Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Nov. 01, 2019 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | AMERISERV FINANCIAL INC /PA/ | |
Entity Central Index Key | 0000707605 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 17,138,632 | |
COMMON STOCK [Member] | ||
Document Information [Line Items] | ||
Trading Symbol | ASRV | |
Title of 12(b) Security | Common Stock | |
Security Exchange Name | NASDAQ | |
Beneficial Unsecured Securities | ||
Document Information [Line Items] | ||
Trading Symbol | ASRVP | |
Title of 12(b) Security | Beneficial Unsecured Securities | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from depository institutions | $ 27,087 | $ 27,970 |
Interest bearing deposits | 2,884 | 2,740 |
Short-term investments in money market funds | 3,155 | 4,184 |
Total cash and cash equivalents | 33,126 | 34,894 |
Investment securities: | ||
Available for sale, at fair value | 143,400 | 146,731 |
Held to maturity (fair value $40,813 on September 30, 2019 and $40,324 on December 31, 2018) | 39,299 | 40,760 |
Loans held for sale | 5,949 | 847 |
Loans | 869,529 | 862,604 |
Less: Unearned income | 396 | 322 |
Allowance for loan losses | 8,345 | 8,671 |
Net loans | 860,788 | 853,611 |
Premises and equipment: | ||
Operating lease right-of-use asset | 868 | 0 |
Financing lease right-of-use asset | 3,143 | 0 |
Other premises and equipment, net | 14,798 | 13,348 |
Accrued interest income receivable | 3,765 | 3,489 |
Goodwill | 11,944 | 11,944 |
Bank owned life insurance | 38,784 | 38,395 |
Net deferred tax asset | 3,578 | 3,637 |
Federal Home Loan Bank stock | 3,630 | 4,520 |
Federal Reserve Bank stock | 2,125 | 2,125 |
Other assets | 6,229 | 6,379 |
TOTAL ASSETS | 1,171,426 | 1,160,680 |
LIABILITIES | ||
Non-interest bearing deposits | 144,567 | 150,627 |
Interest bearing deposits | 825,422 | 798,544 |
Total deposits | 969,989 | 949,171 |
Short-term borrowings | 11,275 | 41,029 |
Advances from Federal Home Loan Bank | 55,630 | 46,721 |
Operating lease liabilities | 886 | 0 |
Financing lease liabilities | 3,210 | 0 |
Guaranteed junior subordinated deferrable interest debentures, net | 12,951 | 12,939 |
Subordinated debt, net | 7,505 | 7,488 |
Total borrowed funds | 91,457 | 108,177 |
Other liabilities | 7,520 | 5,355 |
TOTAL LIABILITIES | 1,068,966 | 1,062,703 |
SHAREHOLDERS' EQUITY | ||
Common stock, par value $0.01 per share; 30,000,000 shares authorized; 26,648,728 shares issued and 17,146,714 shares outstanding on September 30, 2019; 26,609,811 shares issued and 17,619,303 shares outstanding on December 31, 2018 | 266 | 266 |
Treasury stock at cost, 9,502,014 shares on September 30, 2019 and 8,990,508 shares on December 31, 2018 | (82,745) | (80,579) |
Capital surplus | 145,884 | 145,782 |
Retained earnings | 50,876 | 46,733 |
Accumulated other comprehensive loss, net | (11,821) | (14,225) |
TOTAL SHAREHOLDERS' EQUITY | 102,460 | 97,977 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,171,426 | $ 1,160,680 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
CONSOLIDATED BALANCE SHEETS | ||
Held to maturity securities, fair value | $ 40,813 | $ 40,324 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 26,648,728 | 26,609,811 |
Common stock, shares outstanding | 17,146,714 | 17,619,303 |
Treasury stock, shares | 9,502,014 | 8,990,508 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
INTEREST INCOME | ||||
Interest and fees on loans | $ 10,737 | $ 10,607 | $ 32,149 | $ 30,550 |
Interest bearing deposits | 6 | 5 | 19 | 14 |
Short-term investments in money market funds | 84 | 60 | 212 | 150 |
Investment securities: | ||||
Available for sale | 1,265 | 1,144 | 3,898 | 3,274 |
Held to maturity | 341 | 333 | 1,084 | 981 |
Total Interest Income | 12,433 | 12,149 | 37,362 | 34,969 |
INTEREST EXPENSE | ||||
Deposits | 2,895 | 2,164 | 8,492 | 5,918 |
Short-term borrowings | 38 | 267 | 276 | 529 |
Advances from Federal Home Loan Bank | 297 | 199 | 793 | 577 |
Financing lease liabilities | 29 | 0 | 88 | 0 |
Guaranteed junior subordinated deferrable interest debentures | 280 | 280 | 841 | 840 |
Subordinated debt | 130 | 130 | 390 | 390 |
Total Interest Expense | 3,669 | 3,040 | 10,880 | 8,254 |
NET INTEREST INCOME | 8,764 | 9,109 | 26,482 | 26,715 |
Provision (credit) for loan losses | 225 | 0 | (175) | 100 |
NET INTEREST INCOME AFTER PROVISION (CREDIT) FOR LOAN LOSSES | 8,539 | 9,109 | 26,657 | 26,615 |
NON-INTEREST INCOME | ||||
Wealth management fees | 2,431 | 2,359 | 7,246 | 7,232 |
Service charges on deposit accounts | 321 | 326 | 948 | 1,066 |
Net gains on sale of loans | 405 | 176 | 574 | 393 |
Mortgage related fees | 97 | 54 | 218 | 165 |
Net realized gains (losses) on investment securities | 88 | 0 | 118 | (148) |
Bank owned life insurance | 131 | 135 | 388 | 400 |
Other income | 622 | 536 | 1,865 | 1,794 |
Total Non-Interest Income | 4,095 | 3,586 | 11,357 | 10,902 |
NON-INTEREST EXPENSE | ||||
Salaries and employee benefits | 6,324 | 5,815 | 18,973 | 18,126 |
Net occupancy expense | 599 | 585 | 1,879 | 1,866 |
Equipment expense | 333 | 335 | 1,081 | 1,104 |
Professional fees | 1,276 | 1,321 | 3,645 | 3,757 |
Supplies, postage and freight | 142 | 159 | 455 | 491 |
Miscellaneous taxes and insurance | 280 | 258 | 851 | 797 |
Federal deposit insurance expense | 0 | 140 | 160 | 457 |
Other expense | 1,549 | 1,483 | 4,208 | 3,901 |
Total Non-Interest Expense | 10,503 | 10,096 | 31,252 | 30,499 |
PRETAX INCOME | 2,131 | 2,599 | 6,762 | 7,018 |
Provision for income tax expense | 442 | 270 | 1,403 | 1,178 |
NET INCOME | $ 1,689 | $ 2,329 | $ 5,359 | $ 5,840 |
Basic: | ||||
Net income | $ 0.10 | $ 0.13 | $ 0.31 | $ 0.32 |
Average number of shares outstanding | 17,278 | 17,924 | 17,443 | 18,013 |
Diluted: | ||||
Net income | $ 0.10 | $ 0.13 | $ 0.31 | $ 0.32 |
Average number of shares outstanding | 17,360 | 18,036 | 17,524 | 18,117 |
Cash dividends declared | $ 0.025 | $ 0.020 | $ 0.070 | $ 0.055 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
COMPREHENSIVE INCOME | ||||
Net income | $ 1,689 | $ 2,329 | $ 5,359 | $ 5,840 |
Other comprehensive income (loss), before tax: | ||||
Pension obligation change for defined benefit plan | 403 | 390 | (1,030) | 1,824 |
Income tax effect | (85) | (82) | 216 | (383) |
Unrealized holding gains (losses) on available for sale securities arising during period | 608 | (919) | 4,191 | (3,409) |
Income tax effect | (128) | 193 | (880) | 716 |
Reclassification adjustment for (gains) losses on available for sale securities included in net income | (88) | 0 | (118) | 148 |
Income tax effect | 19 | 0 | 25 | (31) |
Other comprehensive income (loss) | 729 | (418) | 2,404 | (1,135) |
Comprehensive income | $ 2,418 | $ 1,911 | $ 7,763 | $ 4,705 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | COMMON STOCK [Member] | TREASURY STOCK [Member] | CAPITAL SURPLUS [Member] | RETAINED EARNINGS [Member] | ACCUMULATED OTHER COMPREHENSIVE LOSS, NET [Member] | Total |
Balance at beginning of period at Dec. 31, 2017 | $ 266 | $ (78,233) | $ 145,707 | $ 40,312 | $ (12,950) | |
New common shares issued for exercise of stock options | 0 | 61 | ||||
Treasury stock, purchased at cost (237,641 and 279,679 shares for the three months ended September 30, 2019 and 2018, respectively and 511,506 and 385,342 shares for the nine months ended September 30, 2019 and 2018, respectively) | (1,708) | |||||
Stock option expense | 11 | |||||
Net income | 5,840 | $ 5,840 | ||||
Cash dividend declared on common stock ($0.025 and $0.020 per share for the three months ended September 30, 2019 and 2018, respectively and $0.070 and $0.055 per share for the nine months ended September 30, 2019 and 2018, respectively) | (992) | |||||
Other comprehensive income (loss) | (1,135) | (1,135) | ||||
Balance at end of period at Sep. 30, 2018 | 266 | (79,941) | 145,779 | 45,160 | (14,085) | 97,179 |
Balance at beginning of period at Jun. 30, 2018 | 266 | (78,678) | 145,771 | 43,191 | (13,667) | |
New common shares issued for exercise of stock options | 0 | 5 | ||||
Treasury stock, purchased at cost (237,641 and 279,679 shares for the three months ended September 30, 2019 and 2018, respectively and 511,506 and 385,342 shares for the nine months ended September 30, 2019 and 2018, respectively) | (1,263) | |||||
Stock option expense | 3 | |||||
Net income | 2,329 | 2,329 | ||||
Cash dividend declared on common stock ($0.025 and $0.020 per share for the three months ended September 30, 2019 and 2018, respectively and $0.070 and $0.055 per share for the nine months ended September 30, 2019 and 2018, respectively) | (360) | |||||
Other comprehensive income (loss) | (418) | (418) | ||||
Balance at end of period at Sep. 30, 2018 | 266 | (79,941) | 145,779 | 45,160 | (14,085) | 97,179 |
Balance at beginning of period at Dec. 31, 2018 | 266 | (80,579) | 145,782 | 46,733 | (14,225) | 97,977 |
New common shares issued for exercise of stock options | 0 | 96 | ||||
Treasury stock, purchased at cost (237,641 and 279,679 shares for the three months ended September 30, 2019 and 2018, respectively and 511,506 and 385,342 shares for the nine months ended September 30, 2019 and 2018, respectively) | (2,166) | |||||
Stock option expense | 6 | |||||
Net income | 5,359 | 5,359 | ||||
Cash dividend declared on common stock ($0.025 and $0.020 per share for the three months ended September 30, 2019 and 2018, respectively and $0.070 and $0.055 per share for the nine months ended September 30, 2019 and 2018, respectively) | (1,216) | |||||
Other comprehensive income (loss) | 2,404 | 2,404 | ||||
Balance at end of period at Sep. 30, 2019 | 266 | (82,745) | 145,884 | 50,876 | (11,821) | 102,460 |
Balance at beginning of period at Jun. 30, 2019 | 266 | (81,741) | 145,883 | 49,618 | (12,550) | |
New common shares issued for exercise of stock options | 0 | 0 | ||||
Treasury stock, purchased at cost (237,641 and 279,679 shares for the three months ended September 30, 2019 and 2018, respectively and 511,506 and 385,342 shares for the nine months ended September 30, 2019 and 2018, respectively) | (1,004) | |||||
Stock option expense | 1 | |||||
Net income | 1,689 | 1,689 | ||||
Cash dividend declared on common stock ($0.025 and $0.020 per share for the three months ended September 30, 2019 and 2018, respectively and $0.070 and $0.055 per share for the nine months ended September 30, 2019 and 2018, respectively) | (431) | |||||
Other comprehensive income (loss) | 729 | 729 | ||||
Balance at end of period at Sep. 30, 2019 | $ 266 | $ (82,745) | $ 145,884 | $ 50,876 | $ (11,821) | $ 102,460 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY | ||||
Treasury stock, purchased at cost, shares | 237,641 | 279,679 | 511,506 | 385,342 |
New common shares issued for exercise of stock options, shares | 2,300 | 38,917 | 24,408 | |
Cash dividend declared per common share | $ 0.025 | $ 0.020 | $ 0.070 | $ 0.055 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
OPERATING ACTIVITIES | ||
Net income | $ 5,359 | $ 5,840 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision (credit) for loan losses | (175) | 100 |
Depreciation and amortization expense | 1,360 | 1,149 |
Net amortization of investment securities | 203 | 273 |
Net realized (gains) losses on investment securities - available for sale | (118) | 148 |
Net gains on loans held for sale | (574) | (393) |
Amortization of deferred loan fees | (91) | (115) |
Origination of mortgage loans held for sale | (28,232) | (23,361) |
Sales of mortgage loans held for sale | 23,704 | 25,838 |
Increase in accrued interest receivable | (276) | (404) |
Increase in accrued interest payable | 307 | 366 |
Earnings on bank owned life insurance | (388) | (400) |
Deferred income taxes | 623 | 249 |
Stock compensation expense | 6 | 11 |
Net change in operating leases | (46) | 0 |
Other, net | (323) | (5,534) |
Net cash provided by operating activities | 1,339 | 3,767 |
INVESTING ACTIVITIES | ||
Purchase of investment securities - available for sale | (11,701) | (30,371) |
Purchase of investment securities - held to maturity | (1,000) | (3,405) |
Proceeds from sales of investment securities - available for sale | 3,374 | 4,479 |
Proceeds from maturities of investment securities - available for sale | 15,704 | 12,662 |
Proceeds from maturities of investment securities - held to maturity | 2,403 | 3,417 |
Purchase of regulatory stock | (11,254) | (14,193) |
Proceeds from redemption of regulatory stock | 12,144 | 13,858 |
Long-term loans originated | (139,551) | (124,519) |
Principal collected on long-term loans | 151,752 | 139,836 |
Loan participations purchased | (23,792) | (11,443) |
Loan participations sold | 4,605 | 1,500 |
Proceeds from sale of other real estate owned | 198 | 34 |
Purchase of premises and equipment | (2,550) | (691) |
Net cash provided by (used in) investing activities | 332 | (8,836) |
FINANCING ACTIVITIES | ||
Net increase (decrease) in deposit balances | 20,818 | (3,732) |
Net increase (decrease) in other short-term borrowings | (29,754) | 12,170 |
Principal borrowings on advances from Federal Home Loan Bank | 16,909 | 6,316 |
Principal repayments on advances from Federal Home Loan Bank | (8,000) | (10,000) |
Principal payments on financing lease liabilities | (126) | 0 |
Stock options exercised | 96 | 61 |
Purchase of treasury stock | (2,166) | (1,708) |
Common stock dividends | (1,216) | (992) |
Net cash provided by (used in) financing activities | (3,439) | 2,115 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (1,768) | (2,954) |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 34,894 | 34,188 |
CASH AND CASH EQUIVALENTS AT SEPTEMBER 30 | $ 33,126 | $ 31,234 |
Principles of Consolidation
Principles of Consolidation | 9 Months Ended |
Sep. 30, 2019 | |
Principles of Consolidation. | |
Principles of Consolidation | 1. Principles of Consolidation The accompanying consolidated financial statements include the accounts of AmeriServ Financial, Inc. (the Company) and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), AmeriServ Trust and Financial Services Company (the Trust Company), and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a Pennsylvania state-chartered full service bank with 15 locations in Pennsylvania and 1 location in Maryland. The Trust Company offers a complete range of trust and financial services and administers assets valued at $2.1 billion that are not reported on the Company’s Consolidated Balance Sheets at September 30, 2019. AmeriServ Life is a captive insurance company that engages in underwriting as a reinsurer of credit life and disability insurance. In addition, the Parent Company is an administrative group that provides support in such areas as audit, finance, investments, loan review, general services, and marketing. Significant intercompany accounts and transactions have been eliminated in preparing the consolidated financial statements. |
Basis of Preparation
Basis of Preparation | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Preparation | |
Basis of Preparation | 2. Basis of Preparation The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. In the opinion of management, all adjustments consisting of normal recurring entries considered necessary for a fair presentation have been included. They are not, however, necessarily indicative of the results of consolidated operations for a full-year. For further information, refer to the consolidated financial statements and accompanying notes included in the Company’s Annual Report on Form 10‑K for the year ended December 31, 2018. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2019 | |
Recent Accounting Pronouncements [Abstract] | |
Recent Accounting Pronouncements | 3. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 2016‑13, Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments (“ASU 2016‑13”), which changes the impairment model for most financial assets. This Update is intended to improve financial reporting by requiring timelier recording of credit losses on loans and other financial instruments held by financial institutions and other organizations. The underlying premise of the Update is that financial assets measured at amortized cost should be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The allowance for credit losses should reflect management’s current estimate of credit losses that are expected to occur over the remaining life of a financial asset. The income statement will be affected for the measurement of credit losses for newly recognized financial assets, as well as the expected increases or decreases of expected credit losses that have taken place during the period. ASU 2016‑13 is effective for annual and interim periods beginning after December 15, 2019, and early adoption is permitted for annual and interim periods beginning after December 15, 2018. With certain exceptions, transition to the new requirements will be through a cumulative effect adjustment to opening retained earnings as of the beginning of the first reporting period in which the guidance is adopted. On October 16, 2019, the FASB voted to defer the effective date for ASU 2016-13, Financial Instruments - Credit Losses, for smaller reporting companies (as defined by the Securities and Exchange Commission) to fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The final ASU is expected to be issued in mid-November. The Company, as a smaller reporting company, continues to evaluate the impact that the Update will have on our consolidated financial statements. We are currently working with an industry leading third-party consultant and software provider to assist us in the implementation of this standard. We expect to recognize a one-time cumulative effect adjustment to the allowance for loan losses as of the beginning of the first reporting period in which the new standard is effective, but cannot yet determine the magnitude of any such one-time adjustment or the overall impact of the new guidance on the consolidated financial statements. The overall impact of the amendment will be affected by the portfolio composition and quality at the adoption date as well as economic conditions and forecasts at that time. |
Adoption of Accounting Standard
Adoption of Accounting Standards | 9 Months Ended |
Sep. 30, 2019 | |
Adoption of Accounting Standards | |
