 27 $ 42 $ 263 $ 4,694 Provision (credit) for loan losses 136 47 375 46 12 (4 ) (62 ) 550 Recoveries of amounts charged off 36 28 — 16 3 — — 83 1,502 514 2,792 238 42 38 201 5,327 Amounts charged off (83 ) — — (29 ) (14 ) — — (126 ) Balance, December 31, 2015 $ 1,419 $ 514 $ 2,792 $ 209 $ 28 $ 38 $ 201 $ 5,201 The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 47 $ — $ 1 $ — $ — $ — $ — $ 48 Collectively evaluated for impairment 1,314 488 2,706 395 30 64 363 5,360 Total allocated $ 1,361 $ 488 $ 2,707 $ 395 $ 30 $ 64 $ 363 $ 5,408 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 63 $ — $ 40 $ — $ — $ — $ — $ 103 Collectively evaluated for impairment 1,336 391 2,647 342 26 40 362 5,144 Total allocated $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 Despite the allocation shown in the tables above, the ALL is general in nature and is available to absorb losses from any class of loan. The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,718 $ 82 $ 1,074 $ 378 $ — $ — $ 3,252 Collectively evaluated for impairment 177,281 42,853 253,217 50,341 3,894 55,777 583,363 Total $ 178,999 $ 42,935 $ 254,291 $ 50,719 $ 3,894 $ 55,777 $ 586,615 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,448 $ 88 $ 3,328 $ 432 $ — $ — $ 5,296 Collectively evaluated for impairment 171,279 34,101 245,735 41,567 3,962 31,350 527,994 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4/M Rating - Satisfactory/Monitor Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list. 5-7 Rating - Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate. The following tables summarize the loan ratings applied to the Company's loans by class as of the balance sheet dates: December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 164,733 $ 33,401 $ 177,388 $ 38,877 $ 3,859 $ 55,777 $ 474,035 Satisfactory/Monitor 11,296 9,374 73,772 11,165 30 — 105,637 Substandard 2,970 160 3,131 677 5 — 6,943 Total $ 178,999 $ 42,935 $ 254,291 $ 50,719 $ 3,894 $ 55,777 $ 586,615 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 158,140 $ 29,248 $ 182,247 $ 38,219 $ 3,928 $ 31,350 $ 443,132 Satisfactory/Monitor 10,641 4,830 62,193 3,109 34 — 80,807 Substandard 3,946 111 4,623 671 — — 9,351 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2017 , 2016 and 2015 : December 31, 2017 For The Year Ended December 31, 2017 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 238 $ 247 $ 47 Commercial real estate 137 141 1 With an allowance recorded 375 388 48 Residential real estate 1,480 1,983 — Construction real estate 82 82 — Commercial real estate 937 1,011 — Commercial 378 378 — With no allowance recorded 2,877 3,454 — Residential real estate 1,718 2,230 47 $ 1,691 $ 67 Construction real estate 82 82 — 85 4 Commercial real estate 1,074 1,152 1 1,975 86 Commercial 378 378 — 405 26 Total $ 3,252 $ 3,842 $ 48 $ 4,156 $ 183 December 31, 2016 For The Year Ended December 31, 2016 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 308 $ 317 $ 63 Commercial real estate 488 520 40 With an allowance recorded 796 837 103 Residential real estate 1,140 1,561 — Construction real estate 88 88 — Commercial real estate 2,840 2,910 — Commercial 432 432 — With no allowance recorded 4,500 4,991 — Residential real estate 1,448 1,878 63 $ 1,303 $ 50 Construction real estate 88 88 — 90 4 Commercial real estate 3,328 3,430 40 3,113 107 Commercial 432 432 — 462 33 Total $ 5,296 $ 5,828 $ 103 $ 4,968 $ 194 December 31, 2015 For The Year Ended December 31, 2015 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 659 $ 668 $ 109 Commercial real estate 2,142 2,161 227 Commercial 493 493 21 With an allowance recorded 3,294 3,322 357 Residential real estate 538 697 — Construction real estate 92 92 — Commercial real estate 952 1,015 — With no allowance recorded 1,582 1,804 — Residential real estate 1,197 1,365 109 $ 942 $ 34 Construction real estate 92 92 — 162 19 Commercial real estate 3,094 3,176 227 3,523 219 Commercial 493 493 21 123 — Total $ 4,876 $ 5,126 $ 357 $ 4,750 $ 272 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2017 , 2016 and 2015 totaling $550 thousand , $637 thousand and $606 thousand , respectively. The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2017 December 31, 2016 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 24 $ 1,718 20 $ 1,448 Construction real estate 1 82 1 88 Commercial real estate 10 1,074 10 1,452 Commercial 2 378 2 431 Total 37 $ 3,252 33 $ 3,419 The TDR loans above represent loan modifications in which a concession was provided to the borrower, including due date extensions, maturity date extensions, interest rate reductions or the forgiveness of accrued interest. Troubled loans that are restructured and meet established thresholds are classified as impaired and a specific reserve amount is allocated to the ALL on the basis of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The following table provides new TDR activity by class of loan for the years ended December 31, 2017 and 2016 : New TDRs During the New TDRs During the Year Ended December 31, 2017 Year Ended December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 9 $ 649 $ 673 9 $ 349 $ 371 Commercial real estate 2 293 293 6 803 807 At December 31, 2017 , there was one residential TDR loan with a recorded investment balance of $62 thousand that defaulted during the year ended December 31, 2017 and had been modified within the previous twelve months. At December 31, 2016 , there were no TDR loans modified within the previous twelve months that had subsequently defaulted during the year end. TDR loans are considered defaulted at 90 days past due. At December 31, 2017 and 2016 , the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Premises and Equipment The major classes of premises and equipment and accumulated depreciation at December 31 , were as follows: 2017 2016 (Dollars in thousands) Land and land improvements $ 2,975 $ 2,930 Building and improvements 14,261 13,057 Furniture and equipment 7,450 8,833 Construction in progress and deposits on equipment 438 34 25,124 24,854 Less accumulated depreciation (10,869 ) (11,329 ) $ 14,255 $ 13,525 Depreciation included in Occupancy and Equipment expenses amounted to $1.2 million , $1.3 million and $1.1 million for the years ended December 31, 2017, 2016 and 2015 , respectively. The Company is obligated under noncancelable operating leases for premises that expire in various years through the year 2022. Options to renew for additional periods are available with these leases. Future minimum rental commitments for these leases with original or remaining terms of one year or more at December 31, 2017 were as follows: (Dollars in thousands) 2018 $ 134 2019 91 2020 60 2021 52 2022 12 $ 349 Rent expense for 2017 , 2016 and 2015 amounted to $148 thousand , $144 thousand and $138 thousand , respectively. Occupancy expense is shown in the consolidated statements of income, net of rental income of $194 thousand , $220 thousand and $227 thousand in 2017 , 2016 and 2015 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million . The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the acquired core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. Amortization expense for the core deposit intangible was $171 thousand for 2017 , 2016 and 2015 . The amortization expense is included in Other expenses on the consolidated statements of income and is deductible for tax purposes. As of December 31, 2017 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2018 171 2019 171 2020 171 2021 70 Total $ 583 |
Investment in Real Estate Limit
Investment in Real Estate Limited Partnerships | 12 Months Ended |
Dec. 31, 2017 | |
Investment in Real Estate Limited Partnerships [Abstract] | |
Investment in real estate limited partnerships [Text Block] | Investment in Real Estate Limited Partnerships The Company has purchased from time to time various interests in limited partnerships established to acquire, own and rent residential housing for elderly, low or moderate income individuals in northern Vermont and New Hampshire. The carrying values of investments carried at equity were $3.2 million and $2.8 million at December 31, 2017 and 2016 , respectively. The capital contribution payable related to these investments was $546 thousand and $27 thousand at December 31, 2017 and 2016 , respectively. The provision for undistributed net losses of the partnerships charged to earnings was $627 thousand for 2017 , $565 thousand for 2016 , and $484 thousand for 2015 . The federal income tax credits related to limited partnership investments were $660 thousand , $881 thousand , and $564 thousand for the years ended December 31, 2017 , 2016 and 2015 , respectively, and are recorded as a reduction of the Provision for income taxes. See Note 13. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Deposits The following is a summary of interest bearing deposits at December 31 : 2017 2016 (Dollars in thousands) Interest bearing checking accounts $ 162,996 $ 143,037 Savings and money market accounts 255,625 239,046 Time deposits, $100,000 and over 41,182 40,581 Other time deposits 59,947 62,612 $ 519,750 $ 485,276 The following is a summary of time deposits by maturity at December 31, 2017 : (Dollars in thousands) 2018 $ 62,544 2019 21,951 2020 6,468 2021 5,020 2022 5,146 $ 101,129 Time deposits of $9.9 million and $8.7 million equal or exceed the FDIC insurance limit of $250 thousand at December 31, 2017 and 2016 , respectively. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Borrowed Funds Borrowed funds were comprised of option advance borrowings from the FHLB of $30.2 million and $30.5 million at December 31, 2017 and 2016 , respectively, and secured customer repurchase agreement sweeps of $1.4 million and $1.1 million at December 31, 2017 and 2016 , respectively. The FHLB option advance borrowings are a mix of straight bullets, balloons and amortizers with maturities through 2021. All of the FHLB borrowings had fixed interest rates ranging from 0.00% to 4.31% at December 31, 2017 and December 31, 2016 . The weighted average interest rates on the borrowings were 1.42% at December 31, 2017 and 2016 . The contractual payments due for FHLB option advance borrowings, as of December 31, 2017 , were as follows: (Dollars in thousands) 2018 $ 19,765 2019 10,287 2020 — 2021 164 $ 30,216 The Company has established both overnight and longer term lines of credit with the FHLB. These borrowings are secured by a blanket lien on qualified collateral consisting primarily of loans with first mortgages secured by one-to-four family properties and certain commercial real estate loans. At December 31, 2017 , pledged loans with a carrying value of $164.5 million provided a borrowing capacity of $100.6 million at the FHLB, less borrowings and other credit subject to collateralization of $60.8 million , resulting in remaining year-end capacity of $39.8 million . At December 31, 2016 , pledged loans with a carrying value of $161.3 million provided a borrowing capacity of $91.5 million at the FHLB, less borrowings and other credit subject to collateralization of $31.7 million , resulting in remaining year-end capacity of $59.8 million . During 2017, a separate agreement was established with the FHLB where the Company has the authority, up to its available borrowing capacity, to collateralize public unit deposits with letters of credit issued by the FHLB. At December 31, 2017 , FHLB letters of credit in the amount of $29.6 million were utilized as collateral for these deposits. There were no FHLB letters of credit utilized as collateral for public unit deposits at December 31, 2016 . In addition to its borrowing arrangements with the FHLB, Union maintains preapproved Federal Funds lines of credit with correspondent banks totaling $10.0 million . Interest on these borrowings is payable daily and charged at the federal funds rate at the time of the borrowing. Union also maintains a repurchase agreement line of credit and has access to the Federal Reserve discount window. There were no outstanding borrowings on the Federal Funds purchase lines, repurchase agreement line, or at the discount window at December 31, 2017 or 2016 . Secured customer repurchase agreement sweeps are collateralized by U.S. Government-sponsored enterprise securities with a carrying value of $2.0 million at December 31, 2017 and $1.8 million at December 31, 2016 . The average daily balance of these repurchase agreement sweeps was $1.6 million during 2017 and 2016 with weighted average interest rates of 0.26% during 2017 and 2016 . The maximum borrowings outstanding on these agreements during 2017 and 2016 were $4.9 million and $4.4 million , respectively. These repurchase agreements mature the next business day and carried weighted average interest rates of 0.25% at December 31, 2017 and 0.23% as of December 31, 2016 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The components of the Provision for income taxes for the years ended December 31 , were as follows: 2017 2016 2015 (Dollars in thousands) Current tax provision $ 2,610 $ 2,032 $ 2,322 Deferred tax provision 993 566 341 $ 3,603 $ 2,598 $ 2,663 As a result of the Tax Cuts and Jobs Act signed into law on December 22, 2017, the federal tax rate decreased from 34% to 21% effective January 1, 2018. The deferred tax provision and Provision for income taxes shown above were impacted by a one-time charge of $447 thousand for the revaluation of the Company's deferred tax assets to reflect the 21% tax rate for future periods. The total Provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 34% primarily due to the following for the years ended December 31 : 2017 2016 2015 (Dollars in thousands) Computed “expected” tax expense $ 3,884 $ 3,585 $ 3,419 Tax exempt interest (642 ) (596 ) (613 ) Increase in cash surrender value of COLI (83 ) (115 ) (96 ) Tax credits (694 ) (896 ) (564 ) Equity in losses of limited partnerships 627 565 484 Adjustment for effect of enacted tax law changes 447 — — Other 64 55 33 $ 3,603 $ 2,598 $ 2,663 Listed below are the significant components of the net deferred tax asset at December 31 : 2017 2016 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,171 $ 1,813 Deferred compensation 227 334 Net pension liability 339 316 Core deposit intangible 81 110 Limited partnership investments 23 — Unrealized loss on investment securities available-for-sale 80 342 Other 90 146 Total deferred tax asset 2,011 3,061 Components of the deferred tax liability Depreciation (493 ) (893 ) Mortgage servicing rights (364 ) (563 ) Limited partnership investments — (17 ) Goodwill (211 ) (286 ) Prepaid expenses (130 ) — Total deferred tax liability (1,198 ) (1,759 ) Net deferred tax asset $ 813 $ 1,302 Deferred tax assets are recognized subject to management's judgment that it is more likely than not that the deferred tax asset will be realized. Based on the temporary taxable items, historical taxable income and estimates of future taxable income, the Company believes that it is more likely than not that the deferred tax assets at December 31, 2017 will be realized and therefore no valuation allowance is warranted. Net deferred income tax assets are included in Other assets in the consolidated balance sheets at December 31, 2017 and 2016 . Based on management's evaluation, management has concluded that there were no significant uncertain tax positions requiring recognition in the Company's financial statements at December 31, 2017 and 2016 . Although the Company is not currently the subject of a tax examination by the IRS, the Company's tax years ended December 31, 2014 through 2016 are open to examination by the IRS under the applicable statute of limitations. The 2017 tax return has not yet been filed. The Company may from time to time be assessed interest and/or penalties by federal or state tax jurisdictions, although any such assessments historically have been minimal and immaterial to the Company's financial results. In the event that the Company receives an assessment for interest and/or penalties, it will be classified in the financial statements as Other expenses. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans Defined Benefit Pension Plan: Union sponsors a noncontributory defined benefit pension plan covering all eligible employees employed prior to October 5, 2012. On that date, the Company closed the Plan to new participants and froze the accrual of retirement benefits for current participants. On October 18, 2017, the Company's Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan. In order to settle the liabilities under the Plan, the Company will offer participants the option to receive an annuity purchased from an insurance carrier, a lump-sum cash payment, or a direct rollover into a qualifying retirement plan. An estimated $1.1 million will be contributed to the Plan by the Company in 2018 to cover the lump-sum payments and annuity purchases. The amount of the final contribution is subject to a number of factors, including changes in interest rates and the exact proportion of the participants electing a lump-sum distribution versus an annuity. At this time, the Company estimates that a $3.2 million reduction in net income will be recorded in the fourth quarter of 2018 as a result of the Plan termination and settlement of Plan assets and liabilities. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the Plan by December 31, 2018 . Once the process is complete, the Company will no longer have any remaining defined benefit pension plan obligations and thus no periodic pension expense. The following table sets forth the Plan's obligations and funded status at December 31 : 2017 2016 (Dollars in thousands) Change in projected benefit obligation Projected benefit obligation at beginning of year $ 17,687 $ 17,177 Interest cost 688 701 Actuarial loss 3,150 544 Benefits paid (693 ) (735 ) Projected benefit obligation at end of year 20,832 17,687 Change in fair value of plan assets Fair value of plan assets at beginning of year 16,631 15,717 Actuarial gain on plan assets 1,811 899 Employer contributions 750 750 Benefits paid (693 ) (735 ) Fair value of plan assets at end of year 18,499 16,631 Net liability for pension benefits $ (2,333 ) $ (1,056 ) 2017 2016 (Dollars in thousands) Accumulated benefit obligation at December 31 $ 20,832 $ 17,687 The impact of the Plan activity for 2017 and 2016 on OCI is detailed in Note 23. The Company uses the alternate amortization method for prior service costs, as provided in FASB ASC Topic 715, Employers' Accounting for Pensions. Net periodic pension benefit for 2017 , 2016 and 2015 consisted of the following components: 2017 2016 2015 (Dollars in thousands) Interest cost on projected benefit obligation $ 688 $ 701 $ 680 Expected return on plan assets (972 ) (1,036 ) (1,144 ) Amortization of net actuarial loss 204 165 56 Net periodic pension benefit $ (80 ) $ (170 ) $ (408 ) Weighted average assumptions used to determine pension benefit obligation were a discount rate of 3.52% , 3.99% and 4.17% at December 31, 2017 , 2016 and 2015 , respectively. There was no assumed rate of compensation increase for 2017 , 2016 or 2015 due to the freeze on benefit accruals in 2012. Weighted average assumptions used to determine net periodic pension benefit for the years ended December 31, 2017 , 2016 and 2015 were a discount rate of 3.99% , 4.17% and 3.83% , respectively, no rate of compensation increase for 2017 , 2016 or 2015 , and an expected long-term rate of return on plan assets of 6.00% for 2017 and 6.75% for 2016 and 2015 . Union's Plan asset allocations at December 31, 2017 and 2016 , by asset category based on their fair values, were as follows: Asset Category 2017 2016 Cash and cash equivalents 5.4 % 3.4 % Debt securities 33.2 % 49.7 % Equity securities — % 46.9 % Mutual and exchange traded funds 61.4 % — % Total 100.0 % 100.0 % The investment philosophy for the Plan has historically been to prudently invest Plan assets and future contributions received in a diversified manner that will increase the value of assets to equal or exceed the present value of the liabilities, while controlling volatility within asset allocation guidelines, to grow the Plan funding level such that investment risk can be progressively reduced, and to provide sufficient liquidity to meet anticipated cash needs. The allocation of Plan assets has changed as a result of terminating the Plan. In order to target the termination liability, the plan assets have been redistributed between liability matching assets and cash and cash equivalents. In order to achieve the liability matching goal the following asset allocation has been approved: U.S. Treasury or Agency bonds 0-50% Other debt securities 0-50% Cash and cash equivalents 0-5% There are no securities of the Company or Union held by the Plan. The equity securities of the Plan are managed by Union's Asset Management Group with the advice of the registered investment adviser engaged by Union's Asset Management Group, under the guidance of the Plan's Trustees. There is no minimum required employer contribution for 2018 , however the Company may decide to make a discretionary contribution. The fair values of the Plan's investments at December 31, 2017 and 2016 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurement December 31, 2017 Fair Value Quoted Prices in Significant Other Significant (Dollars in thousands) U.S. Government $ 7,131 $ — $ 7,131 $ — Mutual and exchange traded funds 11,368 11,368 — — Total $ 18,499 $ 11,368 $ 7,131 $ — Fair Value Measurement December 31, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) U.S. Government $ 1,826 $ — $ 1,826 $ — Common trust funds 5,207 5,207 — — Marketable equity securities: Information technology 976 976 — — Financial 813 813 — — Industrials 1,212 1,212 — — Healthcare 1,393 1,393 — — Consumer 2,131 2,131 — — Energy 1,275 1,275 — — Mutual and exchange traded funds 1,798 1,798 — — Total $ 16,631 $ 14,805 $ 1,826 $ — The fair values of the Plan assets are determined by an independent pricing service which, given the nature of the assets within the portfolio, is able to utilize quoted prices in an active market to value the majority of the assets held. The market inputs sought for assets without a specific quote listed, in approximate order of priority, include benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data including market research publications that vary by asset class. For certain security types, additional inputs may be used, or some standard inputs may not be applicable. There were no Level 3 assets held at any time during the year. Nonqualified Deferred Compensation Plans: The Company and Union have two nonqualified deferred compensation plans for directors and certain key officers. The 2008 Plan replaced a 1990 Plan that was not compliant with section 409A of the Internal Revenue Code. The Company accrued an expense of $8 thousand , $9 thousand , and $8 thousand in 2017 , 2016 and 2015 , respectively under the 2008 Plan. The benefit obligations under the 2008 Plan represent general unsecured obligations of the Company and no assets are segregated for such payments. However, the Company and Union have purchased life insurance contracts on the lives of each participant in order to recoup the funding costs of these benefits. The benefits accrued under the 2008 Plan aggregated $525 thousand and $613 thousand at December 31, 2017 and 2016 , respectively, and are included in Accrued interest and other liabilities. The cash surrender value of the life insurance policies purchased to recoup the funding costs under the 2008 Plan aggregated $986 thousand and $945 thousand at December 31, 2017 and 2016 , respectively, and are included in Company-owned life insurance in the Company's consolidated balance sheets. The 2006 Plan was adopted for directors and certain key officers. The 2006 Plan is a defined contribution plan that provides a means by which participants may elect to defer receipt of current compensation from the Company or its subsidiary in order to provide retirement or other benefits as selected in the individual adoption agreements. Participants may select among designated reference investments consisting of investment funds, with the performance of the participant's account mirroring the selected reference investment. Distributions are made only upon a qualifying distribution event, which may include a separation from service, death, disability or unforeseeable emergency, or upon a date specified in the participant's deferral election form. The 2006 Plan is intended to comply with the provisions of Section 409A of the Internal Revenue Code. The 2006 Plan is unfunded, representing a general unsecured obligation of the Company of $522 thousand and $353 thousand as of December 31, 2017 and 2016 , respectively. 