Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Jan. 30, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Registrant Name | AMERISERV FINANCIAL INC /PA/ | ||
Entity Central Index Key | 707605 | ||
Current Fiscal Year End Date | -19 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2014 | ||
Entity Common Stock, Shares Outstanding | 18,853,521 | ||
Entity Public Float | $58,827,999 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
ASSETS | ||
Cash and due from depository institutions | $23,780 | $20,288 |
Interest bearing deposits | 2,952 | 2,967 |
Short-term investments in money market funds | 6,140 | 6,811 |
Cash and cash equivalents | 32,872 | 30,066 |
Investment securities: | ||
Available for sale | 127,110 | 141,978 |
Held to maturity (fair value $20,213 at December 31, 2014 and $17,788 at December 31, 2013) | 19,840 | 18,187 |
Loans held for sale | 5,051 | 3,402 |
Loans | 827,634 | 783,927 |
Less: Unearned income | 554 | 581 |
Allowance for loan losses | 9,623 | 10,104 |
Net loans | 817,457 | 773,242 |
Premises and equipment, net | 13,012 | 13,119 |
Accrued interest income receivable | 3,127 | 2,908 |
Goodwill | 11,944 | 12,613 |
Bank owned life insurance | 37,417 | 36,669 |
Net deferred tax asset | 9,548 | 9,572 |
Federal Home Loan Bank stock | 4,048 | 4,677 |
Federal Reserve Bank stock | 2,125 | 2,125 |
Other assets | 5,712 | 7,478 |
TOTAL ASSETS | 1,089,263 | 1,056,036 |
LIABILITIES | ||
Non-interest bearing deposits | 167,551 | 154,002 |
Interest bearing deposits | 702,330 | 700,520 |
Total deposits | 869,881 | 854,522 |
Short-term borrowings | 38,880 | 41,555 |
Advances from Federal Home Loan Bank | 42,000 | 25,000 |
Guaranteed junior subordinated deferrable interest debentures | 13,085 | 13,085 |
Total borrowed funds | 93,965 | 79,640 |
Other liabilities | 11,010 | 8,567 |
TOTAL LIABILITIES | 974,856 | 942,729 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, no par value; $1,000 per share liquidation preference; 2,000,000 shares authorized; there were 21,000 shares issued and outstanding on December 31, 2014 and 2013 | 21,000 | 21,000 |
Common stock, par value $0.01 per share; 30,000,000 shares authorized: 26,412,007 shares issued and 18,794,888 shares outstanding on December 31, 2014; 26,402,007 shares issued and 18,784,188 shares outstanding on December 31, 2013 | 264 | 264 |
Treasury stock at cost, 7,617,819 shares on December 31, 2014 and 2013 | -74,829 | -74,829 |
Capital surplus | 145,256 | 145,190 |
Retained earnings | 29,618 | 27,557 |
Accumulated other comprehensive loss, net | -6,902 | -5,875 |
TOTAL STOCKHOLDERS' EQUITY | 114,407 | 113,307 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $1,089,263 | $1,056,036 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
CONSOLIDATED BALANCE SHEETS [Abstract] | ||
Held to maturity securities, fair value | $20,213 | $17,788 |
Preferred stock, par value | $0 | $0 |
Preferred stock, liquidation preference per share | $1,000 | $1,000 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 21,000 | 21,000 |
Preferred stock, shares outstanding | 21,000 | 21,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 26,412,007 | 26,402,007 |
Common stock, shares outstanding | 18,794,888 | 18,784,188 |
Treasury stock, shares | 7,617,819 | 7,617,819 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest and fees on loans: | |||
Taxable | $36,285,000 | $35,063,000 | $34,752,000 |
Tax exempt | 57,000 | 57,000 | 63,000 |
Interest bearing deposits | 5,000 | 6,000 | 10,000 |
Short-term investments in money market funds | 7,000 | 8,000 | 18,000 |
Investment securities: | |||
Available for sale | 3,528,000 | 3,701,000 | 4,634,000 |
Held to maturity | 559,000 | 508,000 | 440,000 |
Total Interest Income | 40,441,000 | 39,343,000 | 39,917,000 |
INTEREST EXPENSE | |||
Deposits | 4,889,000 | 5,164,000 | 6,502,000 |
Short-term borrowings | 55,000 | 46,000 | 11,000 |
Advances from Federal Home Loan Bank | 333,000 | 152,000 | 81,000 |
Guaranteed junior subordinated deferrable interest debentures | 1,120,000 | 1,120,000 | 1,120,000 |
Total Interest Expense | 6,397,000 | 6,482,000 | 7,714,000 |
Net Interest Income | 34,044,000 | 32,861,000 | 32,203,000 |
Provision (credit) for loan losses | 375,000 | -1,100,000 | -775,000 |
Net Interest Income after Provision (credit) for Loan Losses | 33,669,000 | 33,961,000 | 32,978,000 |
NON-INTEREST INCOME | |||
Trust and investment advisory fees | 7,765,000 | 7,812,000 | 7,268,000 |
Service charges on deposit accounts | 1,957,000 | 2,173,000 | 2,195,000 |
Net gains on loans held for sale | 748,000 | 1,089,000 | 1,132,000 |
Mortgage related fees | 590,000 | 773,000 | 902,000 |
Net realized gains on investment securities | 177,000 | 204,000 | 12,000 |
Bank owned life insurance | 748,000 | 998,000 | 863,000 |
Other income | 2,338,000 | 2,695,000 | 2,571,000 |
Total Non-Interest Income | 14,323,000 | 15,744,000 | 14,943,000 |
NON-INTEREST EXPENSE | |||
Salaries and employee benefits | 24,960,000 | 25,115,000 | 24,424,000 |
Net occupancy expense | 2,964,000 | 2,937,000 | 2,800,000 |
Equipment expense | 1,892,000 | 1,851,000 | 1,764,000 |
Professional fees | 5,409,000 | 4,327,000 | 3,870,000 |
Supplies, postage, and freight | 761,000 | 810,000 | 830,000 |
Miscellaneous taxes and insurance | 1,174,000 | 1,467,000 | 1,439,000 |
Federal deposit insurance expense | 636,000 | 611,000 | 441,000 |
Goodwill impairment charge | 669,000 | ||
Other expense | 4,906,000 | 5,105,000 | 5,073,000 |
Total Non-Interest Expense | 43,371,000 | 42,223,000 | 40,641,000 |
PRETAX INCOME | 4,621,000 | 7,482,000 | 7,280,000 |
Provision for income taxes | 1,598,000 | 2,289,000 | 2,241,000 |
NET INCOME | 3,023,000 | 5,193,000 | 5,039,000 |
Preferred stock dividends | 210,000 | 209,000 | 828,000 |
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $2,813,000 | $4,984,000 | $4,211,000 |
Basic: | |||
Net income | $0.15 | $0.26 | $0.21 |
Average number of shares outstanding | 18,793 | 18,942 | 19,685 |
Diluted: | |||
Net income | $0.15 | $0.26 | $0.21 |
Average number of shares outstanding | 18,908 | 19,034 | 19,747 |
Cash dividends declared | $0.04 | $0.03 | $0 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
COMPREHENSIVE INCOME | |||
Net income | $3,023 | $5,193 | $5,039 |
Other comprehensive loss, before tax: | |||
Pension obligation change for defined benefit plan | -2,770 | 3,942 | -2,127 |
Income tax effect | 943 | -1,340 | 724 |
Unrealized holding gains (losses) on available for sale securities arising during period | 1,391 | -4,489 | -466 |
Income tax effect | -474 | 1,526 | 158 |
Reclassification adjustment for net realized gains on available for sale securities included in net income | -177 | -204 | -12 |
Income tax effect | 60 | 69 | 4 |
Other comprehensive loss | -1,027 | -496 | -1,719 |
Comprehensive income | $1,996 | $4,697 | $3,320 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Total | Preferred Stock [Member] | Common Stock [Member] | Treasury Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss, Net [Member] |
In Thousands | |||||||
Balance at Dec. 31, 2011 | $21,000 | $264 | ($69,241) | $145,061 | $18,928 | ($3,660) | |
Net income | 5,039 | 5,039 | |||||
New common shares issued for exercise of stock options | 3 | ||||||
Stock option expense | 38 | ||||||
Treasury stock, purchased at cost (384,000 and 1,757,800 shares in 2013 and 2012, respectively) | -4,417 | ||||||
Cash dividend declared on common stock | |||||||
Cash dividend declared on preferred stock | -828 | ||||||
Other comprehensive loss | -1,719 | -1,719 | |||||
Balance at Dec. 31, 2012 | 110,468 | 21,000 | 264 | -73,658 | 145,102 | 23,139 | -5,379 |
Net income | 5,193 | 5,193 | |||||
New common shares issued for exercise of stock options | 6 | ||||||
Stock option expense | 82 | ||||||
Treasury stock, purchased at cost (384,000 and 1,757,800 shares in 2013 and 2012, respectively) | -1,171 | ||||||
Cash dividend declared on common stock | -566 | ||||||
Cash dividend declared on preferred stock | -209 | ||||||
Other comprehensive loss | -496 | -496 | |||||
Balance at Dec. 31, 2013 | 113,307 | 21,000 | 264 | -74,829 | 145,190 | 27,557 | -5,875 |
Net income | 3,023 | 3,023 | |||||
New common shares issued for exercise of stock options | 24 | ||||||
Stock option expense | 42 | ||||||
Treasury stock, purchased at cost (384,000 and 1,757,800 shares in 2013 and 2012, respectively) | |||||||
Cash dividend declared on common stock | -752 | ||||||
Cash dividend declared on preferred stock | -210 | ||||||
Other comprehensive loss | -1,027 | -1,027 | |||||
Balance at Dec. 31, 2014 | $114,407 | $21,000 | $264 | ($74,829) | $145,256 | $29,618 | ($6,902) |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract] | ||
Treasury stock, purchased at cost, shares | 384,000 | 1,757,800 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
OPERATING ACTIVITIES | |||
Net income | $3,023,000 | $5,193,000 | $5,039,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision (credit) for loan losses | 375,000 | -1,100,000 | -775,000 |
Depreciation and amortization expense | 1,836,000 | 1,683,000 | 1,523,000 |
Net amortization of investment securities | 385,000 | 755,000 | 1,124,000 |
Net realized gains on investment securities - available for sale | -177,000 | -204,000 | -12,000 |
Net gains on loans held for sale | -748,000 | -1,089,000 | -1,132,000 |
Amortization of deferred loan fees | -262,000 | -304,000 | -240,000 |
Origination of mortgage loans held for sale | -51,481,000 | -60,826,000 | -76,688,000 |
Sales of mortgage loans held for sale | 50,580,000 | 69,089,000 | 74,354,000 |
Decrease (increase) in accrued interest receivable | -219,000 | 52,000 | 256,000 |
Decrease in accrued interest payable | -78,000 | -299,000 | -440,000 |
Earnings on bank-owned life insurance | -748,000 | -811,000 | -863,000 |
Deferred income taxes | 562,000 | 2,150,000 | 2,101,000 |
Stock compensation expense | 66,000 | 88,000 | 41,000 |