Adoption of Accounting Standards | 4. Adoption of Accounting Standards In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The standard requires lessees to recognize the assets and liabilities that arise from leases on the balance sheet. A lessee should recognize in the statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. A short-term lease is defined as one in which (a) the lease term is 12 months or less and (b) there is not an option to purchase the underlying asset that the lessee is reasonably certain to exercise. For short-term leases, lessees may elect to recognize lease payments over the lease term on a straight-line basis. Additionally, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) - Targeted Improvements, which, among other things, provides an additional transition method that would allow entities to not apply the guidance in ASU 2016-02 in the comparative periods presented in the financial statements and instead recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company adopted ASU 2016-02 and its related amendments as of January 1, 2019, which resulted in the recognition of operating and financing right-of-use assets totaling $932,000 and $3.3 million, respectively, as well as operating and financing lease liabilities totaling $932,000 and $3.3 million, respectively. The Company elected to adopt the transition relief provisions from ASU 2018-11 and recorded the impact of adoption as of January 1, 2019, without restating any prior-year amounts or disclosures. The related policy elections made by the Company and the additional lease disclosures can be found in Note 13. There was no cumulative effect adjustment to the opening balance of retained earnings required. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Revenue Recognition | 5. Revenue Recognition ASU 2014-09, Revenue from Contracts with Customers – Topic 606, requires the Company to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers at the time the transfer of goods or services takes place. Management has determined that the primary sources of revenue associated with financial instruments, including interest and fee income on loans and interest on investments, along with certain noninterest revenue sources including net realized gains (losses) on investment securities, mortgage related fees, net gains on loans held for sale, and bank owned life insurance are not within the scope of Topic 606. These sources of revenue cumulatively comprise 80.5% of the total revenue of the Company. Noninterest income within the scope of Topic 606 are as follows: · Wealth management fees - Wealth management fee income is primarily comprised of fees earned from the management and administration of trusts and customer investment portfolios. The Company’s performance obligation is generally satisfied over a period of time and the resulting fees are billed monthly or quarterly, based upon the month end market value of the assets under management. Payment is generally received after month end through a direct charge to customers’ accounts. Other performance obligations (such as delivery of account statements to customers) are generally considered immaterial to the overall transactions price. Commissions on transactions are recognized on a trade-date basis as the performance obligation is satisfied at the point in time in which the trade is processed. Also included within wealth management fees are commissions from the sale of mutual funds, annuities, and life insurance products. Commissions on the sale of mutual funds, annuities, and life insurance products are recognized when sold, which is when the Company has satisfied its performance obligation. · Service charges on deposit accounts - The Company has contracts with its deposit account customers where fees are charged for certain items or services. Service charges include account analysis fees, monthly service fees, overdraft fees, and other deposit account related fees. Revenue related to account analysis fees and service fees is recognized on a monthly basis as the Company has an unconditional right to the fee consideration. Fees attributable to specific performance obligations of the Company (i.e. overdraft fees, etc.) are recognized at a defined point in time based on completion of the requested service or transaction. · Other noninterest income - Other noninterest income consists of other recurring revenue streams such as safe deposit box rental fees, gain (loss) on sale of other real estate owned and other miscellaneous revenue streams. Safe deposit box rental fees are charged to the customer on an annual basis and recognized when billed. However, if the safe deposit box rental fee is prepaid (i.e. paid prior to issuance of annual bill), the revenue is recognized upon receipt of payment. The Company has determined that since rentals and renewals occur consistently over time, revenue is recognized on a basis consistent with the duration of the performance obligation. Gains and losses on the sale of other real estate owned are recognized at the completion of the property sale when the buyer obtains control of the real estate and all the performance obligations of the Company have been satisfied. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine month periods ending September 30, 2019 and 2018 (in thousands). Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Noninterest income: In-scope of Topic 606 Wealth management fees $ 2,431 $ 2,359 $ 7,246 $ 7,232 Service charges on deposit accounts 321 326 948 1,066 Other 471 439 1,325 1,291 Noninterest income (in-scope of topic 606) 3,223 3,124 9,519 9,589 Noninterest income (out-of-scope of topic 606) 872 462 1,838 1,313 Total noninterest income $ 4,095 $ 3,586 $ 11,357 $ 10,902 |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Common Share | |
Earnings Per Common Share | 6. Earnings Per Common Share Basic earnings per share include only the weighted average common shares outstanding. Diluted earnings per share include the weighted average common shares outstanding and any potentially dilutive common stock equivalent shares in the calculation. Treasury shares are excluded for earnings per share purposes. For the three and nine month periods ending September 30, 2019, options to purchase 12,000 common shares, with an exercise price of $4.19 to $4.22, were outstanding but were not included in the computation of diluted earnings per common share because to do so would be antidilutive. There were no antidilutive securities during either period of 2018. Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (In thousands, except per share data) Numerator: Net income $ 1,689 $ 2,329 $ 5,359 $ 5,840 Denominator: Weighted average common shares outstanding (basic) 17,278 17,924 17,443 18,013 Effect of stock options 82 112 81 104 Weighted average common shares outstanding (diluted) 17,360 18,036 17,524 18,117 Earnings per common share: Basic $ 0.10 $ 0.13 $ 0.31 $ 0.32 Diluted 0.10 0.13 0.31 0.32 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows | 9 Months Ended |
Sep. 30, 2019 | |
Consolidated Statement of Cash Flows. | |
Earnings Per Common Share | 7. Consolidated Statement of Cash Flows On a consolidated basis, cash and cash equivalents include cash and due from depository institutions, interest-bearing deposits and short-term investments in money market funds with original maturities of 90 days or less. The Company made $785,000 in income tax payments in the first nine months of 2019 and $875,000 in the same 2018 period. The Company made total interest payments of $10,573,000 in the first nine months of 2019 compared to $7,888,000 in the same 2018 period. The Company had $75,000 non-cash transfers to other real estate owned (OREO) in the first nine months of 2019 compared to $166,000 non-cash transfers in the same 2018 period. As a result of the adoption of ASU 2016-02, Leases (Topic 842) as of January 1, 2019, the Company had non-cash transactions associated with the recognition of the right-of-use assets and lease liabilities. Specifically, the Company recognized a right-of-use asset and lease liability of $932,000 related to operating leases and a right-of-use asset and lease liability of $3.3 million related to financing leases. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Investment Securities | 8. Investment Securities The cost basis and fair values of investment securities are summarized as follows (in thousands): Investment securities available for sale (AFS): September 30, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 6,209 $ 71 $ — $ 6,280 US Agency mortgage- backed securities 83,830 1,760 (100) 85,490 Municipal 13,781 642 (8) 14,415 Corporate bonds 37,290 317 (392) 37,215 Total $ 141,110 $ 2,790 $ (500) $ 143,400 Investment securities held to maturity (HTM): September 30, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 9,061 $ 277 $ (6) $ 9,332 Municipal 24,205 1,259 (42) 25,422 Corporate bonds and other securities 6,033 62 (36) 6,059 Total $ 39,299 $ 1,598 $ (84) $ 40,813 Investment securities available for sale (AFS): December 31, 2018 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 7,685 $ $ (160) $ 7,529 US Agency mortgage- backed securities 90,169 516 (1,158) 89,527 Municipal 13,301 114 (234) 13,181 Corporate bonds 37,359 131 (996) 36,494 Total $ 148,514 $ 765 $ (2,548) $ 146,731 Investment securities held to maturity (HTM): December 31, 2018 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 9,983 $ 78 $ (132) $ 9,929 Municipal 24,740 131 (404) 24,467 Corporate bonds and other securities 6,037 13 (122) 5,928 Total $ 40,760 $ 222 $ (658) $ 40,324 Maintaining investment quality is a primary objective of the Company’s investment policy which, subject to certain limited exceptions, prohibits the purchase of any investment security below a Moody’s Investor’s Service or Standard & Poor’s rating of “A.” At September 30, 2019, 55.6% of the portfolio was rated “AAA” as compared to 57.5% at December 31, 2018. Approximately 9.1% of the portfolio was either rated below “A” or unrated at September 30, 2019 as compared to 10.0% at December 31, 2018. The Company sold $2.8 million AFS securities in the third quarter of 2019 resulting in $88,000 of gross investment security gains and sold $3.4 million AFS securities in the first nine months of 2019 resulting in $118,000 of gross investment security gains. The Company sold no AFS securities during the third quarter of 2018. Total proceeds from the sale of AFS securities for the first nine months of 2018 were $4.5 million resulting in $15,000 of gross investment security gains and $163,000 of gross investment security losses. The carrying value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits was $126,815,000 at September 30, 2019 and $115,536,000 at December 31, 2018. The following tables present information concerning investments with unrealized losses as of September 30, 2019 and December 31, 2018 (in thousands): Total investment securities: September 30, 2019 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ — $ — $ — $ — $ — $ — US Agency mortgage-backed securities 4,602 (20) 10,804 (86) 15,406 (106) Municipal 943 (3) 1,130 (47) 2,073 (50) Corporate bonds and other securities 3,051 (31) 16,145 (397) 19,196 (428) Total $ 8,596 $ (54) $ 28,079 $ (530) $ 36,675 $ (584) Total investment securities: December 31, 2018 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ 244 $ (6) $ 5,631 $ (154) $ 5,875 $ (160) US Agency mortgage-backed securities 17,718 (177) 39,983 (1,113) 57,701 (1,290) Municipal 6,601 (71) 15,880 (567) 22,481 (638) Corporate bonds and other securities 15,221 (440) 17,038 (678) 32,259 (1,118) Total $ 39,784 $ (694) $ 78,532 $ (2,512) $ 118,316 $ (3,206) The unrealized losses are primarily a result of increases in market yields from the time of purchase. In general, as market yields rise, the value of securities will decrease; as market yields fall, the fair value of securities will increase. There are 51 positions that are considered temporarily impaired at September 30, 2019. Management generally views changes in fair value caused by changes in interest rates as temporary; therefore, these securities have not been classified as other-than-temporarily impaired. Management has also concluded that based on current information we expect to continue to receive scheduled interest payments as well as the entire principal balance. Furthermore, management does not intend to sell these securities and does not believe it will be required to sell these securities before they recover in value or mature. Contractual maturities of securities at September 30, 2019 are shown below (in thousands). Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without prepayment penalties. The weighted average duration of the total investment securities portfolio at September 30, 2019 is 35.1 months and is lower than the duration at December 31, 2018 which was 44.1 months. The duration remains within our internal established guideline range of 24 to 60 months which we believe is appropriate to maintain proper levels of liquidity, interest rate risk, market valuation sensitivity and profitability. Total investment securities: September 30, 2019 Available for sale Held to maturity Cost Fair Cost Fair Basis Value Basis Value Within 1 year $ 2,500 $ 2,506 $ — $ — After 1 year but within 5 years 21,374 21,485 6,516 6,565 After 5 years but within 10 years 40,360 41,005 19,662 20,618 After 10 years but within15 years 24,722 25,248 8,085 8,481 Over 15 years 52,154 53,156 5,036 5,149 Total $ 141,110 $ 143,400 $ 39,299 $ 40,813 As of September 30, 2019, the Company reported $354,000 of equity securities within Other assets on the Consolidated Balance Sheets. These equity securities are held within a nonqualified deferred compensation plan in which a select group of executives of the Company can participate. An eligible executive can defer a certain percentage of their current salary to be placed into the plan and held within a rabbi trust. The assets of the rabbi trust are invested in various publicly listed mutual funds. The gain or loss on the equity securities (both realized and unrealized) is reported within Other income on the Consolidated Statements of Operations. For the third quarter and first nine months of 2019, the Company recorded a realized gain of $9,000 and an unrealized gain of $3,000 on these equity securities. Additionally, the Company has recognized a deferred compensation liability, which is equal to the balance of the equity securities and is reported within Other liabilities on the Consolidated Balance Sheets. |
Loans
Loans | 9 Months Ended |
Sep. 30, 2019 | |
Loans | |
Loans | 9. Loans The loan portfolio of the Company consists of the following (in thousands): September 30, December 31, 2019 2018 Commercial: Commercial and industrial $ 163,385 $ 158,279 Commercial loans secured by owner occupied real estate 82,378 91,905 Commercial loans secured by non-owner occupied real estate 367,045 356,543 Real estate – residential mortgage 238,140 237,964 Consumer 18,185 17,591 Loans, net of unearned income $ 869,133 $ 862,282 Loan balances at September 30, 2019 and December 31, 2018 are net of unearned income of $396,000 and $322,000, respectively. Real estate-construction loans comprised 4.4% and 3.5% of total loans, net of unearned income at September 30, 2019 and December 31, 2018, respectively. |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2019 | |
Allowance for Loan Losses | |
Allowance for Loan Losses | 10. Allowance for Loan Losses The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three and nine month periods ending September 30, 2019 and 2018 (in thousands). Three months ended September 30, 2019 Balance at Balance at June 30, Charge- Provision September 30, 2019 Offs Recoveries (Credit) 2019 Commercial $ 2,538 $ (1) $ 8 $ 464 $ 3,009 Commercial loans secured by non-owner occupied real estate 3,425 — 12 (81) 3,356 Real estate – residential mortgage 1,218 — 25 (46) 1,197 Consumer 124 (36) 10 28 126 Allocation for general risk 797 — — (140) 657 Total $ 8,102 $ (37) $ 55 $ 225 $ 8,345 Three months ended September 30, 2018 Balance at Balance at June 30, Charge- Provision September 30, 2018 Offs Recoveries (Credit) 2018 Commercial $ 3,566 $ — $ 17 $ 175 $ 3,758 Commercial loans secured by non-owner occupied real estate 3,686 — 12 (310) 3,388 Real estate – residential mortgage 1,253 (123) 34 75 1,239 Consumer 125 (29) 7 25 128 Allocation for general risk 891 — — 35 926 Total $ 9,521 $ (152) $ 70 $ — $ 9,439 Nine months ended September 30, 2019 Balance at Balance at December 31, Charge- Provision September 30, 2018 Offs Recoveries (Credit) 2019 Commercial $ 3,057 $ (1) $ 13 $ (60) $ 3,009 Commercial loans secured by non-owner occupied real estate 3,389 (63) 36 (6) 3,356 Real estate–residential mortgage 1,235 (71) 101 (68) 1,197 Consumer 127 (206) 40 165 126 Allocation for general risk 863 — — (206) 657 Total $ 8,671 $ (341) $ 190 $ (175) $ 8,345 Nine months ended September 30, 2018 Balance at Balance at December 31, Charge- Provision September 30, 2017 Offs Recoveries (Credit) 2018 Commercial $ 4,298 $ (574) $ 29 $ 5 $ 3,758 Commercial loans secured by non-owner occupied real estate 3,666 — 38 (316) 3,388 Real estate – residential mortgage 1,102 (340) 111 366 1,239 Consumer 128 (181) 42 139 128 Allocation for general risk 1,020 — — (94) 926 Total $ 10,214 $ (1,095) $ 220 $ 100 $ 9,439 The Company recorded a provision for loan losses of $225,000 in the third quarter of 2019 as compared to a zero provision recorded in the third quarter of 2018. For the first nine months of 2019, the Company recorded a $175,000 loan loss provision recovery compared to a $100,000 provision expense recorded in the first nine months of 2018. The 2019 provision recovery reflects our overall strong asset quality, limited loan growth, and low level of net loan charge-offs. For the first nine months of 2019, the Company experienced net loan charge-offs of only $151,000, or 0.02% of total loans, compared to net loan charge-offs of $875,000, or 0.13% of total loans, in the first nine months of 2018. Overall, the Company continued to maintain outstanding asset quality as its non-performing assets totaled $2.0 million, or only 0.22% of total loans, at September 30, 2019. The allowance for loan losses provided 426% coverage of non-performing assets, and 0.95% of total loans, at September 30, 2019, compared to 629% coverage of non-performing assets, and 1.00% of total loans, at December 31, 2018. The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands). At September 30, 2019 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 820 $ 9 $ — $ — $ 829 Collectively evaluated for impairment 244,943 367,036 238,140 18,185 868,304 Total loans $ 245,763 $ 367,045 $ 238,140 $ 18,185 $ 869,133 Allowance for loan losses: Specific reserve allocation $ 87 $ 9 $ — $ — $ — $ 96 General reserve allocation 2,922 3,347 1,197 126 657 8,249 Total allowance for loan losses $ 3,009 $ 3,356 $ 1,197 $ 126 $ 657 $ 8,345 At December 31, 2018 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ — $ 11 $ — $ — $ 11 Collectively evaluated for impairment 250,184 356,532 237,964 17,591 862,271 Total loans $ 250,184 $ 356,543 $ 237,964 $ 17,591 $ 862,282 Allowance for loan losses: Specific reserve allocation $ — $ 11 $ — $ — $ — $ 11 General reserve allocation 3,057 3,378 1,235 127 863 8,660 Total allowance for loan losses $ 3,057 $ 3,389 $ 1,235 $ 127 $ 863 $ 8,671 The segments of the Company’s loan portfolio are disaggregated into classes that allows management to monitor risk and performance. The loan classes used are consistent with the internal reports evaluated by the Company’s management and Board of Directors to monitor risk and performance within various segments of its loan portfolio. The commercial loan segment includes both the commercial and industrial and the owner occupied commercial real estate loan classes while the remaining segments are not separated into classes as management monitors risk in these loans at the segment level. The residential mortgage loan segment is comprised of first lien amortizing residential mortgage loans and home equity loans secured by residential real estate. The consumer loan segment consists primarily of installment loans and overdraft lines of credit connected with customer deposit accounts. Management evaluates for possible impairment any individual loan in the commercial or commercial real estate segment with a loan balance in excess of $100,000 that