401(k) Plan: Union maintains a defined contribution 401(k) plan under which employees may elect to make tax deferred contributions of up to the IRS maximum from their annual salary. All employees meeting service requirements are eligible to participate in the plan. Union may make employer matching and profit-sharing contributions to the 401(k) plan at the discretion of the Board. Company contributions are fully vested after three years of service. The 401(k) plan includes "Safe Harbor" provisions requiring annual nondiscretionary minimum contributions to the plan for all eligible participants in an amount equal to 3% of eligible earnings of each eligible participant. Additionally, in 2017 , 2016 and 2015 a discretionary profit-sharing contribution was made to the plan in an amount equal to 3% percent of each employee's eligible earnings, as defined by the plan. The following table summarizes employer contributions for the years ended December 31, 2017, 2016 and 2015 : 2017 2016 2015 (Dollars in thousands) Employer matching $ 223 $ 221 $ 200 Profit sharing 281 301 274 Safe harbor 296 294 264 Total $ 800 $ 816 $ 738 |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock Based Compensation The Company's current stock-based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock are available for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of December 31, 2017 , there were outstanding grants under the plan of RSUs and incentive stock options. RSUs. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. For each of the awards granted in 2017 , 2016 , and 2015 , 50% of the RSUs awarded were in the form of Time-Based RSUs, which vest over three years, approximately one-third per year on the anniversary of the earned date; and 50% of the RSUs awarded were in the form of Performance-Based RSUs, which are subject to both performance and time based vesting conditions, which occurs over two years, approximately one-half per year on the anniversary of the earned date. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table presents a summary of RSUs from the 2015, 2016, and 2017 Award Plan Summaries as of December 31, 2017: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2015 Award 5,445 $ 27.91 730 2016 Award 3,569 45.45 2,026 2017 Award 3,225 52.95 3,225 Total 12,239 5,981 Unrecognized compensation expense related to the unvested RSUs was $283 thousand as of December 31, 2017 and $248 thousand as of December 31, 2016 . The 2014 Equity Plan replaced the Company's 2008 ISO Plan. There were no options granted in 2017 or 2016 , and 6,000 options granted in 2015 under the 2014 Equity Plan, of which 4,500 remained outstanding and exercisable as of December 31, 2017 . As of December 31, 2017 , 3,000 incentive stock options granted under the 2008 ISO Plan remained outstanding and exercisable, with the last of such options expiring in December 2020. The exercise price of outstanding options under both plans is equal to the market price of the stock at the date of grant; therefore, the intrinsic value of the options at the date of the grant is $0 . All outstanding options have a one year requisite service period, vest after one year, and have a seven year contractual term. The compensation cost charged against income for stock options issued under the plans was $0 for 2017 and 2016 , and $35 thousand for 2015 . The following summarizes the option activity under the 2014 Equity Plan for the year ended December 31, 2017 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2017 4,500 $ 24.00 Exercised — — Forfeited/expired — — Outstanding at December 31, 2017 4,500 $ 24.00 3.96 130 Exercisable at December 31, 2017 4,500 $ 24.00 3.96 130 The following summarizes the option activity under the 2008 ISO Plan for the year ended December 31, 2017 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2017 4,000 $ 21.40 Exercised (1,000 ) 19.60 Forfeited/expired — — Outstanding at December 31, 2017 3,000 $ 22.00 2.96 93 Exercisable at December 31, 2017 3,000 $ 22.00 2.96 93 The following summarizes information regarding the proceeds received by the Company from the exercise of options during each of the last three years: 2017 2016 2015 (Dollars in thousands, except per share data) Proceeds received $ 19 $ 56 $ 53 Number of shares exercised 1,000 2,500 2,500 Weighted average price per share $ 19.60 $ 22.24 $ 21.04 Total intrinsic value of options exercised $ 25 $ 21 $ 9 As of December 31, 2017 , there was no unrecognized compensation cost as all options under both plans were fully vested and exercisable. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The following table presents the reconciliation of the calculation of basic earnings per share for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 (Dollars in thousands, except per share data) Net income $ 8,449 $ 8,511 $ 7,878 Weighted average common shares outstanding 4,462,192 4,459,001 4,458,037 Basic earnings per share $ 1.89 $ 1.91 $ 1.77 Basic earnings per share were computed by dividing net income by the weighted average number of shares outstanding during the year. There were incentive stock options with respect to 7,500 shares, 8,500 shares, and 11,000 shares outstanding at December 31, 2017 , 2016 and 2015 , respectively, excluded from the computation of diluted earnings per share since dilution resulting from these stock options is immaterial. |
Financial Instruments With Off-
Financial Instruments With Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Off-Balance Sheet Risk [Text Block] | Financial Instruments With Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate caps and floors written on adjustable-rate loans, commitments to participate in or sell loans, commitments to buy or sell securities, guarantees on certain sold loans and risk-sharing commitments on certain sold loans under the MPF program with the FHLB. At December 31, 2017 and 2016 , the Company had binding loan commitments to sell residential mortgage loans at fixed rates totaling $4.2 million and $7.3 million , respectively. The fair value of these commitments is not material to the Company's financial statements. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments and the potential impact on the Company's future financial position, financial performance and cash flow. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. For interest rate caps and floors embedded in adjustable-rate loans, the contract or notional amounts do not represent exposure to credit loss. The Company controls the risk of interest rate cap agreements through credit approvals, limits and monitoring procedures. Interest rate caps and floors on adjustable rate loans permit the Company to manage its interest rate risk and cash flow risk on these loans within parameters established by Company policy. The Company generally requires collateral or other security to support financial instruments with credit risk. The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31 : Contract or Notional Amount 2017 2016 (Dollars in thousands) Commitments to originate loans $ 25,394 $ 31,404 Unused lines of credit 85,906 76,544 Standby and commercial letters of credit 2,064 1,624 Credit card arrangement 1,326 1,341 MPF credit enhancement obligation, net (See Note 18) 640 610 Commitment to purchase investment in a real estate limited partnership 1,470 980 Contract commitment for renovation project 662 — Total $ 117,462 $ 112,503 Commitments to extend credit are agreements to lend to a customer at either a fixed or variable interest rate as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates within 90 days of the commitment. Unused lines of credit are generally renewable at least annually except for home equity lines which usually have a specified draw period followed by a specified repayment period. Unused lines may have other termination clauses and may require payment of a fee. Since many of the commitments and lines are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon issuance of a commitment to extend credit is based on management's credit evaluation of the customer. Collateral held varies but may include real estate, accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are issued to support the customer's private borrowing arrangements or guarantee the customer's contractual performance on behalf of a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers and the Company evaluates each customer's creditworthiness on a case-by-case basis. The fair value of standby letters of credit has not been included in the Company's consolidated balance sheet for either year as the fair value is immaterial. The Company did not hold or issue derivative instruments or hedging instruments during the years ended December 31, 2017 and 2016 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Contingent Liabilities: The Company sells 1-4 family residential mortgage loans under the MPF program with FHLB (See Note 17). Under this program the Company shares in the credit risk of each mortgage loan, while receiving fee income in return. The Company is responsible for a Credit Enhancement Obligation based on the credit quality of these loans. FHLB funds a First Loss Account based on the Company's outstanding MPF mortgage loan balances. This creates a laddered approach to sharing in any losses. In the event of default, homeowner's equity and private mortgage insurance, if any, are the first sources of repayment; the FHLB First Loss Account funds are then utilized, followed by the member's Credit Enhancement Obligation, with the balance the responsibility of FHLB. These loans meet specific underwriting standards of the FHLB. As of December 31, 2017 , the Company had sold $28.1 million in loans through the MPF program since inception of its participation in the program, with an outstanding balance of $14.7 million as of such date. The volume of loans sold to the MPF program and the corresponding credit obligation are closely monitored by management. As of December 31, 2017 and 2016 , the notional amount of the maximum contingent contractual liability related to this program was $665 thousand and $634 thousand , respectively, of which $25 thousand and $24 thousand had been recorded as a reserve through Accrued interest and other liabilities at December 31, 2017 and 2016 , respectively. Legal Contingencies: In the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial statements. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurement The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities available-for-sale : Marketable equity securities and mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of the Company’s AFS investment securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Assets measured at fair value on a recurring basis at December 31, 2017 and 2016 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) December 31, 2017: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 7,695 $ — $ 7,695 $ — Agency MBS 28,116 — 28,116 — State and political subdivisions 24,714 — 24,714 — Corporate 4,393 — 4,393 — Total debt securities 64,918 — 64,918 — Mutual funds 521 521 — — Total $ 65,439 $ 521 $ 64,918 $ — December 31, 2016: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 10,040 $ — $ 10,040 $ — Agency MBS 18,041 — 18,041 — State and political subdivisions 27,372 — 27,372 — Corporate 9,700 — 9,700 — Total debt securities 65,153 — 65,153 — Mutual funds 403 403 — — Total $ 65,556 $ 403 $ 65,153 $ — There were no significant transfers in or out of Levels 1 and 2 for the year ended December 31 , 2017 , nor were there any Level 3 assets at any time during the period. Certain other assets and liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis in periods after initial recognition, such as impaired loans, HTM investment securities, MSRs and OREO, were not considered material at December 31, 2017 or 2016 . The Company has not elected to apply the fair value method to any financial assets or liabilities other than those situations where other accounting pronouncements require fair value measurements. FASB ASC Topic 825 , Financial Instruments, requires disclosure of the estimated fair value of financial instruments. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. 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. Management’s estimates and assumptions are inherently subjective and involve uncertainties and matters of significant judgment. Changes in assumptions could dramatically affect the estimated fair values. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments may be excluded from disclosure requirements. Thus, the aggregate fair value amounts presented may not necessarily represent the actual underlying fair value of such instruments of the Company. The following methods and assumptions were used by the Company in estimating the fair value of its significant financial instruments: Cash and cash equivalents : The carrying amounts reported in the consolidated balance sheet for cash and cash equivalents approximate those assets' fair values and are classified as Level 1. Interest bearing deposits in banks: Fair values for interest bearing deposits in banks are based on discounted present values of cash flows and are classified as Level 2. Investment securities: Fair values for investment securities are based on quoted market prices, where available. If quoted market prices are not available, fair value measurements consider observable data which may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Investment securities are classified as Level 1 or Level 2 depending on availability of recent trade information. Loans held for sale: The fair value of loans held for sale is estimated based on quotes from third party vendors, resulting in a Level 2 classification. Loans : The fair values of loans are estimated for portfolios of loans with similar financial characteristics and segregated by loan class or segment. For variable-rate loan categories that reprice frequently and with no significant change in credit risk, fair values are based on carrying amounts adjusted for credit risk. The fair values for other loans (for example, fixed-rate residential, commercial real estate, and rental property mortgage loans as well as commercial and industrial loans) are estimated using discounted cash flow analysis, based on interest rates currently being offered for loans with similar terms to borrowers of similar credit quality. Loan fair value estimates include judgments regarding future cash flows, future expected loss experience and risk characteristics. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values, where applicable. The fair value methods and assumptions that utilize unobservable inputs as defined by current accounting standards are classified as Level 3. Accrued interest receivable and payable: The carrying amounts of accrued interest approximate their fair values and are classified as Level 1, 2 or 3 in accordance with the classification of the related principal's valuation. Nonmarketable equity securities: It is not practical to determine the fair value of the nonmarketable securities, such as FHLB stock, due to restrictions placed on their transferability. Deposits : The fair values disclosed for noninterest bearing deposits and other interest bearing nontime deposits are, by definition, equal to the amount payable on demand at the reporting date, resulting in a Level 1 classification. The fair values for time deposits are estimated using a discounted cash flow calculation that applies interest rates currently being offered on similar deposits to a schedule of aggregated expected maturities on such deposits, resulting in a Level 2 classification. Borrowed funds : The fair values of the Company’s short-term debt approximate the carrying amounts reported in the consolidated balance sheet, resulting in a Level 1 classification. The fair values of the Company’s long-term debt are estimated using discounted cash flow analysis based on interest rates currently being offered on similar debt instruments, resulting in a Level 2 classification. Off-balance-sheet financial instruments : Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The only commitments to extend credit that are normally longer than one year in duration are the home equity lines whose interest rates are variable quarterly. The only fees collected for commitments are an annual fee on credit card arrangements and often a flat fee on commercial lines of credit and standby letters of credit. The fair value of off-balance-sheet financial instruments as of the balance sheet dates was not significant. As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: December 31, 2017 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 38,508 $ 38,508 $ 38,508 $ — $ — Interest bearing deposits in banks 9,352 9,333 — 9,333 — Investment securities 66,439 66,438 521 65,917 — Loans held for sale 7,947 8,111 — 8,111 — Loans, net Residential real estate 177,880 178,818 — — 178,818 Construction real estate 42,505 42,069 — — 42,069 Commercial real estate 251,566 248,746 — — 248,746 Commercial 50,393 49,132 — — 49,132 Consumer 3,869 3,919 — — 3,919 Municipal 55,789 55,778 — — 55,778 Accrued interest receivable 2,500 2,500 — 395 2,105 Nonmarketable equity securities 2,331 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 127,824 127,824 127,824 — — Interest bearing 418,621 418,621 418,621 — — Time 101,129 99,967 — 99,967 — Borrowed funds Short-term 1,365 1,364 1,364 — — Long-term 30,216 29,039 — 29,039 — Accrued interest payable 97 97 — 97 — December 31, 2016 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 39,275 $ 39,275 $ 39,275 $ — $ — Interest bearing deposits in banks 9,504 9,528 — 9,528 — Investment securities 66,555 66,555 403 66,152 — Loans held for sale 7,803 7,958 — 7,958 — Loans, net Residential real estate 171,538 173,024 — — 173,024 Construction real estate 33,840 33,963 — — 33,963 Commercial real estate 246,317 245,979 — — 245,979 Commercial 41,708 41,491 — — 41,491 Consumer 3,941 4,014 — — 4,014 Municipal 31,348 31,749 — — 31,749 Accrued interest receivable 2,259 2,259 — 414 1,845 Nonmarketable equity securities 2,354 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 112,384 112,384 112,384 — — Interest bearing 382,083 382,083 382,083 — — Time 103,193 102,594 — 102,594 — Borrowed funds Short-term 1,099 1,099 1,099 — — Long-term 30,496 30,423 — 30,423 — Accrued interest payable 92 92 — 92 — The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with principal stockholders, directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties), all of which have been, in the opinion of management, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and which do not represent more than the normal risk of collectability or present other unfavorable features. Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2017 2016 (Dollars in thousands) Balance, January 1, $ 475 $ 507 New loans and advances on lines 945 263 Repayments (459 ) (295 ) Balance, December 31, $ 961 $ 475 Balance available on lines of credit or loan commitments $ 669 $ 691 There were no loans to related parties that were past due, in nonaccrual status or that had been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower, or that were considered classified at December 31, 2017 or 2016 . Deposit accounts with related parties were $969 thousand and $1.1 million at December 31, 2017 and 2016 , respectively. Union's Asset Management Group also invested $472 thousand and $595 thousand in certificates of deposit with Union at December 31, 2017 and 2016 , respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Regulatory Capital Requirements The Company (on a consolidated basis) and Union 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 and Union's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Union must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and Union's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier I risk-based capital ratio of 6.0%, a minimum common equity Tier I risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a 2.5% capital conservation buffer consisting of common Tier I equity, subject to a transition schedule with a full phase-in by 2019. Effective January 1, 2017, the Company and the Bank were required to establish a capital conservation buffer of 1.25%, increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees. The Company and Bank's risk-based capital ratios exceeded regulatory guidelines at December 31, 2017 and December 31, 2016 , and, specifically, the Bank was "well capitalized" under prompt correct action provisions for each period. There were no conditions or events that occurred subsequent to December 31, 2017 that would change the Company or Bank's regulatory capital categorization. Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 66,472 13.66 % $ 38,929 8.00 % N/A N/A Tier 1 capital to risk weighted assets 61,064 12.55 % 29,194 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 61,064 12.55 % 21,895 4.50 % N/A N/A Tier 1 capital to average assets 61,064 8.46 % 28,872 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 66,212 13.64 % $ 38,834 8.00 % $ 48,543 10.00 % Tier 1 capital to risk weighted assets 60,804 12.52 % 29,139 6.00 % 38,852 8.00 % Common Equity Tier 1 to risk weighted assets 60,804 12.52 % 21,854 4.50 % 31,568 6.50 % Tier 1 capital to average assets 60,804 8.43 % 28,851 4.00 % 36,064 5.00 % Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 62,128 13.32 % $ 37,314 8.00 % N/A N/A Tier 1 capital to risk weighted assets 56,881 12.20 % 27,974 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 56,881 12.20 % 20,981 4.50 % N/A N/A Tier 1 capital to average assets 56,881 8.40 % 27,086 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 61,856 13.29 % $ 37,325 8.00 % $ 46,543 10.00 % Tier 1 capital to risk weighted assets 56,609 12.16 % 27,932 6.00 % 37,243 8.00 % Common Equity Tier 1 to risk weighted assets 56,609 12.16 % 20,949 4.50 % 30,260 6.50 % Tier 1 capital to average assets 56,609 8.37 % 27,053 4.00 % 33,817 5.00 % Dividends paid by Union are the primary source of funds available to the Company for payment of dividends to its stockholders. Union is subject to certain requirements imposed by federal banking laws and regulations, which among other things, establish minimum levels of capital and restrict the amount of dividends that may be distributed by Union to the Company. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2017 | |