Goodwill impairment charge | 669,000 | ||
Decrease in prepaid Federal Deposit Insurance | 1,444,000 | 370,000 | |
Other, net | 1,179,000 | -967,000 | -1,446,000 |
Net cash provided by operating activities | 4,962,000 | 14,854,000 | 3,212,000 |
INVESTING ACTIVITIES | |||
Purchase of investment securities - available for sale | -12,218,000 | -50,125,000 | -34,199,000 |
Purchase of investment securities - held to maturity | -3,093,000 | -8,942,000 | -4,987,000 |
Proceeds from maturities of investment securities - available for sale | 22,900,000 | 43,307,000 | 59,800,000 |
Proceeds from maturities of investment securities - held to maturity | 1,390,000 | 4,425,000 | 3,518,000 |
Proceeds from sales of investment securities - available for sale | 5,242,000 | 11,185,000 | 4,221,000 |
Purchase of regulatory stock | -9,817,000 | -5,865,000 | |
Proceeds from redemption of regulatory stock | 10,446,000 | 5,367,000 | 1,712,000 |
Long-term loans originated | -177,351,000 | -205,549,000 | -232,685,000 |
Principal collected on long-term loans | 130,476,000 | 146,720,000 | 182,245,000 |
Participations purchased | -5,347,000 | -12,990,000 | -17,492,000 |
Participations sold | 10,810,000 | 8,500,000 | 8,500,000 |
Net increase in other short-term loans | -3,558,000 | -679,000 | -300,000 |
Purchases of premises and equipment | -1,720,000 | -3,004,000 | -2,647,000 |
Proceeds from sale of other real estate owned | 946,000 | 993,000 | 160,000 |
Proceeds from life insurance policies | 356,000 | ||
Net cash used in investing activities | -30,894,000 | -66,301,000 | -32,154,000 |
FINANCING ACTIVITIES | |||
Net increase in deposit balances | 15,375,000 | 18,744,000 | 19,329,000 |
Net (decrease) increase in other short-term borrowings | -2,675,000 | 25,895,000 | -105,000 |
Principal borrowings on advances from Federal Home Loan Bank | 17,000,000 | 18,000,000 | 21,000,000 |
Principal repayments on advances from Federal Home Loan Bank | -6,000,000 | -14,000,000 | |
Preferred stock dividend paid | -210,000 | -209,000 | -828,000 |
Common stock dividend paid | -752,000 | -566,000 | |
Purchase of treasury stock | -1,171,000 | -4,417,000 | |
Net cash provided by financing activities | 28,738,000 | 54,693,000 | 20,979,000 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,806,000 | 3,246,000 | -7,963,000 |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 30,066,000 | 26,820,000 | 34,783,000 |
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $32,872,000 | $30,066,000 | $26,820,000 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 1 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||||||
BUSINESS AND NATURE OF OPERATIONS: | |||||||||||||
AmeriServ Financial, Inc. (the Company) is a bank holding company, headquartered in Johnstown, Pennsylvania. Through its banking subsidiary the Company operates 17 banking locations in five southwestern Pennsylvania counties. These branches provide a full range of consumer, mortgage, and commercial financial products. The AmeriServ Trust and Financial Services Company (Trust Company) offers a complete range of trust and financial services and administers assets valued at approximately $1.8 billion that are not recognized on the Company's Consolidated Balance Sheet at December 31, 2014. | |||||||||||||
PRINCIPLES OF CONSOLIDATION: | |||||||||||||
The consolidated financial statements include the accounts of AmeriServ Financial, Inc. and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), Trust Company, and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a state-chartered full service bank with 17 locations in Pennsylvania. AmeriServ Life is a captive insurance company that engages in underwriting as a reinsurer of credit life and disability insurance. | |||||||||||||
Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (generally accepted accounting principles, or GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates and the differences may be material to the Consolidated Financial Statements. The Company's most significant estimates relate to the allowance for loan losses, goodwill, income taxes, investment securities, pension, and the fair value of financial instruments. | |||||||||||||
INVESTMENT SECURITIES: | |||||||||||||
Securities are classified at the time of purchase as investment securities held to maturity if it is management's intent and the Company has the ability to hold the securities until maturity. These held to maturity securities are carried on the Company's books at cost, adjusted for amortization of premium and accretion of discount which is computed using the level yield method which approximates the effective interest method. Alternatively, securities are classified as available for sale if it is management's intent at the time of purchase to hold the securities for an indefinite period of time and/or to use the securities as part of the Company's asset/liability management strategy. Securities classified as available for sale include securities which may be sold to effectively manage interest rate risk exposure, prepayment risk, and other factors (such as liquidity requirements). These available for sale securities are reported at fair value with unrealized aggregate appreciation/depreciation excluded from income and credited/charged to accumulated other comprehensive income/loss within stockholders' equity on a net of tax basis. Any securities classified as trading assets are reported at fair value with unrealized aggregate appreciation/depreciation included in income on a net of tax basis. The Company does not engage in trading activity. | |||||||||||||
Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold. Available-for-sale and held-to-maturity securities are reviewed quarterly for possible other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security's performance, the creditworthiness of the issuer and the Company's intent and ability to hold the security to recovery. The Company believes 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. 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. | |||||||||||||
FEDERAL HOME LOAN BANK STOCK: | |||||||||||||
The Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB) and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for by management. The stock's value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) The significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time any such situation has persisted (b) Commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) The impact of legislative and regulatory changes on the customer base of FHLB and (d) The liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. | |||||||||||||
LOANS: | |||||||||||||
Interest income is recognized using the level yield method related to principal amounts outstanding. The Company discontinues the accrual of interest income when loans become 90 days past due in either principal or interest. In addition, if circumstances warrant, the accrual of interest may be discontinued prior to 90 days. Payments received on non-accrual loans are credited to principal until full recovery of principal has been recognized; or the loan has been returned to accrual status. The only exception to this policy is for residential mortgage loans wherein interest income is recognized on a cash basis as payments are received. A non-accrual commercial loan is placed on accrual status after becoming current and remaining current for twelve consecutive payments. Residential mortgage loans are placed on accrual status upon becoming current. | |||||||||||||
LOAN FEES: | |||||||||||||
Loan origination and commitment fees, net of associated direct costs, are deferred and amortized into interest and fees on loans over the loan or commitment period. Fee amortization is determined by the effective interest method. | |||||||||||||
LOANS HELD FOR SALE: | |||||||||||||
Certain newly originated fixed-rate residential mortgage loans are classified as held for sale, because it is management's intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or market value. | |||||||||||||
TRANSFERS OF FINANCIAL ASSETS | |||||||||||||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||
PREMISES AND EQUIPMENT: | |||||||||||||
Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation is charged to operations over the estimated useful lives of the premises and equipment using the straight-line method with a half-year convention. Useful lives of up to 30 years for buildings and up to 10 years for equipment are utilized. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases or useful lives of the improvements, whichever is shorter. Maintenance, repairs, and minor alterations are charged to current operations as expenditures are incurred. | |||||||||||||
ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: | |||||||||||||
As a financial institution, which assumes lending and credit risks as a principal element of its business, the Company anticipates that credit losses will be experienced in the normal course of business. Accordingly, the Company consistently applies a comprehensive methodology and procedural discipline to perform an analysis which is updated on a quarterly basis at the Bank level to determine both the adequacy of the allowance for loan losses and the necessary provision for loan losses to be charged against earnings. This methodology includes: | |||||||||||||
- | Review of all criticized, classified and impaired loans with aggregate balances over $250,000 to determine if any specific reserve allocations are required on an individual loan basis. The specific reserve allocations established for these criticized, classified and impaired loans are based on careful analysis of the loan's performance, the related collateral value, cash flow considerations and the financial capability of any guarantor. All loans classified as doubtful or worse are specifically reserved. For impaired loans the measurement of impairment may be based upon: 1) the present value of expected future cash flows discounted at the loan's effective interest rate; 2) the observable market price of the impaired loan; or 3) the fair value of the collateral of a collateral dependent loan. | ||||||||||||