is in nonaccrual status or classified as a Troubled Debt Restructure (TDR). Loans are considered to be impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in evaluating impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. The Company does not separately evaluate individual consumer and residential mortgage loans for impairment, unless such loans are part of a larger relationship that is impaired, or are classified as a TDR. Once the determination has been made that a loan is impaired, the determination of whether a specific allocation of the allowance is necessary is measured by comparing the recorded investment in the loan to the fair value of the loan using one of three methods: (a) the present value of expected future cash flows discounted at the loan’s effective interest rate; (b) the loan’s observable market price; or (c) the fair value of the collateral less selling costs for collateral dependent loans. The method is selected on a loan-by-loan basis, with management primarily utilizing the fair value of collateral method. The evaluation of the need and amount of a specific allocation of the allowance and whether a loan can be removed from impairment status is made on a quarterly basis. The Company’s policy for recognizing interest income on impaired loans does not differ from its overall policy for interest recognition. The need for an updated appraisal on collateral dependent loans is determined on a case-by-case basis. The useful life of an appraisal or evaluation will vary depending upon the circumstances of the property and the economic conditions in the marketplace. A new appraisal is not required if there is an existing appraisal which, along with other information, is sufficient to determine a reasonable value for the property and to support an appropriate and adequate allowance for loan losses. At a minimum, annual documented reevaluation of the property is completed by the Bank’s internal Assigned Risk Department to support the value of the property. When reviewing an appraisal associated with an existing real estate collateral dependent transaction, the Bank’s internal Assigned Risk Department must determine if there have been material changes to the underlying assumptions in the appraisal which affect the original estimate of value. Some of the factors that could cause material changes to reported values include: · the passage of time; · the volatility of the local market; · the availability of financing; · natural disasters; · the inventory of competing properties; · new improvements to, or lack of maintenance of, the subject property or competing properties upon physical inspection by the Bank; · changes in underlying economic and market assumptions, such as material changes in current and projected vacancy, absorption rates, capitalization rates, lease terms, rental rates, sales prices, concessions, construction overruns and delays, zoning changes, etc.; and/or · environmental contamination. The value of the property is adjusted to appropriately reflect the above listed factors and the value is discounted to reflect the value impact of a forced or distressed sale, any outstanding senior liens, any outstanding unpaid real estate taxes, transfer taxes and closing costs that would occur with sale of the real estate. If the Assigned Risk Department personnel determine that a reasonable value cannot be derived based on available information, a new appraisal is ordered. The determination of the need for a new appraisal, versus completion of a property valuation by the Bank’s Assigned Risk Department personnel rests with the Assigned Risk Department and not the originating account officer. The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands). September 30, 2019 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial $ 820 $ 87 $ — $ 820 $ 820 Commercial loans secured by non-owner occupied real estate 9 9 — 9 31 Total impaired loans $ 829 $ 96 $ — $ 829 $ 851 December 31, 2018 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial loans secured by non-owner occupied real estate $ 11 $ 11 $ — $ 11 $ 33 Total impaired loans $ 11 $ 11 $ — $ 11 $ 33 The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands). Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Average loan balance: Commercial $ 785 $ — $ 393 $ 532 Commercial loans secured by non-owner occupied real estate 10 12 10 146 Average investment in impaired loans $ 795 $ 12 $ 403 $ 678 Interest income recognized: Commercial $ 13 $ — $ 17 $ — Commercial loans secured by non-owner occupied real estate — — — — Interest income recognized on a cash basis on impaired loans $ 13 $ — $ 17 $ — Management uses a nine-point internal risk rating system to monitor the credit quality of the overall loan portfolio. The first six categories are considered not criticized. The first five “Pass” categories are aggregated, while the Pass‑6, Special Mention, Substandard and Doubtful categories are disaggregated to separate pools. The criticized rating categories utilized by management generally follow bank regulatory definitions. The Special Mention category includes assets that are currently protected but are potentially weak, resulting in an undue and unwarranted credit risk, but not to the point of justifying a Substandard classification. Loans in the Substandard category have well-defined weaknesses that jeopardize the liquidation of the debt, and have a distinct possibility that some loss will be sustained if the weaknesses are not corrected. All loans greater than 90 days past due, or for which any portion of the loan represents a specific allocation of the allowance for loan losses are placed in Substandard or Doubtful. To help ensure that risk ratings are accurate and reflect the present and future capacity of borrowers to repay a loan as agreed, the Company has a structured loan rating process, which dictates that, at a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $1,000,000 within a 12‑month period. Generally, consumer and residential mortgage loans are included in the Pass categories unless a specific action, such as bankruptcy, delinquency, or death occurs to raise awareness of a possible credit event. The Company’s commercial relationship managers are responsible for the timely and accurate risk rating of the loans in their portfolios at origination and on an ongoing basis. Risk ratings are assigned by the account officer, but require independent review and rating concurrence from the Company’s internal Loan Review Department. The Loan Review Department is an experienced, independent function which reports directly to the Board’s Audit Committee. The scope of commercial portfolio coverage by the Loan Review Department is defined and presented to the Audit Committee for approval on an annual basis. The approved scope of coverage for 2019 requires review of a minimum range of 50% to 55% of the commercial loan portfolio. In addition to loan monitoring by the account officer and Loan Review Department, the Company also requires presentation of all credits rated Pass‑6 with aggregate balances greater than $2,000,000, all credits rated Special Mention or Substandard with aggregate balances greater than $250,000, and all credits rated Doubtful with aggregate balances greater than $100,000 on an individual basis to the Company’s Loan Loss Reserve Committee on a quarterly basis. Additionally, the Asset Quality Task Force, which is a group comprised of senior level personnel, meets monthly to monitor the status of problem loans. The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands). September 30, 2019 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 150,113 $ 9,640 $ 3,632 $ — $ 163,385 Commercial loans secured by owner occupied real estate 79,601 1,422 1,355 — 82,378 Commercial loans secured by non-owner occupied real estate 360,732 4,684 1,620 9 367,045 Total $ 590,446 $ 15,746 $ 6,607 $ 9 $ 612,808 December 31, 2018 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 154,510 $ 2,089 $ 1,680 $ — $ 158,279 Commercial loans secured by owner occupied real estate 86,997 3,769 1,139 — 91,905 Commercial loans secured by non-owner occupied real estate 349,954 6,316 262 11 356,543 Total $ 591,461 $ 12,174 $ 3,081 $ 11 $ 606,727 It is generally the policy of the Bank that the outstanding balance of any residential mortgage loan that exceeds 90‑days past due as to principal and/or interest is transferred to non-accrual status and an evaluation is completed to determine the fair value of the collateral less selling costs, unless the balance is minor. A charge down is recorded for any deficiency balance determined from the collateral evaluation. The remaining non-accrual balance is reported as impaired with no specific allowance. It is generally the policy of the Bank that the outstanding balance of any consumer loan that exceeds 90‑days past due as to principal and/or interest is charged off. The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes (in thousands). September 30, 2019 Performing Non-Performing Real estate – residential mortgage $ 237,069 $ 1,071 Consumer 18,185 — Total $ 255,254 $ 1,071 December 31, 2018 Performing Non-Performing Real estate – residential mortgage $ 236,754 $ 1,210 Consumer 17,591 — Total $ 254,345 $ 1,210 Management further monitors the performance and credit quality of the loan portfolio by analyzing the age of the portfolio as determined by the length of time a recorded payment is past due. The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans (in thousands). September 30, 2019 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 163,385 $ — $ — $ — $ — $ 163,385 $ — Commercial loans secured by owner occupied real estate 82,378 — — — — 82,378 — Commercial loans secured by non-owner occupied real estate 367,045 — — — — 367,045 — Real estate – residential mortgage 234,832 1,892 983 433 3,308 238,140 — Consumer 18,120 45 20 — 65 18,185 — Total $ 865,760 $ 1,937 $ 1,003 $ 433 $ 3,373 $ 869,133 $ — December 31, 2018 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 158,279 $ — $ — $ — $ — $ 158,279 $ — Commercial loans secured by owner occupied real estate 91,905 — — — — 91,905 — Commercial loans secured by non-owner occupied real estate 355,963 580 — — 580 356,543 — Real estate – residential mortgage 232,465 3,651 472 1,376 5,499 237,964 — Consumer 17,408 153 30 — 183 17,591 — Total $ 856,020 $ 4,384 $ 502 $ 1,376 $ 6,262 $ 862,282 $ — An allowance for loan losses (“ALL”) is maintained to support loan growth and cover charge-offs from the loan portfolio. The ALL is based on management’s continuing evaluation of the risk characteristics and credit quality of the loan portfolio, assessment of current economic conditions, diversification and size of the portfolio, adequacy of collateral, past and anticipated loss experience, and the amount of non-performing loans. Loans that are collectively evaluated for impairment are analyzed with general allowances being made as appropriate. For general allowances, historical loss trends are used in the estimation of losses in the current portfolio. These historical loss amounts are complemented by consideration of other qualitative factors. Management tracks the historical net charge-off activity at each risk rating grade level for the entire commercial portfolio and at the aggregate level for the consumer, residential mortgage and small business portfolios. A historical charge-off factor is calculated utilizing a rolling 12 consecutive historical quarters for the commercial portfolios. This historical charge-off factor for the consumer, residential mortgage and small business portfolios are based on a three-year historical average of actual loss experience. The Company uses a comprehensive methodology and procedural discipline to maintain an ALL to absorb inherent losses in the loan portfolio. The Company believes this is a critical accounting policy since it involves significant estimates and judgments. The allowance consists of three elements: 1) an allowance established on specifically identified problem loans, 2) formula driven general reserves established for loan categories based upon historical loss experience and other qualitative factors which include delinquency, non-performing and TDR loans, loan trends, economic trends, concentrations of credit, trends in loan volume, experience and depth of management, examination and audit results, effects of any changes in lending policies, and trends in policy, financial information, and documentation exceptions, and 3) a general risk reserve which provides support for variance from our assessment of the previously listed qualitative factors, provides protection against credit risks resulting from other inherent risk factors contained in the Company’s loan portfolio, and recognizes the model and estimation risk associated with the specific and formula driven allowances. The qualitative factors used in the formula driven general reserves are evaluated quarterly (and revised if necessary) by the Company’s management to establish allocations which accommodate each of the listed risk factors. “Pass” rated credits are segregated from “Criticized” and “Classified” credits for the application of qualitative factors. Management reviews the loan portfolio on a quarterly basis using a defined, consistently applied process in order to make appropriate and timely adjustments to the ALL. When information confirms all or part of specific loans to be uncollectible, these amounts are promptly charged off against the ALL. |
Non-Performing Assets Including
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | 9 Months Ended |
Sep. 30, 2019 | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | 11. Non-Performing Assets Including Troubled Debt Restructurings (TDR) The following table presents information concerning non-performing assets including TDR (in thousands, except percentages): September 30, December 31, 2019 2018 Non-accrual loans Commercial loans secured by non-owner occupied real estate $ 9 $ 11 Real estate – residential mortgage 1,071 1,210 Total 1,080 1,221 Other real estate owned Commercial loans secured by owner occupied real estate — 157 Real estate – residential mortgage 57 — Total 57 157 TDR’s not in non-accrual Commercial and industrial 820 — Total 820 — Total non-performing assets including TDR $ 1,957 $ 1,378 Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned 0.22 % 0.16 % The Company had no loans past due 90 days or more for the periods presented which were accruing interest. The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands). Three months Nine months ended ended September 30, September 30, 2019 2018 2019 2018 Interest income due in accordance with original terms $ 14 $ 12 $ 43 $ 61 Interest income recorded — — — — Net reduction in interest income $ 14 $ 12 $ 43 $ 61 Consistent with accounting and regulatory guidance, the Bank recognizes a TDR when the Bank, for economic or legal reasons related to a borrower’s financial difficulties, grants a concession to the borrower that would not normally be considered. Regardless of the form of concession granted, the Bank’s objective in offering a TDR is to increase the probability of repayment of the borrower’s loan. The following table details the loan modified as a TDR during the three month period ended September 30, 2019 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 70 Extension of maturity date with a below market interest rate The following table details the loans modified as TDR’s during the nine month period ended September 30, 2019 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 2 $ 820 Extension of maturity date with a below market interest rate The Company had no loans modified as TDR’s during the three and nine month periods ending September 30, 2018. All TDR’s are individually evaluated for impairment and a related allowance is recorded, as needed. The specific ALL reserve for loans modified as TDR’s was $96,000 and $11,000 as of September 30, 2019 and December 31, 2018, respectively. The Company had no loans that were classified as TDR’s or were subsequently modified during each 12‑month period prior to the current reporting periods, which begin January 1, 2018 and 2017 (nine month periods) and July 1, 2018 and 2017 (three month periods), respectively, and that subsequently defaulted during these reporting periods. The Company is unaware of any additional loans which are required to either be charged-off or added to the non-performing asset totals disclosed above. |
Federal Home Loan Bank Borrowin
Federal Home Loan Bank Borrowings | 9 Months Ended |
Sep. 30, 2019 | |
Federal Home Loan Bank Borrowing | |
Federal Home Loan Bank Borrowings | 12. Federal Home Loan Bank Borrowings Total Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages): At September 30, 2019 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 11,275 2.08 % Advances 2019 7,580 1.89 2020 17,729 1.75 2021 9,496 2.28 2022 14,257 2.37 2023 5,568 2.48 2024 and over 1,000 2.26 Total advances 55,630 2.10 Total FHLB borrowings $ 66,905 2.10 % At December 31, 2018 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 41,029 2.62 % Advances 2019 12,500 1.51 2020 16,729 1.74 2021 9,496 2.28 2022 6,996 2.86 2023 1,000 2.86 Total advances 46,721 1.98 Total FHLB borrowings $ 87,750 2.28 % The rate on Open Repo Plus advances can change daily, while the rates on the advances are fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage, commercial real estate, and commercial and industrial loans with an aggregate statutory value equal to the amount of the advances are pledged as collateral to the FHLB of Pittsburgh to support these borrowings. |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Lease Commitments | |