Class of Stock Disclosures [Abstract] | |
Treasury Stock [Text Block] | Treasury Stock The basis for the carrying value of the Company's treasury stock is the purchase price of the shares at the time of purchase. The Company maintains a limited stock repurchase plan which authorizes the repurchase of up to 2,500 shares of its common stock each calendar quarter in open market purchases or privately negotiated transactions, as management may deem advisable and as market conditions may warrant. The repurchase authorization for a calendar quarter expires at the end of that quarter to the extent it has not been exercised, and is not carried forward into future quarters. The quarterly repurchase program, which was initially adopted in 2010, was most recently reauthorized in January 2018 and will expire on December 31, 2018 unless reauthorized. The Company repurchased 1,430 shares under this program, at a total cost of $60 thousand during 2017 , while 213 shares, at a total cost of $6 thousand were repurchased under the program during 2016 . Since inception, the Company had repurchased 15,184 shares of its common stock as of December 31, 2017 , at prices ranging from $17.86 to $43.97 per share and at a total cost of $351 thousand . During the first quarter of 2016, the Company adopted a Dividend Reinvestment and Stock Purchase Plan (DRIP) whereby registered stockholders may elect to reinvest cash dividends and optional cash contributions to purchase additional shares of the Company's common stock. The Company has reserved 200,000 shares of its common stock for issuance and sale under the DRIP. As of December 31, 2017 , 877 shares of stock had been issued from treasury stock under the DRIP. |
Other Comprehensive Loss
Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive Loss The components of Accumulated OCI, net of tax, at December 31 were: 2017 2016 (Dollars in thousands) Net unrealized loss on investment securities available-for-sale $ (301 ) $ (664 ) Defined benefit pension plan net unrealized actuarial loss (4,795 ) (2,615 ) Total $ (5,096 ) $ (3,279 ) The following table discloses the tax effects allocated to each component of OCI for the years ended : December 31, 2017 December 31, 2016 December 31, 2015 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale $ 641 $ (218 ) $ 423 $ (894 ) $ 304 $ (590 ) $ (279 ) $ 95 $ (184 ) Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (17 ) 6 (11 ) (71 ) 24 (47 ) (53 ) 18 (35 ) Total 624 (212 ) 412 (965 ) 328 (637 ) (332 ) 113 (219 ) Defined benefit pension plan: Net actuarial loss arising during the year (2,311 ) 786 (1,525 ) (680 ) 231 (449 ) (1,121 ) 381 (740 ) Reclassification adjustment for amortization of net actuarial loss realized in net income 203 (69 ) 134 165 (56 ) 109 56 (19 ) 37 Total (2,108 ) 717 (1,391 ) (515 ) 175 (340 ) (1,065 ) 362 (703 ) Total other comprehensive loss $ (1,484 ) $ 505 $ (979 ) $ (1,480 ) $ 503 $ (977 ) $ (1,397 ) $ 475 $ (922 ) The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31 : Reclassification Adjustment Description 2017 2016 2015 Affected Line Item in Consolidated Statements of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (17 ) $ (71 ) $ (53 ) Net gains on sales of investment securities available-for-sale Tax benefit 6 24 18 Provision for income taxes (11 ) (47 ) (35 ) Net income Defined benefit pension plan: Net actuarial loss 203 165 56 Pension and other employee benefits Tax expense (69 ) (56 ) (19 ) Provision for income taxes 134 109 37 Net income Total reclassifications $ 123 $ 62 $ 2 Net income |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Events occurring subsequent to December 31, 2017 have been evaluated as to their potential impact to the consolidated financial statements. On October 18, 2017, the Company's Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the Plan by December 31, 2018. Once the process is complete, the Company will no longer have any remaining pension obligations and thus no periodic pension expense. See Note 14. On December 22, 2017 the Tax Cut and Jobs Act was enacted. Among the significant changes to the U. S. Internal Revenue Code, the Tax Act lowers the U. S. federal corporate income tax rate for the Company from 34% to 21% effective January 1, 2018. See Note 13. On January 17, 2018 , Union Bankshares, Inc. declared a $0.30 per share regular quarterly cash dividend payable February 8, 2018 to stockholders of record on January 27, 2018 . |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Condensed Financial Information (Parent Company Only) The following condensed financial statements are for Union Bankshares, Inc. (Parent Company Only), and should be read in conjunction with the consolidated financial statements of Union Bankshares, Inc. and Subsidiary. UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2017 and 2016 2017 2016 (Dollars in thousands) ASSETS Cash $ 77 $ 49 Investment securities available-for-sale 99 97 Investment in subsidiary - Union 58,401 56,007 Other assets 843 805 Total assets $ 59,420 $ 56,958 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Other liabilities $ 759 $ 679 Total liabilities 759 679 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,940,961 shares 9,882 9,874 Additional paid-in capital 755 620 Retained earnings 57,197 53,086 Treasury stock at cost; 475,385 shares at December 31, 2017 (4,077 ) (4,022 ) Accumulated other comprehensive loss (5,096 ) (3,279 ) Total stockholders' equity 58,661 56,279 Total liabilities and stockholders' equity $ 59,420 $ 56,958 The investment in subsidiary is carried under the equity method of accounting. The investment in subsidiary and cash, which is on deposit with Union, have been eliminated in consolidation. UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2017 , 2016 and 2015 2017 2016 2015 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 5,550 $ 5,050 $ 5,100 Other income 30 40 25 Total revenues 5,580 5,090 5,125 Expenses Interest 27 25 23 Stock based compensation expense — — 35 Administrative and other 400 441 351 Total expenses 427 466 409 Income before applicable income tax benefit and equity in undistributed net income of subsidiary 5,153 4,624 4,716 Applicable income tax benefit (59 ) (153 ) (124 ) Income before equity in undistributed net income of subsidiary 5,212 4,777 4,840 Equity in undistributed net income - Union 3,237 3,734 3,038 Net income $ 8,449 $ 8,511 $ 7,878 UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 , 2016 and 2015 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 8,449 $ 8,511 $ 7,878 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (3,237 ) (3,734 ) (3,038 ) Stock based compensation expense — — 35 (Increase) decrease in other assets (70 ) 38 50 Increase (decrease) in other liabilities 80 (45 ) (67 ) Net cash provided by operating activities 5,222 4,770 4,858 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investment securities available-for-sale 17 16 16 Purchases of investment securities available-for-sale (19 ) (4 ) (1 ) Proceeds of Company-owned life insurance death benefit — 99 — Net cash (used in) provided by investing activities (2 ) 111 15 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (5,151 ) (4,939 ) (4,816 ) Issuance of common stock 19 56 53 Purchase of treasury stock (60 ) (6 ) (94 ) Net cash used in financing activities (5,192 ) (4,889 ) (4,857 ) Net increase (decrease) in cash 28 (8 ) 16 Cash, beginning of year 49 57 41 Cash, end of year $ 77 $ 49 $ 57 Supplemental Disclosures of Cash Flow Information Interest paid $ 27 $ 25 $ 23 Dividends paid on Common Stock: Dividends declared $ 5,176 $ 4,949 $ 4,816 Dividends reinvested (25 ) (10 ) — $ 5,151 $ 4,939 $ 4,816 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) A summary of consolidated financial data for each of the four quarters of 2017 , 2016 and 2015 is presented below: Quarters in 2017 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 6,839 $ 7,101 $ 7,397 $ 7,680 Interest expense 537 516 587 615 Net interest income 6,302 6,585 6,810 7,065 Provision for loan losses — — 150 50 Noninterest income 2,233 2,333 2,506 2,323 Noninterest expenses 5,941 5,871 5,941 6,152 Net income 1,930 2,227 2,370 1,922 Earnings per common share $ 0.43 $ 0.50 $ 0.53 $ 0.43 Quarters in 2016 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 6,448 $ 6,688 $ 6,786 $ 6,914 Interest expense 513 519 471 558 Net interest income 5,935 6,169 6,315 6,356 Provision for loan losses 75 75 — — Noninterest income 2,186 2,597 2,804 2,553 Noninterest expenses 5,703 5,808 6,024 6,121 Net income 1,759 2,139 2,268 2,345 Earnings per common share $ 0.39 $ 0.48 $ 0.51 $ 0.53 Quarters in 2015 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 6,117 $ 6,276 $ 6,373 $ 6,378 Interest expense 565 521 461 478 Net interest income 5,552 5,755 5,912 5,900 Provision for loan losses 100 150 150 150 Noninterest income 2,335 2,526 2,533 2,398 Noninterest expenses 5,268 5,431 5,556 5,565 Net income 1,884 2,017 2,050 1,927 Earnings per common share $ 0.42 $ 0.46 $ 0.45 $ 0.44 |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Noninterest Income and Other Noninterest Expenses There are no components of other noninterest income that were in excess of one percent of total revenues for the years ended December 31, 2017, 2016 or 2015 . The components of other noninterest expenses which are in excess of one percent of total revenues for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 2016 2015 (Dollars in thousands) Expenses ATM and debit card expense $ 698 $ 639 $ 783 Advertising and public relations 469 507 456 Vermont franchise tax 582 555 538 Professional fees 573 731 641 Trust expenses 362 409 379 Director and advisory board fees 405 368 325 Other expenses 3,228 3,341 3,050 Total other expenses $ 6,317 $ 6,550 $ 6,172 |
Significant Accounting Polici36
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Basis of financial statement presentation [Policy Text Block] | Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and the Subsidiary (the Company) are in conformity with GAAP and general practices within the banking industry. The following is a description of the more significant policies. The consolidated financial statements include the accounts of Union Bankshares, Inc., and its wholly owned subsidiary, Union Bank headquartered in Morrisville, Vermont. All significant intercompany transactions and balances have been eliminated. The Company utilizes the accrual method of accounting for financial reporting purposes. Certain amounts in the 2016 and 2015 consolidated financial statements have been reclassified to conform to the current year presentation. The acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-K, including Part I, Part II and III. The following is provided to aid the reader and provide a reference page when reviewing this Form 10-K: AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OREO: Other real estate owned CFPB: Consumer Financial Protection Bureau OTTI: Other-than-temporary impairment COLI: Company-Owned Life Insurance OTT: Other-than-temporary Company: Union Bankshares, Inc. and Subsidiary Plan: The Union Bank Pension Plan DFR: Vermont Department of Financial Regulation RD: USDA Rural Development Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 RSU: Restricted Stock Units DRIP: Dividend Reinvestment and Stock Purchase Plan SBA: U.S. Small Business Administration FASB: Financial Accounting Standards Board SEC: U.S. Securities and Exchange Commission FDIC: Federal Deposit Insurance Corporation SOX Act: Sarbanes Oxley Act of 2002 FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 Tax Act: Tax Cut and Jobs Act FHA: U.S. Federal Housing Administration TDR: Troubled-debt restructuring FHLB: Federal Home Loan Bank of Boston Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FRB: Federal Reserve Board USDA: U.S. Department of Agriculture Fannie Mae: Federal National Mortgage Association VA: U.S. Veterans Administration FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2006 Plan: Executive Nonqualified Excess Plan GAAP: Generally accepted accounting principles in the United States 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company HTM: Held-to-maturity 2014 Equity Plan: 2014 Equity Incentive Plan HUD: U.S. Department of Housing and Urban Development |
Nature of operations [Policy Text Block] | Nature of operations The Company provides a variety of financial services to individuals, municipalities, commercial businesses and nonprofit customers through its branches, ATMs, telebanking, mobile and internet banking systems in northern Vermont and New Hampshire. This market area encompasses primarily retail consumers, small businesses, municipalities, agricultural producers and the tourism industry. The Company's primary deposit products are checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts and its primary lending products are commercial, real estate, municipal and consumer loans. The Company also offers fiduciary and asset management services through its Asset Management Group, an unincorporated division of Union. |
Significant concentration of credit risk [Policy Text Block] | Significant concentration of credit risk The Bank grants loans primarily to customers in Vermont and New Hampshire. Although the Bank has a diversified loan portfolio, a large portion of Bank's loans are secured by commercial or residential real estate located in Vermont and New Hampshire and is subject to volatility with each state's real estate market. Additionally, the borrower's ability to repay loans is highly dependent upon other economic factors throughout Vermont and New Hampshire. The Bank typically will require the principals of any commercial borrower to obligate themselves personally on the loan. |
Use of estimates in preparation of financial statements [Policy Text Block] | Use of estimates in preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term and involve inherent uncertainties relate to the determination of the ALL on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets, judgments regarding valuation and impairment of investment securities and other assets as well as pension plan accounting. These estimates involve a significant degree of complexity and subjectivity and the amount of the change that is reasonably possible, should any of these estimates prove inaccurate, cannot be estimated. |
Presentation of cash flows [Policy Text Block] | Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. |
Asset management operations [Policy Text Block] | Asset management operations Assets held by Union's Asset Management Group in a fiduciary or agency capacity, other than trust cash on deposit with Union, are not included in these consolidated financial statements because they are not assets of Union or the Company. |
Fair value measurement [Policy Text Block] | Fair value measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: AFS securities: Marketable equity securities and mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of the Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. |
Investment securities [Policy Text Block] | Investment securities Debt securities the Company has the positive intent and ability to hold to maturity are classified as HTM and reported at amortized cost. Debt and equity securities not classified as either HTM or trading are classified as AFS. Investments classified as AFS are reported at fair value. Investment securities purchased and held primarily for resale in the near future are classified as trading securities and are reported at fair value with unrealized gains and losses included in earnings. The Company does not generally hold any securities classified as trading. Accretion of discounts and amortization of premiums arising at acquisition on investment securities are included in income using the effective interest method over the life of the securities to the call date. Unrealized gains and losses on investment securities AFS are excluded from earnings and reported in Accumulated OCI, net of tax and reclassification adjustment, as a separate component of stockholders' equity. The specific identification method is used to determine realized gains and losses on sales of AFS or trading securities. The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Declines in the fair values of individual equity securities that are deemed by management to be OTT are reflected in noninterest income when identified. Management considers the following factors in determining whether an OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. |
Loans held for sale [Policy Text Block] | Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The estimated fair value of loans held for sale is based on current price quotes that determine the amount that the loans could be sold for in the secondary market. Loans transferred from held for sale to portfolio are transferred at the lower of cost or fair value in the aggregate. Sales are normally made without recourse. Gains and losses on the disposition of loans held for sale are determined on the specific identification basis. Net unrealized losses are recognized through a valuation allowance by charges to income. |
Loans [Policy Text Block] | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. |
Allowance for loan losses [Policy Text Block] | Allowance for loan losses The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. |
Other real estate owned [Policy Text Block] | Other real estate owned Real estate properties acquired through or in lieu of loan foreclosure are to be sold and are initially recorded based on an independent appraisal or a broker price opinion at the estimated fair value less estimated selling costs at the date of acquisition, establishing a new carrying basis. Thereafter, valuations are periodically performed by management, and the real estate is carried in Other assets at the lower of carrying amount or fair value, less estimated cost to sell. Costs of significant property improvements are capitalized, if deemed recoverable, whereas revenue and expenses from operations and changes in valuation are charged to Other expenses on the Company's consolidated statements of income. There was one property in OREO at December 31, 2017 valued at $36 thousand . There were no OREO properties at December 31, 2016 . |
Premises and equipment [Policy Text Block] | Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statement of income. Maintenance and repairs are charged to current expense as incurred and the costs of major renovations and betterments are capitalized. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. |
Intangible assets [Policy Text Block] | Intangible assets Intangible assets include goodwill, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition , as well as a core deposit intangible related to the deposits acquired (see Note 9). The core deposit intangible is amortized on a straight line basis over the estimated average life of the acquired core deposit base of 10 years. The Company evaluates the valuation and amortization of the core deposit intangible if events occur that could result in possible impairment. With respect to goodwill, in accordance with current authoritative guidance, the Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company is less than its carrying amount, which could result in goodwill impairment. |
Federal Home Loan Bank stock [Policy Text Block] | Federal Home Loan Bank stock As a member of the FHLB, Union is required to invest in Class B common stock of the FHLB. The Class B common stock has a five year notice requirement for redemption and there is no guarantee of future redemption. Also, there is the possibility of future capital calls by the FHLB on member banks to ensure compliance with its capital plan. FHLB stock is reported in Other assets at its par value of $2.3 million at December 31, 2017 and December 31, 2016 . The stock is nonmarketable, and is redeemable by the FHLB at par value. |
Company-owned life insurance [Policy Text Block] | Company-owned life insurance COLI represents life insurance on the lives of certain current or former directors or employees who have provided positive consent allowing the Company to be the beneficiary of such policies. The Company utilizes COLI as tax-efficient funding for certain benefit obligations to its employees and directors, including obligations under one of the Company's nonqualified deferred compensation plans. (See Note 14.) The Company is the primary beneficiary of the insurance policies. Increases in the cash value of the policies, as well as any gain on insurance proceeds received, are recorded in Other income, and are not currently subject to income taxes. COLI is recorded at the cash value of the policies, less any applicable cash surrender charges (of which there are currently none). The Company reviews the financial strength of the insurance carriers prior to the purchase of COLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed annually and COLI with any individual carrier is limited by Company policy to 15% of the sum of Tier 1 Capital and allowable Tier 2 capital. |