- | The application of formula driven reserve allocations for all commercial and commercial real-estate loans by using a three-year migration analysis of net losses incurred within each risk grade for the entire commercial loan portfolio. The difference between estimated and actual losses is reconciled through the nature of the migration analysis. | ||||||||||||
- | The application of formula driven reserve allocations to consumer and residential mortgage loans which are based upon historical net charge-off experience for those loan types. The residential mortgage loan and consumer loan allocations are based upon the Company's three-year historical average of actual loan net charge-offs experienced in each of those categories. | ||||||||||||
- | The application of formula driven reserve allocations to all outstanding loans is based upon review of historical losses and qualitative factors, which include but are not limited to, economic trends, delinquencies, levels of non-accrual and TDR loans, 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. | ||||||||||||
- | Management recognizes that there may be events or economic factors that have occurred affecting specific borrowers or segments of borrowers that may not yet be fully reflected in the information that the Company uses for arriving at reserves for a specific loan or portfolio segment. Therefore, the Company believes that there is estimation risk associated with the use of specific and formula driven allowances. | ||||||||||||
After completion of this process, a formal meeting of the Loan Loss Reserve Committee is held to evaluate the adequacy of the reserve. | |||||||||||||
When it is determined that the prospects for recovery of the principal of a loan have significantly diminished, the loan is charged against the allowance account; subsequent recoveries, if any, are credited to the allowance account. In addition, non-accrual and large delinquent loans are reviewed monthly to determine potential losses. | |||||||||||||
The Company's policy is to individually review, as circumstances warrant, its commercial and commercial mortgage loans to determine if a loan is impaired. At a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $250,000 within a 12-month period. The Company defines classified loans as those loans rated substandard or doubtful. The Company has also identified three pools of small dollar value homogeneous loans which are evaluated collectively for impairment. These separate pools are for small business relationships with aggregate balances of $250,000 or less, residential mortgage loans and consumer loans. Individual loans within these pools are reviewed and evaluated for specific impairment if factors such as significant delinquency in payments of 90 days or more, bankruptcy, or other negative economic concerns indicate impairment. | |||||||||||||
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: | |||||||||||||
The allowance for unfunded loan commitments and letters of credit is maintained at a level believed by management to be sufficient to absorb estimated losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers and the terms and expiration dates of the unfunded credit facilities. Net adjustments to the allowance for unfunded loan commitments and letters of credit are provided for in the unfunded commitment reserve expense line item within other expense in the Consolidated Statements of Operations and a separate reserve is recorded within the other liabilities section of the Consolidated Balance Sheets. | |||||||||||||
TRUST FEES: | |||||||||||||
Trust fees are recorded on the cash basis which approximates the accrual basis for such income. | |||||||||||||
BANK-OWNED LIFE INSURANCE: | |||||||||||||
The Company has purchased life insurance policies on certain employees. These policies are recorded on the Consolidated Balance Sheets at their cash surrender value, or the amount that can be realized. Income from these policies and changes in the cash surrender value are recorded in bank owned life insurance within non-interest income. | |||||||||||||
INTANGIBLE ASSETS: | |||||||||||||
Goodwill | |||||||||||||
Goodwill arising from business combinations represents the value attributable to unidentifiable intangible elements in the business acquired. The Company accounts for goodwill using a two-step process for testing the impairment of goodwill on at least an annual basis. This approach could cause more volatility in the Company's reported net income because impairment losses, if any, could occur irregularly and in varying amounts. The Company performs an impairment analysis of goodwill at least annually. | |||||||||||||
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 treated as retired for earnings per share purposes. Options to purchase 3,625, 103,570, and 49,842 shares of common stock were outstanding during 2014, 2013 and 2012, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. Exercise prices of anti-dilutive options to purchase common stock outstanding were $4.60 - $5.22, $3.05 - $5.75, and $2.80 - $5.75 during 2014, 2013 and 2012, respectively. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share. | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
Preferred stock dividends | 210 | 209 | 828 | ||||||||||
Net income available to common shareholders | $ | 2,813 | $ | 4,984 | $ | 4,211 | |||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding (basic) | 18,793 | 18,942 | 19,685 | ||||||||||
Effect of stock options | 115 | 92 | 62 | ||||||||||
Weighted average common shares outstanding (diluted) | 18,908 | 19,034 | 19,747 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.15 | $ | 0.26 | $ | 0.21 | |||||||
Diluted | 0.15 | 0.26 | 0.21 | ||||||||||
STOCK-BASED COMPENSATION: | |||||||||||||
The Company uses the modified prospective method for accounting of stock-based compensation. The Company recognized $42,000, $82,000 and $38,000 of pretax compensation expense for the years 2014, 2013 and 2012. The fair value of each option grant is estimated on the grant date using the Black-Scholes option pricing model. See Note 18 for details on the assumptions used. | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS: | |||||||||||||
The Company presents the components of other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. These components are comprised of the change in the defined benefit pension obligation and the unrealized holding gains (losses) on available for sale securities, net of any reclassification adjustments for realized gains and losses. | |||||||||||||
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. The Company made $1,063,000 in income tax payments in 2014; $137,000 in 2013; and $142,000 in 2012. The Company had non-cash transfers to other real estate owned (OREO) in the amounts of $660,000 in 2014; $766,000 in 2013; and $1,266,000 in 2012. The Company made total interest payments of $6,475,000 in 2014; $6,781,000 in 2013; and $8,154,000 in 2012. | |||||||||||||
INCOME TAXES: | |||||||||||||
Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate. Deferred income tax expenses or credits are based on the changes in the corresponding asset or liability from period to period. Deferred tax assets are reduced, if necessary, by the amounts of such benefits that are not expected to be realized based upon available evidence. | |||||||||||||
INTEREST RATE CONTRACTS: | |||||||||||||
The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted as cash flow hedges, to the extent they are effective as hedges, are recorded in “Other Comprehensive Income,” net of deferred taxes and are subsequently reclassified to earnings when the hedged transaction affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. | |||||||||||||
The Company periodically enters into derivative instruments to meet the financing, interest rate and equity risk management needs of its customers. Upon entering into these instruments to meet customer needs, the Company enters into offsetting positions to minimize interest rate and equity risk to the Company. These derivative financial instruments are reported at fair value with any resulting gain or loss recorded in current period earnings. These instruments and their offsetting positions are recorded in other assets and other liabilities on the Consolidated Balance Sheets. | |||||||||||||
PENSION: | |||||||||||||
Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company's pension obligations and future expense. Our pension benefits are described further in Note 12 of the Notes to Consolidated Financial Statements. | |||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS: | |||||||||||||
We group our assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: | |||||||||||||
Level I — Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||||
Level II — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||
Level III — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's own estimates of assumptions that market participants would use in pricing the asset. | |||||||||||||
We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy in generally accepted accounting principles. | |||||||||||||