Lease Commitments | 13. Lease Commitments Due to the adoption of ASU 2016-02, Leases (Topic 842), the Company completed a comprehensive review and analysis of all its property and equipment contracts. As a result of this review, it was determined that the Company leases eight office locations under both operating and financing leases and one copy machine under a short-term lease. Several assumptions and judgments were made when applying the requirements of Topic 842 to the Company's existing lease commitments, including the allocation of consideration in the contracts between lease and nonlease components, determination of the lease term, and determination of the discount rate used in calculating the present value of the lease payments. The Company has elected to account for the variable nonlease components, such as common area maintenance charges, utilities, real estate taxes, and insurance, separately from the lease component. Such variable nonlease components are reported in net occupancy expense on the Consolidated Statements of Operations when paid. These variable nonlease components were excluded from the calculation of the present value of the remaining lease payments, therefore, they are not included in the right-of-use assets and lease liabilities reported on the Consolidated Balance Sheets. The following table presents the lease cost associated with both operating and financing leases for the three and nine month periods ending September 30, 2019 (in thousands). Total rent expense recorded during the three and nine month periods ended September 30, 2018 was $102,000 and $318,000, respectively. Three months ended Nine months ended September 30, 2019 September 30, 2019 Lease cost Financing lease cost: Amortization of right-of-use asset $ 64 $ 193 Interest expense 29 88 Operating lease cost 29 87 Total lease cost $ 122 $ 368 Certain of the Company's leases contain options to renew the lease after the initial term. Management considers the Company's historical pattern of exercising renewal options on leases and the performance of the leased locations, when determining whether it is reasonably certain that the leases will be renewed. If management concludes that there is reasonable certainty about the renewal option, it is included in the calculation of the remaining term of each applicable lease. The discount rate utilized in calculating the present value of the remaining lease payments for each lease was the Federal Home Loan Bank of Pittsburgh advance rate corresponding to the remaining maturity of the lease. The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at September 30, 2019. Operating Financing Weighted-average remaining term (years) 12.1 17.2 Weighted-average discount rate 3.45 % 3.60 % The following table presents the undiscounted cash flows due related to operating and financing leases as of September 30, 2019, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. Undiscounted cash flows due: Operating Financing Within 1 year $ 117 $ 302 After 1 year but within 2 years 119 275 After 2 years but within 3 years 110 277 After 3 years but within 4 years 69 278 After 4 years but within 5 years 69 240 After 5 years 608 3,068 Total undiscounted cash flows 1,092 4,440 Discount on cash flows (206) (1,230) Total lease liabilities $ 886 $ 3,210 Under Topic 842, the lessee can elect to not record on the Consolidated Balance Sheets a lease whose term is twelve months or less and does not include a purchase option that the lessee is reasonably certain to exercise. As of September 30, 2019, the Company had one short-term equipment lease which it has elected to not record on the Consolidated Balance Sheets. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Loss | |
Accumulated Other Comprehensive Loss | 14. Accumulated Other Comprehensive Loss The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three months ended Three months ended September 30, 2019 September 30, 2018 Net Net Unrealized Unrealized Gains and Gains and (Losses) on Defined (Losses) on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 1,398 $ (13,948) $ (12,550) $ (2,177) $ (11,490) $ (13,667) Other comprehensive income (loss) before reclassifications 480 (7) 473 (726) 2 (724) Amounts reclassified from accumulated other comprehensive loss (69) 325 256 — 306 306 Net current period other comprehensive income (loss) 411 318 729 (726) 308 (418) Ending balance $ 1,809 $ (13,630) $ (11,821) $ (2,903) $ (11,182) $ (14,085) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. Nine months ended Nine months ended September 30, 2019 September 30, 2018 Net Net Unrealized Unrealized Gains and Gains and (Losses) on Defined (Losses) on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ (1,409) $ (12,816) $ (14,225) $ (327) $ (12,623) $ (12,950) Other comprehensive income (loss) before reclassifications 3,311 (1,790) 1,521 (2,693) 524 (2,169) Amounts reclassified from accumulated other comprehensive loss (93) 976 883 117 917 1,034 Net current period other comprehensive income (loss) 3,218 (814) 2,404 (2,576) 1,441 (1,135) Ending balance $ 1,809 $ (13,630) $ (11,821) $ (2,903) $ (11,182) $ (14,085) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2019 and 2018 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) For the For the three months three months ended ended September 30, September 30, Affected line item in the Details about accumulated other comprehensive loss components 2019 2018 consolidated statement of operations Realized gains on sale of securities $ (88) $ — Net realized (gains) losses on investment securities 19 — Provision for income tax expense $ (69) $ — Net of tax Amortization of estimated defined benefit pension plan loss $ 412 $ 387 Other expense (87) (81) Provision for income tax expense $ 325 $ 306 Net of tax Total reclassifications for the period $ 256 $ 306 Net income (1) Amounts in parentheses indicate credits. Amount reclassified from accumulated other comprehensive loss (1) For the For the nine months nine months ended ended September 30, September 30, Affected line item in the Details about accumulated other comprehensive loss components 2019 2018 consolidated statement of operations Realized (gains) losses on sale of securities $ (118) $ 148 Net realized (gains) losses on investment securities 25 (31) Provision for income tax expense $ (93) $ 117 Net of tax Amortization of estimated defined benefit pension plan loss $ 1,236 $ 1,161 Other expense (260) (244) Provision for income tax expense $ 976 $ 917 Net of tax Total reclassifications for the period $ 883 $ 1,034 Net income (1) Amounts in parentheses indicate credits. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Capital | |
Regulatory Capital | 15. Regulatory Capital The Company is subject to various capital requirements administered by the federal banking agencies. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. For a more detailed discussion see the Capital Resources section of the M.D. & A. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios (set forth in the table below) of total and tier 1 capital to risk-weighted assets (as defined), tier 1 capital to average assets, and common equity tier 1 capital (as defined in the regulations) to risk-weighted assets. Additionally, under Basel III rules, the decision was made to opt-out of including accumulated other comprehensive income in regulatory capital. As of September 30, 2019, the Bank was categorized as “Well Capitalized” under the regulatory framework for prompt corrective action promulgated by the Federal Reserve. The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as Well Capitalized, the Bank must maintain minimum Total Capital, Common Equity Tier 1 Capital, Tier 1 Capital, and Tier 1 leverage ratios as set forth in the table (in thousands, except ratios). At September 30, 2019 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 131,075 13.33 % $ 118,832 12.14 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 102,337 10.41 109,483 11.19 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 114,221 11.62 109,483 11.19 6.00 8.00 Tier 1 Capital (To Average Assets) 114,221 9.79 109,483 9.49 4.00 5.00 At December 31, 2018 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 129,178 13.53 % $ 115,451 12.14 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 100,258 10.50 105,891 11.14 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 112,130 11.74 105,891 11.14 6.00 8.00 Tier 1 Capital (To Average Assets) 112,130 9.71 105,891 9.28 4.00 5.00 * Additionally, while not a regulatory capital ratio, the Company’s tangible common equity ratio was 7.81% (non-GAAP) at September 30, 2019. See the discussion of the tangible common equity ratio under the “Balance Sheet” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations (M.D. & A.). |
Derivative Hedging Instruments
Derivative Hedging Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Hedging Instruments | |
Derivative Hedging Instruments | 16. Derivative Hedging Instruments The Company can use various interest rate contracts, such as interest rate swaps, caps, floors and swaptions to help manage interest rate and market valuation risk exposure, which is incurred in normal recurrent banking activities. The Company can use derivative instruments, primarily interest rate swaps, to manage interest rate risk and match the rates on certain assets by hedging the fair value of certain fixed rate debt, which converts the debt to variable rates and by hedging the cash flow variability associated with certain variable rate debt by converting the debt to fixed rates. To accommodate the needs of our customers and support the Company’s asset/liability positioning, we may enter into interest rate swap agreements with customers and a large financial institution that specializes in these types of transactions. These arrangements involve the exchange of interest payments based on the notional amounts. The Company entered into floating rate loans and fixed rate swaps with our customers. Simultaneously, the Company entered into offsetting fixed rate swaps with Pittsburgh National Bank (PNC). In connection with each swap transaction, the Company agrees to pay interest to the customer on a notional amount at a variable interest rate and receive interest from the customer on the same notional amount at a fixed interest rate. At the same time, the Company agrees to pay PNC the same fixed interest rate on the same notional amount and receive the same variable interest rate on the same notional amount. These transactions allow the Company’s customers to effectively convert a variable rate loan to a fixed rate. Because the Company acts as an intermediary for its customers, changes in the fair value of the underlying derivative contracts offset each other and do not significantly impact the Company’s results of operations. The swap assets and swap liabilities are recorded at fair value and are reported within Other assets and Other liabilities, respectively, on the Consolidated Balance Sheets. Disclosures related to the fair value of the swap transactions can be found in Note 20. The following table summarizes the interest rate swap transactions that impacted the Company’s first nine months of 2019 and 2018 performance (in thousands, except percentages). At September 30, 2019 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 23,866 4.69 % MONTHLY $ 11 SWAP LIABILITIES FAIR VALUE (23,866) (4.69) MONTHLY (11) NET EXPOSURE — — — At September 30, 2018 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 19,983 4.20 % MONTHLY $ (42) SWAP LIABILITIES FAIR VALUE (19,983) (4.20) MONTHLY 42 NET EXPOSURE — — — The Company monitors and controls all derivative products with a comprehensive Board of Directors approved Hedging Policy. This policy permits a total maximum notional amount outstanding of $500 million for interest rate swaps, interest rate caps/floors, and swaptions. All hedge transactions must be approved in advance by the Investment Asset/Liability Committee (ALCO) of the Board of Directors, unless otherwise approved, as per the terms, within the Board of Directors approved Hedging Policy. The Company had no caps or floors outstanding at September 30, 2019 and 2018. None of the Company's derivatives are designated as hedging instruments. |
Segment Results
Segment Results | 9 Months Ended |
Sep. 30, 2019 | |
Segment Results | |
Segment Results | 17. Segment Results The financial performance of the Company is also monitored by an internal funds transfer pricing profitability measurement system which produces line of business results and key performance measures. The Company’s major business units include retail banking, commercial banking, wealth management, and investment/parent. The reported results reflect the underlying economics of the business segments. Expenses for centrally provided services are allocated based upon the cost and estimated usage of those services. The businesses are match-funded and interest rate risk is centrally managed and accounted for within the investment/parent business segment. The key performance measure the Company focuses on for each business segment is net income contribution. Retail banking includes the deposit-gathering branch franchise and lending to both individuals and small businesses. Lending activities include residential mortgage loans, direct consumer loans, and small business commercial loans. Commercial banking to businesses includes commercial loans, business services, and CRE loans. The wealth management segment includes the Trust Company, West Chester Capital Advisors (WCCA), our registered investment advisory firm, and Financial Services. Wealth management activities include personal trust products and services such as personal portfolio investment management, estate planning and administration, custodial services and pre-need trusts. Also, institutional trust products and services such as 401(k) plans, defined benefit and defined contribution employee benefit plans, and individual retirement accounts are included in this segment. Financial Services include the sale of mutual funds, annuities, and insurance products. The wealth management businesses also include the union collective investment funds, primarily the ERECT funds which are designed to use union pension dollars in construction projects that utilize union labor. The investment/parent includes the net results of investment securities and borrowing activities, general corporate expenses not allocated to the business segments, interest expense on corporate debt, and centralized interest rate risk management. Inter-segment revenues were not material. The contribution of the major business segments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands): Three months ended Nine months ended September 30, 2019 September 30, 2019 Total Net Total Net revenue income (loss) revenue income (loss) Retail banking $ 7,064 $ 1,316 $ 20,597 $ 3,673 Commercial banking 4,675 1,475 13,770 4,948 Wealth management 2,458 477 7,315 1,365 Investment/Parent (1,338) (1,579) (3,843) (4,627) Total $ 12,859 $ 1,689 $ 37,839 $ 5,359 Three months ended Nine months ended September 30, 2018 September 30, 2018 Total Net Total Net revenue income (loss) revenue income (loss) Retail banking $ 6,692 $ 1,145 $ 19,050 $ 2,605 Commercial banking 4,762 1,876 13,729 5,076 Wealth management 2,379 483 7,288 1,423 Investment/Parent (1,138) (1,175) (2,450) (3,264) Total $ 12,695 $ 2,329 $ 37,617 $ 5,840 |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingent Liabilities | |
Commitments and Contingent Liabilities | 18. Commitments and Contingent Liabilities The Company had various outstanding commitments to extend credit approximating $227.5 million and $177.8 million along with standby letters of credit of $15.0 million and $16.7 million as of September 30, 2019 and December 31, 2018, respectively. The Company’s exposure to credit loss in the event of nonperformance by the other party to these commitments to extend credit and standby letters of credit is represented by their contractual amounts. The Bank uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending. Additionally, the Company is also subject to a number of asserted and unasserted potential claims encountered in the normal course of business. In the opinion of the Company, neither the resolution of these claims nor the funding of these credit commitments will have a material adverse effect on the Company’s consolidated financial position, results of operations or cash flows. |
Pension Benefits
Pension Benefits | 9 Months Ended |
Sep. 30, 2019 | |
Pension Benefits | |
Pension Benefits | 19. Pension Benefits The Company has a noncontributory defined benefit pension plan covering certain employees who work at least 1,000 hours per year. The participants have a vested interest in their accrued benefit after five full years of service. The benefits of the plan are based upon the employee’s years of service and average annual earnings for the highest five consecutive calendar years during the final ten-year period of employment. Plan assets are primarily debt securities (including US Treasury and Agency securities, corporate notes and bonds), listed common stocks (including shares of AmeriServ Financial, Inc. common stock which is limited to 10% of the plan’s assets), mutual funds, and short-term cash equivalent instruments. The net periodic pension cost for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 368 $ 370 $ 1,104 $ 1,110 Interest cost 392 318 1,176 954 Expected return on plan assets (756) (699) (2,268) (2,097) Special termination benefit liability — 16 — 48 Recognized net actuarial loss 412 387 1,236 1,161 Net periodic pension cost $ 416 $ 392 $ 1,248 $ 1,176 The service cost component of net periodic benefit cost is included in “Salaries and employee benefits” and all other components of net periodic benefit cost are included in “Other expense” in the Consolidated Statements of Operations. The Company implemented a soft freeze of its defined benefit pension plan to provide that non-union employees hired on or after January 1, 2013 and union employees hired on or after January 1, 2014 are not eligible to participate in the pension plan. Instead, such employees are eligible to participate in a qualified 401(k) plan. This change was made to help reduce pension costs in future periods. |
Disclosures about Fair Value Me
Disclosures about Fair Value Measurements and Financial Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Disclosures about Fair Value Measurements and Financial Instruments | |