Servicing assets [Policy Text Block] | Servicing assets Servicing assets are recognized as separate assets when servicing rights are acquired through purchase or through sale of loans with servicing rights retained. Capitalized servicing rights are reported in Other assets, are initially recorded at estimated fair market value and are amortized against noninterest income in proportion to, and over the period of, the estimated future net servicing income of the underlying loans. The estimated fair value of capitalized servicing rights represents the present value of the future servicing fees arising from the right to service loans that have been previously sold. Servicing assets are evaluated regularly for impairment based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value of a stratum is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance for an individual stratum, to the extent that estimated fair value is less than the capitalized amount for the stratum. |
Investment in real estate limited partnerships [Policy Text Block] | Investment in real estate limited partnerships The Company has purchased various limited partnership interests in affordable housing partnerships. These partnerships were established to acquire, own and rent residential housing for elderly, low or moderate income residents in northern Vermont or in New Hampshire. Effective January 1, 2014, the Company adopted ASU 2014-01, “Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects.” The amendment permits an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. There were no impairment losses during the year resulting from the forfeiture or ineligibility of tax credits related to qualified affordable housing project investments. See Note 10. |
Defined Benefit Pension plan [Policy Text Block] | Defined benefit pension plan On October 18, 2017, the Company's Board of Directors voted to terminate Union Bank’s Defined Benefit Pension Plan. Benefit accruals have been frozen and the Plan closed to new participants since October 5, 2012. The Company anticipates completing the transfer of all liabilities and administrative responsibilities under the Plan by December 31, 2018. See Note 14. |
Advertising costs [Policy Text Block] | Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statement of income. |
Earnings per common share [Policy Text Block] | Earnings per common share Earnings per common share for the period are computed based on the weighted average number of shares of common stock issued during the period, including DRIP shares issuable upon reinvestment of dividends, retroactively adjusted for stock splits and stock dividends, if any, and reduced for shares held in treasury. See Note 16. |
Income taxes [Policy Text Block] | Income taxes The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on taxable income. The Company recognizes income taxes under the asset and liability method. This involves estimating the Company's actual current tax exposure as well as assessing temporary differences resulting from differing treatment of items, such as timing of the deduction of expenses, for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are netted and included in Other assets. 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 Company must also assess the likelihood that any deferred tax assets will be recovered from future taxable income and to the extent that recovery is not likely, a valuation allowance must be established. A change in enacted federal income tax rates for future periods, such as occurred with enactment of the Tax Cuts and Jobs Act in December, 2017, requires revaluation of deferred taxes. Significant management judgment is required in determining the provision for income taxes and deferred tax assets and liabilities. Affordable housing tax credits are recognized as a reduction of the Provision for income taxes in the year they are earned. See Note 13. |
Off-balance-sheet financial instruments [Policy Text Block] | Off-balance-sheet financial instruments In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to originate credit, unused lines of credit including commitments under credit card arrangements, commitments to purchase investment securities, commitments to invest in real estate limited partnerships, commercial letters of credit, standby letters of credit and risk-sharing commitments on certain sold loans. Such financial instruments are recorded in the financial statements when they become fixed and certain. |
Comprehensive income (loss) [Policy Text Block] | Comprehensive income (loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statement of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheet (Accumulated OCI) (See Note 23). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Transfers of financial assets [Policy Text Block] | 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 the assets have been isolated from the Company, 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 the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Stock Based Compensation [Policy Text Block] | Stock Based Compensation Effective May 21, 2014 upon approval by the stockholders, the Company adopted the 2014 Equity Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock (including approximately 25,000 unused shares from the 2008 ISO Plan) are available for equity awards of incentive stock options, nonqualified stock options, restricted stock and restricted stock units to eligible officers and (except for awards of incentive stock options) nonemployee directors. See Note 15. |
Recent accounting pronouncements [Policy Text Block] | Recent accounting pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The ASU requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The Company will adopt the guidance as of January 1, 2018 using a modified retrospective method with a cumulative-effect adjustment to opening retained earnings. While the guidance will replace most existing revenue recognition guidance in GAAP, the ASU is not applicable to financial instruments and, therefore, will not impact a majority of the Company’s revenues, including net interest income. While in scope of the new guidance, the Company does not expect a material change in the timing or measurement of revenues related to deposit fees. Mortgage servicing fees have been concluded to be out of scope of the standard and therefore will not be impacted by the issuance of this guidance. The Company continues to evaluate the effect that the guidance will have on other revenue streams within its scope, as well as changes in disclosures required by the new guidance. Based on the Company’s current interpretations of the new guidance, the overall impact to net income is expected to be immaterial. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Previous lease accounting did not require the inclusion of operating leases in the balance sheet. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted. The Company is evaluating the potential impact of the ASU on its consolidated financial statements by reviewing its existing lease contracts. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as available for sale. T h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. The Company has established a CECL implementation team and developed a transition project plan. The team members have evaluated software providers and have entered into an agreement with Sageworks. Management intends to run parallel calculations during 2018 using the Sageworks software that will facilitate the implementation process and evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, in accordance with the ASU, a Company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU will be effective for the Company on January 1, 2020 and will be applied prospectively. In May 2017, the FASB issued ASU No. 2017-09, Compensation - Stock Compensation , Scope of Modification Accounting (Topic 718). The ASU was issued to provide clarity and reduce both 1) diversity in practice and 2) cost and complexity when applying the guidance in Topic 718, Compensation-Stock Compensation, to a change to the terms or conditions of a share-based payment award. The ASU includes guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting under Topic 718. The ASU is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The amendments should be applied on a prospective basis to an award modified on or after the adoption date. The ASU will not have a material effect on the Company's consolidated financial statements. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The ASU was issued to make certain specific improvements to hedge accounting to better align hedge accounting with risk management activities, eliminate the separate measurement and recording of hedge ineffectiveness, improve presentation and disclosure, and other simplifications. The ASU is effective for public companies for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. All transition requirements and elections are to be applied to existing hedging relationships upon adoption. While the Company continues to assess the impact of ASU 2017-12, it does not believe it will have a material impact on the Company's consolidated financial statements upon adoption. In February 2018, FASB issued AU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This ASU was issued to allow a reclassification from accumulated other comprehensive income to undivided profits for stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financial statement users. The ASU is effective for fiscal years beginning after December 15, 2018, with early adoption permitted for financial statements which have not yet been issued. The Company adopted the ASU for the December 31, 2017 consolidated financial statements. |
Restrictions on Cash and Cash37
Restrictions on Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The nature of the Company's business requires that it maintain amounts due from correspondent banks which, at times, may exceed federally insured limits. The balances in these accounts at December 31, were as follows: 2017 2016 (Dollars in thousands) Noninterest bearing accounts $ 210 $ 289 Federal Reserve Bank of Boston 34,344 34,777 FHLB of Boston 310 572 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale and held-to-maturity securities [Table Text Block] | Investment securities as of the balance sheet dates consisted of the following: December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 7,805 $ 12 $ (122 ) $ 7,695 Agency MBS 28,378 12 (274 ) 28,116 State and political subdivisions 24,704 249 (239 ) 24,714 Corporate 4,412 48 (67 ) 4,393 Total debt securities 65,299 321 (702 ) 64,918 Mutual funds 521 — — 521 Total $ 65,820 $ 321 $ (702 ) $ 65,439 Held-to-maturity U.S. Government-sponsored enterprises $ 1,000 $ — $ (1 ) $ 999 December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 10,221 $ 15 $ (196 ) $ 10,040 Agency MBS 18,283 27 (269 ) 18,041 State and political subdivisions 27,909 113 (650 ) 27,372 Corporate 9,745 84 (129 ) 9,700 Total debt securities 66,158 239 (1,244 ) 65,153 Mutual funds 403 — — 403 Total $ 66,561 $ 239 $ (1,244 ) $ 65,556 Held-to-maturity U.S. Government-sponsored enterprises $ 999 $ — $ — $ 999 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2017 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 3 $ 1,824 $ (7 ) 9 $ 4,374 $ (116 ) 12 $ 6,198 $ (123 ) Agency MBS 26 19,315 (143 ) 7 5,222 (131 ) 33 24,537 (274 ) State and political subdivisions 8 3,803 (22 ) 18 7,899 (217 ) 26 11,702 (239 ) Corporate 2 870 (31 ) 2 964 (36 ) 4 1,834 (67 ) Total 39 $ 25,812 $ (203 ) 36 $ 18,459 $ (500 ) 75 $ 44,271 $ (703 ) December 31, 2016 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 13 $ 8,351 $ (180 ) 3 $ 1,172 $ (16 ) 16 $ 9,523 $ (196 ) Agency MBS 22 15,141 (261 ) 1 344 (8 ) 23 15,485 (269 ) State and political subdivisions 40 16,481 (650 ) — — — 40 16,481 (650 ) Corporate 8 3,973 (56 ) 4 1,627 (73 ) 12 5,600 (129 ) Total 83 $ 43,946 $ (1,147 ) 8 $ 3,143 $ (97 ) 91 $ 47,089 $ (1,244 ) |
Schedule of Realized Gain (Loss) [Table Text Block] | The following table presents the proceeds, gross gains and gross losses from sales of available-for-sale securities: For The Years Ended December 31, 2017 2016 2015 (Dollars in thousands) Proceeds $ 14,409 $ 6,620 $ 11,540 Gross gains 147 131 66 Gross losses (130 ) (60 ) (13 ) Net gains $ 17 $ 71 $ 53 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2017 , were as follows: Amortized Cost Fair Value (Dollars in thousands) Available-for-sale Due from one to five years $ 3,818 $ 3,871 Due from five to ten years 16,858 16,834 Due after ten years 16,245 16,097 36,921 36,802 Agency MBS 28,378 28,116 Total debt securities available-for-sale $ 65,299 $ 64,918 Held-to-maturity Due in one year or less $ 1,000 $ 999 Total debt securities held-to-maturity $ 1,000 $ 999 |
Loans Held for Sale and Loan 39
Loans Held for Sale and Loan Servicing Level 3 (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Transfers and Servicing [Abstract] | |
Loans sold during the period [Table Text Block] | Loans sold consisted of the following during the years ended December 31: 2017 2016 2015 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 121,985 $ 2,279 $ 135,294 $ 2,880 $ 131,706 $ 2,871 Commercial loans 226 24 251 18 — — Total $ 122,211 $ 2,303 $ 135,545 $ 2,898 $ 131,706 $ 2,871 |
Capitalization and amortization of loan servicing rights [Table Text Block] | The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2017 2016 2015 (Dollars in thousands) Capitalization of servicing rights $ 770 $ 823 $ 839 Amortization of servicing rights 716 720 670 Net capitalization of servicing rights $ 54 $ 103 $ 169 |
Loans Tables (Tables)
Loans Tables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The composition of Net loans at December 31, was as follows: 2017 2016 (Dollars in thousands) Residential real estate $ 178,999 $ 172,727 Construction real estate 42,935 34,189 Commercial real estate 254,291 249,063 Commercial 50,719 41,999 Consumer 3,894 3,962 Municipal 55,777 31,350 Gross loans 586,615 533,290 Allowance for loan losses (5,408 ) (5,247 ) Net deferred loan costs 795 649 Net loans $ 582,002 $ 528,692 |
Past Due Financing Receivables [Table Text Block] | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2017 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 173,914 $ 3,047 $ 750 $ 472 $ 816 $ 178,999 Construction real estate 42,857 — — 22 56 42,935 Commercial real estate 253,266 357 361 — 307 254,291 Commercial 50,675 21 11 — 12 50,719 Consumer 3,884 7 3 — — 3,894 Municipal 55,777 — — — — 55,777 Total $ 580,373 $ 3,432 $ 1,125 $ 494 $ 1,191 $ 586,615 December 31, 2016 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 168,125 $ 1,661 $ 472 $ 672 $ 1,797 $ 172,727 Construction real estate 34,148 17 — — 24 34,189 Commercial real estate 245,402 1,642 153 157 1,709 249,063 Commercial 41,920 12 42 10 15 41,999 Consumer 3,946 12 3 1 — 3,962 Municipal 31,350 — — — — 31,350 Total $ 524,891 $ 3,344 $ 670 $ 840 $ 3,545 $ 533,290 |
Allowance for loan losses and41
Allowance for loan losses and credit quality (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Changes in the ALL, by class of loans, were as follows for the years ended : December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2016 $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 Provision for loan losses 17 73 20 49 16 24 1 200 Recoveries of amounts charged off 138 24 — 4 2 — — 168 1,554 488 2,707 395 44 64 363 5,615 Amounts charged off (193 ) — — — (14 ) — — (207 ) Balance, December 31, 2017 $ 1,361 $ 488 $ 2,707 $ 395 $ 30 $ 64 $ 363 $ 5,408 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2015 $ 1,419 $ 514 $ 2,792 $ 209 $ 28 $ 38 $ 201 $ 5,201 Provision (credit) for loan losses 64 (135 ) (105 ) 158 5 2 161 150 Recoveries of amounts charged off 36 12 — 8 3 — — 59 1,519 391 2,687 375 36 40 362 5,410 Amounts charged off (120 ) — — (33 ) (10 ) — — (163 ) Balance, December 31, 2016 $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 December 31, 2015 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2014 $ 1,330 $ 439 $ 2,417 $ 176 $ 27 $ 42 $ 263 $ 4,694 Provision (credit) for loan losses 136 47 375 46 12 (4 ) (62 ) 550 Recoveries of amounts charged off 36 28 — 16 3 — — 83 1,502 514 2,792 238 42 38 201 5,327 Amounts charged off (83 ) — — (29 ) (14 ) — — (126 ) Balance, December 31, 2015 $ 1,419 $ 514 $ 2,792 $ 209 $ 28 $ 38 $ 201 $ 5,201 |
Allocation of Allowance for Loan Losses by Impairment Methodology [Table Text Block] | The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 47 $ — $ 1 $ — $ — $ — $ — $ 48 Collectively evaluated for impairment 1,314 488 2,706 395 30 64 363 5,360 Total allocated $ 1,361 $ 488 $ 2,707 $ 395 $ 30 $ 64 $ 363 $ 5,408 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 63 $ — $ 40 $ — $ — $ — $ — $ 103 Collectively evaluated for impairment 1,336 391 2,647 342 26 40 362 5,144 Total allocated $ 1,399 $ 391 $ 2,687 $ 342 $ 26 $ 40 $ 362 $ 5,247 |
Allocation of Investment in Loans by Impairment Methodology [Table Text Block] | The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,718 $ 82 $ 1,074 $ 378 $ — $ — $ 3,252 Collectively evaluated for impairment 177,281 42,853 253,217 50,341 3,894 55,777 583,363 Total $ 178,999 $ 42,935 $ 254,291 $ 50,719 $ 3,894 $ 55,777 $ 586,615 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,448 $ 88 $ 3,328 $ 432 $ — $ — $ 5,296 Collectively evaluated for impairment 171,279 34,101 245,735 41,567 3,962 31,350 527,994 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables summarize the loan ratings applied to the Company's loans by class as of the balance sheet dates: December 31, 2017 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 164,733 $ 33,401 $ 177,388 $ 38,877 $ 3,859 $ 55,777 $ 474,035 Satisfactory/Monitor 11,296 9,374 73,772 11,165 30 — 105,637 Substandard 2,970 160 3,131 677 5 — 6,943 Total $ 178,999 $ 42,935 $ 254,291 $ 50,719 $ 3,894 $ 55,777 $ 586,615 December 31, 2016 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 158,140 $ 29,248 $ 182,247 $ 38,219 $ 3,928 $ 31,350 $ 443,132 Satisfactory/Monitor 10,641 4,830 62,193 3,109 34 — 80,807 Substandard 3,946 111 4,623 671 — — 9,351 Total $ 172,727 $ 34,189 $ 249,063 $ 41,999 $ 3,962 $ 31,350 $ 533,290 |
Impaired Financing Receivables [Table Text Block] | The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2017 , 2016 and 2015 : December 31, 2017 For The Year Ended December 31, 2017 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 238 $ 247 $ 47 Commercial real estate 137 141 1 With an allowance recorded 375 388 48 Residential real estate 1,480 1,983 — Construction real estate 82 82 — Commercial real estate 937 1,011 — Commercial 378 378 — With no allowance recorded 2,877 3,454 — Residential real estate 1,718 2,230 47 $ 1,691 $ 67 Construction real estate 82 82 — 85 4 Commercial real estate 1,074 1,152 1 1,975 86 Commercial 378 378 — 405 26 Total $ 3,252 $ 3,842 $ 48 $ 4,156 $ 183 December 31, 2016 For The Year Ended December 31, 2016 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 308 $ 317 $ 63 Commercial real estate 488 520 40 With an allowance recorded 796 837 103 Residential real estate 1,140 1,561 — Construction real estate 88 88 — Commercial real estate 2,840 2,910 — Commercial 432 432 — With no allowance recorded 4,500 4,991 — Residential real estate 1,448 1,878 63 $ 1,303 $ 50 Construction real estate 88 88 — 90 4 Commercial real estate 3,328 3,430 40 3,113 107 Commercial 432 432 — 462 33 Total $ 5,296 $ 5,828 $ 103 $ 4,968 $ 194 December 31, 2015 For The Year Ended December 31, 2015 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 659 $ 668 $ 109 Commercial real estate 2,142 2,161 227 Commercial 493 493 21 With an allowance recorded 3,294 3,322 357 Residential real estate 538 697 — Construction real estate 92 92 — Commercial real estate 952 1,015 — With no allowance recorded 1,582 1,804 — Residential real estate 1,197 1,365 109 $ 942 $ 34 Construction real estate 92 92 — 162 19 Commercial real estate 3,094 3,176 227 3,523 219 Commercial 493 493 21 123 — Total $ 4,876 $ 5,126 $ 357 $ 4,750 $ 272 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2017 , 2016 and 2015 totaling $550 thousand , $637 thousand and $606 thousand , respectively. |
Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2017 December 31, 2016 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 24 $ 1,718 20 $ 1,448 Construction real estate 1 82 1 88 Commercial real estate 10 1,074 10 1,452 Commercial 2 378 2 431 Total 37 $ 3,252 33 $ 3,419 |
New Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table provides new TDR activity by class of loan for the years ended December 31, 2017 and 2016 : New TDRs During the New TDRs During the Year Ended December 31, 2017 Year Ended December 31, 2016 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 9 $ 649 $ 673 9 $ 349 $ 371 Commercial real estate 2 293 293 6 803 807 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Class of Premises and Equipment [Table Text Block] | The major classes of premises and equipment and accumulated depreciation at December 31 , were as follows: 2017 2016 (Dollars in thousands) Land and land improvements $ 2,975 $ 2,930 Building and improvements 14,261 13,057 Furniture and equipment 7,450 8,833 Construction in progress and deposits on equipment 438 34 25,124 24,854 Less accumulated depreciation (10,869 ) (11,329 ) $ 14,255 $ 13,525 |
Future Minimum Rental Commitments [Table Text Block] | Future minimum rental commitments for these leases with original or remaining terms of one year or more at December 31, 2017 were as follows: (Dollars in thousands) 2018 $ 134 2019 91 2020 60 2021 52 2022 12 $ 349 |
Goodwill and Other Intangible43
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposit Intangible Amortization [Table Text Block] | As of December 31, 2017 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2018 171 2019 171 2020 171 2021 70 Total $ 583 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Deposits [Abstract] | |
Interest Bearing Deposits [Table Text Block] | The following is a summary of interest bearing deposits at December 31 : 2017 2016 (Dollars in thousands) Interest bearing checking accounts $ 162,996 $ 143,037 Savings and money market accounts 255,625 239,046 Time deposits, $100,000 and over 41,182 40,581 Other time deposits 59,947 62,612 $ 519,750 $ 485,276 |