Fair value measurements for most of our assets are obtained from independent pricing services that we have engaged for this purpose. When available, we, or our independent pricing service, use quoted market prices to measure fair value. If market prices are not available, fair value measurement is based upon models that incorporate available trade, bid, and other market information. Subsequently, all of our financial instruments use either of the foregoing methodologies to determine fair value adjustments recorded to our financial statements. In certain cases, however, when market observable inputs for model-based valuation techniques may not be readily available, we are required to make judgments about assumptions market participants would use in estimating the fair value of financial instruments. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not fully available, management judgment is necessary to estimate fair value. In addition, changes in the market conditions may reduce the availability of quoted prices or observable data. When market data is not available, we use valuation techniques requiring more management judgment to estimate the appropriate fair value measurement. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, that could significantly affect the results of current or future valuations. | |||||||||||||
RECENT ACCOUNTING STANDARDS: | |||||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company's financial statements. |
CASH_AND_DUE_FROM_DEPOSITORY_I
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | 12 Months Ended | ||
Dec. 31, 2014 | |||
CASH AND DUE FROM DEPOSITORY INSTITUTIONS [Abstract] | |||
CASH AND DUE FROM DEPOSITORY INSTITUTIONS | 2 | CASH AND DUE FROM DEPOSITORY INSTITUTIONS | |
Included in “Cash and due from depository institutions” are required federal reserves of $2,000 and $61,000 at December 31, 2014 and 2013, respectively, for facilitating the implementation of monetary policy by the Federal Reserve System. The required reserves are computed by applying prescribed ratios to the classes of average deposit balances. These are held in the form of vault cash and a depository amount held with the Federal Reserve Bank. |
INVESTMENT_SECURITIES
INVESTMENT SECURITIES | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES | 3 | INVESTMENT SECURITIES | |||||||||||||||||||||||||||||||||||||||
The cost basis and fair values of investment securities are summarized as follows: | |||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | ||||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | FAIR | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | VALUE | ||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 5,931 | $ | 21 | $ | (46 | ) | $ | 5,906 | ||||||||||||||||||||||||||||||||
Corporate bonds | 15,497 | 61 | (122 | ) | 15,436 | ||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 102,888 | 3,197 | (317 | ) | 105,768 | ||||||||||||||||||||||||||||||||||||
Total | $ | 124,316 | $ | 3,279 | $ | (485 | ) | $ | 127,110 | ||||||||||||||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | FAIR | |||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | |||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | $ | 12,481 | $ | 395 | $ | (50 | ) | $ | 12,826 | ||||||||||||||||||||||||||||||||
Taxable municipal | 3,364 | 74 | (24 | ) | 3,414 | ||||||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 3,995 | 6 | (28 | ) | 3,973 | ||||||||||||||||||||||||||||||||||||
Total | $ | 19,840 | $ | 475 | $ | (102 | ) | $ | 20,213 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | FAIR | |||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | |||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 6,926 | $ | 35 | $ | (126 | ) | $ | 6,835 | ||||||||||||||||||||||||||||||||
Corporate bonds | 11,992 | 21 | (252 | ) | 11,761 | ||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 121,480 | 3,129 | (1,227 | ) | 123,382 | ||||||||||||||||||||||||||||||||||||
Total | $ | 140,398 | $ | 3,185 | $ | (1,605 | ) | $ | 141,978 | ||||||||||||||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | FAIR | |||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | |||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | $ | 12,671 | $ | 289 | $ | (477 | ) | $ | 12,483 | ||||||||||||||||||||||||||||||||
Taxable municipal | 1,521 | — | (120 | ) | 1,401 | ||||||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 3,995 | — | (91 | ) | 3,904 | ||||||||||||||||||||||||||||||||||||
Total | $ | 18,187 | $ | 289 | $ | (688 | ) | $ | 17,788 | ||||||||||||||||||||||||||||||||
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 Investors Service or Standard & Poor's rating of A. At December 31, 2014, 84.1% of the portfolio was rated AAA as compared to 89.0% at December 31, 2013. 3.8% of the portfolio was rated below A or unrated on December 31, 2014. The Company and its subsidiaries, collectively, did not hold securities of any single issuer, excluding U.S. Treasury and U.S. Agencies, that exceeded 10% of shareholders' equity at December 31, 2014. | |||||||||||||||||||||||||||||||||||||||||
The book value of securities, both available for sale and held to maturity, pledged to secure public and trust deposits, and certain Federal Home Loan Bank borrowings was $104,780,000 at December 31, 2014 and $110,780,000 at December 31, 2013. | |||||||||||||||||||||||||||||||||||||||||
The Company realized $182,000 of gross investment security gains and $5,000 of gross investment security losses in 2014 and $289,000 of gross investment security gains and $85,000 of investment security losses in 2013, and $12,000 of gross investment gains and no investment security losses in 2012. On a net basis, the realized gain for 2014 was $117,000 after factoring in tax expense of $60,000 and the realized gain for 2013 was $135,000 after factoring in tax expense of $69,000, and the realized gain for 2012 was $8,000 after factoring in tax expense of $4,000. Proceeds from sales of investment securities available for sale were $5.2 million for 2014, $11.2 million for 2013, and $4.2 million during 2012. | |||||||||||||||||||||||||||||||||||||||||
The following table sets forth the contractual maturity distribution of the investment securities, cost basis and fair market values, and the weighted average yield for each type and range of maturity as of December 31, 2014. Yields are not presented on a tax-equivalent basis, but are based upon the cost basis and are weighted for the scheduled maturity. The Company's consolidated investment securities portfolio had an effective duration of approximately 2.95 years. The weighted average expected maturity for available for sale securities at December 31, 2014 for U.S. Agency, U.S. Agency Mortgage-Backed and Corporate Bond securities was 2.95, 4.25 and 4.85 years, respectively. The weighted average expected maturity for held to maturity securities at December 31, 2014 for U.S. Agency Mortgage-Backed and Corporate Bonds/Taxable Municipals and other securities were 6.37 and 5.78 years. | |||||||||||||||||||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. AGENCY | CORPORATE | TOTAL | ||||||||||||||||||||||||||||||||||||||
AGENCY | MORTGAGE- | BONDS | INVESTMENT | ||||||||||||||||||||||||||||||||||||||
BACKED SECURITIES | SECURITIES | ||||||||||||||||||||||||||||||||||||||||
AVAILABLE | |||||||||||||||||||||||||||||||||||||||||
FOR SALE | |||||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT YIELDS) | |||||||||||||||||||||||||||||||||||||||||
COST BASIS | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 1,000 | 2 | % | $ | — | — | % | $ | — | — | % | $ | 1,000 | 2 | % | |||||||||||||||||||||||||
After 1 year but within 5 years | 4,931 | 1.38 | 1,696 | 4.46 | 7,999 | 1.75 | 14,626 | 1.96 | |||||||||||||||||||||||||||||||||
After 5 years but within 10 years | — | — | 10,340 | 2.74 | 7,498 | 2.05 | 17,838 | 2.46 | |||||||||||||||||||||||||||||||||
After 10 years but within 15 years | — | — | 56,783 | 2.66 | — | — | 56,783 | 2.66 | |||||||||||||||||||||||||||||||||
Over 15 years | — | — | 34,069 | 2.56 | — | — | 34,069 | 2.56 | |||||||||||||||||||||||||||||||||
Total | $ | 5,931 | 1.48 | $ | 102,888 | 2.66 | $ | 15,497 | 1.9 | $ | 124,316 | 2.52 | |||||||||||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 1,013 | $ | — | $ | — | $ | 1,013 | |||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 4,893 | 1,791 | 7,991 | 14,675 | |||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | — | 10,671 | 7,445 | 18,116 | |||||||||||||||||||||||||||||||||||||
After 10 years but within15 years | — | 58,141 | — | 58,141 | |||||||||||||||||||||||||||||||||||||
Over 15 years | — | 35,165 | — | 35,165 | |||||||||||||||||||||||||||||||||||||
Total | $ | 5,906 | $ | 105,768 | $ | 15,436 | $ | 127,110 | |||||||||||||||||||||||||||||||||
Investment securities held to maturity: | AT DECEMBER 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
U.S. AGENCY | CORPORATE | TOTAL | |||||||||||||||||||||||||||||||||||||||
MORTGAGE- | BONDS | INVESTMENT | |||||||||||||||||||||||||||||||||||||||
BACKED | AND | SECURITIES | |||||||||||||||||||||||||||||||||||||||
SECURITIES | OTHER | HELD TO | |||||||||||||||||||||||||||||||||||||||
MATURITY | |||||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT YIELDS) | |||||||||||||||||||||||||||||||||||||||||
COST BASIS | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | — | — | % | $ | 2,000 | 1.35 | % | $ | 2,000 | 1.35 | % | |||||||||||||||||||||||||||||
After 1 year but within 5 years | — | — | 1,000 | 1.67 | 1,000 | 1.67 | |||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 2,959 | 2.4 | 851 | 3.63 | 3,810 | 2.67 | |||||||||||||||||||||||||||||||||||
After 10 years but within15 years | — | — | 1,162 | 3.27 | 1,162 | 3.27 | |||||||||||||||||||||||||||||||||||
Over 15 years | 9,522 | 3.45 | 2,346 | 4.49 | 11,868 | 3.66 | |||||||||||||||||||||||||||||||||||
Total | $ | 12,481 | 3.2 | $ | 7,359 | 2.96 | $ | 19,840 | 3.11 | ||||||||||||||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | — | $ | 1,991 | $ | 1,991 | |||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | — | 981 | 981 | ||||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 2,931 | 868 | 3,799 | ||||||||||||||||||||||||||||||||||||||
After 10 years but within15 years | — | 1,140 | 1,140 | ||||||||||||||||||||||||||||||||||||||