Disclosures about Fair Value Measurements and Financial Instruments | 20. Disclosures about Fair Value Measurements and Financial Instruments The following disclosures establish a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. The three broad levels defined within this hierarchy are as follows: Level I: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level II: Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed. Level III: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. Assets and Liability Measured and Recorded on a Recurring Basis Equity securities are reported at fair value utilizing Level 1 inputs. These securities are mutual funds held within a rabbi trust for the Company's executive deferred compensation plan. The mutual funds held are open-end funds that are registered with the Securities and Exchange Commission. These funds are required to publish their daily net asset value and to transact at that price. Securities classified as available for sale are reported at fair value 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 dealer quoted market spreads, cash flows, the US Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. The fair values of the fair value swaps used for interest rate risk management represents the amount the Company would expect to receive or pay to terminate such agreements. These fair values are based on an external derivative valuation model using data inputs as of the valuation date and classified Level 2. The following table presents the assets and liability measured and recorded on the Consolidated Balance Sheets on a recurring basis at their fair value as of September 30, 2019 and December 31, 2018, by level within the fair value hierarchy (in thousands). Fair Value Measurements at September 30, 2019 Total (Level 1) (Level 2) (Level 3) Equity securities $ 354 $ 354 $ — $ — Available for sale securities: US Agency 6,280 — 6,280 — US Agency mortgage-backed securities 85,490 — 85,490 — Municipal 14,415 — 14,415 — Corporate bonds 37,215 — 37,215 — Fair value swap asset 1,453 — 1,453 — Fair value swap liability (1,453) — (1,453) — Fair Value Measurements at December 31, 2018 Total (Level 1) (Level 2) (Level 3) Available for sale securities: US Agency $ 7,529 $ — $ 7,529 $ — US Agency mortgage-backed securities 89,527 — 89,527 — Municipal 13,181 — 13,181 — Corporate bonds 36,494 — 36,494 — Fair value swap asset 257 — 257 — Fair value swap liability (257) — (257) — Assets Measured and Recorded on a Non-Recurring Basis Loans considered impaired are loans for which, based on current information and events, it is probable that the creditor will be unable to collect all amounts due according to the contractual terms of the loan agreement. As detailed in the allowance for loan loss footnote, impaired loans are reported at the present value of expected future cash flows discounted at the loan's effective interest rate or the fair value of the underlying collateral if the repayment is expected solely from the collateral. Collateral values are estimated using Level 3 inputs based on observable market data which at times are discounted. At September 30, 2019, impaired loans with a carrying value of $829,000 were reduced by a specific valuation allowance totaling $96,000 resulting in a net fair value of $733,000. At December 31, 2018, impaired loans with a carrying value of $11,000 were reduced by a specific valuation allowance totaling $11,000 resulting in a net fair value of zero. Other real estate owned is measured at fair value based on appraisals, less estimated costs to sell at the date of foreclosure. Valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value, less cost to sell. Income and expenses from operations and changes in valuation allowance are included in the net expenses from OREO. Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): Fair Value Measurements at September 30, 2019 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 733 $ — $ — $ 733 Other real estate owned 57 — — 57 Fair Value Measurements at December 31, 2018 Total (Level 1) (Level 2) (Level 3) Impaired loans $ — $ — $ — $ — Other real estate owned 157 — — 157 Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range September 30, 2019 Estimate Techniques Input (Wgtd Avg) Impaired loans $ 674 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 100% (11%) 59 Discounted cash flows Probability of loss adjustment (3) 15% (15%) Other real estate owned 57 Appraisal of Appraisal adjustments (2) Liquidation expenses 0% to 44% (35%) 12% to 114% (28%) Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range December 31, 2018 Estimate Techniques Input (Wgtd Avg) Impaired loans $ — Appraisal of collateral(1) Appraisal adjustments (2) 100% (100%) Other real estate owned 157 Appraisal of collateral (1) Appraisal adjustments (2) Liquidation expenses 0% to 39% (8%) 21% to 195% (40%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. (3) Includes qualitative adjustments by management based on circumstances specific to each loan. FAIR VALUE OF FINANCIAL INSTRUMENTS For the Company, as for most financial institutions, approximately 90% of its assets and liabilities are considered financial instruments. Many of the Company’s financial instruments, however, lack an available trading market characterized by a willing buyer and willing seller engaging in an exchange transaction. Therefore, significant estimates and present value calculations were used by the Company for the purpose of this disclosure. Fair values have been determined by the Company using independent third party valuations that use the best available data (Level 2) and an estimation methodology (Level 3) the Company believes is suitable for each category of financial instruments. Management believes that cash and cash equivalents, bank owned life insurance, regulatory stock, accrued interest receivable and payable, and short term borrowings have fair values which approximate the recorded carrying values. The fair value measurements for all of these financial instruments are Level 1 measurements. The estimated fair values based on US GAAP measurements and recorded carrying values at September 30, 2019 and December 31, 2018, for the remaining financial instruments not required to be measured or reported at fair value were as follows (in thousands): September 30, 2019 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 39,299 $ 40,813 $ — $ 37,849 $ 2,964 Loans held for sale 5,949 6,102 6,102 — — Loans, net of allowance for loan loss and unearned income 860,788 862,163 — — 862,163 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 666,977 $ 655,398 $ — $ — $ 655,398 Deposits with stated maturities 303,012 304,249 — — 304,249 All other borrowings (1) 76,086 76,664 — — 76,664 December 31, 2018 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 40,760 $ 40,324 $ — $ 37,398 $ 2,926 Loans held for sale 847 871 871 — — Loans, net of allowance for loan loss and unearned income 853,611 836,122 — — 836,122 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 671,666 $ 627,323 $ — $ — $ 627,323 Deposits with stated maturities 277,505 277,010 — — 277,010 All other borrowings (1) 67,148 69,692 — — 69,692 (1) All other borrowings include advances from Federal Home Loan Bank, guaranteed junior subordinated deferrable interest debentures, and subordinated debt. Changes in assumptions or estimation methodologies may have a material effect on these estimated fair values. The Company’s remaining assets and liabilities which are not considered financial instruments have not been valued differently than has been customary under historical cost accounting. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition | |
Schedule of noninterest income, segregated by revenue | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three and nine month periods ending September 30, 2019 and 2018 (in thousands). Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Noninterest income: In-scope of Topic 606 Wealth management fees $ 2,431 $ 2,359 $ 7,246 $ 7,232 Service charges on deposit accounts 321 326 948 1,066 Other 471 439 1,325 1,291 Noninterest income (in-scope of topic 606) 3,223 3,124 9,519 9,589 Noninterest income (out-of-scope of topic 606) 872 462 1,838 1,313 Total noninterest income $ 4,095 $ 3,586 $ 11,357 $ 10,902 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Common Share | |
Schedule of Earnings Per Common Share | Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 (In thousands, except per share data) Numerator: Net income $ 1,689 $ 2,329 $ 5,359 $ 5,840 Denominator: Weighted average common shares outstanding (basic) 17,278 17,924 17,443 18,013 Effect of stock options 82 112 81 104 Weighted average common shares outstanding (diluted) 17,360 18,036 17,524 18,117 Earnings per common share: Basic $ 0.10 $ 0.13 $ 0.31 $ 0.32 Diluted 0.10 0.13 0.31 0.32 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Securities | |
Schedule of cost basis and fair values of investment securities | September 30, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 6,209 $ 71 $ — $ 6,280 US Agency mortgage- backed securities 83,830 1,760 (100) 85,490 Municipal 13,781 642 (8) 14,415 Corporate bonds 37,290 317 (392) 37,215 Total $ 141,110 $ 2,790 $ (500) $ 143,400 Investment securities held to maturity (HTM): September 30, 2019 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 9,061 $ 277 $ (6) $ 9,332 Municipal 24,205 1,259 (42) 25,422 Corporate bonds and other securities 6,033 62 (36) 6,059 Total $ 39,299 $ 1,598 $ (84) $ 40,813 Investment securities available for sale (AFS): December 31, 2018 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency $ 7,685 $ $ (160) $ 7,529 US Agency mortgage- backed securities 90,169 516 (1,158) 89,527 Municipal 13,301 114 (234) 13,181 Corporate bonds 37,359 131 (996) 36,494 Total $ 148,514 $ 765 $ (2,548) $ 146,731 Investment securities held to maturity (HTM): December 31, 2018 Gross Gross Cost Unrealized Unrealized Fair Basis Gains Losses Value US Agency mortgage- backed securities $ 9,983 $ 78 $ (132) $ 9,929 Municipal 24,740 131 (404) 24,467 Corporate bonds and other securities 6,037 13 (122) 5,928 Total $ 40,760 $ 222 $ (658) $ 40,324 |
Schedule of investments with unrealized losses | The following tables present information concerning investments with unrealized losses as of September 30, 2019 and December 31, 2018 (in thousands): Total investment securities: September 30, 2019 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ — $ — $ — $ — $ — $ — US Agency mortgage-backed securities 4,602 (20) 10,804 (86) 15,406 (106) Municipal 943 (3) 1,130 (47) 2,073 (50) Corporate bonds and other securities 3,051 (31) 16,145 (397) 19,196 (428) Total $ 8,596 $ (54) $ 28,079 $ (530) $ 36,675 $ (584) Total investment securities: December 31, 2018 Less than 12 months 12 months or longer Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses US Agency $ 244 $ (6) $ 5,631 $ (154) $ 5,875 $ (160) US Agency mortgage-backed securities 17,718 (177) 39,983 (1,113) 57,701 (1,290) Municipal 6,601 (71) 15,880 (567) 22,481 (638) Corporate bonds and other securities 15,221 (440) 17,038 (678) 32,259 (1,118) Total $ 39,784 $ (694) $ 78,532 $ (2,512) $ 118,316 $ (3,206) |
Schedule of investment securities | September 30, 2019 Available for sale Held to maturity Cost Fair Cost Fair Basis Value Basis Value Within 1 year $ 2,500 $ 2,506 $ — $ — After 1 year but within 5 years 21,374 21,485 6,516 6,565 After 5 years but within 10 years 40,360 41,005 19,662 20,618 After 10 years but within15 years 24,722 25,248 8,085 8,481 Over 15 years 52,154 53,156 5,036 5,149 Total $ 141,110 $ 143,400 $ 39,299 $ 40,813 |
Loans (Tables)
Loans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Loans | |
Schedule of loan portfolio | The loan portfolio of the Company consists of the following (in thousands): September 30, December 31, 2019 2018 Commercial: Commercial and industrial $ 163,385 $ 158,279 Commercial loans secured by owner occupied real estate 82,378 91,905 Commercial loans secured by non-owner occupied real estate 367,045 356,543 Real estate – residential mortgage 238,140 237,964 Consumer 18,185 17,591 Loans, net of unearned income $ 869,133 $ 862,282 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Allowance for Loan Losses | |
Schedule of Loan losses by portfolio segment | The following tables summarize the rollforward of the allowance for loan losses by portfolio segment for the three and nine month periods ending September 30, 2019 and 2018 (in thousands). Three months ended September 30, 2019 Balance at Balance at June 30, Charge- Provision September 30, 2019 Offs Recoveries (Credit) 2019 Commercial $ 2,538 $ (1) $ 8 $ 464 $ 3,009 Commercial loans secured by non-owner occupied real estate 3,425 — 12 (81) 3,356 Real estate – residential mortgage 1,218 — 25 (46) 1,197 Consumer 124 (36) 10 28 126 Allocation for general risk 797 — — (140) 657 Total $ 8,102 $ (37) $ 55 $ 225 $ 8,345 Three months ended September 30, 2018 Balance at Balance at June 30, Charge- Provision September 30, 2018 Offs Recoveries (Credit) 2018 Commercial $ 3,566 $ — $ 17 $ 175 $ 3,758 Commercial loans secured by non-owner occupied real estate 3,686 — 12 (310) 3,388 Real estate – residential mortgage 1,253 (123) 34 75 1,239 Consumer 125 (29) 7 25 128 Allocation for general risk 891 — — 35 926 Total $ 9,521 $ (152) $ 70 $ — $ 9,439 Nine months ended September 30, 2019 Balance at Balance at December 31, Charge- Provision September 30, 2018 Offs Recoveries (Credit) 2019 Commercial $ 3,057 $ (1) $ 13 $ (60) $ 3,009 Commercial loans secured by non-owner occupied real estate 3,389 (63) 36 (6) 3,356 Real estate–residential mortgage 1,235 (71) 101 (68) 1,197 Consumer 127 (206) 40 165 126 Allocation for general risk 863 — — (206) 657 Total $ 8,671 $ (341) $ 190 $ (175) $ 8,345 Nine months ended September 30, 2018 Balance at Balance at December 31, Charge- Provision September 30, 2017 Offs Recoveries (Credit) 2018 Commercial $ 4,298 $ (574) $ 29 $ 5 $ 3,758 Commercial loans secured by non-owner occupied real estate 3,666 — 38 (316) 3,388 Real estate – residential mortgage 1,102 (340) 111 366 1,239 Consumer 128 (181) 42 139 128 Allocation for general risk 1,020 — — (94) 926 Total $ 10,214 $ (1,095) $ 220 $ 100 $ 9,439 |
Schedule of Loan loss by the primary segments | The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio (in thousands). At September 30, 2019 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ 820 $ 9 $ — $ — $ 829 Collectively evaluated for impairment 244,943 367,036 238,140 18,185 868,304 Total loans $ 245,763 $ 367,045 $ 238,140 $ 18,185 $ 869,133 Allowance for loan losses: Specific reserve allocation $ 87 $ 9 $ — $ — $ — $ 96 General reserve allocation 2,922 3,347 1,197 126 657 8,249 Total allowance for loan losses $ 3,009 $ 3,356 $ 1,197 $ 126 $ 657 $ 8,345 At December 31, 2018 Commercial Loans Real Secured by Non- Estate- Owner Residential Allocation for Commercial Occupied Real Estate Mortgage Consumer General Risk Total Loans: Individually evaluated for impairment $ — $ 11 $ — $ — $ 11 Collectively evaluated for impairment 250,184 356,532 237,964 17,591 862,271 Total loans $ 250,184 $ 356,543 $ 237,964 $ 17,591 $ 862,282 Allowance for loan losses: Specific reserve allocation $ — $ 11 $ — $ — $ — $ 11 General reserve allocation 3,057 3,378 1,235 127 863 8,660 Total allowance for loan losses $ 3,057 $ 3,389 $ 1,235 $ 127 $ 863 $ 8,671 |
Schedule of Present impaired loans by portfolio segment | The following tables present impaired loans by portfolio segment, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary (in thousands). September 30, 2019 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial $ 820 $ 87 $ — $ 820 $ 820 Commercial loans secured by non-owner occupied real estate 9 9 — 9 31 Total impaired loans $ 829 $ 96 $ — $ 829 $ 851 December 31, 2018 Impaired Loans with Impaired Loans with no Specific Specific Allowance Allowance Total Impaired Loans Unpaid Recorded Related Recorded Recorded Principal Investment Allowance Investment Investment Balance Commercial loans secured by non-owner occupied real estate $ 11 $ 11 $ — $ 11 $ 33 Total impaired loans $ 11 $ 11 $ — $ 11 $ 33 |
Schedule of Investment in impaired loans and related interest income | The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated (in thousands). Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Average loan balance: Commercial $ 785 $ — $ 393 $ 532 Commercial loans secured by non-owner occupied real estate 10 12 10 146 Average investment in impaired loans $ 795 $ 12 $ 403 $ 678 Interest income recognized: Commercial $ 13 $ — $ 17 $ — Commercial loans secured by non-owner occupied real estate — — — — Interest income recognized on a cash basis on impaired loans $ 13 $ — $ 17 $ — |
Schedule of Commercial and commercial real estate loan portfolios | The following table presents the classes of the commercial and commercial real estate loan portfolios summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system (in thousands). September 30, 2019 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 150,113 $ 9,640 $ 3,632 $ — $ 163,385 Commercial loans secured by owner occupied real estate 79,601 1,422 1,355 — 82,378 Commercial loans secured by non-owner occupied real estate 360,732 4,684 1,620 9 367,045 Total $ 590,446 $ 15,746 $ 6,607 $ 9 $ 612,808 December 31, 2018 Special Pass Mention Substandard Doubtful Total Commercial and industrial $ 154,510 $ 2,089 $ 1,680 $ — $ 158,279 Commercial loans secured by owner occupied real estate 86,997 3,769 1,139 — 91,905 Commercial loans secured by non-owner occupied real estate 349,954 6,316 262 11 356,543 Total $ 591,461 $ 12,174 $ 3,081 $ 11 $ 606,727 |
Schedule of Residential and consumer portfolio | The following tables present the performing and non-performing outstanding balances of the residential and consumer portfolio classes (in thousands). September 30, 2019 Performing Non-Performing Real estate – residential mortgage $ 237,069 $ 1,071 Consumer 18,185 — Total $ 255,254 $ 1,071 December 31, 2018 Performing Non-Performing Real estate – residential mortgage $ 236,754 $ 1,210 Consumer 17,591 — Total $ 254,345 $ 1,210 |
Schedule of Credit quality of the loan portfolio | The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans (in thousands). September 30, 2019 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 163,385 $ — $ — $ — $ — $ 163,385 $ — Commercial loans secured by owner occupied real estate 82,378 — — — — 82,378 — Commercial loans secured by non-owner occupied real estate 367,045 — — — — 367,045 — Real estate – residential mortgage 234,832 1,892 983 433 3,308 238,140 — Consumer 18,120 45 20 — 65 18,185 — Total $ 865,760 $ 1,937 $ 1,003 $ 433 $ 3,373 $ 869,133 $ — December 31, 2018 90 Days 30 – 59 60 – 89 Past Due Days Days 90 Days Total Total and Still Current Past Due Past Due Past Due Past Due Loans Accruing Commercial and industrial $ 158,279 $ — $ — $ — $ — $ 158,279 $ — Commercial loans secured by owner occupied real estate 91,905 — — — — 91,905 — Commercial loans secured by non-owner occupied real estate 355,963 580 — — 580 356,543 — Real estate – residential mortgage 232,465 3,651 472 1,376 5,499 237,964 — Consumer 17,408 153 30 — 183 17,591 — Total $ 856,020 $ 4,384 $ 502 $ 1,376 $ 6,262 $ 862,282 $ — |
Non-Performing Assets Includi_2
Non-Performing Assets Including Troubled Debt Restructurings (TDR) (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | |
Schedule of nonperforming assets including trouble debt restructurings | The following table presents information concerning non-performing assets including TDR (in thousands, except percentages): September 30, December 31, 2019 2018 Non-accrual loans Commercial loans secured by non-owner occupied real estate $ 9 $ 11 Real estate – residential mortgage 1,071 1,210 Total 1,080 1,221 Other real estate owned Commercial loans secured by owner occupied real estate — 157 Real estate – residential mortgage 57 — Total 57 157 TDR’s not in non-accrual Commercial and industrial 820 — Total 820 — Total non-performing assets including TDR $ 1,957 $ 1,378 Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned 0.22 % 0.16 % |
Schedule of interest income on non accrual loans | The following table sets forth, for the periods indicated, (1) the gross interest income that would have been recorded if non-accrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination if held for part of the period, (2) the amount of interest income actually recorded on such loans, and (3) the net reduction in interest income attributable to such loans (in thousands). Three months Nine months ended ended September 30, September 30, 2019 2018 2019 2018 Interest income due in accordance with original terms $ 14 $ 12 $ 43 $ 61 Interest income recorded — — — — Net reduction in interest income $ 14 $ 12 $ 43 $ 61 |
Schedule of troubled debt restructurings on financing receivables | The following table details the loan modified as a TDR during the three month period ended September 30, 2019 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 1 $ 70 Extension of maturity date with a below market interest rate The following table details the loans modified as TDR’s during the nine month period ended September 30, 2019 (dollars in thousands). Loans in accrual status # of Loans Current Balance Concession Granted Commercial and industrial 2 $ 820 Extension of maturity date with a below market interest rate |
Federal Home Loan Bank Borrow_2
Federal Home Loan Bank Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Federal Home Loan Bank Borrowings | |