Time Deposits by Maturity [Table Text Block] | The following is a summary of time deposits by maturity at December 31, 2017 : (Dollars in thousands) 2018 $ 62,544 2019 21,951 2020 6,468 2021 5,020 2022 5,146 $ 101,129 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The contractual payments due for FHLB option advance borrowings, as of December 31, 2017 , were as follows: (Dollars in thousands) 2018 $ 19,765 2019 10,287 2020 — 2021 164 $ 30,216 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Components of the provision for income taxes [Table Text Block] | The components of the Provision for income taxes for the years ended December 31 , were as follows: 2017 2016 2015 (Dollars in thousands) Current tax provision $ 2,610 $ 2,032 $ 2,322 Deferred tax provision 993 566 341 $ 3,603 $ 2,598 $ 2,663 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The total Provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 34% primarily due to the following for the years ended December 31 : 2017 2016 2015 (Dollars in thousands) Computed “expected” tax expense $ 3,884 $ 3,585 $ 3,419 Tax exempt interest (642 ) (596 ) (613 ) Increase in cash surrender value of COLI (83 ) (115 ) (96 ) Tax credits (694 ) (896 ) (564 ) Equity in losses of limited partnerships 627 565 484 Adjustment for effect of enacted tax law changes 447 — — Other 64 55 33 $ 3,603 $ 2,598 $ 2,663 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Listed below are the significant components of the net deferred tax asset at December 31 : 2017 2016 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,171 $ 1,813 Deferred compensation 227 334 Net pension liability 339 316 Core deposit intangible 81 110 Limited partnership investments 23 — Unrealized loss on investment securities available-for-sale 80 342 Other 90 146 Total deferred tax asset 2,011 3,061 Components of the deferred tax liability Depreciation (493 ) (893 ) Mortgage servicing rights (364 ) (563 ) Limited partnership investments — (17 ) Goodwill (211 ) (286 ) Prepaid expenses (130 ) — Total deferred tax liability (1,198 ) (1,759 ) Net deferred tax asset $ 813 $ 1,302 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table sets forth the Plan's obligations and funded status at December 31 : 2017 2016 (Dollars in thousands) Change in projected benefit obligation Projected benefit obligation at beginning of year $ 17,687 $ 17,177 Interest cost 688 701 Actuarial loss 3,150 544 Benefits paid (693 ) (735 ) Projected benefit obligation at end of year 20,832 17,687 Change in fair value of plan assets Fair value of plan assets at beginning of year 16,631 15,717 Actuarial gain on plan assets 1,811 899 Employer contributions 750 750 Benefits paid (693 ) (735 ) Fair value of plan assets at end of year 18,499 16,631 Net liability for pension benefits $ (2,333 ) $ (1,056 ) 2017 2016 (Dollars in thousands) Accumulated benefit obligation at December 31 $ 20,832 $ 17,687 |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic pension benefit for 2017 , 2016 and 2015 consisted of the following components: 2017 2016 2015 (Dollars in thousands) Interest cost on projected benefit obligation $ 688 $ 701 $ 680 Expected return on plan assets (972 ) (1,036 ) (1,144 ) Amortization of net actuarial loss 204 165 56 Net periodic pension benefit $ (80 ) $ (170 ) $ (408 ) |
Plan Asset Allocations by Asset Category based on Fair Values [Table Text Block] | Union's Plan asset allocations at December 31, 2017 and 2016 , by asset category based on their fair values, were as follows: Asset Category 2017 2016 Cash and cash equivalents 5.4 % 3.4 % Debt securities 33.2 % 49.7 % Equity securities — % 46.9 % Mutual and exchange traded funds 61.4 % — % Total 100.0 % 100.0 % |
Plan Asset Allocation, Mix of Investments [Table Text Block] | In order to achieve the liability matching goal the following asset allocation has been approved: U.S. Treasury or Agency bonds 0-50% Other debt securities 0-50% Cash and cash equivalents 0-5% |
Schedule of Allocation of Plan Assets [Table Text Block] | The fair values of the Plan's investments at December 31, 2017 and 2016 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurement December 31, 2017 Fair Value Quoted Prices in Significant Other Significant (Dollars in thousands) U.S. Government $ 7,131 $ — $ 7,131 $ — Mutual and exchange traded funds 11,368 11,368 — — Total $ 18,499 $ 11,368 $ 7,131 $ — Fair Value Measurement December 31, 2016 Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) U.S. Government $ 1,826 $ — $ 1,826 $ — Common trust funds 5,207 5,207 — — Marketable equity securities: Information technology 976 976 — — Financial 813 813 — — Industrials 1,212 1,212 — — Healthcare 1,393 1,393 — — Consumer 2,131 2,131 — — Energy 1,275 1,275 — — Mutual and exchange traded funds 1,798 1,798 — — Total $ 16,631 $ 14,805 $ 1,826 $ — |
Schedule of Costs of Retirement Plans [Table Text Block] | The following table summarizes employer contributions for the years ended December 31, 2017, 2016 and 2015 : 2017 2016 2015 (Dollars in thousands) Employer matching $ 223 $ 221 $ 200 Profit sharing 281 301 274 Safe harbor 296 294 264 Total $ 800 $ 816 $ 738 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Compensation, Summary of RSUs [Table Text Block] | The following table presents a summary of RSUs from the 2015, 2016, and 2017 Award Plan Summaries as of December 31, 2017: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2015 Award 5,445 $ 27.91 730 2016 Award 3,569 45.45 2,026 2017 Award 3,225 52.95 3,225 Total 12,239 5,981 |
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | The following summarizes the option activity under the 2014 Equity Plan for the year ended December 31, 2017 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2017 4,500 $ 24.00 Exercised — — Forfeited/expired — — Outstanding at December 31, 2017 4,500 $ 24.00 3.96 130 Exercisable at December 31, 2017 4,500 $ 24.00 3.96 130 The following summarizes the option activity under the 2008 ISO Plan for the year ended December 31, 2017 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2017 4,000 $ 21.40 Exercised (1,000 ) 19.60 Forfeited/expired — — Outstanding at December 31, 2017 3,000 $ 22.00 2.96 93 Exercisable at December 31, 2017 3,000 $ 22.00 2.96 93 |
Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block] | The following summarizes information regarding the proceeds received by the Company from the exercise of options during each of the last three years: 2017 2016 2015 (Dollars in thousands, except per share data) Proceeds received $ 19 $ 56 $ 53 Number of shares exercised 1,000 2,500 2,500 Weighted average price per share $ 19.60 $ 22.24 $ 21.04 Total intrinsic value of options exercised $ 25 $ 21 $ 9 |
Earnings Per Share Earnings P49
Earnings Per Share Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | The following table presents the reconciliation of the calculation of basic earnings per share for the years ended December 31, 2017 , 2016 and 2015 : 2017 2016 2015 (Dollars in thousands, except per share data) Net income $ 8,449 $ 8,511 $ 7,878 Weighted average common shares outstanding 4,462,192 4,459,001 4,458,037 Basic earnings per share $ 1.89 $ 1.91 $ 1.77 |
Financial Instruments With Of50
Financial Instruments With Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Contractual Amount of Financial Instruments with Credit Risk [Table Text Block] | The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31 : Contract or Notional Amount 2017 2016 (Dollars in thousands) Commitments to originate loans $ 25,394 $ 31,404 Unused lines of credit 85,906 76,544 Standby and commercial letters of credit 2,064 1,624 Credit card arrangement 1,326 1,341 MPF credit enhancement obligation, net (See Note 18) 640 610 Commitment to purchase investment in a real estate limited partnership 1,470 980 Contract commitment for renovation project 662 — Total $ 117,462 $ 112,503 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets measured at fair value on a recurring basis at December 31, 2017 and 2016 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) December 31, 2017: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 7,695 $ — $ 7,695 $ — Agency MBS 28,116 — 28,116 — State and political subdivisions 24,714 — 24,714 — Corporate 4,393 — 4,393 — Total debt securities 64,918 — 64,918 — Mutual funds 521 521 — — Total $ 65,439 $ 521 $ 64,918 $ — December 31, 2016: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 10,040 $ — $ 10,040 $ — Agency MBS 18,041 — 18,041 — State and political subdivisions 27,372 — 27,372 — Corporate 9,700 — 9,700 — Total debt securities 65,153 — 65,153 — Mutual funds 403 403 — — Total $ 65,556 $ 403 $ 65,153 $ — |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: December 31, 2017 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 38,508 $ 38,508 $ 38,508 $ — $ — Interest bearing deposits in banks 9,352 9,333 — 9,333 — Investment securities 66,439 66,438 521 65,917 — Loans held for sale 7,947 8,111 — 8,111 — Loans, net Residential real estate 177,880 178,818 — — 178,818 Construction real estate 42,505 42,069 — — 42,069 Commercial real estate 251,566 248,746 — — 248,746 Commercial 50,393 49,132 — — 49,132 Consumer 3,869 3,919 — — 3,919 Municipal 55,789 55,778 — — 55,778 Accrued interest receivable 2,500 2,500 — 395 2,105 Nonmarketable equity securities 2,331 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 127,824 127,824 127,824 — — Interest bearing 418,621 418,621 418,621 — — Time 101,129 99,967 — 99,967 — Borrowed funds Short-term 1,365 1,364 1,364 — — Long-term 30,216 29,039 — 29,039 — Accrued interest payable 97 97 — 97 — December 31, 2016 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 39,275 $ 39,275 $ 39,275 $ — $ — Interest bearing deposits in banks 9,504 9,528 — 9,528 — Investment securities 66,555 66,555 403 66,152 — Loans held for sale 7,803 7,958 — 7,958 — Loans, net Residential real estate 171,538 173,024 — — 173,024 Construction real estate 33,840 33,963 — — 33,963 Commercial real estate 246,317 245,979 — — 245,979 Commercial 41,708 41,491 — — 41,491 Consumer 3,941 4,014 — — 4,014 Municipal 31,348 31,749 — — 31,749 Accrued interest receivable 2,259 2,259 — 414 1,845 Nonmarketable equity securities 2,354 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 112,384 112,384 112,384 — — Interest bearing 382,083 382,083 382,083 — — Time 103,193 102,594 — 102,594 — Borrowed funds Short-term 1,099 1,099 1,099 — — Long-term 30,496 30,423 — 30,423 — Accrued interest payable 92 92 — 92 — |
Transactions with Related Par52
Transactions with Related Parties tables (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2017 2016 (Dollars in thousands) Balance, January 1, $ 475 $ 507 New loans and advances on lines 945 263 Repayments (459 ) (295 ) Balance, December 31, $ 961 $ 475 Balance available on lines of credit or loan commitments $ 669 $ 691 |
Regulatory Capital Requiremen53
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2017 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 66,472 13.66 % $ 38,929 8.00 % N/A N/A Tier 1 capital to risk weighted assets 61,064 12.55 % 29,194 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 61,064 12.55 % 21,895 4.50 % N/A N/A Tier 1 capital to average assets 61,064 8.46 % 28,872 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 66,212 13.64 % $ 38,834 8.00 % $ 48,543 10.00 % Tier 1 capital to risk weighted assets 60,804 12.52 % 29,139 6.00 % 38,852 8.00 % Common Equity Tier 1 to risk weighted assets 60,804 12.52 % 21,854 4.50 % 31,568 6.50 % Tier 1 capital to average assets 60,804 8.43 % 28,851 4.00 % 36,064 5.00 % Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2016 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 62,128 13.32 % $ 37,314 8.00 % N/A N/A Tier 1 capital to risk weighted assets 56,881 12.20 % 27,974 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 56,881 12.20 % 20,981 4.50 % N/A N/A Tier 1 capital to average assets 56,881 8.40 % 27,086 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 61,856 13.29 % $ 37,325 8.00 % $ 46,543 10.00 % Tier 1 capital to risk weighted assets 56,609 12.16 % 27,932 6.00 % 37,243 8.00 % Common Equity Tier 1 to risk weighted assets 56,609 12.16 % 20,949 4.50 % 30,260 6.50 % Tier 1 capital to average assets 56,609 8.37 % 27,053 4.00 % 33,817 5.00 % |
Other Comprehensive Loss (Table
Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The components of Accumulated OCI, net of tax, at December 31 were: 2017 2016 (Dollars in thousands) Net unrealized loss on investment securities available-for-sale $ (301 ) $ (664 ) Defined benefit pension plan net unrealized actuarial loss (4,795 ) (2,615 ) Total $ (5,096 ) $ (3,279 ) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The following table discloses the tax effects allocated to each component of OCI for the years ended : December 31, 2017 December 31, 2016 December 31, 2015 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale $ 641 $ (218 ) $ 423 $ (894 ) $ 304 $ (590 ) $ (279 ) $ 95 $ (184 ) Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (17 ) 6 (11 ) (71 ) 24 (47 ) (53 ) 18 (35 ) Total 624 (212 ) 412 (965 ) 328 (637 ) (332 ) 113 (219 ) Defined benefit pension plan: Net actuarial loss arising during the year (2,311 ) 786 (1,525 ) (680 ) 231 (449 ) (1,121 ) 381 (740 ) Reclassification adjustment for amortization of net actuarial loss realized in net income 203 (69 ) 134 165 (56 ) 109 56 (19 ) 37 Total (2,108 ) 717 (1,391 ) (515 ) 175 (340 ) (1,065 ) 362 (703 ) Total other comprehensive loss $ (1,484 ) $ 505 $ (979 ) $ (1,480 ) $ 503 $ (977 ) $ (1,397 ) $ 475 $ (922 ) |
Schedule of Comprehensive Income Reclassification Adjustments [Table Text Block] | The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31 : Reclassification Adjustment Description 2017 2016 2015 Affected Line Item in Consolidated Statements of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (17 ) $ (71 ) $ (53 ) Net gains on sales of investment securities available-for-sale Tax benefit 6 24 18 Provision for income taxes (11 ) (47 ) (35 ) Net income Defined benefit pension plan: Net actuarial loss 203 165 56 Pension and other employee benefits Tax expense (69 ) (56 ) (19 ) Provision for income taxes 134 109 37 Net income Total reclassifications $ 123 $ 62 $ 2 Net income |
Condensed Financial Informati55
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2017 and 2016 2017 2016 (Dollars in thousands) ASSETS Cash $ 77 $ 49 Investment securities available-for-sale 99 97 Investment in subsidiary - Union 58,401 56,007 Other assets 843 805 Total assets $ 59,420 $ 56,958 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Other liabilities $ 759 $ 679 Total liabilities 759 679 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,940,961 shares 9,882 9,874 Additional paid-in capital 755 620 Retained earnings 57,197 53,086 Treasury stock at cost; 475,385 shares at December 31, 2017 (4,077 ) (4,022 ) Accumulated other comprehensive loss (5,096 ) (3,279 ) Total stockholders' equity 58,661 56,279 Total liabilities and stockholders' equity $ 59,420 $ 56,958 |
Schedule of Condensed Income Statement [Table Text Block] | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2017 , 2016 and 2015 2017 2016 2015 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 5,550 $ 5,050 $ 5,100 Other income 30 40 25 Total revenues 5,580 5,090 5,125 Expenses Interest 27 25 23 Stock based compensation expense — — 35 Administrative and other 400 441 351 Total expenses 427 466 409 Income before applicable income tax benefit and equity in undistributed net income of subsidiary 5,153 4,624 4,716 Applicable income tax benefit (59 ) (153 ) (124 ) Income before equity in undistributed net income of subsidiary 5,212 4,777 4,840 Equity in undistributed net income - Union 3,237 3,734 3,038 Net income $ 8,449 $ 8,511 $ 7,878 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2017 , 2016 and 2015 2017 2016 2015 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 8,449 $ 8,511 $ 7,878 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (3,237 ) (3,734 ) (3,038 ) Stock based compensation expense — — 35 (Increase) decrease in other assets (70 ) 38 50 Increase (decrease) in other liabilities 80 (45 ) (67 ) Net cash provided by operating activities 5,222 4,770 4,858 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of investment securities available-for-sale 17 16 16 Purchases of investment securities available-for-sale (19 ) (4 ) (1 ) Proceeds of Company-owned life insurance death benefit — 99 — Net cash (used in) provided by investing activities (2 ) 111 15 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (5,151 ) (4,939 ) (4,816 ) Issuance of common stock 19 56 53 Purchase of treasury stock (60 ) (6 ) (94 ) Net cash used in financing activities (5,192 ) (4,889 ) (4,857 ) Net increase (decrease) in cash 28 (8 ) 16 Cash, beginning of year 49 57 41 Cash, end of year $ 77 $ 49 $ 57 Supplemental Disclosures of Cash Flow Information Interest paid $ 27 $ 25 $ 23 Dividends paid on Common Stock: Dividends declared $ 5,176 $ 4,949 $ 4,816 Dividends reinvested (25 ) (10 ) — $ 5,151 $ 4,939 $ 4,816 |
Quarterly Financial Data (Una56
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | A summary of consolidated financial data for each of the four quarters of 2017 , 2016 and 2015 is presented below: Quarters in 2017 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 6,839 $ 7,101 $ 7,397 $ 7,680 Interest expense 537 516 587 615 Net interest income 6,302 6,585 6,810 7,065 Provision for loan losses — — 150 50 Noninterest income 2,233 2,333 2,506 2,323 Noninterest expenses 5,941 5,871 5,941 6,152 Net income 1,930 2,227 2,370 1,922 Earnings per common share $ 0.43 $ 0.50 $ 0.53 $ 0.43 Quarters in 2016 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 6,448 $ 6,688 $ 6,786 $ 6,914 Interest expense 513 519 471 558 Net interest income 5,935 6,169 6,315 6,356 Provision for loan losses 75 75 — — Noninterest income 2,186 2,597 2,804 2,553 Noninterest expenses 5,703 5,808 6,024 6,121 Net income 1,759 2,139 2,268 2,345 Earnings per common share $ 0.39 $ 0.48 $ 0.51 $ 0.53 Quarters in 2015 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 6,117 $ 6,276 $ 6,373 $ 6,378 Interest expense 565 521 461 478 Net interest income 5,552 5,755 5,912 5,900 Provision for loan losses 100 150 150 150 Noninterest income 2,335 2,526 2,533 2,398 Noninterest expenses 5,268 5,431 5,556 5,565 Net income 1,884 2,017 2,050 1,927 Earnings per common share $ 0.42 $ 0.46 $ 0.45 $ 0.44 |
Other Noninterest Income and 57
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Income and Other Noninterest Expenses [Table Text Block] | The components of other noninterest expenses which are in excess of one percent of total revenues for the years ended December 31, 2017, 2016 and 2015 were as follows: 2017 2016 2015 (Dollars in thousands) Expenses ATM and debit card expense $ 698 $ 639 $ 783 Advertising and public relations 469 507 456 Vermont franchise tax 582 555 538 Professional fees 573 731 641 Trust expenses 362 409 379 Director and advisory board fees 405 368 325 Other expenses 3,228 3,341 3,050 Total other expenses $ 6,317 $ 6,550 $ 6,172 |
Significant Accounting Polici58
Significant Accounting Policies Narrative Data (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Significant Accounting Policies [Line Items] | ||
Other real estate owned | $ 36,000 | $ 0 |
Federal Home Loan Bank stock | $ 2,300,000 | $ 2,300,000 |
2014 Equity Plan [Member] | ||
Significant Accounting Policies [Line Items] | ||
Shares authorized for option grants | 50,000 | |
2008 ISO Plan [Member] | ||
Significant Accounting Policies [Line Items] | ||
Unused shares from 2008 ISO Plan | 25,000 |
Restrictions on Cash and Cash59
Restrictions on Cash and Cash Equivalents Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Noninterest Bearing Accounts [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured Cash Accounts | $ 210 | $ 289 |
Federal Reserve Bank of Boston [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured Cash Accounts | 34,344 | 34,777 |
FHLB of Boston [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured Cash Accounts | $ 310 | $ 572 |
Restrictions on Cash and Cash60
Restrictions on Cash and Cash Equivalents Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Cash and Cash Equivalents [Line Items] | ||
Federal reserve contracted clearing balance | $ 0 | $ 0 |
Federal reserve balance requirement | $ 1,400 | $ 891 |
Interest Bearing Deposits In 61
Interest Bearing Deposits In Banks Narrative Data (Details) $ in Millions | Dec. 31, 2017USD ($)Rate |
Cash and Cash Equivalents [Line Items] | |
Interest bearing deposits in banks, interest rate, ranging from | 0.55% |
Interest bearing deposits in banks, interest rate, ranging to | 2.55% |
Interest bearing deposits in banks scheduled to mature in 2018 | $ | $ 2.5 |
Investment Securities Available
Investment Securities Available-for-sale and Held-to-maturity securities (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Amortized Cost | $ 65,299 | |
Amortized Cost | 65,820 | $ 66,561 |
Gross Unrealized Gains | 321 | 239 |
Gross Unrealized Losses | (702) | (1,244) |
Fair Value | 64,918 | |
Fair Value | 65,439 | 65,556 |
Held-to-maturity | ||
Amortized Cost | 1,000 | 999 |
Fair Value | 999 | 999 |
U.S. Government-sponsored enterprises [Member] | ||
Available-for-sale | ||
Amortized Cost | 7,805 | 10,221 |
Gross Unrealized Gains | 12 | 15 |
Gross Unrealized Losses | (122) | (196) |
Fair Value | 7,695 | 10,040 |
Fair Value | 7,695 | 10,040 |
Held-to-maturity | ||
Amortized Cost | 1,000 | 999 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1) | 0 |
Fair Value | 999 | 999 |
Agency MBS [Member] | ||
Available-for-sale | ||
Amortized Cost | 28,378 | 18,283 |
Gross Unrealized Gains | 12 | 27 |
Gross Unrealized Losses | (274) | (269) |
Fair Value | 28,116 | 18,041 |
Fair Value | 28,116 | 18,041 |
State and political subdivisions [Member] | ||
Available-for-sale | ||
Amortized Cost | 24,704 | 27,909 |
Gross Unrealized Gains | 249 | 113 |
Gross Unrealized Losses | (239) | (650) |
Fair Value | 24,714 | 27,372 |
Fair Value | 24,714 | 27,372 |
Corporate [Member] | ||
Available-for-sale | ||
Amortized Cost | 4,412 | 9,745 |
Gross Unrealized Gains | 48 | 84 |
Gross Unrealized Losses | (67) | (129) |
Fair Value | 4,393 | 9,700 |
Fair Value | 4,393 | 9,700 |
Total debt securities [Member] | ||
Available-for-sale | ||
Amortized Cost | 65,299 | 66,158 |
Gross Unrealized Gains | 321 | 239 |
Gross Unrealized Losses | (702) | (1,244) |
Fair Value | 64,918 | 65,153 |
Fair Value | 64,918 | 65,153 |
Mutual funds [Member] | ||
Available-for-sale | ||
Mutual funds, Amortized Cost | 521 | 403 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Mutual funds, Fair Value | 521 | 403 |
Fair Value | $ 521 | $ 403 |
Investment Securities Schedule
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Dec. 31, 2017USD ($)Securities | Dec. 31, 2016USD ($)Securities |