Over 15 years | 9,895 | 2,407 | 12,302 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 12,826 | $ | 7,387 | $ | 20,213 | |||||||||||||||||||||||||||||||||||
The following tables present information concerning investments with unrealized losses as of December 31, 2014 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Total investment securities: | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||||||||||||||||||
FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | ||||||||||||||||||||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 996 | $ | (4 | ) | $ | 2,858 | $ | (42 | ) | $ | 3,854 | $ | (46 | ) | ||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 2,826 | (13 | ) | 20,408 | (354 | ) | 23,234 | (367 | ) | ||||||||||||||||||||||||||||||||
Taxable municipal | 150 | (1 | ) | 988 | (23 | ) | 1,138 | (24 | ) | ||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 2,960 | (43 | ) | 8,891 | (107 | ) | 11,851 | (150 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 6,932 | $ | (61 | ) | $ | 33,145 | $ | (526 | ) | $ | 40,077 | $ | (587 | ) | ||||||||||||||||||||||||||
The following tables present information concerning investments with unrealized losses as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Total investment securities: | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||||||||||||||||||
FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | ||||||||||||||||||||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 3,812 | $ | (64 | ) | $ | 938 | $ | (62 | ) | $ | 4,750 | $ | (126 | ) | ||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 52,163 | (1,701 | ) | 669 | (3 | ) | 52,832 | (1,704 | ) | ||||||||||||||||||||||||||||||||
Taxable municipal | 891 | (120 | ) | - | - | 891 | (120 | ) | |||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 9,687 | (300 | ) | 2,957 | (43 | ) | 12,644 | (343 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 66,553 | $ | (2,185 | ) | $ | 4,564 | $ | (108 | ) | $ | 71,117 | $ | (2,293 | ) | ||||||||||||||||||||||||||
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 38 positions that are considered temporarily impaired at December 31, 2014. 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. |
LOANS
LOANS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
LOANS [Abstract] | |||||||||||||
LOANS | 4 | LOANS | |||||||||||
The loan portfolio of the Company consisted of the following: | |||||||||||||
AT DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
Commercial | $ | 139,126 | $ | 120,102 | |||||||||
Commercial loans secured by real estate | 410,329 | 411,691 | |||||||||||
Real estate-mortgage | 258,616 | 235,689 | |||||||||||
Consumer | 19,009 | 15,864 | |||||||||||
Loans, net of unearned income | $ | 827,080 | $ | 783,346 | |||||||||
Loan balances at December 31, 2014 and 2013 are net of unearned income of $554,000 and $581,000, respectively. Real estate construction loans comprised 3.5% and 3.0% of total loans net of unearned income at December 31, 2014 and 2013, respectively. The Company has no exposure to subprime mortgage loans in either the loan or investment portfolios. The Company has no direct loan exposure to foreign countries. Additionally, the Company has no significant industry lending concentrations. As of December 31, 2014 and 2013, loans to customers engaged in similar activities and having similar economic characteristics, as defined by standard industrial classifications, did not exceed 10% of total loans. Additionally, the majority of the Company's lending occurs within a 250 mile radius of the Johnstown market. | |||||||||||||
In the ordinary course of business, the subsidiaries have transactions, including loans, with their officers, directors, and their affiliated companies. In management's opinion, these transactions were on substantially the same terms as those prevailing at the time for comparable transactions with unaffiliated parties and do not involve more than the normal credit risk. These loans totaled $847,000 and $853,000 at December 31, 2014 and 2013, respectively. |
ALLOWANCE_FOR_LOAN_LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES | 5 | ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||
The following table summarizes the rollforward of the allowance for loan losses by portfolio segment (in thousands). | |||||||||||||||||||||||||||||
BALANCE AT | CHARGE- | RECOVERIES | PROVISION | BALANCE AT | |||||||||||||||||||||||||
31-Dec-13 | OFFS | (CREDIT) | 31-Dec-14 | ||||||||||||||||||||||||||
Commercial | $ | 2,844 | $ | (172 | ) | $ | 141 | $ | 449 | $ | 3,262 | ||||||||||||||||||
Commercial loans secured by real estate | 4,885 | (708 | ) | 231 | (506 | ) | 3,902 | ||||||||||||||||||||||
Real estate- mortgage | 1,260 | (322 | ) | 71 | 301 | 1,310 | |||||||||||||||||||||||
Consumer | 136 | (121 | ) | 24 | 151 | 190 | |||||||||||||||||||||||
Allocation for general risk | 979 | - | - | (20 | ) | 959 | |||||||||||||||||||||||
Total | $ | 10,104 | $ | (1,323 | ) | $ | 467 | $ | 375 | $ | 9,623 | ||||||||||||||||||
BALANCE AT | CHARGE- | RECOVERIES | PROVISION | BALANCE AT | |||||||||||||||||||||||||
31-Dec-12 | OFFS | (CREDIT) | 31-Dec-13 | ||||||||||||||||||||||||||
Commercial | $ | 2,596 | $ | (50 | ) | $ | 80 | $ | 218 | $ | 2,844 | ||||||||||||||||||
Commercial loans secured by real estate | 7,796 | (1,777 | ) | 481 | (1,615 | ) | 4,885 | ||||||||||||||||||||||
Real estate- mortgage | 1,269 | (139 | ) | 122 | 8 | 1,260 | |||||||||||||||||||||||
Consumer | 150 | (154 | ) | 70 | 70 | 136 | |||||||||||||||||||||||
Allocation for general risk | 760 | - | - | 219 | 979 | ||||||||||||||||||||||||
Total | $ | 12,571 | $ | (2,120 | ) | $ | 753 | $ | (1,100 | ) | $ | 10,104 | |||||||||||||||||
BALANCE AT | CHARGE- | RECOVERIES | PROVISION | BALANCE AT | |||||||||||||||||||||||||
31-Dec-11 | OFFS | (CREDIT) | 31-Dec-12 | ||||||||||||||||||||||||||
Commercial | $ | 2,365 | $ | (345 | ) | $ | 138 | $ | 438 | $ | 2,596 | ||||||||||||||||||
Commercial loans secured by real estate | 9,400 | (796 | ) | 245 | (1,053 | ) | 7,796 | ||||||||||||||||||||||
Real estate- mortgage | 1,270 | (420 | ) | 54 | 365 | 1,269 | |||||||||||||||||||||||
Consumer | 174 | (200 | ) | 47 | 129 | 150 | |||||||||||||||||||||||
Allocation for general risk | 1,414 | - | - | (654 | ) | 760 | |||||||||||||||||||||||
Total | $ | 14,623 | $ | (1,761 | ) | $ | 484 | $ | (775 | ) | $ | 12,571 | |||||||||||||||||
As a result of successful ongoing problem credit resolution efforts, the Company achieved further asset quality improvements in 2014. These improvements are evidenced by reduced levels of non-accrual loans, non-performing assets, classified assets and low loan delinquency levels that continue to be well below 1% of total loans. The positive provision for loan losses in commercial and real-estate mortgage loans was needed to support the loan growth experienced in these categories during 2014. | |||||||||||||||||||||||||||||
The following tables summarize the loan portfolio and allowance for loan loss by the primary segments of the loan portfolio. | |||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Loans: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL | ||||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | ESTATE- | |||||||||||||||||||||||||||
REAL ESTATE | MORTGAGE | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 989 | $ | — | $ | — | $ | 989 | |||||||||||||||||||
Collectively evaluated for impairment | 139,126 | 409,340 | 258,616 | 19,009 | 826,091 | ||||||||||||||||||||||||
Total loans | $ | 139,126 | $ | 410,329 | $ | 258,616 | $ | 19,009 | $ | 827,080 | |||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Allowance for loan losses: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL | ALLOCATION | |||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | ESTATE- | FOR GENERAL | ||||||||||||||||||||||||||
REAL ESTATE | MORTGAGE | RISK | |||||||||||||||||||||||||||
Specific reserve allocation | $ | — | $ | 520 | $ | — | $ | — | $ | — | $ | 520 | |||||||||||||||||
General reserve allocation | 3,262 | 3,382 | 1,310 | 190 | 959 | 9,103 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 3,262 | $ | 3,902 | $ | 1,310 | $ | 190 | $ | 959 | $ | 9,623 | |||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Loans: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL ESTATE- | ||||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | MORTGAGE | |||||||||||||||||||||||||||
REAL ESTATE | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 3,005 | $ | — | $ | 61 | $ | 3,066 | |||||||||||||||||||
Collectively evaluated for impairment | 120,102 | 408,686 | 235,689 | 15,803 | 780,280 | ||||||||||||||||||||||||
Total loans | $ | 120,102 | $ | 411,691 | $ | 235,689 | $ | 15,864 | $ | 783,346 | |||||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Allowance for loan losses: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL | ALLOCATION | |||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | ESTATE- | FOR GENERAL | ||||||||||||||||||||||||||
REAL ESTATE | MORTGAGE | RISK | |||||||||||||||||||||||||||
Specific reserve allocation | $ | — | $ | 812 | $ | — | $ | 1 | $ | — | $ | 813 | |||||||||||||||||
General reserve allocation | 2,844 | 4,073 | 1,260 | 135 | 979 | 9,291 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 2,844 | $ | 4,885 | $ | 1,260 | $ | 136 | $ | 979 | $ | 10,104 | |||||||||||||||||
The segments of the Company's loan portfolio are disaggregated to a level that allows management to monitor risk and performance. The loan segments 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 and therefore, no further disaggregation into classes is necessary. The overall risk profile for the commercial loan segment is impacted by non-owner occupied CRE loans, which include loans secured by non-owner occupied nonfarm nonresidential properties, as a meaningful but declining portion of the commercial portfolio is centered in these types of accounts. 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 collateral real estate 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 class, segregated by those for which a specific allowance was required and those for which a specific allowance was not necessary. | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