Schedule of federal home loan bank borrowings | Total Federal Home Loan Bank (FHLB) borrowings and advances consist of the following (in thousands, except percentages): At September 30, 2019 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 11,275 2.08 % Advances 2019 7,580 1.89 2020 17,729 1.75 2021 9,496 2.28 2022 14,257 2.37 2023 5,568 2.48 2024 and over 1,000 2.26 Total advances 55,630 2.10 Total FHLB borrowings $ 66,905 2.10 % At December 31, 2018 Weighted Type Maturing Amount Average Rate Open Repo Plus Overnight $ 41,029 2.62 % Advances 2019 12,500 1.51 2020 16,729 1.74 2021 9,496 2.28 2022 6,996 2.86 2023 1,000 2.86 Total advances 46,721 1.98 Total FHLB borrowings $ 87,750 2.28 % |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Lease Commitments | |
Schedule of lease cost associated with both operating and financing leases | Total rent expense recorded during the three and nine month periods ended September 30, 2018 was $102,000 and $318,000, respectively. Three months ended Nine months ended September 30, 2019 September 30, 2019 Lease cost Financing lease cost: Amortization of right-of-use asset $ 64 $ 193 Interest expense 29 88 Operating lease cost 29 87 Total lease cost $ 122 $ 368 |
Schedule of weighted average discount rates and the remaining term of the leases | The following table presents the weighted-average remaining lease term and discount rate for the leases outstanding at September 30, 2019. Operating Financing Weighted-average remaining term (years) 12.1 17.2 Weighted-average discount rate 3.45 % 3.60 % |
Schedule of reconciliation to the discounted amount recorded on the consolidated balance sheets | Operating Financing Weighted-average remaining term (years) 12.1 17.2 Weighted-average discount rate 3.45 % 3.60 % The following table presents the undiscounted cash flows due related to operating and financing leases as of September 30, 2019, along with a reconciliation to the discounted amount recorded on the Consolidated Balance Sheets. Undiscounted cash flows due: Operating Financing Within 1 year $ 117 $ 302 After 1 year but within 2 years 119 275 After 2 years but within 3 years 110 277 After 3 years but within 4 years 69 278 After 4 years but within 5 years 69 240 After 5 years 608 3,068 Total undiscounted cash flows 1,092 4,440 Discount on cash flows (206) (1,230) Total lease liabilities $ 886 $ 3,210 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Loss | |
Schedule of accumulated other comprehensive loss, net of tax | The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three months ended Three months ended September 30, 2019 September 30, 2018 Net Net Unrealized Unrealized Gains and Gains and (Losses) on Defined (Losses) on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ 1,398 $ (13,948) $ (12,550) $ (2,177) $ (11,490) $ (13,667) Other comprehensive income (loss) before reclassifications 480 (7) 473 (726) 2 (724) Amounts reclassified from accumulated other comprehensive loss (69) 325 256 — 306 306 Net current period other comprehensive income (loss) 411 318 729 (726) 308 (418) Ending balance $ 1,809 $ (13,630) $ (11,821) $ (2,903) $ (11,182) $ (14,085) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. Nine months ended Nine months ended September 30, 2019 September 30, 2018 Net Net Unrealized Unrealized Gains and Gains and (Losses) on Defined (Losses) on Defined Investment Benefit Investment Benefit Securities Pension Securities Pension AFS (1) Items (1) Total (1) AFS (1) Items (1) Total (1) Beginning balance $ (1,409) $ (12,816) $ (14,225) $ (327) $ (12,623) $ (12,950) Other comprehensive income (loss) before reclassifications 3,311 (1,790) 1,521 (2,693) 524 (2,169) Amounts reclassified from accumulated other comprehensive loss (93) 976 883 117 917 1,034 Net current period other comprehensive income (loss) 3,218 (814) 2,404 (2,576) 1,441 (1,135) Ending balance $ 1,809 $ (13,630) $ (11,821) $ (2,903) $ (11,182) $ (14,085) (1) Amounts in parentheses indicate debits on the Consolidated Balance Sheets. |
Schedule of reclassification out of accumulated other comprehensive loss | The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the three and nine months ended September 30, 2019 and 2018 (in thousands): Amount reclassified from accumulated other comprehensive loss (1) For the For the three months three months ended ended September 30, September 30, Affected line item in the Details about accumulated other comprehensive loss components 2019 2018 consolidated statement of operations Realized gains on sale of securities $ (88) $ — Net realized (gains) losses on investment securities 19 — Provision for income tax expense $ (69) $ — Net of tax Amortization of estimated defined benefit pension plan loss $ 412 $ 387 Other expense (87) (81) Provision for income tax expense $ 325 $ 306 Net of tax Total reclassifications for the period $ 256 $ 306 Net income (1) Amounts in parentheses indicate credits. Amount reclassified from accumulated other comprehensive loss (1) For the For the nine months nine months ended ended September 30, September 30, Affected line item in the Details about accumulated other comprehensive loss components 2019 2018 consolidated statement of operations Realized (gains) losses on sale of securities $ (118) $ 148 Net realized (gains) losses on investment securities 25 (31) Provision for income tax expense $ (93) $ 117 Net of tax Amortization of estimated defined benefit pension plan loss $ 1,236 $ 1,161 Other expense (260) (244) Provision for income tax expense $ 976 $ 917 Net of tax Total reclassifications for the period $ 883 $ 1,034 Net income Amounts in parentheses indicate credits. |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Regulatory Capital | |
Schedule of compliance with regulatory capital requirements under banking regulations | The Company believes that no conditions or events have occurred that would change this conclusion as of such date. To be categorized as Well Capitalized, the Bank must maintain minimum Total Capital, Common Equity Tier 1 Capital, Tier 1 Capital, and Tier 1 leverage ratios as set forth in the table (in thousands, except ratios). At September 30, 2019 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 131,075 13.33 % $ 118,832 12.14 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 102,337 10.41 109,483 11.19 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 114,221 11.62 109,483 11.19 6.00 8.00 Tier 1 Capital (To Average Assets) 114,221 9.79 109,483 9.49 4.00 5.00 At December 31, 2018 MINIMUM TO BE WELL REQUIRED CAPITALIZED FOR UNDER PROMPT CAPITAL CORRECTIVE ADEQUACY ACTION COMPANY BANK PURPOSES REGULATIONS* AMOUNT RATIO AMOUNT RATIO RATIO RATIO Total Capital (To Risk Weighted Assets) $ 129,178 13.53 % $ 115,451 12.14 % 8.00 % 10.00 % Common Equity Tier 1 (To Risk Weighted Assets) 100,258 10.50 105,891 11.14 4.50 6.50 Tier 1 Capital (To Risk Weighted Assets) 112,130 11.74 105,891 11.14 6.00 8.00 Tier 1 Capital (To Average Assets) 112,130 9.71 105,891 9.28 4.00 5.00 * |
Derivative Hedging Instruments
Derivative Hedging Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Hedging Instruments | |
Schedule of interest rate swap transactions | The following table summarizes the interest rate swap transactions that impacted the Company’s first nine months of 2019 and 2018 performance (in thousands, except percentages). At September 30, 2019 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 23,866 4.69 % MONTHLY $ 11 SWAP LIABILITIES FAIR VALUE (23,866) (4.69) MONTHLY (11) NET EXPOSURE — — — At September 30, 2018 INCREASE AGGREGATE WEIGHTED (DECREASE) HEDGE NOTIONAL AVERAGE RATE REPRICING IN INTEREST TYPE AMOUNT RECEIVED/(PAID) FREQUENCY EXPENSE SWAP ASSETS FAIR VALUE $ 19,983 4.20 % MONTHLY $ (42) SWAP LIABILITIES FAIR VALUE (19,983) (4.20) MONTHLY 42 NET EXPOSURE — — — |
Segment Results (Tables)
Segment Results (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Results | |
Schedule of business segments | The contribution of the major business segments to the Consolidated Statements of Operations for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands): Three months ended Nine months ended September 30, 2019 September 30, 2019 Total Net Total Net revenue income (loss) revenue income (loss) Retail banking $ 7,064 $ 1,316 $ 20,597 $ 3,673 Commercial banking 4,675 1,475 13,770 4,948 Wealth management 2,458 477 7,315 1,365 Investment/Parent (1,338) (1,579) (3,843) (4,627) Total $ 12,859 $ 1,689 $ 37,839 $ 5,359 Three months ended Nine months ended September 30, 2018 September 30, 2018 Total Net Total Net revenue income (loss) revenue income (loss) Retail banking $ 6,692 $ 1,145 $ 19,050 $ 2,605 Commercial banking 4,762 1,876 13,729 5,076 Wealth management 2,379 483 7,288 1,423 Investment/Parent (1,138) (1,175) (2,450) (3,264) Total $ 12,695 $ 2,329 $ 37,617 $ 5,840 |
Pension Benefits (Tables)
Pension Benefits (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Pension Benefits | |
Schedule of net periodic pension cost | The net periodic pension cost for the three and nine months ended September 30, 2019 and 2018 were as follows (in thousands): Three months ended Nine months ended September 30, September 30, 2019 2018 2019 2018 Components of net periodic benefit cost Service cost $ 368 $ 370 $ 1,104 $ 1,110 Interest cost 392 318 1,176 954 Expected return on plan assets (756) (699) (2,268) (2,097) Special termination benefit liability — 16 — 48 Recognized net actuarial loss 412 387 1,236 1,161 Net periodic pension cost $ 416 $ 392 $ 1,248 $ 1,176 |
Disclosures about Fair Value _2
Disclosures about Fair Value Measurements and Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disclosures about Fair Value Measurements and Financial Instruments | |
Schedule of assets and liability measured and recorded on the Consolidated Balance Sheets | The following table presents the assets and liability measured and recorded on the Consolidated Balance Sheets on a recurring basis at their fair value as of September 30, 2019 and December 31, 2018, by level within the fair value hierarchy (in thousands). Fair Value Measurements at September 30, 2019 Total (Level 1) (Level 2) (Level 3) Equity securities $ 354 $ 354 $ — $ — Available for sale securities: US Agency 6,280 — 6,280 — US Agency mortgage-backed securities 85,490 — 85,490 — Municipal 14,415 — 14,415 — Corporate bonds 37,215 — 37,215 — Fair value swap asset 1,453 — 1,453 — Fair value swap liability (1,453) — (1,453) — Fair Value Measurements at December 31, 2018 Total (Level 1) (Level 2) (Level 3) Available for sale securities: US Agency $ 7,529 $ — $ 7,529 $ — US Agency mortgage-backed securities 89,527 — 89,527 — Municipal 13,181 — 13,181 — Corporate bonds 36,494 — 36,494 — Fair value swap asset 257 — 257 — Fair value swap liability (257) — (257) — |
Schedule of assets measured and recorded at fair value on a non-recurring basis | Assets measured and recorded at fair value on a non-recurring basis are summarized below (in thousands, except range data): Fair Value Measurements at September 30, 2019 Total (Level 1) (Level 2) (Level 3) Impaired loans $ 733 $ — $ — $ 733 Other real estate owned 57 — — 57 Fair Value Measurements at December 31, 2018 Total (Level 1) (Level 2) (Level 3) Impaired loans $ — $ — $ — $ — Other real estate owned 157 — — 157 Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range September 30, 2019 Estimate Techniques Input (Wgtd Avg) Impaired loans $ 674 Appraisal of collateral (1) Appraisal adjustments (2) 0% to 100% (11%) 59 Discounted cash flows Probability of loss adjustment (3) 15% (15%) Other real estate owned 57 Appraisal of Appraisal adjustments (2) Liquidation expenses 0% to 44% (35%) 12% to 114% (28%) Quantitative Information About Level 3 Fair Value Measurements Fair Value Valuation Unobservable Range December 31, 2018 Estimate Techniques Input (Wgtd Avg) Impaired loans $ — Appraisal of collateral(1) Appraisal adjustments (2) 100% (100%) Other real estate owned 157 Appraisal of collateral (1) Appraisal adjustments (2) Liquidation expenses 0% to 39% (8%) 21% to 195% (40%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. Also includes qualitative adjustments by management and estimated liquidation expenses. (2) Appraisals may be adjusted by management for qualitative factors such as economic conditions. (3) Includes qualitative adjustments by management based on circumstances specific to each loan. |
Schedule of estimated fair value and recorded carrying value | The estimated fair values based on US GAAP measurements and recorded carrying values at September 30, 2019 and December 31, 2018, for the remaining financial instruments not required to be measured or reported at fair value were as follows (in thousands): September 30, 2019 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 39,299 $ 40,813 $ — $ 37,849 $ 2,964 Loans held for sale 5,949 6,102 6,102 — — Loans, net of allowance for loan loss and unearned income 860,788 862,163 — — 862,163 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 666,977 $ 655,398 $ — $ — $ 655,398 Deposits with stated maturities 303,012 304,249 — — 304,249 All other borrowings (1) 76,086 76,664 — — 76,664 December 31, 2018 Carrying Fair Value Value (Level 1) (Level 2) (Level 3) FINANCIAL ASSETS: Investment securities – HTM $ 40,760 $ 40,324 $ — $ 37,398 $ 2,926 Loans held for sale 847 871 871 — — Loans, net of allowance for loan loss and unearned income 853,611 836,122 — — 836,122 FINANCIAL LIABILITIES: Deposits with no stated maturities $ 671,666 $ 627,323 $ — $ — $ 627,323 Deposits with stated maturities 277,505 277,010 — — 277,010 All other borrowings (1) 67,148 69,692 — — 69,692 |
Principles of Consolidation (De
Principles of Consolidation (Details) $ in Billions | Sep. 30, 2019USD ($)location |
Assets under Management, Carrying Amount | $ | $ 2.1 |
Pennsylvania | |
Number of locations | 15 |
Maryland | |
Number of locations | 1 |
Adoption of Accounting Standa_2
Adoption of Accounting Standards (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Operating lease right-of-use asset | $ 868,000 | $ 0 |
Operating Lease, Liability | 886,000 | 0 |
Financing lease right-of-use asset | 3,143,000 | 0 |
Finance Lease, Liability | 3,210,000 | $ 0 |
Accounting Standards Update 2016-02 | ||
Operating lease right-of-use asset | 932,000 | |
Operating Lease, Liability | 932,000 | |
Financing lease right-of-use asset | 3,300,000 | |
Finance Lease, Liability | $ 3,300,000 |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue Recognition | ||||
Wealth management fees | $ 2,431 | $ 2,359 | $ 7,246 | $ 7,232 |
Service charges on deposit accounts | 321 | 326 | 948 | 1,066 |
Other | 471 | 439 | 1,325 | 1,291 |
Non-interest income (in-scope of topic 606) | 3,223 | 3,124 | 9,519 | 9,589 |
Noninterest income (out-of-scope of topic 606) | 872 | 462 | 1,838 | 1,313 |
Total non-interest income | $ 4,095 | $ 3,586 | $ 11,357 | $ 10,902 |
Revenue Recognition - Additiona
Revenue Recognition - Additional information (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Associated With Financial Instruments [Member] | |
Percentage Of Entity Revenue | 80.50% |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Numerator: | ||||
Net income | $ 1,689 | $ 2,329 | $ 5,359 | $ 5,840 |
Denominator: | ||||
Weighted average common shares outstanding (basic) | 17,278 | 17,924 | 17,443 | 18,013 |
Effect of stock options | 82 | 112 | 81 | 104 |
Weighted average common shares outstanding (diluted) | 17,360 | 18,036 | 17,524 | 18,117 |
Earnings per common share: | ||||
Basic | $ 0.10 | $ 0.13 | $ 0.31 | $ 0.32 |
Diluted | $ 0.10 | $ 0.13 | $ 0.31 | $ 0.32 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional information (Details) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019$ / sharesshares | Sep. 30, 2019$ / sharesshares | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 12,000 | 12,000 |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 4.22 | $ 4.22 |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 4.19 | $ 4.19 |
Consolidated Statement of Cas_2
Consolidated Statement of Cash Flows (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Income tax payments | $ 785,000 | $ 875,000 | |
Total interest payments | 10,573,000 | 7,888,000 | |
Non-cash transfers to other real estate owned | 75,000 | $ 166,000 | |
Operating Lease, Asset | 868,000 | $ 0 | |
Operating Lease, Liability | 886,000 | 0 | |
Finance Lease, Asset | 3,143,000 | 0 | |
Finance Lease, Liability | 3,210,000 | $ 0 | |
Accounting Standards Update 2016-02 | |||
Operating Lease, Asset | 932,000 | ||
Operating Lease, Liability | 932,000 | ||
Finance Lease, Asset | 3,300,000 | ||
Finance Lease, Liability | $ 3,300,000 |
Investment Securities - cost ba
Investment Securities - cost basis and fair values of investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Cost Basis | $ 141,110 | $ 148,514 |
Investment securities available for sale, Gross Unrealized Gains | 2,790 | 765 |
Investment securities available for sale, Gross Unrealized Losses | (500) | (2,548) |
Available for Sale, Fair Value, Total | 143,400 | 146,731 |
Held to maturity (fair value $37,345 on September 30, 2018 and $38,811 on December 31, 2017) | 39,299 | 40,760 |
Investment securities held to maturity, Gross Unrealized Gains | 1,598 | 222 |
Investment securities held to maturity, Gross Unrealized Losses | (84) | (658) |
Held to Maturity, Fair Value, Total | 40,813 | 40,324 |
U.S. Agency | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Cost Basis | 6,209 | 7,685 |
Investment securities available for sale, Gross Unrealized Gains | 71 | 4 |
Investment securities available for sale, Gross Unrealized Losses | 0 | (160) |
Available for Sale, Fair Value, Total | 6,280 | 7,529 |
U.S. Agency mortgage-backed securities | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Cost Basis | 83,830 | 90,169 |
Investment securities available for sale, Gross Unrealized Gains | 1,760 | 516 |
Investment securities available for sale, Gross Unrealized Losses | (100) | (1,158) |
Available for Sale, Fair Value, Total | 85,490 | 89,527 |
Held to maturity (fair value $37,345 on September 30, 2018 and $38,811 on December 31, 2017) | 9,061 | 9,983 |
Investment securities held to maturity, Gross Unrealized Gains | 277 | 78 |
Investment securities held to maturity, Gross Unrealized Losses | (6) | (132) |
Held to Maturity, Fair Value, Total | 9,332 | 9,929 |
Corporate bonds [Member] | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Cost Basis | 37,290 | 37,359 |
Investment securities available for sale, Gross Unrealized Gains | 317 | 131 |
Investment securities available for sale, Gross Unrealized Losses | (392) | (996) |
Available for Sale, Fair Value, Total | 37,215 | 36,494 |
Corporate bonds and other securities [Member] | ||
Information concerning investments with unrealized losses | ||
Held to maturity (fair value $37,345 on September 30, 2018 and $38,811 on December 31, 2017) | 6,033 | 6,037 |
Investment securities held to maturity, Gross Unrealized Gains | 62 | 13 |
Investment securities held to maturity, Gross Unrealized Losses | (36) | (122) |
Held to Maturity, Fair Value, Total | 6,059 | 5,928 |
Municipal [Member] | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Cost Basis | 13,781 | 13,301 |
Investment securities available for sale, Gross Unrealized Gains | 642 | 114 |
Investment securities available for sale, Gross Unrealized Losses | (8) | (234) |
Available for Sale, Fair Value, Total | 14,415 | 13,181 |
Held to maturity (fair value $37,345 on September 30, 2018 and $38,811 on December 31, 2017) | 24,205 | 24,740 |
Investment securities held to maturity, Gross Unrealized Gains | 1,259 | 131 |