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 39 | |
Less than 12 Months, Number of Securities | Securities | 83 | |
Less than 12 Months, Fair Value | $ 25,812 | |
Less than 12 Months, Fair Value | $ 43,946 | |
Less than 12 Months, Gross Unrealized Losses | $ (203) | |
Less than 12 Months, Gross Unrealized Losses | $ (1,147) | |
12 Months and over, Number of Securities | Securities | 36 | 8 |
12 Months and Over, Fair Value | $ 18,459 | $ 3,143 |
12 Months and Over, Gross Unrealized Losses | $ (500) | $ (97) |
Total, Number of Securities | Securities | 75 | |
Total, Number of Securities | Securities | 91 | |
Total, Fair Value | $ 44,271 | |
Total, Fair Value | $ 47,089 | |
Total, Gross Unrealized Losses | $ (703) | |
Total, Gross Unrealized Losses | $ (1,244) | |
U.S. Government-sponsored enterprises [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 3 | |
Less than 12 Months, Number of Securities | Securities | 13 | |
Less than 12 Months, Fair Value | $ 1,824 | |
Less than 12 Months, Fair Value | $ 8,351 | |
Less than 12 Months, Gross Unrealized Losses | $ (7) | |
Less than 12 Months, Gross Unrealized Losses | $ (180) | |
12 Months and over, Number of Securities | Securities | 9 | 3 |
12 Months and Over, Fair Value | $ 4,374 | $ 1,172 |
12 Months and Over, Gross Unrealized Losses | $ (116) | $ (16) |
Total, Number of Securities | Securities | 12 | |
Total, Number of Securities | Securities | 16 | |
Total, Fair Value | $ 6,198 | |
Total, Fair Value | $ 9,523 | |
Total, Gross Unrealized Losses | $ (123) | |
Total, Gross Unrealized Losses | $ (196) | |
Agency MBS [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 26 | 22 |
Less than 12 Months, Fair Value | $ 19,315 | $ 15,141 |
Less than 12 Months, Gross Unrealized Losses | $ (143) | $ (261) |
12 Months and over, Number of Securities | Securities | 7 | 1 |
12 Months and Over, Fair Value | $ 5,222 | $ 344 |
12 Months and Over, Gross Unrealized Losses | $ (131) | $ (8) |
Total, Number of Securities | Securities | 33 | 23 |
Total, Fair Value | $ 24,537 | $ 15,485 |
Total, Gross Unrealized Losses | $ (274) | $ (269) |
State and political subdivisions [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 8 | 40 |
Less than 12 Months, Fair Value | $ 3,803 | $ 16,481 |
Less than 12 Months, Gross Unrealized Losses | $ (22) | $ (650) |
12 Months and over, Number of Securities | Securities | 18 | 0 |
12 Months and Over, Fair Value | $ 7,899 | $ 0 |
12 Months and Over, Gross Unrealized Losses | $ (217) | $ 0 |
Total, Number of Securities | Securities | 26 | 40 |
Total, Fair Value | $ 11,702 | $ 16,481 |
Total, Gross Unrealized Losses | $ (239) | $ (650) |
Corporate [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 2 | 8 |
Less than 12 Months, Fair Value | $ 870 | $ 3,973 |
Less than 12 Months, Gross Unrealized Losses | $ (31) | $ (56) |
12 Months and over, Number of Securities | Securities | 2 | 4 |
12 Months and Over, Fair Value | $ 964 | $ 1,627 |
12 Months and Over, Gross Unrealized Losses | $ (36) | $ (73) |
Total, Number of Securities | Securities | 4 | 12 |
Total, Fair Value | $ 1,834 | $ 5,600 |
Total, Gross Unrealized Losses | $ (67) | $ (129) |
Investment Securities Schedul64
Investment Securities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Gain (Loss) on Investments [Line Items] | |||
Proceeds | $ 14,409 | $ 6,620 | $ 11,540 |
Gross gains | 147 | 131 | 66 |
Gross losses | (130) | (60) | (13) |
Net gains | $ 17 | $ 71 | $ 53 |
Investment Securities Debt Secu
Investment Securities Debt Securities by Contactual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Available-for-sale | ||
Due from one to five years, Amortized Cost | $ 3,818 | |
Due from five to ten years, Amortized Cost | 16,858 | |
Due after ten years, Amortized Cost | 16,245 | |
Debt securities with single maturity date, Amortized Cost | 36,921 | |
Agency MBS, Amortized Cost | 28,378 | |
Total debt securities available-for-sale, Amortized Cost | 65,299 | |
Due from one to five years, Fair Value | 3,871 | |
Due from five to ten years, Fair Value | 16,834 | |
Due after ten years, Fair Value | 16,097 | |
Debt securities with single maturity date, Fair Value | 36,802 | |
Agency MBS, Fair Value | 28,116 | |
Total debt securities available-for-sale, Fair Value | 64,918 | |
Held-to-maturity | ||
Due in one year or less, Amortized Cost | 1,000 | |
Total debt securities held-to-maturity, Amortized Cost | 1,000 | $ 999 |
Due in one year or less, Fair Value | 999 | |
Total debt securities held-to-maturity, Fair Value | $ 999 | $ 999 |
Investment Securities Narrative
Investment Securities Narrative Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Investment Securities | ||
Investment securities pledged as collateral | $ 4,600,000 | $ 8,400,000 |
Other than temporary declines in available-for-sale securities | $ 0 |
Loans Held for Sale and Loan 67
Loans Held for Sale and Loan Servicing Loans sold during the period (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold | $ 122,211 | $ 135,545 | $ 131,706 |
Net gains on sale | 2,303 | 2,898 | 2,871 |
Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold | 121,985 | 135,294 | 131,706 |
Net gains on sale | 2,279 | 2,880 | 2,871 |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold | 226 | 251 | 0 |
Net gains on sale | $ 24 | $ 18 | $ 0 |
Loans Held for Sale and Loan 68
Loans Held for Sale and Loan Servicing Capitalization and amortization of loan servicing costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Servicing Asset at Amortized Cost [Line Items] | |||
Capitalization of servicing rights | $ 770 | $ 823 | $ 839 |
Amortization of servicing rights | 716 | 720 | 670 |
Net capitalization of servicing rights | $ 54 | $ 103 | $ 169 |
Loans Held for Sale and Loan 69
Loans Held for Sale and Loan Servicing Narrative Data (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance of loans serviced for others | $ 499,200,000 | $ 452,000,000 |
Loan servicing rights, unamortized balance | 1,700,000 | 1,600,000 |
Loan servicing rights, valuation allowance | 0 | 0 |
Credit Enhancement Obligation [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual risk sharing commitments, maximum liability | $ 665,000 | $ 634,000 |
Loans Composition of Net Loans
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 586,615 | $ 533,290 | ||
Allowance for loan losses | (5,408) | (5,247) | $ (5,201) | $ (4,694) |
Net deferred loan costs | 795 | 649 | ||
Net loans | 582,002 | 528,692 | ||
Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 178,999 | 172,727 | ||
Allowance for loan losses | (1,361) | (1,399) | (1,419) | (1,330) |
Construction Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 42,935 | 34,189 | ||
Allowance for loan losses | (488) | (391) | (514) | (439) |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 254,291 | 249,063 | ||
Allowance for loan losses | (2,707) | (2,687) | (2,792) | (2,417) |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 50,719 | 41,999 | ||
Allowance for loan losses | (395) | (342) | (209) | (176) |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 3,894 | 3,962 | ||
Allowance for loan losses | (30) | (26) | (28) | (27) |
Municipal [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 55,777 | 31,350 | ||
Allowance for loan losses | $ (64) | $ (40) | $ (38) | $ (42) |
Loans Past Due Loans (Details)
Loans Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | $ 580,373 | $ 524,891 |
Loans, Nonaccrual | 1,191 | 3,545 |
Loans | 586,615 | 533,290 |
30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 3,432 | 3,344 |
60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 1,125 | 670 |
90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 494 | 840 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 173,914 | 168,125 |
Loans, Nonaccrual | 816 | 1,797 |
Loans | 178,999 | 172,727 |
Residential Real Estate [Member] | 30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 3,047 | 1,661 |
Residential Real Estate [Member] | 60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 750 | 472 |
Residential Real Estate [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 472 | 672 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 42,857 | 34,148 |
Loans, Nonaccrual | 56 | 24 |
Loans | 42,935 | 34,189 |
Construction Real Estate [Member] | 30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 17 |
Construction Real Estate [Member] | 60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Construction Real Estate [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 22 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 253,266 | 245,402 |
Loans, Nonaccrual | 307 | 1,709 |
Loans | 254,291 | 249,063 |
Commercial Real Estate [Member] | 30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 357 | 1,642 |
Commercial Real Estate [Member] | 60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 361 | 153 |
Commercial Real Estate [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 157 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 50,675 | 41,920 |
Loans, Nonaccrual | 12 | 15 |
Loans | 50,719 | 41,999 |
Commercial [Member] | 30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 21 | 12 |
Commercial [Member] | 60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 11 | 42 |
Commercial [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 10 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 3,884 | 3,946 |
Loans, Nonaccrual | 0 | 0 |
Loans | 3,894 | 3,962 |
Consumer [Member] | 30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 7 | 12 |
Consumer [Member] | 60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 3 | 3 |
Consumer [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 1 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Current | 55,777 | 31,350 |
Loans, Nonaccrual | 0 | 0 |
Loans | 55,777 | 31,350 |
Municipal [Member] | 30-59 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 60-89 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans, Past Due | $ 0 | $ 0 |
Loans Narrative Data (Details)
Loans Narrative Data (Details) | 12 Months Ended | ||
Dec. 31, 2017USD ($)loans | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
FHLB Letters of Credit, collateral for deposits | $ 29,600,000 | $ 0 | |
Loans Pledged as Collateral | 0 | ||
Number of residential real estate loans in process of foreclosure | loans | 0 | ||
Interest on Nonaccrual Loans not recognized | $ 1,200,000 | $ 1,300,000 | $ 1,200,000 |
Allowance for loan losses and73
Allowance for loan losses and credit quality Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | $ 5,247 | $ 5,201 | $ 4,694 | $ 5,247 | $ 5,201 | $ 4,694 | |||||||||
Provision (credit) for loan losses | $ 50 | $ 150 | $ 0 | 0 | $ 0 | $ 0 | $ 75 | 75 | $ 150 | $ 150 | $ 150 | 100 | 200 | 150 | 550 |
Recoveries of amounts charged off | 168 | 59 | 83 | ||||||||||||
Balance, before amounts charged off | 5,615 | 5,410 | 5,327 | ||||||||||||
Amounts charged off | (207) | (163) | (126) | ||||||||||||
Balance, end of year | 5,408 | 5,247 | 5,201 | 5,408 | 5,247 | 5,201 | |||||||||
Residential Real Estate [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | 1,399 | 1,419 | 1,330 | 1,399 | 1,419 | 1,330 | |||||||||
Provision (credit) for loan losses | 17 | 64 | 136 | ||||||||||||
Recoveries of amounts charged off | 138 | 36 | 36 | ||||||||||||
Balance, before amounts charged off | 1,554 | 1,519 | 1,502 | ||||||||||||
Amounts charged off | (193) | (120) | (83) | ||||||||||||
Balance, end of year | 1,361 | 1,399 | 1,419 | 1,361 | 1,399 | 1,419 | |||||||||
Construction Real Estate [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | 391 | 514 | 439 | 391 | 514 | 439 | |||||||||
Provision (credit) for loan losses | 73 | (135) | 47 | ||||||||||||
Recoveries of amounts charged off | 24 | 12 | 28 | ||||||||||||
Balance, before amounts charged off | 488 | 391 | 514 | ||||||||||||
Amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, end of year | 488 | 391 | 514 | 488 | 391 | 514 | |||||||||
Commercial Real Estate [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | 2,687 | 2,792 | 2,417 | 2,687 | 2,792 | 2,417 | |||||||||
Provision (credit) for loan losses | 20 | (105) | 375 | ||||||||||||
Recoveries of amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, before amounts charged off | 2,707 | 2,687 | 2,792 | ||||||||||||
Amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, end of year | 2,707 | 2,687 | 2,792 | 2,707 | 2,687 | 2,792 | |||||||||
Commercial [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | 342 | 209 | 176 | 342 | 209 | 176 | |||||||||
Provision (credit) for loan losses | 49 | 158 | 46 | ||||||||||||
Recoveries of amounts charged off | 4 | 8 | 16 | ||||||||||||
Balance, before amounts charged off | 395 | 375 | 238 | ||||||||||||
Amounts charged off | 0 | (33) | (29) | ||||||||||||
Balance, end of year | 395 | 342 | 209 | 395 | 342 | 209 | |||||||||
Consumer [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | 26 | 28 | 27 | 26 | 28 | 27 | |||||||||
Provision (credit) for loan losses | 16 | 5 | 12 | ||||||||||||
Recoveries of amounts charged off | 2 | 3 | 3 | ||||||||||||
Balance, before amounts charged off | 44 | 36 | 42 | ||||||||||||
Amounts charged off | (14) | (10) | (14) | ||||||||||||
Balance, end of year | 30 | 26 | 28 | 30 | 26 | 28 | |||||||||
Municipal [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | 40 | 38 | 42 | 40 | 38 | 42 | |||||||||
Provision (credit) for loan losses | 24 | 2 | (4) | ||||||||||||
Recoveries of amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, before amounts charged off | 64 | 40 | 38 | ||||||||||||
Amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, end of year | 64 | 40 | 38 | 64 | 40 | 38 | |||||||||
Unallocated [Member] | |||||||||||||||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||||||||||||||
Balance, beginning of year | $ 362 | $ 201 | $ 263 | 362 | 201 | 263 | |||||||||
Provision (credit) for loan losses | 1 | 161 | (62) | ||||||||||||
Recoveries of amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, before amounts charged off | 363 | 362 | 201 | ||||||||||||
Amounts charged off | 0 | 0 | 0 | ||||||||||||
Balance, end of year | $ 363 | $ 362 | $ 201 | $ 363 | $ 362 | $ 201 |
Allowance for loan losses and74
Allowance for loan losses and credit quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | $ 48 | $ 103 | ||
Collectively evaluated for impairment | 5,360 | 5,144 | ||
Total allocated | 5,408 | 5,247 | $ 5,201 | $ 4,694 |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 47 | 63 | ||
Collectively evaluated for impairment | 1,314 | 1,336 | ||
Total allocated | 1,361 | 1,399 | 1,419 | 1,330 |
Construction Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 488 | 391 | ||
Total allocated | 488 | 391 | 514 | 439 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 1 | 40 | ||
Collectively evaluated for impairment | 2,706 | 2,647 | ||
Total allocated | 2,707 | 2,687 | 2,792 | 2,417 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 395 | 342 | ||
Total allocated | 395 | 342 | 209 | 176 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 30 | 26 | ||
Total allocated | 30 | 26 | 28 | 27 |
Municipal [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 64 | 40 | ||
Total allocated | 64 | 40 | 38 | 42 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 363 | 362 | ||
Total allocated | $ 363 | $ 362 | $ 201 | $ 263 |
Allowance for loan losses and75
Allowance for loan losses and credit quality Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 3,252 | $ 5,296 |
Collectively evaluated for impairment | 583,363 | 527,994 |
Total | 586,615 | 533,290 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,718 | 1,448 |
Collectively evaluated for impairment | 177,281 | 171,279 |
Total | 178,999 | 172,727 |
Construction Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 82 | 88 |
Collectively evaluated for impairment | 42,853 | 34,101 |
Total | 42,935 | 34,189 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 1,074 | 3,328 |
Collectively evaluated for impairment | 253,217 | 245,735 |
Total | 254,291 | 249,063 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 378 | 432 |
Collectively evaluated for impairment | 50,341 | 41,567 |
Total | 50,719 | 41,999 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,894 | 3,962 |
Total | 3,894 | 3,962 |
Municipal [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 55,777 | 31,350 |
Total | $ 55,777 | $ 31,350 |
Allowance for loan losses and76
Allowance for loan losses and credit quality Loan Ratings by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 586,615 | $ 533,290 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 474,035 | 443,132 |
Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 105,637 | 80,807 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 6,943 | 9,351 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 178,999 | 172,727 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 164,733 | 158,140 |
Residential Real Estate [Member] | Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,296 | 10,641 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 2,970 | 3,946 |
Construction Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 42,935 | 34,189 |
Construction Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 33,401 | 29,248 |
Construction Real Estate [Member] | Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 9,374 | 4,830 |
Construction Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 160 | 111 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 254,291 | 249,063 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 177,388 | 182,247 |
Commercial Real Estate [Member] | Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 73,772 | 62,193 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,131 | 4,623 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 50,719 | 41,999 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 38,877 | 38,219 |
Commercial [Member] | Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 11,165 | 3,109 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 677 | 671 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,894 | 3,962 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 3,859 | 3,928 |
Consumer [Member] | Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 30 | 34 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 5 | 0 |
Municipal [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55,777 | 31,350 |
Municipal [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 55,777 | 31,350 |
Municipal [Member] | Satisfactory and Monitor [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | 0 | 0 |
Municipal [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans | $ 0 | $ 0 |
Allowance for loan losses and77
Allowance for loan losses and credit quality Impaired Loans by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |||||
Financing Receivable, Impaired [Line Items] | |||||||
With an allowance recorded, Recorded Investment | $ 375 | $ 796 | $ 3,294 | [1] | |||
With an allowance recorded, Principal Balance | 388 | 837 | 3,322 | [1] | |||
Related Allowance | 48 | 103 | 357 | ||||
With no allowance recorded, Recorded Investment | 2,877 | [1] | 4,500 | [1] | 1,582 | ||
With no allowance recorded, Principal Balance | 3,454 | [1] | 4,991 | [1] | 1,804 | ||
Total, Recorded Investment | [1] | 3,252 | 5,296 | 4,876 | |||
Total, Principal Balance | [1] | 3,842 | 5,828 | 5,126 | |||
Total, Average Recorded Investment | 4,156 | 4,968 | 4,750 | ||||
Total, Interest Income Recognized | 183 | 194 | 272 | ||||
Government Guarantees on Impaired Loans | 550 | 637 | 606 | ||||
Residential Real Estate [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
With an allowance recorded, Recorded Investment | 238 | 308 | 659 | [1] | |||
With an allowance recorded, Principal Balance | 247 | 317 | 668 | [1] | |||
Related Allowance | 47 | 63 | 109 | ||||
With no allowance recorded, Recorded Investment | 1,480 | [1] | 1,140 | [1] | 538 | ||
With no allowance recorded, Principal Balance | 1,983 | [1] | 1,561 | [1] | 697 | ||
Total, Recorded Investment | [1] | 1,718 | 1,448 | 1,197 | |||
Total, Principal Balance | [1] | 2,230 | 1,878 | 1,365 | |||
Total, Average Recorded Investment | 1,691 | 1,303 | 942 | ||||
Total, Interest Income Recognized | 67 | 50 | 34 | ||||
Construction Real Estate [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
Related Allowance | 0 | 0 | 0 | ||||
With no allowance recorded, Recorded Investment | 82 | 88 | 92 | ||||
With no allowance recorded, Principal Balance | 82 | 88 | 92 | ||||
Total, Recorded Investment | 82 | 88 | 92 | ||||
Total, Principal Balance | 82 | 88 | 92 | ||||
Total, Average Recorded Investment | 85 | 90 | 162 | ||||
Total, Interest Income Recognized | 4 | 4 | 19 | ||||
Commercial Real Estate [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
With an allowance recorded, Recorded Investment | 137 | 488 | 2,142 | ||||
With an allowance recorded, Principal Balance | 141 | 520 | 2,161 | ||||
Related Allowance | 1 | 40 | 227 | ||||
With no allowance recorded, Recorded Investment | 937 | [1] | 2,840 | [1] | 952 | ||
With no allowance recorded, Principal Balance | 1,011 | [1] | 2,910 | [1] | 1,015 | ||
Total, Recorded Investment | 1,074 | [1] | 3,328 | [1] | 3,094 | ||
Total, Principal Balance | 1,152 | [1] | 3,430 | [1] | 3,176 | ||
Total, Average Recorded Investment | 1,975 | 3,113 | 3,523 | ||||
Total, Interest Income Recognized | 86 | 107 | 219 | ||||
Commercial [Member] | |||||||
Financing Receivable, Impaired [Line Items] | |||||||
With an allowance recorded, Recorded Investment | [1] | 493 | |||||
With an allowance recorded, Principal Balance | [1] | 493 | |||||
Related Allowance | 0 | 0 | 21 | ||||
With no allowance recorded, Recorded Investment | [1] | 378 | 432 | ||||
With no allowance recorded, Principal Balance | [1] | 378 | 432 | ||||
Total, Recorded Investment | [1] | 378 | 432 | 493 | |||
Total, Principal Balance | [1] | 378 | 432 | 493 | |||
Total, Average Recorded Investment | 405 | 462 | 123 | ||||
Total, Interest Income Recognized | $ 26 | $ 33 | $ 0 | ||||
[1] | Does not reflect government guaranties on impaired loans as of December 31, 2017, 2016 and 2015 totaling $550 thousand, $637 thousand and $606 thousand, respectively. |
Allowance for loan losses and78
Allowance for loan losses and credit quality Troubled Debt Restructured Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loans | Dec. 31, 2016USD ($)loans | |
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 37 | 33 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 3,252 | $ 3,419 |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 24 | 20 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,718 | $ 1,448 |