IMPAIRED LOANS WITH | IMPAIRED | TOTAL IMPAIRED LOANS | |||||||||||||||||||||||||||
SPECIFIC ALLOWANCE | LOANS WITH | ||||||||||||||||||||||||||||
NO SPECIFIC | |||||||||||||||||||||||||||||
ALLOWANCE | |||||||||||||||||||||||||||||
UNPAID | |||||||||||||||||||||||||||||
RECORDED | RELATED | RECORDED | RECORDED | PRINCIPAL | |||||||||||||||||||||||||
INVESTMENT | ALLOWANCE | INVESTMENT | INVESTMENT | BALANCE | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial loans secured by real estate | $ | 989 | $ | 520 | $ | - | $ | 989 | $ | 1,069 | |||||||||||||||||||
Total impaired loans | $ | 989 | $ | 520 | $ | - | $ | 989 | $ | 1,069 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
IMPAIRED | TOTAL IMPAIRED LOANS | ||||||||||||||||||||||||||||
IMPAIRED LOANS WITH | LOANS WITH | ||||||||||||||||||||||||||||
SPECIFIC ALLOWANCE | NO SPECIFIC | ||||||||||||||||||||||||||||
ALLOWANCE | |||||||||||||||||||||||||||||
UNPAID | |||||||||||||||||||||||||||||
RECORDED | RELATED | RECORDED | RECORDED | PRINCIPAL | |||||||||||||||||||||||||
INVESTMENT | ALLOWANCE | INVESTMENT | INVESTMENT | BALANCE | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial loans secured by real estate | $ | 3,005 | $ | 812 | $ | - | $ | 3,005 | $ | 3,118 | |||||||||||||||||||
Consumer | 61 | 1 | - | 61 | 61 | ||||||||||||||||||||||||
Total impaired loans | $ | 3,066 | $ | 813 | $ | - | $ | 3,066 | $ | 3,179 | |||||||||||||||||||
The following table presents the average recorded investment in impaired loans and related interest income recognized for the periods indicated. | |||||||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Average impaired balance: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||||
Commercial loans secured by real estate | 1,756 | 2,459 | 3,754 | ||||||||||||||||||||||||||
Consumer | — | 37 | 3 | ||||||||||||||||||||||||||
Average investment in impaired loans | $ | 1,756 | $ | 2,509 | $ | 3,770 | |||||||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial loans secured by real estate | 12 | 11 | — | ||||||||||||||||||||||||||
Consumer | — | 3 | — | ||||||||||||||||||||||||||
Interest income recognized on a cash basis on impaired loans | $ | 12 | $ | 14 | $ | — | |||||||||||||||||||||||
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 $250,000 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 2014 required 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 $1,000,000, 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 loan portfolio summarized by the aggregate Pass and the criticized categories of Special Mention, Substandard and Doubtful within the internal risk rating system. | |||||||||||||||||||||||||||||
31-Dec-14 | |||||||||||||||||||||||||||||
PASS | SPECIAL | SUBSTANDARD | DOUBTFUL | TOTAL | |||||||||||||||||||||||||
MENTION | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 132,665 | $ | 161 | $ | 6,164 | $ | 136 | $ | 139,126 | |||||||||||||||||||
Commercial loans secured by real estate | 406,195 | 620 | 3,238 | 276 | 410,329 | ||||||||||||||||||||||||
Total | $ | 538,860 | $ | 781 | $ | 9,402 | $ | 412 | $ | 549,455 | |||||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
PASS | SPECIAL | SUBSTANDARD | DOUBTFUL | TOTAL | |||||||||||||||||||||||||
MENTION | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 108,623 | $ | 8,880 | $ | 2,599 | $ | — | $ | 120,102 | |||||||||||||||||||
Commercial loans secured by real estate | 396,788 | 6,961 | 7,482 | 460 | 411,691 | ||||||||||||||||||||||||
Total | $ | 505,411 | $ | 15,841 | $ | 10,081 | $ | 460 | $ | 531,793 | |||||||||||||||||||
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 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 portfolios (in thousands). | |||||||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||||||
PERFORMING | NON- | ||||||||||||||||||||||||||||
PERFORMING | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Real estate- mortgage | $ | 257,199 | $ | 1,417 | |||||||||||||||||||||||||
Consumer | 19,009 | - | |||||||||||||||||||||||||||
Total | $ | 276,208 | $ | 1,417 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
PERFORMING | NON- | ||||||||||||||||||||||||||||
PERFORMING | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Real estate- mortgage | $ | 234,450 | $ | 1,239 | |||||||||||||||||||||||||
Consumer | 15,803 | 61 | |||||||||||||||||||||||||||
Total | $ | 250,253 | $ | 1,300 | |||||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
DECEMBER 31, 2014 | |||||||||||||||||||||||||||||
30-59 | 60-89 | TOTAL | 90 DAYS | ||||||||||||||||||||||||||
DAYS | DAYS | 90 DAYS | PAST DUE | PAST DUE | |||||||||||||||||||||||||
CURRENT | PAST DUE | PAST DUE | PAST DUE | TOTAL | AND STILL | ||||||||||||||||||||||||
LOANS | ACCRUING | ||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 139,126 | $ | — | $ | — | $ | — | $ | — | $ | 139,126 | $ | — | |||||||||||||||
Commercial loans secured by real estate | 410,049 | 280 | — | — | 280 | 410,329 | — | ||||||||||||||||||||||
Real estate- mortgage | 255,021 | 2,196 | 332 | 1,067 | 3,595 | 258,616 | — | ||||||||||||||||||||||
Consumer | 18,927 | 74 | 8 | — | 82 | 19,009 | — | ||||||||||||||||||||||
Total | $ | 823,123 | $ | 2,550 | $ | 340 | $ | 1,067 | $ | 3,957 | $ | 827,080 | $ | — | |||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
60-89 | 90 DAYS | ||||||||||||||||||||||||||||
30-59 | DAYS | PAST DUE | |||||||||||||||||||||||||||
CURRENT | DAYS | PAST DUE | 90 DAYS | TOTAL | TOTAL | AND STILL | |||||||||||||||||||||||
PAST DUE | PAST DUE | PAST DUE | LOANS | ACCRUING | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 120,102 | $ | — | $ | — | $ | — | $ | — | $ | 120,102 | $ | — | |||||||||||||||
Commercial loans secured by real estate | 410,619 | 457 | — | 615 | 1,072 | 411,691 | — | ||||||||||||||||||||||
Real estate- mortgage | 231,740 | 2,232 | 670 | 1,047 | 3,949 | 235,689 | — | ||||||||||||||||||||||
Consumer | 15,804 | 33 | 27 | — | 60 | 15,864 | — | ||||||||||||||||||||||
Total | $ | 778,265 | $ | 2,722 | $ | 697 | $ | 1,662 | $ | 5,081 | $ | 783,346 | $ | — | |||||||||||||||
An allowance for loan losses (“ALL”) is maintained to absorb losses 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 and residential mortgage 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 and residential mortgage 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. |
NONPERFORMING_ASSETS_INCLUDING
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) [Abstract] | |||||||||||||
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS | 6 | NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS | |||||||||||
Non-performing assets are comprised of (i) loans which are on a non-accrual basis, (ii) loans which are contractually past due 90 days or more as to interest or principal payments, (iii) performing loans classified as TDR and (iv) OREO (real estate acquired through foreclosure, in-substance foreclosures and repossessed assets). | |||||||||||||
The following tables present information concerning non-performing assets including TDR: | |||||||||||||
AT DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Non-accrual loans: | (IN THOUSANDS, EXCEPT PERCENTAGES) | ||||||||||||
Commercial loans secured by real estate | $ | 778 | $ | 1,632 | |||||||||
Real estate-mortgage | 1,417 | 1,239 | |||||||||||
Total | 2,195 | 2,871 | |||||||||||
Other real estate owned: | |||||||||||||
Commercial loans secured by real estate | 384 | 344 | |||||||||||
Real estate-mortgage | 128 | 673 | |||||||||||
Total | 512 | 1,017 | |||||||||||
Total restructured loans not in non-accrual (TDR) | 210 | 221 | |||||||||||
Total non-performing assets including TDR | $ | 2,917 | $ | 4,109 | |||||||||
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned | 0.35 | % | 0.52 | % | |||||||||
The Company had no loans past due 90 days or more for the periods presented which were accruing interest. | |||||||||||||
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. | |||||||||||||
To be considered a TDR, both of the following criteria must be met: | |||||||||||||
• | the borrower must be experiencing financial difficulties; and | ||||||||||||
• | the Bank, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would not otherwise be considered. | ||||||||||||
Factors that indicate a borrower is experiencing financial difficulties include, but are not limited to: | |||||||||||||
• | the borrower is currently in default on their loan(s); | ||||||||||||
• | the borrower has filed for bankruptcy; | ||||||||||||
• | the borrower has insufficient cash flows to service their loan(s); and | ||||||||||||
• | the borrower is unable to obtain refinancing from other sources at a market rate similar to rates available to a non-troubled debtor. | ||||||||||||
Factors that indicate that a concession has been granted include, but are not limited to: | |||||||||||||
• | the borrower is granted an interest rate reduction to a level below market rates for debt with similar risk; or | ||||||||||||
• | the borrower is granted a material maturity date extension, or extension of the amortization plan to provide payment relief. For purposes of this policy, a material maturity date extension will generally include any maturity date extension, or the aggregate of multiple consecutive maturity date extensions, that exceed 120 days. A restructuring that results in an insignificant delay in payment, i.e. 120 days or less, is not necessarily a TDR. Insignificant payment delays occur when the amount of the restructured payments subject to the delay is insignificant relative to the unpaid principal or collateral value, and will result in an insignificant shortfall in the originally scheduled contractual amount due, and/or the delay in timing of the restructured payment period is insignificant relative to the frequency of payments, the original maturity or the original amortization. | ||||||||||||