Investment securities held to maturity, Gross Unrealized Losses | (42) | (404) |
Held to Maturity, Fair Value, Total | $ 25,422 | $ 24,467 |
Investment Securities - Total i
Investment Securities - Total investment securities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | $ 2,500 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 21,374 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 40,360 | |
Available for Sale, Cost Basis, After 10 years but within 15 years | 24,722 | |
Available for Sale, Cost Basis, Over 15 years | 52,154 | |
Available for Sale, Cost Basis, Total | 141,110 | $ 148,514 |
Available for Sale, Fair Value, Within 1 year | 2,506 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 21,485 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 41,005 | |
Available for Sale, Fair Value, After 10 years but within 15 years | 25,248 | |
Available for Sale, Fair Value, Over 15 years | 53,156 | |
Available for Sale, Fair Value, Total | 143,400 | 146,731 |
Held to Maturity, Cost Basis, Within 1 year | 0 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 6,516 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 19,662 | |
Held to Maturity, Cost Basis, After 10 years but within 15 years | 8,085 | |
Held to Maturity, Cost Basis, Over 15 years | 5,036 | |
Held to Maturity, Cost Basis, Total | 39,299 | 40,760 |
Held to Maturity, Fair Value, Within 1 year | 0 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 6,565 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 20,618 | |
Held to Maturity, Fair Value, After 10 years but within 15 years | 8,481 | |
Held to Maturity, Fair Value, Over 15 years | 5,149 | |
Held to Maturity, Fair Value, Total | $ 40,813 | $ 40,324 |
Investment Securities - Informa
Investment Securities - Information concerning investments with unrealized losses (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | $ 8,596 | $ 39,784 |
Less than 12 months, Unrealized Losses | 54 | 694 |
12 months or longer, Fair Value | 28,079 | 78,532 |
12 months or longer, Unrealized Losses | 530 | 2,512 |
Total, Fair Value | 36,675 | 118,316 |
Total, Unrealized Losses | 584 | 3,206 |
U.S. Agency | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 0 | 244 |
Less than 12 months, Unrealized Losses | 0 | 6 |
12 months or longer, Fair Value | 0 | 5,631 |
12 months or longer, Unrealized Losses | 0 | 154 |
Total, Fair Value | 0 | 5,875 |
Total, Unrealized Losses | 0 | 160 |
U.S. Agency mortgage-backed securities | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 4,602 | 17,718 |
Less than 12 months, Unrealized Losses | 20 | 177 |
12 months or longer, Fair Value | 10,804 | 39,983 |
12 months or longer, Unrealized Losses | 86 | 1,113 |
Total, Fair Value | 15,406 | 57,701 |
Total, Unrealized Losses | 106 | 1,290 |
Municipal [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 943 | 6,601 |
Less than 12 months, Unrealized Losses | 3 | 71 |
12 months or longer, Fair Value | 1,130 | 15,880 |
12 months or longer, Unrealized Losses | 47 | 567 |
Total, Fair Value | 2,073 | 22,481 |
Total, Unrealized Losses | 50 | 638 |
Corporate bonds and other securities [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Less than 12 months, Fair Value | 3,051 | 15,221 |
Less than 12 months, Unrealized Losses | 31 | 440 |
12 months or longer, Fair Value | 16,145 | 17,038 |
12 months or longer, Unrealized Losses | 397 | 678 |
Total, Fair Value | 19,196 | 32,259 |
Total, Unrealized Losses | $ 428 | $ 1,118 |
Investment Securities - Additio
Investment Securities - Additional information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Tax | $ 19,000 | $ 0 | $ 25,000 | $ (31,000) | |
Investment Securities: | |||||
Consolidated investment securities portfolio modified, years | 35 months 3 days | 44 months 3 days | |||
Proceeds from sales of investment securities - available for sale | 2,800,000 | $ 3,374,000 | 4,479,000 | ||
Book value of securities available for sale and held to maturity | 126,815,000 | 126,815,000 | $ 115,536,000 | ||
Gross investment gains | $ 88,000 | $ 118,000 | 15,000 | ||
Gross investment losses | 163,000 | ||||
Available-for-sale, Securities and Held To Maturity Securities in Unrealized Loss Positions | 51 | 51 | |||
Debt and Equity Securities, Gain (Loss) | $ 88,000 | $ 0 | $ 118,000 | $ (148,000) | |
Standard & Poor's, AAA Rating [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Portfolio rated | 55.60% | 55.60% | 57.50% | ||
Securities rated below A [Member] | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Portfolio rated | 9.10% | 9.10% | 10.00% | ||
Deferred Compensation, Share-based Payments [Member] | Assets Held With Rabbi Trust [Member] | |||||
Investment Securities: | |||||
Equity Securities, FV-NI | $ 354,000 | $ 354,000 | |||
Debt and Equity Securities, Gain (Loss) | 9,000 | 9,000 | |||
Unrealized Gain on Securities | $ 3,000 | $ 3,000 | |||
Minimum | |||||
Investment Securities: | |||||
Consolidated investment securities portfolio modified, years | 24 months | ||||
Maximum | |||||
Investment Securities: | |||||
Consolidated investment securities portfolio modified, years | 60 months |
Loans (Details)
Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | $ 869,133 | $ 862,282 |
Commercial and Industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 163,385 | 158,279 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 82,378 | 91,905 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 367,045 | 356,543 |
Real estate - residential mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 238,140 | 237,964 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | $ 18,185 | $ 17,591 |
Loans - Additional information
Loans - Additional information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loans | ||
Real estate-construction loans, percentage | 4.40% | 3.50% |
Loan balances net of unearned income | $ 396 | $ 322 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan losses by portfolio segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | $ 8,102 | $ 9,521 | $ 8,671 | $ 10,214 |
Charge-Offs | (37) | (152) | (341) | (1,095) |
Recoveries | 55 | 70 | 190 | 220 |
Provision (Credit) | 225 | 0 | (175) | 100 |
Balance at End of Period | 8,345 | 9,439 | 8,345 | 9,439 |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 2,538 | 3,566 | 3,057 | 4,298 |
Charge-Offs | (1) | 0 | (1) | (574) |
Recoveries | 8 | 17 | 13 | 29 |
Provision (Credit) | 464 | 175 | (60) | 5 |
Balance at End of Period | 3,009 | 3,758 | 3,009 | 3,758 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 3,425 | 3,686 | 3,389 | 3,666 |
Charge-Offs | 0 | 0 | (63) | 0 |
Recoveries | 12 | 12 | 36 | 38 |
Provision (Credit) | (81) | (310) | (6) | (316) |
Balance at End of Period | 3,356 | 3,388 | 3,356 | 3,388 |
Real estate - residential mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 1,218 | 1,253 | 1,235 | 1,102 |
Charge-Offs | 0 | (123) | (71) | (340) |
Recoveries | 25 | 34 | 101 | 111 |
Provision (Credit) | (46) | 75 | (68) | 366 |
Balance at End of Period | 1,197 | 1,239 | 1,197 | 1,239 |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 124 | 125 | 127 | 128 |
Charge-Offs | (36) | (29) | (206) | (181) |
Recoveries | 10 | 7 | 40 | 42 |
Provision (Credit) | 28 | 25 | 165 | 139 |
Balance at End of Period | 126 | 128 | 126 | 128 |
Allocation for General Risk [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Balance at Beginning of Period | 797 | 891 | 863 | 1,020 |
Charge-Offs | 0 | 0 | 0 | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Provision (Credit) | (140) | 35 | (206) | (94) |
Balance at End of Period | $ 657 | $ 926 | $ 657 | $ 926 |
Allowance for Loan Losses - L_2
Allowance for Loan Losses - Loan loss by the primary segments (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Loans: | ||||||
Individually evaluated for impairment | $ 829 | $ 11 | ||||
Collectively evaluated for impairment | 868,304 | 862,271 | ||||
Total loans | 869,133 | 862,282 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 96 | 11 | ||||
General reserve allocation | 8,249 | 8,660 | ||||
Total allowance for loan losses | 8,345 | $ 8,102 | 8,671 | $ 9,439 | $ 9,521 | $ 10,214 |
Commercial [Member] | ||||||
Loans: | ||||||
Individually evaluated for impairment | 820 | 0 | ||||
Collectively evaluated for impairment | 244,943 | 250,184 | ||||
Total loans | 245,763 | 250,184 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 87 | 0 | ||||
General reserve allocation | 2,922 | 3,057 | ||||
Total allowance for loan losses | 3,009 | 2,538 | 3,057 | 3,758 | 3,566 | 4,298 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||||||
Loans: | ||||||
Individually evaluated for impairment | 9 | 11 | ||||
Collectively evaluated for impairment | 367,036 | 356,532 | ||||
Total loans | 367,045 | 356,543 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 9 | 11 | ||||
General reserve allocation | 3,347 | 3,378 | ||||
Total allowance for loan losses | 3,356 | 3,425 | 3,389 | 3,388 | 3,686 | 3,666 |
Real estate - residential mortgage [Member] | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 238,140 | 237,964 | ||||
Total loans | 238,140 | 237,964 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 0 | 0 | ||||
General reserve allocation | 1,197 | 1,235 | ||||
Total allowance for loan losses | 1,197 | 1,218 | 1,235 | 1,239 | 1,253 | 1,102 |
Consumer [Member] | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 18,185 | 17,591 | ||||
Total loans | 18,185 | 17,591 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 0 | 0 | ||||
General reserve allocation | 126 | 127 | ||||
Total allowance for loan losses | 126 | 124 | 127 | 128 | 125 | 128 |
Allocation for General Risk [Member] | ||||||
Loans: | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 0 | 0 | ||||
Total loans | 0 | 0 | ||||
Allowance for loan losses: | ||||||
Specific reserve allocation | 0 | 0 | ||||
General reserve allocation | 657 | 863 | ||||
Total allowance for loan losses | $ 657 | $ 797 | $ 863 | $ 926 | $ 891 | $ 1,020 |
Allowance for Loan Losses - Pre
Allowance for Loan Losses - Present impaired loans by portfolio segment (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 829,000 | $ 11,000 |
Related Allowance | 96,000 | 11,000 |
Unpaid Principal Balance | 851,000 | 33,000 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 820,000 | |
Unpaid Principal Balance | 820,000 | |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 9,000 | 11,000 |
Unpaid Principal Balance | 31,000 | 33,000 |
Impaired Loans with Specific Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 829,000 | 11,000 |
Related Allowance | 96,000 | 11,000 |
Impaired Loans with Specific Allowance [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 820,000 | |
Related Allowance | 87,000 | |
Impaired Loans with Specific Allowance [Member] | Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 9,000 | 11,000 |
Related Allowance | 9,000 | 11,000 |
Impaired Loans With No Specific Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 0 | 0 |
Impaired Loans With No Specific Allowance [Member] | Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 0 | |
Impaired Loans With No Specific Allowance [Member] | Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 0 | $ 0 |
Allowance for Loan Losses - Inv
Allowance for Loan Losses - Investment in impaired loans and related interest income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Average loan balance: | ||||
Average investment in impaired loans | $ 795 | $ 12 | $ 403 | $ 678 |
Interest income recognized: | ||||
Interest income recognized on a cash basis on impaired loans | 13 | 0 | 17 | 0 |
Commercial [Member] | ||||
Average loan balance: | ||||
Average investment in impaired loans | 785 | 0 | 393 | 532 |
Interest income recognized: | ||||
Interest income recognized on a cash basis on impaired loans | 13 | 0 | 17 | 0 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||||
Average loan balance: | ||||
Average investment in impaired loans | 10 | 12 | 10 | 146 |
Interest income recognized: | ||||
Interest income recognized on a cash basis on impaired loans | $ 0 | $ 0 | $ 0 | $ 0 |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Commercial and commercial real estate loan portfolios (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 869,133 | $ 862,282 |
Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 612,808 | 606,727 |
Commercial and Industrial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 163,385 | 158,279 |
Commercial and Industrial [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 163,385 | 158,279 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 82,378 | 91,905 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 82,378 | 91,905 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 367,045 | 356,543 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 367,045 | 356,543 |
Pass [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 590,446 | 591,461 |
Pass [Member] | Commercial and Industrial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 150,113 | 154,510 |
Pass [Member] | Commercial Loans Secured by Owner Occupied Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 79,601 | 86,997 |
Pass [Member] | Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 360,732 | 349,954 |
Special Mention [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 15,746 | 12,174 |
Special Mention [Member] | Commercial and Industrial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 9,640 | 2,089 |
Special Mention [Member] | Commercial Loans Secured by Owner Occupied Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,422 | 3,769 |
Special Mention [Member] | Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 4,684 | 6,316 |
Substandard [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 6,607 | 3,081 |
Substandard [Member] | Commercial and Industrial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 3,632 | 1,680 |
Substandard [Member] | Commercial Loans Secured by Owner Occupied Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,355 | 1,139 |
Substandard [Member] | Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 1,620 | 262 |
Doubtful [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 9 | 11 |
Doubtful [Member] | Commercial and Industrial Loan [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 0 | 0 |
Doubtful [Member] | Commercial Loans Secured by Owner Occupied Real Estate [Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | 0 | 0 |
Doubtful [Member] | Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | Commercial Portfolio Segment [Member] | ||
Loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system | ||
Loan portfolio | $ 9 | $ 11 |
Allowance for Loan Losses - Res
Allowance for Loan Losses - Residential and consumer portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 869,133 | $ 862,282 |
Consumer [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 18,185 | 17,591 |
Real estate - residential mortgage [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 238,140 | 237,964 |
Performing [Member] | Consumer Portfolio Segment [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 255,254 | 254,345 |
Performing [Member] | Consumer [Member] | Consumer Portfolio Segment [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 18,185 | 17,591 |
Performing [Member] | Real estate - residential mortgage [Member] | Consumer Portfolio Segment [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 237,069 | 236,754 |
Non-Performing [Member] | Consumer Portfolio Segment [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 1,071 | 1,210 |
Non-Performing [Member] | Consumer [Member] | Consumer Portfolio Segment [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | 0 | 0 |
Non-Performing [Member] | Real estate - residential mortgage [Member] | Consumer Portfolio Segment [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Loan portfolio | $ 1,071 | $ 1,210 |
Allowance for Loan Losses - Cre
Allowance for Loan Losses - Credit quality of the loan portfolio (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $ 865,760 | $ 856,020 |
Total Past Due | 3,373 | 6,262 |
Total loans | 869,133 | 862,282 |
90 Days Past Due and Still Accruing | 0 | 0 |
30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,937 | 4,384 |
60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,003 | 502 |
90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 433 | 1,376 |
Commercial and Industrial [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 163,385 | 158,279 |
Total Past Due | 0 | 0 |
Total loans | 163,385 | 158,279 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial and Industrial [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial and Industrial [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 82,378 | 91,905 |
Total Past Due | 0 | 0 |
Total loans | 82,378 | 91,905 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 367,045 | 355,963 |
Total Past Due | 0 | 580 |
Total loans | 367,045 | 356,543 |
90 Days Past Due and Still Accruing | 0 | 0 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 580 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 0 | 0 |
Real estate - residential mortgage [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 234,832 | 232,465 |
Total Past Due | 3,308 | 5,499 |
Total loans | 238,140 | 237,964 |
90 Days Past Due and Still Accruing | 0 | 0 |
Real estate - residential mortgage [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 1,892 | 3,651 |
Real estate - residential mortgage [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 983 | 472 |
Real estate - residential mortgage [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 433 | 1,376 |
Consumer [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 18,120 | 17,408 |
Total Past Due | 65 | 183 |
Total loans | 18,185 | 17,591 |
90 Days Past Due and Still Accruing | 0 | 0 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 45 | 153 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | 20 | 30 |
Consumer [Member] | 90 Days Past Due [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Total Past Due | $ 0 | $ 0 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Individual loan balance is classified as nonaccrual status or troubled debt restructure | $ 100,000 | $ 100,000 | |||
Debt Instrument Non Performing Assets | $ 2,000,000 | ||||
Percentage Of Allowance For Total Loans | 0.95% | 0.95% | 1.00% | ||
Non-performing assets as a percent of loans | 0.22% | 0.22% | 0.16% | ||
Allowance for Loan and Lease Losses, Adjustments, Other | $ 225,000 | $ 0 | $ (175,000) | $ 100,000 | |
Allowance for Loan and Lease Losses Write-offs, Net | $ 151,000 | $ 875,000 | |||
Allowance For Loan And Lease Losses Write Off Percentage | 0.02% | 0.13% | |||
Percentage Of Allowance For Non Performing Assets | 426.00% | 426.00% | 629.00% | ||
Commercial [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum aggregate balances for commercial loan relationship under structure loan rating process | $ 1,000,000 | $ 1,000,000 | |||
Allowance for Loan and Lease Losses, Adjustments, Other | 464,000 | $ 175,000 | (60,000) | $ 5,000 | |
Pass [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum individual loan balance requiring quarterly review | 2,000,000 | 2,000,000 | |||
Special Mention [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum individual loan balance requiring quarterly review | 250,000 | 250,000 | |||