Construction Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 1 | 1 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 82 | $ 88 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 10 | 10 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,074 | $ 1,452 |
Commercial [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 2 | 2 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 378 | $ 431 |
Allowance for loan losses and79
Allowance for loan losses and credit quality New Troubled Debt Restructure Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loans | Dec. 31, 2016USD ($)loans | |
Residential Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
New Troubled Debt Restructured Loans, Number of Loans | loans | 9 | 9 |
New Troubled Debt Restructured Loans, Pre-Modification Recorded Investment | $ 649 | $ 349 |
New Troubled Debt Restructured Loans, Post-Modification Recorded Investment | $ 673 | $ 371 |
Commercial Real Estate [Member] | ||
Financing Receivable, Modifications [Line Items] | ||
New Troubled Debt Restructured Loans, Number of Loans | loans | 2 | 6 |
New Troubled Debt Restructured Loans, Pre-Modification Recorded Investment | $ 293 | $ 803 |
New Troubled Debt Restructured Loans, Post-Modification Recorded Investment | $ 293 | $ 807 |
Allowance for loan losses and80
Allowance for loan losses and credit quality Narrative Data (Details) - Residential Real Estate [Member] $ in Thousands | 12 Months Ended | |
Dec. 31, 2017USD ($)loans | Dec. 31, 2016loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Resturctured Loans, Number to Subsequently Default | loans | 1 | 0 |
Troubled Debt Restructured Loans to Subsequently Default, Principal Balance | $ | $ 62 |
Premises and Equipment Class of
Premises and Equipment Class of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 25,124 | $ 24,854 |
Less accumulated depreciation | (10,869) | (11,329) |
Premises and equipment, net | 14,255 | 13,525 |
Land and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 2,975 | 2,930 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 14,261 | 13,057 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 7,450 | 8,833 |
Construction in progress and deposits on equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 438 | $ 34 |
Premises and Equipment Future M
Premises and Equipment Future Minimum Rental Commitments (Details) $ in Thousands | Dec. 31, 2017USD ($) |
Operating Leased Assets [Line Items] | |
2,018 | $ 134 |
2,019 | 91 |
2,020 | 60 |
2,021 | 52 |
2,022 | 12 |
Total | $ 349 |
Premises and Equipment Narrativ
Premises and Equipment Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,223 | $ 1,255 | $ 1,080 |
Rent expense | 148 | 144 | 138 |
Rental income | $ 194 | $ 220 | $ 227 |
Goodwill and Other Intangible84
Goodwill and Other Intangible Assets Core Deposit Intangible Amortization (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
2,018 | $ 171 | |
2,019 | 171 | |
2,020 | 171 | |
2,021 | 70 | |
Total | $ 583 | $ 754 |
Goodwill and Other Intangible85
Goodwill and Other Intangible Assets Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 27, 2011 | |
Goodwill And Intangible Assets [Line Items] | ||||
Goodwill at Acquisition | $ 2,200 | |||
Core Deposit Intangible at Acquisition | $ 1,700 | |||
Amortization of core deposit intangible | $ 171 | $ 171 | $ 171 |
Investment in Real Estate Lim86
Investment in Real Estate Limited Partnerships Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Investment Holdings [Line Items] | |||
Investment in real estate limited partnerships | $ 3,166 | $ 2,783 | |
Capital contributions payable for limited partnership investments | 546 | 27 | |
Equity in losses of limited partnerships | 627 | 565 | $ 484 |
Tax credits for investments in real estate limited partnership | $ 660 | $ 881 | $ 564 |
Deposits Interest Bearing Depos
Deposits Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Interest Bearing Deposits [Line Items] | ||
Interest bearing checking accounts | $ 162,996 | $ 143,037 |
Savings and money market accounts | 255,625 | 239,046 |
Time deposits, $100,000 and over | 41,182 | 40,581 |
Other time deposits | 59,947 | 62,612 |
Total interest-bearing deposits | $ 519,750 | $ 485,276 |
Deposits Time Deposits by Matur
Deposits Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Time Deposits, by Maturity [Line Items] | ||
2,018 | $ 62,544 | |
2,019 | 21,951 | |
2,020 | 6,468 | |
2,021 | 5,020 | |
2,022 | 5,146 | |
Total Time deposits | $ 101,129 | $ 103,193 |
Deposits Narrative Data (Detail
Deposits Narrative Data (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Deposits [Abstract] | ||
Time Deposits, $250,000 or More | $ 9.9 | $ 8.7 |
Borrowed Funds Contractual Paym
Borrowed Funds Contractual Payments Due for FHLB Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2,018 | $ 19,765 | |
2,019 | 10,287 | |
2,020 | 0 | |
2,021 | 164 | |
Total | $ 30,216 | $ 30,500 |
Borrowed Funds Narrative Data (
Borrowed Funds Narrative Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Option advance borrowings from the FHLB | $ 30,216,000 | $ 30,500,000 |
Secured customer repurchase agreement sweeps | 1,400,000 | 1,100,000 |
FHLB borrowing capacity, loans pledged | 164,500,000 | 161,300,000 |
FHLB borrowing capacity, maximum available | 100,600,000 | 91,500,000 |
FHLB borrowings and other credit subject to collateralization | 60,800,000 | 31,700,000 |
FHLB borrowing capacity, unused and available | 39,800,000 | 59,800,000 |
FHLB Letters of Credit, collateral for deposits | 29,600,000 | 0 |
Correspondent banks line of credit, maximum available | 10,000,000 | |
Correspondent banks line of credit, amount outstanding | 0 | 0 |
Securities pledged for customer repurchase agreement sweeps | 2,000,000 | 1,800,000 |
Repurchase agreement sweeps, average daily balance | $ 1,600,000 | $ 1,600,000 |
Repurchase agreement sweeps, weighted average interest rate for the year | 0.26% | 0.26% |
Repurchase agreement sweeps, maximum borrowings outstanding during the year | $ 4,900,000 | $ 4,400,000 |
Repurchase agreement sweeps, weighted average interest rate at year end | 0.25% | 0.23% |
Interest rate, low range [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB borrowings interest rate | 0.00% | 0.00% |
Interest rate, high range [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB borrowings interest rate | 4.31% | 4.31% |
Weighted average interest rate [Member] | ||
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
FHLB borrowings interest rate | 1.42% | 1.42% |
Income Taxes Components of the
Income Taxes Components of the provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Components of the provision for income taxes [Line Items] | |||
Current tax provision | $ 2,610 | $ 2,032 | $ 2,322 |
Deferred tax provision | 993 | 566 | 341 |
Provision for income taxes | $ 3,603 | $ 2,598 | $ 2,663 |
Income Taxes Schedule of effect
Income Taxes Schedule of effective income tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Schedule of Effective Income Tax Rate Reconciliation [Line Items] | |||
Statutory federal income tax rate | 34.00% | 34.00% | 34.00% |
Computed expected tax expense | $ 3,884 | $ 3,585 | $ 3,419 |
Tax exempt Interest | (642) | (596) | (613) |
Increase in cash surrender value of COLI | (83) | (115) | (96) |
Tax credits | (694) | (896) | (564) |
Equity in losses of limited partnerships | 627 | 565 | 484 |
Adjustment for effect of enacted tax law changes | 447 | 0 | 0 |
Other | 64 | 55 | 33 |
Provision for income taxes | $ 3,603 | $ 2,598 | $ 2,663 |
Income Taxes Components of th94
Income Taxes Components of the net deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Components of the net deferred tax asset [Line Items] | ||
Bad debts | $ 1,171 | $ 1,813 |
Deferred compensation | 227 | 334 |
Net pension liability | 339 | 316 |
Core deposit intangible | 81 | 110 |
Limited partnership investments | 23 | 0 |
Unrealized loss on investment securities available-for-sale | 80 | 342 |
Other | 90 | 146 |
Total deferred tax asset | 2,011 | 3,061 |
Depreciation | (493) | (893) |
Mortgage servicing rights | (364) | (563) |
Limited partnership investments | 0 | (17) |
Goodwill | (211) | (286) |
Prepaid expenses | (130) | 0 |
Total deferred tax liability | (1,198) | (1,759) |
Net deferred tax asset | $ 813 | $ 1,302 |
Income Taxes Income Taxes Narra
Income Taxes Income Taxes Narrative Data (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |||
Adjustment for effect of enacted tax law changes | $ 447,000 | $ 0 | $ 0 |
Deferred tax assets, valuation allowance | $ 0 |
Employee Benefit Plans Defined
Employee Benefit Plans Defined benefit pension plan obligations and funded status (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation at beginning of year | $ 17,687 | $ 17,177 | |
Interest cost | 688 | 701 | $ 680 |
Actuarial loss | 3,150 | 544 | |
Benefits paid | (693) | (735) | |
Projected benefit obligation at end of year | 20,832 | 17,687 | 17,177 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets at beginning of year | 16,631 | 15,717 | |
Actuarial gain on plan assets | 1,811 | 899 | |
Employer contributions | 750 | 750 | |
Benefits paid | (693) | (735) | |
Fair value of plan assets at end of year | 18,499 | 16,631 | $ 15,717 |
Net liability for pension benefits | (2,333) | (1,056) | |
Accumulated benefit obligation at December 31 | $ 20,832 | $ 17,687 |
Employee Benefit Plans Net Peri
Employee Benefit Plans Net Periodic Pension (Benefit) Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Interest cost on projected benefit obligation | $ 688 | $ 701 | $ 680 |
Expected return on plan assets | (972) | (1,036) | (1,144) |
Amortization of net actuarial loss | 204 | 165 | 56 |
Net periodic pension benefit | $ (80) | $ (170) | $ (408) |
Employee Benefit Plans Plan Ass
Employee Benefit Plans Plan Asset Allocation by Asset Category (Details) | Dec. 31, 2017Rate | Dec. 31, 2016Rate |
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocation by asset category based on fair values | 100.00% | 100.00% |
Cash and cash equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocation by asset category based on fair values | 5.40% | 3.40% |
Debt securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocation by asset category based on fair values | 33.20% | 49.70% |
Equity securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocation by asset category based on fair values | 0.00% | 46.90% |
Mutual and exchange traded funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Plan asset allocation by asset category based on fair values | 61.40% | 0.00% |
Employee Benefit Plans Plan A99
Employee Benefit Plans Plan Asset Allocation, Mix of Investments (Details) | 12 Months Ended |
Dec. 31, 2017Rate | |
U.S. Treasury or Agency bonds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit pension plan asset allocation objective, low target percent | 0.00% |
Defined benefit pension plan asset allocation objective, high target percent | 50.00% |
Debt securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit pension plan asset allocation objective, low target percent | 0.00% |
Defined benefit pension plan asset allocation objective, high target percent | 50.00% |
Cash and cash equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit pension plan asset allocation objective, low target percent | 0.00% |
Defined benefit pension plan asset allocation objective, high target percent | 5.00% |
Employee Benefit Plans Fair Val
Employee Benefit Plans Fair Values of Plan Investments by Hierarchy Level (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 18,499 | $ 16,631 | $ 15,717 |
U.S. Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,131 | 1,826 | |
Common trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,207 | ||
Equity securities [Member] | Information technology [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 976 | ||
Equity securities [Member] | Financial [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 813 | ||
Equity securities [Member] | Industrials [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,212 | ||
Equity securities [Member] | Healthcare [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,393 | ||
Equity securities [Member] | Consumer [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,131 | ||
Equity securities [Member] | Energy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,275 | ||
Mutual and exchange traded funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,368 | 1,798 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,368 | 14,805 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common trust funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 5,207 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Information technology [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 976 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Financial [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 813 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Industrials [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,212 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Healthcare [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,393 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Consumer [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 2,131 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity securities [Member] | Energy [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 1,275 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual and exchange traded funds [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 11,368 | 1,798 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7,131 | 1,826 | |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 7,131 | $ 1,826 |
Employee Benefit Plans Employer
Employee Benefit Plans Employer 401(k) Contributions (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Employer matching | $ 223 | $ 221 | $ 200 |
Profit sharing | 281 | 301 | 274 |
Safe harbor | 296 | 294 | 264 |
Total | $ 800 | $ 816 | $ 738 |
Employee Benefit Plans Narrativ
Employee Benefit Plans Narrative Data (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Estimated employer contribution for 2018 | $ 1,100,000 | ||
Estimated charge to earnings at Plan termination | $ 3,200,000 | ||
Weighted average assumptions, pension benefit obligation, discount rate | 3.52% | 3.99% | 4.17% |
Weighted average assumptions, pension benefit obligation, rate of compensation increase | 0.00% | 0.00% | 0.00% |
Weighted average assumptions, net periodic benefit cost, discount rate | 3.99% | 4.17% | 3.83% |
Weighted average assumptions, net periodic benefit cost, rate of compensation increase | 0.00% | 0.00% | 0.00% |
Weighted average assumptions, net periodic benefit cost, expected long-term rate of return on plan assets | 6.00% | 6.75% | 6.75% |
Defined Benefit Plan, Minimum Required Contribution | $ 0 | ||
Deferred Compensation Arrangements [Abstract] | |||
Deferred compensation expense | 8,000 | $ 9,000 | $ 8,000 |
Deferred compensation accrued benefit liability | 525,000 | 613,000 | |
Cash surrender value of life insurance policies purchased to fund the deferred compensation plan | 986,000 | 945,000 | |
General unsecured obligation of unfunded deferred compensation plan | $ 522,000 | $ 353,000 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Units Granted and Unvested (Details) - 2014 Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 12,239 |
Number of Unvested RSUs | 5,981 |
2015 Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 5,445 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 27.91 |
Number of Unvested RSUs | 730 |
2016 Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 3,569 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 45.45 |
Number of Unvested RSUs | 2,026 |
2017 Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 3,225 |
Weighted-Average Grant Date Fair Value | $ / shares | $ 52.95 |
Number of Unvested RSUs | 3,225 |
Stock Option Plan Stock Option
Stock Option Plan Stock Option Activity (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Shares [Roll Forward] | |||
Outstanding at January 1, 2017 | 8,500 | 11,000 | |
Exercised | (1,000) | (2,500) | (2,500) |
Outstanding at December 31, 2017 | 7,500 | 8,500 | 11,000 |
Weighted Average Exercise Price [Roll Forward] | |||
Exercised | $ 19.60 | $ 22.24 | $ 21.04 |
2014 Equity Plan [Member] | |||
Shares [Roll Forward] | |||
Outstanding at January 1, 2017 | 4,500 | ||
Exercised | 0 | ||
Forfeited/expired | 0 | ||
Outstanding at December 31, 2017 | 4,500 | 4,500 | |
Exercisable at December 31, 2017 | 4,500 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at January 1, 2017 | $ 24 | ||
Exercised | 0 | ||
Forfeited/expired | 0 | ||
Outstanding at December 31, 2017 | 24 | $ 24 | |
Exercisable at December 31, 2017 | $ 24 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding at December 31, 2017 | 3 years 11 months 16 days | ||
Exercisable at December 31, 2017 | 3 years 11 months 16 days | ||
Period End Aggregate Intrinsic Value [Abstract] | |||
Outstanding at December 31, 2017 | $ 130 | ||
Exercisable at December 31, 2017 | $ 130 | ||
2008 ISO Plan [Member] | |||
Shares [Roll Forward] | |||
Outstanding at January 1, 2017 | 4,000 | ||
Exercised | (1,000) | ||
Forfeited/expired | 0 | ||
Outstanding at December 31, 2017 | 3,000 | 4,000 | |
Exercisable at December 31, 2017 | 3,000 | ||
Weighted Average Exercise Price [Roll Forward] | |||
Outstanding at January 1, 2017 | $ 21.40 | ||
Exercised | 19.60 | ||
Forfeited/expired | 0 | ||
Outstanding at December 31, 2017 | 22 | $ 21.40 | |
Exercisable at December 31, 2017 | $ 22 | ||
Weighted Average Remaining Contractual Term [Abstract] | |||
Outstanding at December 31, 2017 | 2 years 11 months 16 days | ||
Exercisable at December 31, 2017 | 2 years 11 months 16 days | ||
Period End Aggregate Intrinsic Value [Abstract] | |||
Outstanding at December 31, 2017 | $ 93 | ||
Exercisable at December 31, 2017 | $ 93 |
Stock Based Compensation Stock
Stock Based Compensation Stock Option Plan Proceeds from the Exercise of Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds received | $ 19 | $ 56 | $ 53 |
Number of shares exercised | 1,000 | 2,500 | 2,500 |
Weighted average price per share | $ 19.60 | $ 22.24 | $ 21.04 |
Total intrinsic value of options exercised | $ 25 | $ 21 | $ 9 |
Stock Option Plan Narrative Dat
Stock Option Plan Narrative Data (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2017 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 7,500 | 7,500 | 8,500 | 11,000 |
Stock based compensation expense | $ 104 | $ 66 | $ 35 | |
Unrecognized compensation cost related to unvested stock option grants to be recognized in 2015 | $ 0 | $ 0 | ||
2014 Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for option grants | 50,000 | 50,000 | ||
Stock options granted | 0 | 0 | 6,000 | |
Stock options outstanding | 4,500 | 4,500 | 4,500 | |
Stock options exercisable | 4,500 | 4,500 | ||
2008 ISO Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 3,000 | 3,000 | 4,000 | |
Stock options exercisable | 3,000 | 3,000 | ||
Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, unvested RSUs | $ 283 | $ 283 | $ 248 | |
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 1 year | |||
Intrinsic value at grant date of stock options | $ 0 | |||
Requisite service period | 1 year | |||
Contractual term | 7 years | |||
Stock based compensation expense | $ 0 | $ 0 | $ 35 | |
Time-Based [Member] | Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Performance-Based [Member] | Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 2 years |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | |||||||||||||||
Net income | $ 1,922 | $ 2,370 | $ 2,227 | $ 1,930 | $ 2,345 | $ 2,268 | $ 2,139 | $ 1,759 | $ 1,927 | $ 2,050 | $ 2,017 | $ 1,884 | $ 8,449 | $ 8,511 | $ 7,878 |
Weighted average common shares outstanding | 4,462,192 | 4,459,001 | 4,458,037 | ||||||||||||
Basic earnings per share | $ 0.43 | $ 0.53 | $ 0.50 | $ 0.43 | $ 0.53 | $ 0.51 | $ 0.48 | $ 0.39 | $ 0.44 | $ 0.45 | $ 0.46 | $ 0.42 | $ 1.89 | $ 1.91 | $ 1.77 |
Earnings Per Share Narrative Da
Earnings Per Share Narrative Data (Details) - shares | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Earnings Per Share [Abstract] | |||
Stock options outstanding | 7,500 | 8,500 | 11,000 |
Financial Instruments With O109
Financial Instruments With Off-Balance-Sheet Risk Contractual Amount of Financial Instruments with Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 117,462 | $ 112,503 |
Commitment to originate loans [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 25,394 | 31,404 |
Unused lines of credit [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 85,906 | 76,544 |
Standby and commercial letters of credit [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 2,064 | 1,624 |
Credit card arrangement [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 1,326 | 1,341 |
MPF credit enhancement obligation, net (See Note 18) | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 640 | 610 |
Commitment to purchase investment in a real estate limited partnership [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 1,470 | 980 |
Contract commitment for renovation project [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 662 | $ 0 |
Financial Instruments With O110
Financial Instruments With Off-Balance-Sheet Risk Narrative Data (Details) - USD ($) $ in Millions | Dec. 31, 2017 | Dec. 31, 2016 |
Supply Commitment [Line Items] | ||
Commitment to sell residential mortgage loans | $ 4.2 | $ 7.3 |
Commitments and Contingencies N
Commitments and Contingencies Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Loss Contingencies [Line Items] | ||
Unpaid principal balance of loans serviced for others | $ 499,200 | $ 452,000 |
Credit Enhancement Obligation [Member] | ||
Loss Contingencies [Line Items] | ||
Contractual risk sharing commitments, maximum liability | 665 | 634 |
Reserve for contingent contractual liability, amount accrued | 25 | $ 24 |
Federal Home Loan Bank MPF Program [Member] | ||
Loss Contingencies [Line Items] | ||
Total loans sold through the MPF program since inceptions into the program | 28,100 | |
Unpaid principal balance of loans serviced for others | $ 14,700 |
Fair Value Measurement, Assets
Fair Value Measurement, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 65,439 | $ 65,556 |
U.S. Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,695 | 10,040 |
Agency MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 28,116 | 18,041 |
State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 24,714 | 27,372 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,393 | 9,700 |
Total debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 64,918 | 65,153 |
Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 521 | 403 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 521 | 403 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual funds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 521 | 403 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 64,918 | 65,153 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,695 | 10,040 |
Significant Other Observable Inputs (Level 2) [Member] | Agency MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 28,116 | 18,041 |
Significant Other Observable Inputs (Level 2) [Member] | State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 24,714 | 27,372 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 4,393 | 9,700 |
Significant Other Observable Inputs (Level 2) [Member] | Total debt securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 64,918 | $ 65,153 |
Fair Value Measurement, by Bala
Fair Value Measurement, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | $ 38,508 | $ 39,275 | $ 17,961 | $ 41,744 |
Interest bearing deposits in banks | 9,352 | 9,504 | ||
Loans held for sale | 7,947 | 7,803 | ||
Loans, Net | 586,615 | 533,290 | ||
Accrued interest receivable | 2,500 | 2,259 | ||
Deposits | ||||
Noninterest bearing | 127,824 | 112,384 | ||
Interest bearing | 418,621 | 382,083 | ||
Time | 101,129 | 103,193 | ||
Residential Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 178,999 | 172,727 | ||
Construction Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 42,935 | 34,189 | ||
Commercial Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 254,291 | 249,063 | ||
Commercial [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 50,719 | 41,999 | ||
Consumer [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 3,894 | 3,962 | ||
Municipal [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 55,777 | 31,350 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 38,508 | 39,275 | ||
Investment securities | 521 | 403 | ||
Deposits | ||||
Noninterest bearing | 127,824 | 112,384 | ||
Interest bearing | 418,621 | 382,083 | ||
Borrowed funds | ||||
Short-term, Fair Value | 1,364 | 1,099 | ||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Interest bearing deposits in banks | 9,333 | 9,528 | ||
Investment securities | 65,917 | 66,152 | ||
Loans held for sale | 8,111 | 7,958 | ||
Accrued interest receivable | 395 | 414 | ||
Deposits | ||||
Time | 99,967 | 102,594 | ||
Borrowed funds | ||||
Long-term, Fair Value | 29,039 | 30,423 | ||
Accrued interest payable | 97 | 92 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Accrued interest receivable | 2,105 | 1,845 | ||
Significant Unobservable Inputs (Level 3) [Member] | Residential Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 178,818 | 173,024 | ||
Significant Unobservable Inputs (Level 3) [Member] | Construction Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 42,069 | 33,963 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 248,746 | 245,979 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 49,132 | 41,491 | ||
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 3,919 | 4,014 | ||
Significant Unobservable Inputs (Level 3) [Member] | Municipal [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 55,778 | 31,749 | ||
Carrying Amount [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 38,508 | 39,275 | ||
Interest bearing deposits in banks | 9,352 | 9,504 | ||
Investment securities | 66,439 | 66,555 | ||
Loans held for sale | 7,947 | 7,803 | ||
Accrued interest receivable | 2,500 | 2,259 | ||
Nonmarketable equity securities | 2,331 | 2,354 | ||
Deposits | ||||
Noninterest bearing | 127,824 | 112,384 | ||
Interest bearing | 418,621 | 382,083 | ||
Time | 101,129 | 103,193 | ||
Borrowed funds | ||||
Short-term | 1,365 | 1,099 | ||
Long-term | 30,216 | 30,496 | ||
Accrued interest payable | 97 | 92 | ||
Carrying Amount [Member] | Residential Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 177,880 | 171,538 | ||
Carrying Amount [Member] | Construction Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 42,505 | 33,840 | ||
Carrying Amount [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 251,566 | 246,317 | ||
Carrying Amount [Member] | Commercial [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 50,393 | 41,708 | ||
Carrying Amount [Member] | Consumer [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 3,869 | 3,941 | ||
Carrying Amount [Member] | Municipal [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Net | 55,789 | 31,348 | ||
Estimated Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents | 38,508 | 39,275 | ||
Interest bearing deposits in banks | 9,333 | 9,528 | ||
Investment securities | 66,438 | 66,555 | ||
Loans held for sale | 8,111 | 7,958 | ||
Accrued interest receivable | 2,500 | 2,259 | ||
Deposits | ||||
Noninterest bearing | 127,824 | 112,384 | ||
Interest bearing | 418,621 | 382,083 | ||
Time | 99,967 | 102,594 | ||
Borrowed funds | ||||
Short-term, Fair Value | 1,364 | 1,099 | ||
Long-term, Fair Value | 29,039 | 30,423 | ||
Accrued interest payable | 97 | 92 | ||
Estimated Fair Value [Member] | Residential Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 178,818 | 173,024 | ||
Estimated Fair Value [Member] | Construction Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 42,069 | 33,963 | ||
Estimated Fair Value [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 248,746 | 245,979 | ||
Estimated Fair Value [Member] | Commercial [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 49,132 | 41,491 | ||
Estimated Fair Value [Member] | Consumer [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | 3,919 | 4,014 | ||
Estimated Fair Value [Member] | Municipal [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Loans, Fair Value | $ 55,778 | $ 31,749 |
Transactions with Related Pa114
Transactions with Related Parties Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, January 1, | $ 475 | $ 507 |
New loans and advances on lines | 945 | 263 |
Repayments | (459) | (295) |
Balance, December 31, | 961 | 475 |
Balance available on lines of credit or loan commitments | $ 669 | $ 691 |
Transactions with Related Pa115
Transactions with Related Parties Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Deposit accounts with related parties | $ 969 | $ 1,100 |
Union's Asset Management Group investment in Union certificates of deposit | $ 472 | $ 595 |
Regulatory Capital Requireme116
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Company [Member] | ||
Total capital to risk weighted assets | ||
Total capital, actual | $ 66,472 | $ 62,128 |
Total capital to risk weighted assets, actual | 13.66% | 13.32% |
Total capital, for capital adequacy purposes | $ 38,929 | $ 37,314 |
Total capital to risk weighted assets, for capital adequacy purposes | 8.00% | 8.00% |
Tier I capital to risk weighted assets | ||
Tier 1 capital, actual | $ 61,064 | $ 56,881 |
Tier 1 capital to risk weighted assets, actual | 12.55% | 12.20% |
Tier 1 capital, for capital adequacy purposes | $ 29,194 | $ 27,974 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | 6.00% | 6.00% |
Common Equity Tier 1 to risk weighted assets [Abstract] | ||
Common Equity Tier 1 capital, actual | $ 61,064 | $ 56,881 |
Common Equity Tier 1 capital to risk weighted assets, actual | 12.55% | 12.20% |
Common Equity Tier 1 capital, for capital adequacy purposes | $ 21,895 | $ 20,981 |
Common Equity Tier 1 capital to risk weighted assets, for capital adequacy purposes | 4.50% | 4.50% |
Tier I capital to average assets | ||
Tier 1 capital, actual | $ 61,064 | $ 56,881 |
Tier 1 capital to average assets, actual | 8.46% | 8.40% |
Tier 1 capital, for capital adequacy purposes | $ 28,872 | $ 27,086 |
Tier 1 capital to average assets, for capital adequacy purposes | 4.00% | 4.00% |
Union [Member] | ||
Total capital to risk weighted assets | ||
Total capital, actual | $ 66,212 | $ 61,856 |
Total capital to risk weighted assets, actual | 13.64% | 13.29% |
Total capital, for capital adequacy purposes | $ 38,834 | $ 37,325 |
Total capital to risk weighted assets, for capital adequacy purposes | 8.00% | 8.00% |
Total capital, to be well capitalized under prompt corrective action provisions | $ 48,543 | $ 46,543 |
Total capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Tier I capital to risk weighted assets | ||
Tier 1 capital, actual | $ 60,804 | $ 56,609 |
Tier 1 capital to risk weighted assets, actual | 12.52% | 12.16% |
Tier 1 capital, for capital adequacy purposes | $ 29,139 | $ 27,932 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | 6.00% | 6.00% |
Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 38,852 | $ 37,243 |
Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 8.00% | 8.00% |
Common Equity Tier 1 to risk weighted assets [Abstract] | ||
Common Equity Tier 1 capital, actual | $ 60,804 | $ 56,609 |
Common Equity Tier 1 capital to risk weighted assets, actual | 12.52% | 12.16% |
Common Equity Tier 1 capital, for capital adequacy purposes | $ 21,854 | $ 20,949 |
Common Equity Tier 1 capital to risk weighted assets, for capital adequacy purposes | 4.50% | 4.50% |
Common Equity Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 31,568 | $ 30,260 |
Common Equity Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 6.50% | 6.50% |
Tier I capital to average assets | ||
Tier 1 capital, actual | $ 60,804 | $ 56,609 |
Tier 1 capital to average assets, actual | 8.43% | 8.37% |
Tier 1 capital, for capital adequacy purposes | $ 28,851 | $ 27,053 |
Tier 1 capital to average assets, for capital adequacy purposes | 4.00% | 4.00% |
Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 36,064 | $ 33,817 |
Tier 1 capital to average assets, to be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
Treasury Stock Treasury Stock N
Treasury Stock Treasury Stock Narrative Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity, Class of Treasury Stock [Line Items] | |||
Number of shares authorized to be repurchased per quarter | 2,500 | ||
Purchase of treasury stock, cost | $ 60 | $ 6 | $ 94 |
Number of shares of common stock repurchased since inception of stock repurchase program | 15,184 | ||
Cost per share of common stock repurchased since inception of stock repurchase program, low | $ 17.86 | ||
Cost per share of common stock repurchased since inception of stock repurchase program, high | $ 43.97 | ||
Total cost of common stock repurchased since inception of stock repurchase program | $ 351 | ||
Number of shares of common stock reserved for issuance and sale under the DRIP | 200,000 | ||
Common Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Purchase of treasury stock, shares | 1,430 | 213 | 3,753 |
Shares issued under the DRIP | 877 | ||
Treasury Stock | |||
Equity, Class of Treasury Stock [Line Items] | |||
Purchase of treasury stock, cost | $ 60 | $ 6 | $ 94 |
Other Comprehensive Loss Compon
Other Comprehensive Loss Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 |
Net unrealized loss on investment securities available-for-sale | $ (301) | $ (664) |
Defined benefit pension plan net unrealized actuarial loss | (4,795) | (2,615) |
Total | $ (5,096) | $ (3,279) |
Other Comprehensive Loss Tax Ef
Other Comprehensive Loss Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Other Comprehensive Income, before Tax [Abstract] | |||
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale, Before-Tax Amount | $ 641 | $ (894) | $ (279) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before-Tax Amount | (17) | (71) | (53) |
Total Investment securities available-for-sale, Before-Tax Amount | 624 | (965) | (332) |
Net actuarial loss arising during the year, Before-Tax Amount | (2,311) | (680) | (1,121) |
Reclassification adjustment for amortization of net actuarial loss realized in net income, Before-Tax Amount | 203 | 165 | 56 |
Total Defined benefit pension plan, Before-Tax Amount | (2,108) | (515) | (1,065) |
Total other comprehensive loss, Before-Tax Amount | (1,484) | (1,480) | (1,397) |
Other Comprehensive Income, Tax [Abstract] | |||
Net unrealized holding gains (losses) arising during the period on investment securities available-for-sale, Tax | (218) | 304 | 95 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 6 | 24 | 18 |
Total Investment securities available-for-sale, Tax | (212) | 328 | 113 |
Net actuarial loss arising during the year, Tax | 786 | 231 | 381 |
Reclassification adjustment for amortization of net actuarial loss realized in net income, Tax | (69) | (56) | (19) |
Total Defined benefit pension plan, Tax | 717 | 175 | 362 |
Total other comprehensive loss, Tax | 505 | 503 | 475 |
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale | 423 | (590) | (184) |
Reclassification adjustments for net gains on investment securities available-for-sale realized in net income | (11) | (47) | (35) |
Total | 412 | (637) | (219) |
Net actuarial loss arising during the year | (1,525) | (449) | (740) |
Reclassification adjustment for amortization of net actuarial loss realized in net income | 134 | 109 | 37 |
Total | (1,391) | (340) | (703) |
Total other comprehensive loss | $ (979) | $ (977) | $ (922) |
Other Comprehensive Loss Reclas
Other Comprehensive Loss Reclassification Adjustments from Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before-Tax Amount | $ (17) | $ (71) | $ (53) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 6 | 24 | 18 |
Reclassification adjustments for net gains on investment securities available-for-sale realized in net income | (11) | (47) | (35) |
Reclassification adjustment for amortization of net actuarial loss realized in net income, Before-Tax Amount | 203 | 165 | 56 |
Reclassification adjustment for amortization of net actuarial loss realized in net income, Tax | (69) | (56) | (19) |
Reclassification adjustment for amortization of net actuarial loss realized in net income | 134 | 109 | 37 |
Total reclassification adjustments | $ 123 | $ 62 | $ 2 |
Subsequent Events Narrative Dat
Subsequent Events Narrative Data (Details) - Dividend Declared [Member] | 12 Months Ended |
Dec. 31, 2017USD ($) | |
Subsequent Event [Line Items] | |
Date Declared, cash dividend | Jan. 17, 2018 |
Cash Dividend Declared, per share | $ 0.30 |
Payable Date, cash dividend | Feb. 8, 2018 |
Date of Record, cash dividend declared | Jan. 27, 2018 |
Condensed Financial Informat122
Condensed Financial Information (Parent Company Only) Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
ASSETS | ||||
Investment securities available-for-sale | $ 65,439 | $ 65,556 | ||
Other assets | 9,995 | 9,391 | ||
Total assets | 745,831 | 691,381 | ||
LIABILITIES | ||||
Other liabilities | 8,015 | 5,847 | ||
Total liabilities | 687,170 | 635,102 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,940,961 shares issued at December 31, 2017 and 4,936,652 shares issued at December 31, 2016 | 9,882 | 9,874 | ||
Additional-paid-in capital | 755 | 620 | ||
Retained earnings | 57,197 | 53,086 | ||
Treasury stock at cost; 475,385 shares at December 31, 2017 and 474,517 shares at December 31, 2016 | (4,077) | (4,022) | ||
Accumulated other comprehensive loss | (5,096) | (3,279) | ||
Total stockholders' equity | 58,661 | 56,279 | $ 53,568 | $ 51,434 |
Total liabilities and stockholders' equity | 745,831 | 691,381 | ||
Parent Company [Member] | ||||
ASSETS | ||||
Cash | 77 | 49 | ||
Investment securities available-for-sale | 99 | 97 | ||
Investment in subsidiary - Union | 58,401 | 56,007 | ||
Other assets | 843 | 805 | ||
Total assets | 59,420 | 56,958 | ||
LIABILITIES | ||||
Other liabilities | 759 | 679 | ||
Total liabilities | 759 | 679 | ||
STOCKHOLDERS' EQUITY | ||||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,940,961 shares issued at December 31, 2017 and 4,936,652 shares issued at December 31, 2016 | 9,882 | 9,874 | ||
Additional-paid-in capital | 755 | 620 | ||
Retained earnings | 57,197 | 53,086 | ||
Treasury stock at cost; 475,385 shares at December 31, 2017 and 474,517 shares at December 31, 2016 | (4,077) | (4,022) | ||
Accumulated other comprehensive loss | (5,096) | (3,279) | ||
Total stockholders' equity | 58,661 | 56,279 | ||
Total liabilities and stockholders' equity | $ 59,420 | $ 56,958 |
Condensed Financial Informat123
Condensed Financial Information (Parent Company Only) Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses | |||||||||||||||
Administrative and other | $ 6,317 | $ 6,550 | $ 6,172 | ||||||||||||
Applicable income tax benefit | 3,603 | 2,598 | 2,663 | ||||||||||||
Net income | $ 1,922 | $ 2,370 | $ 2,227 | $ 1,930 | $ 2,345 | $ 2,268 | $ 2,139 | $ 1,759 | $ 1,927 | $ 2,050 | $ 2,017 | $ 1,884 | 8,449 | 8,511 | 7,878 |
Parent Company [Member] | |||||||||||||||
Revenues | |||||||||||||||
Dividends - bank subsidiary - Union | 5,550 | 5,050 | 5,100 | ||||||||||||
Other income | 30 | 40 | 25 | ||||||||||||
Total revenues | 5,580 | 5,090 | 5,125 | ||||||||||||
Expenses | |||||||||||||||
Interest | 27 | 25 | 23 | ||||||||||||
Stock based compensation expense | 0 | 0 | 35 | ||||||||||||
Administrative and other | 400 | 441 | 351 | ||||||||||||
Total expenses | 427 | 466 | 409 | ||||||||||||
Income before applicable income tax benefit and equity in undistributed net income of subsidiary | 5,153 | 4,624 | 4,716 | ||||||||||||
Applicable income tax benefit | (59) | (153) | (124) | ||||||||||||
Income before equity in undistributed net income of subsidiary | 5,212 | 4,777 | 4,840 | ||||||||||||
Equity in undistributed net income - Union | 3,237 | 3,734 | 3,038 | ||||||||||||
Net income | $ 8,449 | $ 8,511 | $ 7,878 |
Condensed Financial Informat124
Condensed Financial Information (Parent Company Only) Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net income | $ 1,922 | $ 2,370 | $ 2,227 | $ 1,930 | $ 2,345 | $ 2,268 | $ 2,139 | $ 1,759 | $ 1,927 | $ 2,050 | $ 2,017 | $ 1,884 | $ 8,449 | $ 8,511 | $ 7,878 |
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||
Stock based compensation expense | 104 | 66 | 35 | ||||||||||||
(Increase) decrease in other assets | (1,323) | (1,202) | (1,387) | ||||||||||||
Net cash provided by operating activities | 9,868 | 7,644 | 13,130 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Proceeds from sale of investment securities available-for-sale | 14,409 | 6,620 | 11,540 | ||||||||||||
Purchases of investment securities available-for-sale | (21,001) | (29,098) | (27,416) | ||||||||||||
Proceeds of Company-owned life insurance death benefit | 0 | 527 | 0 | ||||||||||||
Net cash (used in) provided by investing activities | (55,343) | (40,724) | (34,846) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Dividends paid | (5,151) | (4,939) | (4,816) | ||||||||||||
Issuance of common stock | 19 | 56 | 53 | ||||||||||||
Purchase of treasury stock | (60) | (6) | (94) | ||||||||||||
Net cash used in financing activities | 44,708 | 54,394 | (2,067) | ||||||||||||
Net increase (decrease) in cash | (767) | 21,314 | (23,783) | ||||||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||||||
Interest paid | 2,249 | 2,239 | 2,060 | ||||||||||||
Dividends paid on Common Stock [Abstract] | |||||||||||||||
Dividends declared | 5,176 | 4,949 | 4,816 | ||||||||||||
Dividends reinvested | (25) | (10) | 0 | ||||||||||||
Dividends paid on Common Stock | 5,151 | 4,939 | 4,816 | ||||||||||||
Parent Company [Member] | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | |||||||||||||||
Net income | 8,449 | 8,511 | 7,878 | ||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities | |||||||||||||||
Equity in undistributed net income - Union | (3,237) | (3,734) | (3,038) | ||||||||||||
Stock based compensation expense | 0 | 0 | 35 | ||||||||||||
(Increase) decrease in other assets | (70) | 38 | 50 | ||||||||||||
Increase (decrease) in other liabilities | 80 | (45) | (67) | ||||||||||||
Net cash provided by operating activities | 5,222 | 4,770 | 4,858 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||||||||||||
Proceeds from sale of investment securities available-for-sale | 17 | 16 | 16 | ||||||||||||
Purchases of investment securities available-for-sale | (19) | (4) | (1) | ||||||||||||
Proceeds of Company-owned life insurance death benefit | 0 | 99 | 0 | ||||||||||||
Net cash (used in) provided by investing activities | (2) | 111 | 15 | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||||||||||||
Dividends paid | (5,151) | (4,939) | (4,816) | ||||||||||||
Issuance of common stock | 19 | 56 | 53 | ||||||||||||
Purchase of treasury stock | (60) | (6) | (94) | ||||||||||||
Net cash used in financing activities | (5,192) | (4,889) | (4,857) | ||||||||||||
Net increase (decrease) in cash | 28 | (8) | 16 | ||||||||||||
CASH | |||||||||||||||
Beginning of year | $ 49 | $ 57 | $ 41 | 49 | 57 | 41 | |||||||||
End of year | $ 77 | $ 49 | $ 57 | 77 | 49 | 57 | |||||||||
Supplemental Disclosures of Cash Flow Information | |||||||||||||||
Interest paid | 27 | 25 | 23 | ||||||||||||
Dividends paid on Common Stock [Abstract] | |||||||||||||||
Dividends declared | 5,176 | 4,949 | 4,816 | ||||||||||||
Dividends reinvested | (25) | (10) | 0 | ||||||||||||
Dividends paid on Common Stock | $ 5,151 | $ 4,939 | $ 4,816 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2017 | Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Data [Line Items] | |||||||||||||||
Interest and dividend income | $ 7,680 | $ 7,397 | $ 7,101 | $ 6,839 | $ 6,914 | $ 6,786 | $ 6,688 | $ 6,448 | $ 6,378 | $ 6,373 | $ 6,276 | $ 6,117 | $ 29,017 | $ 26,836 | $ 25,144 |
Interest expense | 615 | 587 | 516 | 537 | 558 | 471 | 519 | 513 | 478 | 461 | 521 | 565 | 2,255 | 2,061 | 2,025 |
Net interest income | 7,065 | 6,810 | 6,585 | 6,302 | 6,356 | 6,315 | 6,169 | 5,935 | 5,900 | 5,912 | 5,755 | 5,552 | 26,762 | 24,775 | 23,119 |
Provision for loan losses | 50 | 150 | 0 | 0 | 0 | 0 | 75 | 75 | 150 | 150 | 150 | 100 | 200 | 150 | 550 |
Noninterest income | 2,323 | 2,506 | 2,333 | 2,233 | 2,553 | 2,804 | 2,597 | 2,186 | 2,398 | 2,533 | 2,526 | 2,335 | 9,395 | 10,140 | 9,792 |
Noninterest expenses | 6,152 | 5,941 | 5,871 | 5,941 | 6,121 | 6,024 | 5,808 | 5,703 | 5,565 | 5,556 | 5,431 | 5,268 | 23,905 | 23,656 | 21,820 |
Net income | $ 1,922 | $ 2,370 | $ 2,227 | $ 1,930 | $ 2,345 | $ 2,268 | $ 2,139 | $ 1,759 | $ 1,927 | $ 2,050 | $ 2,017 | $ 1,884 | $ 8,449 | $ 8,511 | $ 7,878 |
Earnings per common share | $ 0.43 | $ 0.53 | $ 0.50 | $ 0.43 | $ 0.53 | $ 0.51 | $ 0.48 | $ 0.39 | $ 0.44 | $ 0.45 | $ 0.46 | $ 0.42 | $ 1.89 | $ 1.91 | $ 1.77 |
Other Noninterest Income and126
Other Noninterest Income and Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Expenses | |||
ATM and debit card expense | $ 698 | $ 639 | $ 783 |
Advertising and public relations | 469 | 507 | 456 |
Vermont franchise tax | 582 | 555 | 538 |
Professional fees | 573 | 731 | 641 |
Trust expenses | 362 | 409 | 379 |
Director and advisory board fees | 405 | 368 | 325 |
Other expenses | 3,228 | 3,341 | 3,050 |
Total other expenses | $ 6,317 | $ 6,550 | $ 6,172 |