The determination of whether a restructured loan is a TDR requires consideration of all of the facts and circumstances surrounding the modification. No single factor is determinative of whether a restructuring is a TDR. An overall general decline in the economy or some deterioration in a borrower's financial condition does not automatically mean that the borrower is experiencing financial difficulty. Accordingly, determination of whether a modification is a TDR involves a large degree of judgment. | |||||||||||||
Any loan modification where the borrower's aggregate exposure is at least $250,000 and where the loan currently maintains a criticized or classified risk rating, i.e. Special Mention, Substandard or Doubtful, or where the loan will be assigned a criticized or classified rating after the modification is evaluated to determine the need for TDR classification. The specific ALL reserve for loans modified as TDR's was $520,000 and $344,000 as of December 31, 2014 and 2013, respectively. | |||||||||||||
The following table details the TDRs at December 31, 2014 (dollars in thousands). | |||||||||||||
Loans in non-accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 210 | Extension of maturity date | |||||||||
Loans in accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 742 | Extension of maturity date | |||||||||
The following table details the TDRs at December 31, 2013 (dollars in thousands). | |||||||||||||
Loans in non-accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 1,250 | Extension of maturity date | |||||||||
Loans in accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 161 | Extension of maturity date | |||||||||
Consumer | 2 | 61 | Extension of maturity date | ||||||||||
The following table details the TDRs at December 31, 2012 (dollars in thousands). | |||||||||||||
Loans in non-accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 4 | $ | 3,772 | Extension of maturity date | |||||||||
Loans in accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 169 | Extension of maturity date | |||||||||
Consumer | 1 | 13 | Extension of maturity date | ||||||||||
In all instances where loans have been modified in troubled debt restructurings the pre- and post-modified balances are the same. | |||||||||||||
Once a loan is classified as a TDR, this classification will remain until documented improvement in the financial position of the borrower supports confidence that all principal and interest will be paid according to terms. Additionally, the customer must have re-established a track record of timely payments according to the restructured contract terms for a minimum of six consecutive months prior to consideration for removing the loan from non-accrual TDR status. However, a loan will continue to be on non-accrual status until, consistent with our policy, the borrower has made a minimum of six consecutive payments in accordance with the terms of the loan. | |||||||||||||
The following table presents the recorded investment in loans that were modified as TDR's in the previous 12 months and defaulted during these reporting periods (in thousands). | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Recorded investment of defaults | |||||||||||||
Commercial loan secured by real estate | $ | - | $ | 1,480 | $ | 595 | |||||||
Total | $ | - | $ | 1,480 | $ | 595 | |||||||
All TDRs are individually evaluated for impairment and a related allowance is recorded, as needed. All TDRs which defaulted in the above table had a related allowance adequate to reserve for anticipated losses. | |||||||||||||
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. OREO is recorded at the lower of 1) fair value minus estimated costs to sell, or 2) carrying cost. | |||||||||||||
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. | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
Interest income due in accordance with original terms | $ | 136 | $ | 178 | $ | 231 | |||||||
Interest income recorded | - | - | - | ||||||||||
Net reduction in interest income | $ | 136 | $ | 178 | $ | 231 |
PREMISES_AND_EQUIPMENT
PREMISES AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT [Abstract] | |||||||||
PREMISES AND EQUIPMENT | 7 | PREMISES AND EQUIPMENT | |||||||
An analysis of premises and equipment follows: | |||||||||
AT DECEMBER 31, | |||||||||
2014 | 2013 | ||||||||
(IN THOUSANDS) | |||||||||
Land | $ | 1,198 | $ | 1,208 | |||||
Premises | 24,175 | 25,752 | |||||||
Furniture and equipment | 8,337 | 8,912 | |||||||
Leasehold improvements | 689 | 803 | |||||||
Total at cost | 34,399 | 36,675 | |||||||
Less: Accumulated depreciation and amortization | 21,387 | 23,556 | |||||||
Net book value | $ | 13,012 | $ | 13,119 | |||||
The Company recorded depreciation expense of $1.8 million and $1.7 million for the years 2014 and 2013, respectively. |
DEPOSITS
DEPOSITS | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
DEPOSITS [Abstract] | ||||||||||||
DEPOSITS | 8 | DEPOSITS | ||||||||||
The following table sets forth the balance of the Company's deposits: | ||||||||||||
AT DECEMBER 31, | ||||||||||||
2014 | 2013 | |||||||||||
(IN THOUSANDS) | ||||||||||||
Demand: | ||||||||||||
Non-interest bearing | $ | 167,551 | $ | 154,002 | ||||||||
Interest bearing | 89,676 | 84,926 | ||||||||||
Savings | 90,020 | 87,655 | ||||||||||
Money market | 221,378 | 219,801 | ||||||||||
Certificates of deposit in denominations of $100,000 or more | 50,529 | 47,287 | ||||||||||
Other time | 250,727 | 260,851 | ||||||||||
Total deposits | $ | 869,881 | $ | 854,522 | ||||||||
Interest expense on deposits consisted of the following: | ||||||||||||
YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
(IN THOUSANDS) | ||||||||||||
Interest bearing demand | $ | 191 | $ | 138 | $ | 116 | ||||||
Savings | 144 | 139 | 181 | |||||||||
Money market | 761 | 736 | 895 | |||||||||
Certificates of deposit in denominations of $100,000 or more | 268 | 289 | 435 | |||||||||
Other time | 3,525 | 3,862 | 4,875 | |||||||||
Total interest expense | $ | 4,889 | $ | 5,164 | $ | 6,502 | ||||||
The following table sets forth the balance of other time deposits and certificates of deposit of $100,000 or more as of December 31, 2014 maturing in the periods presented: | ||||||||||||
YEAR: | OTHER TIME DEPOSITS | CERTIFICATES OF | ||||||||||
DEPOSIT | ||||||||||||
OF $100,000 OR MORE | ||||||||||||
(IN THOUSANDS) | ||||||||||||
2015 | $ | 130,090 | $ | 41,582 | ||||||||
2016 | 30,472 | 8,230 | ||||||||||
2017 | 14,515 | 417 | ||||||||||
2018 | 26,424 | 200 | ||||||||||
2019 | 12,193 | — | ||||||||||
2020 and after | 37,033 | 100 | ||||||||||
Total | $ | 250,727 | $ | 50,529 | ||||||||
The maturities on certificates of deposit greater than $100,000 or more as of December 31, 2014, are as follows: | ||||||||||||
MATURING IN: | (IN THOUSANDS) | |||||||||||
Three months or less | $ | 4,483 | ||||||||||
Over three through six months | 23,171 | |||||||||||
Over six through twelve months | 13,928 | |||||||||||
Over twelve months | 8,947 | |||||||||||
Total | $ | 50,529 | ||||||||||
The aggregate amount of time deposit accounts (including certificates of deposit) that meet or exceed the FDIC insurance limit at December 31, 2014 and 2013 are $65.2 million and $61.0 million, respectively. |
SHORTTERM_BORROWINGS
SHORT-TERM BORROWINGS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SHORT-TERM BORROWINGS [Abstract] | |||||||||||||
SHORT-TERM BORROWINGS | 9 | SHORT-TERM BORROWINGS | |||||||||||
Short-term borrowings, which consist of federal funds purchased and other short-term borrowings are summarized as follows: | |||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||
FEDERAL | SHORT-TERM | ||||||||||||
FUNDS | BORROWINGS | ||||||||||||
PURCHASED | |||||||||||||
(IN THOUSANDS, EXCEPT RATES) | |||||||||||||
Balance | $ | — | $ | 38,880 | |||||||||
Maximum indebtedness at any month end | — | 47,762 | |||||||||||
Average balance during year | — | 18,783 | |||||||||||
Average rate paid for the year | — | 0.29 | % | ||||||||||
Interest rate on year-end balance | — | 0.27 | |||||||||||
AT DECEMBER 31, 2013 | |||||||||||||
FEDERAL | SHORT-TERM | ||||||||||||
FUNDS | BORROWINGS | ||||||||||||
PURCHASED | |||||||||||||
(IN THOUSANDS, EXCEPT RATES) | |||||||||||||
Balance | $ | — | $ | 41,555 | |||||||||
Maximum indebtedness at any month end | — | 41,555 | |||||||||||
Average balance during year | 959 | 16,482 | |||||||||||
Average rate paid for the year | 0.34 | % | 0.26 | % | |||||||||
Interest rate on year-end balance | — | 0.25 | |||||||||||
AT DECEMBER 31, 2012 | |||||||||||||
FEDERAL | OTHER | ||||||||||||
FUNDS | SHORT-TERM | ||||||||||||
PURCHASED | BORROWINGS | ||||||||||||
(IN THOUSANDS, EXCEPT RATES) | |||||||||||||
Balance | $ | — | $ | 15,660 | |||||||||
Maximum indebtedness at any month end | — | 19,755 | |||||||||||
Average balance during year | 117 | 5,225 | |||||||||||
Average rate paid for the year | 0.34 | % | 0.2 | % | |||||||||
Interest rate on year-end balance | — | 0.25 | |||||||||||
Average amounts outstanding during the year represent daily averages. Average interest rates represent interest expense divided by the related average balances. | |||||||||||||
These borrowing transactions can range from overnight to one year in maturity. The average maturity was one day at the end of 2014, 2013 and 2012. |
ADVANCES_FROM_FEDERAL_HOME_LOA
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES [Abstract] | ||||||||||||
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES | 10 | ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES | ||||||||||
Advances from the FHLB consist of the following: | ||||||||||||
AT DECEMBER 31, 2014 | ||||||||||||