Substandard [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum individual loan balance requiring quarterly review | 250,000 | 250,000 | |||
Doubtful [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum individual loan balance requiring quarterly review | $ 100,000 | $ 100,000 | |||
Minimum | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum percent of portfolio to be reviewed | 50.00% | ||||
Maximum | Commercial Portfolio Segment [Member] | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Minimum percent of portfolio to be reviewed | 55.00% |
Non-Performing Assets Includi_3
Non-Performing Assets Including Troubled Debt Restructurings (TDR) (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Non-Performing assets including TDR | ||
Non-accrual loans | $ 1,080 | $ 1,221 |
Other real estate owned | 57 | 157 |
TDR's not in non-accrual | 820 | 0 |
Total non-performing assets including TDR | $ 1,957 | $ 1,378 |
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned | 0.22% | 0.16% |
Commercial Loans Secured by Nonowner Occupied Real Estate[Member] | ||
Non-Performing assets including TDR | ||
Non-accrual loans | $ 9 | $ 11 |
Commercial Loans Secured by Owner Occupied Real Estate [Member] | ||
Non-Performing assets including TDR | ||
Other real estate owned | 0 | 157 |
Real estate - residential mortgage [Member] | ||
Non-Performing assets including TDR | ||
Non-accrual loans | 1,071 | 1,210 |
Other real estate owned | 57 | 0 |
Commercial and Industrial [Member] | ||
Non-Performing assets including TDR | ||
TDR's not in non-accrual | $ 820 | $ 0 |
Non-Performing Assets Includi_4
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Interest income due in accordance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Interest Income | ||||
Interest income due in accordance with original terms | $ 14 | $ 12 | $ 43 | $ 61 |
Interest income recorded | 0 | 0 | 0 | 0 |
Net reduction in interest income | $ 14 | $ 12 | $ 43 | $ 61 |
Non-Performing Assets Includi_5
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Loans in accrual status (Details) - Commercial and Industrial [Member] $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | |
Schedule of TDRs | ||
Number of loans | 1 | 2 |
Current Balance | $ 70 | $ 820 |
Concession Granted | Extension of maturity date with a below market interest rate | Extension of maturity date with a below market interest rate |
Non-Performing Assets Includi_6
Non-Performing Assets Including Troubled Debt Restructurings (TDR) - Additional information (Details) - USD ($) | Sep. 30, 2019 | Dec. 31, 2018 |
Non-Performing Assets Including Troubled Debt Restructurings (TDR) | ||
ALL reserve for TDR's | $ 96,000 | $ 11,000 |
Federal Home Loan Bank Borrow_3
Federal Home Loan Bank Borrowings (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Federal Home Loan Bank (FHLB) borrowings and advances | ||
Open Repo Plus | $ 11,275 | $ 41,029 |
Advances 2019, Amount | 7,580 | 12,500 |
Advances 2020, Amount | 17,729 | 16,729 |
Advances 2021, Amount | 9,496 | 9,496 |
Advances 2022, Amount | 14,257 | 6,996 |
Advances 2023, Amount | 5,568 | 1,000 |
Advances 2024 and over, Amount | 1,000 | |
Advances from Federal Home Loan Bank | 55,630 | 46,721 |
Total FHLB borrowings, Amount | $ 66,905 | $ 87,750 |
Open Repo Plus Maturity Overnight, Weighted Average Rate | 2.08% | 2.62% |
Advances Maturing 2019, Weighted Average Rate | 1.89% | 1.51% |
Advances Maturing 2020, Weighted Average Rate | 1.75% | 1.74% |
Advances Maturing 2021, Weighted Average Rate | 2.28% | 2.28% |
Advances Maturing 2022, Weighted Average Rate | 2.37% | 2.86% |
Advances Maturing 2023, Weighted Average Rate | 2.48% | 2.86% |
Advances Maturing 2024 and over, Weighted Average Rate | 2.26% | |
Total FHLB borrowings, Weighted Average Rate | 2.10% | 2.28% |
Total advances, Weighted Average Rate | 2.10% | 1.98% |
Lease Commitments (Details)
Lease Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Lease Commitments | ||||
Amortization of right-of-use asset | $ 64 | $ 193 | ||
Interest expense | 29 | $ 0 | 88 | $ 0 |
Operating lease cost | 29 | 87 | ||
Total lease cost | $ 122 | $ 368 |
Lease Commitments - leases outs
Lease Commitments - leases outstanding - (Details) | Sep. 30, 2019 |
Lease Commitments | |
Operating Lease, Weighted-average remaining term | 12 years 1 month 6 days |
Finance Lease, Weighted Average Remaining Lease Term | 17 years 2 months 12 days |
Operating Lease, Weighted-average discount rate | 3.45% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.60% |
Lease Commitments - operating a
Lease Commitments - operating and financing leases - (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Lease Commitments | ||
Operating lease, Within 1 year | $ 117 | |
Operating lease, After 1 year but within 2 years | 119 | |
Operating lease, After 2 years but within 3 years | 110 | |
Operating lease, After 3 years but within 4 years | 69 | |
Operating lease, After 4 years but within 5 years | 69 | |
Operating lease, After 5 years | 608 | |
Total undiscounted cash flows | 1,092 | |
Discount on cash flows | (206) | |
Total lease liabilities | 886 | $ 0 |
Financing lease, Within 1 year | 302 | |
Financing lease, After 1 year but within 2 years | 275 | |
Financing lease, After 2 years but within 3 years | 277 | |
Financing lease, After 3 years but within 4 years | 278 | |
Financing lease, After 4 years but within 5 years | 240 | |
Financing lease, After 5 years | 3,068 | |
Total undiscounted cash flows | 4,440 | |
Discount on cash flows | (1,230) | |
Total Financing lease liabilities | $ 3,210 | $ 0 |
Lease Commitments - Additional
Lease Commitments - Additional information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Operating Leased Assets [Line Items] | ||||
Operating Leases, Rent Expense | $ 102,000 | $ 318,000 | ||
Short Term Equipment Under Lease [Member] | ||||
Operating Leased Assets [Line Items] | ||||
Description Of Accounting Treatment For Short Term Operating Lease | As of September 30, 2019, the Company had one short-term equipment lease which it has elected to not record on the Consolidated Balance Sheets. | As of September 30, 2019, the Company had one short-term equipment lease which it has elected to not record on the Consolidated Balance Sheets. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (12,550) | $ (13,667) | $ (14,225) | $ (12,950) |
Other comprehensive income (loss) before reclassifications | 473 | (724) | 1,521 | (2,169) |
Amounts reclassified from accumulated other comprehensive loss | 256 | 306 | 883 | 1,034 |
Net current period other comprehensive income (loss) | 729 | (418) | 2,404 | (1,135) |
Ending balance | (11,821) | (14,085) | (11,821) | (14,085) |
Net Unrealized Gains and (Losses) on Investment Securities AFS [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 1,398 | (2,177) | (1,409) | (327) |
Other comprehensive income (loss) before reclassifications | 480 | (726) | 3,311 | (2,693) |
Amounts reclassified from accumulated other comprehensive loss | (69) | 0 | (93) | 117 |
Net current period other comprehensive income (loss) | 411 | (726) | 3,218 | (2,576) |
Ending balance | 1,809 | (2,903) | 1,809 | (2,903) |
Defined Benefit Pension Items [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (13,948) | (11,490) | (12,816) | (12,623) |
Other comprehensive income (loss) before reclassifications | (7) | 2 | (1,790) | 524 |
Amounts reclassified from accumulated other comprehensive loss | 325 | 306 | 976 | 917 |
Net current period other comprehensive income (loss) | 318 | 308 | (814) | 1,441 |
Ending balance | $ (13,630) | $ (11,182) | $ (13,630) | $ (11,182) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification of component (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Realized (gains) losses on sale of securities | ||||
Reclassification adjustment for (gains) losses on available for sale securities included in net income | $ (88) | $ 0 | $ (118) | $ 148 |
Provision for income tax expense | 19 | 0 | 25 | (31) |
Net of tax | (69) | 0 | (93) | 117 |
Amortization of estimated defined benefit pension plan loss | ||||
Recognized net actuarial loss | 412 | 387 | 1,236 | 1,161 |
Provision for income taxes | (87) | (81) | (260) | (244) |
Net of tax | 325 | 306 | 976 | 917 |
Total reclassifications for the period | $ 256 | $ 306 | $ 883 | $ 1,034 |
Regulatory Capital (Details)
Regulatory Capital (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 118,832 | $ 115,451 |
Tier 1 Common Equity (To RWA), Actual Amount | 109,483 | 105,891 |
Tier 1 Capital (To RWA), Actual Amount | 109,483 | 105,891 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 109,483 | $ 105,891 |
Total Capital (To RWA), Actual Ratio | 12.14% | 12.14% |
Tier 1 Common Equity (To RWA), Actual Ratio | 11.19% | 11.14% |
Tier 1 Capital (To RWA), Actual Ratio | 11.19% | 11.14% |
Tier 1 Capital (To Average Assets), Actual Ratio | 9.49% | 9.28% |
Total Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 8.00% | 8.00% |
Tier 1 Common Equity (To RWA), Minimum Required For Capital Adequacy Purpose | 4.50% | 4.50% |
Tier 1 Capital (To RWA), Minimum Required For Capital Adequacy Purpose | 6.00% | 6.00% |
Tier 1 Capital (To Average Assets), Minimum Required For Capital Adequacy Purpose | 4.00% | 4.00% |
Total Capital (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 10.00% | 10.00% |
Tier 1 Common Equity (To RWA), To Be Will Capitalized Under Prompt Corrective Action Regulations | 6.50% | 6.50% |
Tier 1 Capital (To RWA), To Be Well Capitalized Under Prompt Corrective Action Regulations | 8.00% | 8.00% |
Tier 1 Capital (To Average Assets), To Be Will Capitalized Under Prompt Corrective Action Regulations | 5.00% | 5.00% |
Parent Company [Member] | ||
Summarized regulatory capital ratio of company | ||
Total Capital (To RWA), Actual Amount | $ 131,075 | $ 129,178 |
Tier 1 Common Equity (To RWA), Actual Amount | 102,337 | 100,258 |
Tier 1 Capital (To RWA), Actual Amount | 114,221 | 112,130 |
Tier 1 Capital (To Average Assets), Actual Amount | $ 114,221 | $ 112,130 |
Total Capital (To RWA), Actual Ratio | 13.33% | 13.53% |
Tier 1 Common Equity (To RWA), Actual Ratio | 10.41% | 10.50% |
Tier 1 Capital (To RWA), Actual Ratio | 11.62% | 11.74% |
Tier 1 Capital (To Average Assets), Actual Ratio | 9.79% | 9.71% |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) | Sep. 30, 2019 |
Regulatory Capital | |
Tangible Capital to Tangible Assets | 7.81% |
Derivative Hedging Instrument_2
Derivative Hedging Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative, Notional Amount | $ 0 | $ 0 |
Derivative Instruments Weighted Average Interest Rate Received Paid | 0.00% | 0.00% |
Increase (Decrease) in Interest Expense | $ 0 | $ 0 |
Derivative Financial Instruments, Liabilities [Member] | Swap [Member] | ||
Derivative, Swap Type | FAIR VALUE | FAIR VALUE |
Derivative Liability, Notional Amount | $ (23,866) | $ (19,983) |
Derivative Instruments Weighted Average Interest Rate Received Paid | (4.69%) | (4.20%) |
Derivative Instruments, Repricing Frequency | MONTHLY | MONTHLY |
Increase (Decrease) in Interest Expense | $ (11) | $ 42 |
Derivative Financial Instruments, Assets [Member] | Swap [Member] | ||
Derivative, Swap Type | FAIR VALUE | FAIR VALUE |
Derivative Asset, Notional Amount | $ 23,866 | $ 19,983 |
Derivative Instruments Weighted Average Interest Rate Received Paid | 4.69% | 4.20% |
Derivative Instruments, Repricing Frequency | MONTHLY | MONTHLY |
Increase (Decrease) in Interest Expense | $ 11 | $ (42) |
Derivative Hedging Instrument_3
Derivative Hedging Instruments - Additional Information (Details) $ in Millions | Sep. 30, 2019USD ($) |
Derivative Hedging Instruments | |
Derivative Maximum Notional Amount Outstanding | $ 500 |
Segment Results (Details)
Segment Results (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Contribution of segments to the consolidated results of operations | ||||
Total revenue | $ 12,859 | $ 12,695 | $ 37,839 | $ 37,617 |
Net income (loss) | 1,689 | 2,329 | 5,359 | 5,840 |
Commercial Banking [Member] | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | 4,675 | 4,762 | 13,770 | 13,729 |
Net income (loss) | 1,475 | 1,876 | 4,948 | 5,076 |
Retail Banking [Member] | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | 7,064 | 6,692 | 20,597 | 19,050 |
Net income (loss) | 1,316 | 1,145 | 3,673 | 2,605 |
Wealth Management [Member] | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | 2,458 | 2,379 | 7,315 | 7,288 |
Net income (loss) | 477 | 483 | 1,365 | 1,423 |
Investment or Parent [Member] | ||||
Contribution of segments to the consolidated results of operations | ||||
Total revenue | (1,338) | (1,138) | (3,843) | (2,450) |
Net income (loss) | $ (1,579) | $ (1,175) | $ (4,627) | $ (3,264) |
Commitments and Contingent Li_2
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Commitments to extend credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 227.5 | $ 177.8 |
Standby letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 15 | $ 16.7 |
Pension Benefits (Details)
Pension Benefits (Details) - Defined Benefit Pension Items [Member] - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Components of net periodic benefit cost | ||||
Service cost | $ 368 | $ 370 | $ 1,104 | $ 1,110 |
Interest cost | 392 | 318 | 1,176 | 954 |
Expected return on plan assets | (756) | (699) | (2,268) | (2,097) |
Special termination benefit liability | 0 | 16 | 0 | 48 |
Recognized net actuarial loss | 412 | 387 | 1,236 | 1,161 |
Net periodic pension cost | $ 416 | $ 392 | $ 1,248 | $ 1,176 |
Pension Benefits - Additional I
Pension Benefits - Additional Information (Details) | Sep. 30, 2019 |
Pension Benefits | |
Minimum number of annual hours | 1,000 |
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock | 10.00% |
Disclosures about Fair Value _3
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of assets and liability measured and recorded on the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | $ 354 | |
Available for sale, at fair value | 143,400 | $ 146,731 |
Fair value swap asset | 1,453 | 257 |
Fair value swap liability | (1,453) | (257) |
U.S. Agency | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 6,280 | 7,529 |
Municipal [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 14,415 | 13,181 |
Corporate bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 37,215 | 36,494 |
U.S. Agency mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 85,490 | 89,527 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity securities | 354 | |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair value swap asset | 1,453 | 257 |
Fair value swap liability | (1,453) | (257) |
Level 2 [Member] | U.S. Agency | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 6,280 | 7,529 |
Level 2 [Member] | Municipal [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 14,415 | 13,181 |
Level 2 [Member] | Corporate bonds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | 37,215 | 36,494 |
Level 2 [Member] | U.S. Agency mortgage-backed securities | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale, at fair value | $ 85,490 | $ 89,527 |
Disclosures about Fair Value _4
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of assets measured and recorded at fair value on a non-recurring basis (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 733,000 | $ 0 |
Fair Value Measurements, Nonrecurring Basis [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 733,000 | 0 |
Other real estate owned | 57,000 | 157,000 |
Fair Value Measurements, Nonrecurring Basis [Member] | Impaired loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 674,000 | $ 0 |
Valuation Techniques | Appraisal of collateral (1) | Appraisal of collateral(1) |
Fair Value Measurements, Nonrecurring Basis [Member] | Impaired loans | Discounted cash flows | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 59,000 | |
Valuation Techniques | Discounted cash flows | |
Fair Value Measurements, Nonrecurring Basis [Member] | Other real estate owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | $ 57,000 | $ 157,000 |
Valuation Techniques | Appraisal ofcollateral (1) | Appraisal of collateral (1) |
Fair Value Measurements, Nonrecurring Basis [Member] | Minimum | Impaired loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Appraisal adjustments | 0.00% | 100.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Minimum | Other real estate owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Appraisal adjustments | 0.00% | 0.00% |
Liquidation expenses | 12.00% | 21.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum | Impaired loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Appraisal adjustments | 100.00% | |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum | Impaired loans | Discounted cash flows | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Probability of loss adjustment | 15.00% | |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum | Other real estate owned | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Appraisal adjustments | 44.00% | 39.00% |
Liquidation expenses | 114.00% | 195.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | $ 0 | $ 0 |
Other real estate owned | 0 | 0 |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Impaired loans | 733,000 | 0 |
Other real estate owned | $ 57,000 | $ 157,000 |
Disclosures about Fair Value _5
Disclosures about Fair Value Measurements and Financial Instruments - Schedule of estimated fair value and recorded carrying value (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Carrying Value | $ 39,299 | $ 40,760 |
Loans held for sale | 5,949 | 847 |
Loans, net of allowance for loan loss and unearned income, Carrying Value | 860,788 | 853,611 |
Investment securities - HTM, Fair Value | 40,813 | 40,324 |
Loans held for sale, Fair Value | 6,102 | 871 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 862,163 | 836,122 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with no stated maturities, Carrying Value | 666,977 | 671,666 |
Deposits with stated maturities, Carrying Value | 303,012 | 277,505 |
All other borrowings, Carrying Value | 76,086 | 67,148 |
Deposits with No Stated Maturities Fair Value Disclosure | 655,398 | 627,323 |
Deposits with stated maturities, Fair Value | 304,249 | 277,010 |
All other borrowings, Fair Value | 76,664 | 69,692 |
Level 1 [Member] | ||
FINANCIAL ASSETS: Carrying Value | ||
Loans held for sale, Fair Value | 6,102 | 871 |
Level 2 [Member] | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 37,849 | 37,398 |
Level 3 [Member] | ||
FINANCIAL ASSETS: Carrying Value | ||
Investment securities - HTM, Fair Value | 2,964 | 2,926 |
Loans, net of allowance for loan loss and unearned income, Fair Value | 862,163 | 836,122 |
FINANCIAL LIABILITIES: Carrying Value | ||
Deposits with No Stated Maturities Fair Value Disclosure | 655,398 | 627,323 |
Deposits with stated maturities, Fair Value | 304,249 | 277,010 |
All other borrowings, Fair Value | $ 76,664 | $ 69,692 |
Disclosures about Fair Value _6
Disclosures about Fair Value Measurements and Financial Instruments - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Disclosures about Fair Value Measurements and Financial Instruments | ||
Carrying value of impaired loans | $ 829,000 | $ 11,000 |
Specific valuation allowance | 96,000 | 11,000 |
Net fair value of impaired loans | $ 733,000 | $ 0 |
Assets and Liabilities Considered Financial Instruments, Percentage | 90.00% |