MATURING | WEIGHTED | BALANCE | ||||||||||
AVERAGE YIELD | ||||||||||||
(IN THOUSANDS, EXCEPT RATES) | ||||||||||||
2015 | 0.52 | 4,000 | ||||||||||
2016 | 0.81 | 12,000 | ||||||||||
2017 | 1.06 | 12,000 | ||||||||||
2018 | 1.51 | 10,000 | ||||||||||
2019 | 1.88 | 4,000 | ||||||||||
Total advances from FHLB | 1.12 | 42,000 | ||||||||||
AT DECEMBER 31, 2013 | ||||||||||||
MATURING | WEIGHTED | BALANCE | ||||||||||
AVERAGE YIELD | ||||||||||||
(IN THOUSANDS, EXCEPT RATES) | ||||||||||||
2015 | 0.52 | 4,000 | ||||||||||
2016 | 0.81 | 12,000 | ||||||||||
2017 | 1.07 | 7,000 | ||||||||||
2018 | 1.47 | 2,000 | ||||||||||
Total advances from FHLB | 0.89 | 25,000 | ||||||||||
The Company's subsidiary Bank is a member of the FHLB which provides this subsidiary with the opportunity to obtain short to longer-term advances based upon the Company's investment in assets secured by one- to four-family residential real estate and certain types of CRE. The rate on open repo plus advances, which are typically overnight borrowings, can change daily, while the rate on the advances is fixed until the maturity of the advance. All FHLB stock along with an interest in certain residential mortgage and CRE 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. At December 31, 2014, the Company had immediately available $347 million of overnight borrowing capability at the FHLB and $39 million of unsecured federal funds lines with correspondent banks. | ||||||||||||
Guaranteed Junior Subordinated Deferrable Interest Debentures: | ||||||||||||
On April 28, 1998, the Company completed a $34.5 million public offering of 8.45% Trust Preferred Securities, which represent undivided beneficial interests in the assets of a Delaware business trust, AmeriServ Financial Capital Trust I. The Trust Preferred Securities will mature on June 30, 2028, and are callable at par at the option of the Company after June 30, 2003. Proceeds of the issue were invested by AmeriServ Financial Capital Trust I in Junior Subordinated Debentures issued by the Company. Unamortized deferred issuance costs associated with the Trust Preferred Securities amounted to $209,000 as of December 31, 2014 and are included in other assets on the Consolidated Balance Sheets, and are being amortized on a straight-line basis over the term of the issue. The Trust Preferred securities are listed on NASDAQ under the symbol ASRVP. The Company used $22.5 million of proceeds from a private placement of common stock to redeem Trust Preferred Securities in 2005 and 2004. The balance as of December 31, 2014 and 2013 was $13.1 million. |
DISCLOSURES_ABOUT_FAIR_VALUE_M
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | 11 | DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS | |||||||||||||||
The following disclosures establish a hierarchal framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. 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. | |||||||||||||||||
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 U.S. 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 following table presents the assets reported on the Consolidated Balance Sheets at their fair value as of December 31, 2014 and 2013, by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. | |||||||||||||||||
Assets and Liability Measured on a Recurring Basis | |||||||||||||||||
Assets and liability measured at fair value on a recurring basis are summarized below (in thousands): | |||||||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2014 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
U.S. Agency securities | $ | 5,906 | $ | — | $ | 5,906 | $ | — | |||||||||
U.S. Agency mortgage-backed securities | 105,768 | — | 105,768 | — | |||||||||||||
Corporate bonds | 15,436 | — | 15,436 | — | |||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2013 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
U.S. Agency securities | $ | 6,835 | $ | — | $ | 6,835 | $ | — | |||||||||
U.S. Agency mortgage-backed securities | 123,382 | — | 123,382 | — | |||||||||||||
Corporate bonds | 11,761 | — | 11,761 | — | |||||||||||||
Assets Measured on a Non-recurring Basis | |||||||||||||||||
Assets measured at fair value on a non-recurring basis are summarized below (in thousands): | |||||||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2014 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 469 | $ | — | $ | — | $ | 469 | |||||||||
Other real estate owned | 512 | — | — | 512 | |||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2013 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 2,253 | $ | — | $ | — | $ | 2,253 | |||||||||
Other real estate owned | 1,017 | — | — | 1,017 | |||||||||||||
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. Impaired loans are reported at 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 December 31, 2014, impaired loans with a carrying value of $989,000 were reduced by specific valuation allowance totaling $520,000 resulting in a net fair value of $469,000. At December 31, 2013, impaired loans with a carrying value of $3.1 million were reduced by specific valuation allowance totaling $813,000 resulting in a net fair value of $2.3 million. | |||||||||||||||||
OREO is measured at fair value based on appraisals, less cost 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. | |||||||||||||||||
31-Dec-14 | Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Input | Range(Wgtd Ave) | ||||||||||||||
Impaired loans | $ | 469 | Appraisal of collateral(1) | Appraisal adjustments(2) | 0% to 37%(30%) | ||||||||||||
Liquidation expenses(2) | 1% to 15%(10%) | ||||||||||||||||
Other real estate owned | 512 | Appraisal of collateral(1),(3) | Appraisal adjustments(2) | 47% to 83%(55%) | |||||||||||||
Liquidation expenses(2) | 1% to 61%(9%) | ||||||||||||||||
31-Dec-13 | Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Input | Range(Wgtd Ave) | ||||||||||||||
Impaired loans | $ | 2,253 | Appraisal of collateral(1) | Appraisal adjustments(2) | 0% to 37%(30%) | ||||||||||||
Liquidation expenses(2) | 1% to 15%(10%) | ||||||||||||||||
Other real estate owned | 1,017 | Appraisal of collateral(1),(3) | Appraisal adjustments(2) | 31% to 48%(38%) | |||||||||||||
Liquidation expenses(2) | 1% to 20%(10%) | ||||||||||||||||
-1 | Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. |
DISCLOSURES_ABOUT_FAIR_VALUE_O
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 | DISCLOSURES ABOUT 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 uses 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, and loans and deposits with floating interest rates have estimated fair values which approximate the recorded carrying values. The estimation methodologies used, the estimated fair values based on US GAAP measurements, and recorded carrying values at December 31, 2014 and 2013, were as follows: | |||||||||||||||||||||||||||||||||||||
At December 31, 2014 | |||||||||||||||||||||||||||||||||||||
Carrying | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 32,872 | $ | 32,872 | $ | 32,872 | $ | - | $ | - | |||||||||||||||||||||||||||
Investment securities - AFS | 127,110 | 127,110 | - | 127,110 | - | ||||||||||||||||||||||||||||||||
Investment securities – HTM | 19,840 | 20,213 | - | 17,241 | 2,972 | ||||||||||||||||||||||||||||||||
Regulatory stock | 6,173 | 6,173 | 6,173 | - | - | ||||||||||||||||||||||||||||||||
Loans held for sale | 5,051 | 5,127 | 5,127 | - | - | ||||||||||||||||||||||||||||||||
Loans, net of allowance for loan loss and unearned income | 817,457 | 819,935 | - | - | 819,935 | ||||||||||||||||||||||||||||||||
Accrued interest income receivable | 3,127 | 3,127 | 3,127 | - | - | ||||||||||||||||||||||||||||||||
Bank owned life insurance | 37,417 | 37,417 | 37,417 | - | - | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||||||||||||||||||||||
Deposits with no stated maturities | $ | 568,625 | $ | 568,625 | $ | 568,625 | $ | - | $ | - | |||||||||||||||||||||||||||
Deposits with stated maturities | 301,256 | 304,744 | - | - | 304,744 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 38,880 | 38,880 | 38,880 | - | - | ||||||||||||||||||||||||||||||||
All other borrowings | 55,085 | 59,256 | - | - | 59,256 | ||||||||||||||||||||||||||||||||
Accrued interest payable | 1,706 | 1,706 | 1,706 | - | - | ||||||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 30,066 | $ | 30,066 | $ | 30,066 | $ | - | $ | - | |||||||||||||||||||||||||||
Investment securities - AFS | 141,978 | 141,978 | - | 141,978 | - | ||||||||||||||||||||||||||||||||
Investment securities – HTM | 18,187 | 17,788 | - | 14,822 | 2,966 | ||||||||||||||||||||||||||||||||
Regulatory stock | 6,802 | 6,802 | 6,802 | - | - | ||||||||||||||||||||||||||||||||
Loans held for sale | 3,402 | 3,453 | 3,453 | - | - | ||||||||||||||||||||||||||||||||
Loans, net of allowance for loan loss and unearned income | 773,242 | 771,460 | - | - | 771,460 | ||||||||||||||||||||||||||||||||
Accrued interest income receivable | 2,908 | 2,908 | 2,908 | - | - | ||||||||||||||||||||||||||||||||
Bank owned life insurance | 36,669 | 36,669 | 36,669 | - | - | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||||||||||||||||||||||
Deposits with no stated maturities | $ | 546,384 | $ | 546,384 | $ | 546,384 | $ | - | $ | - | |||||||||||||||||||||||||||
Deposits with stated maturities | 308,138 | 313,272 | - | - | 313,272 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 41,555 | 41,555 | 41,555 | - | - | ||||||||||||||||||||||||||||||||
All other borrowings | 38,085 | 40,598 | - | - | 40,598 | ||||||||||||||||||||||||||||||||
Accrued interest payable | 1,784 | 1,784 | 1,784 | - | - | ||||||||||||||||||||||||||||||||
The fair value of cash and cash equivalents, regulatory stock, accrued interest income receivable, short-term borrowings, and accrued interest payable are equal to the current carrying value. | |||||||||||||||||||||||||||||||||||||
The fair value of investment securities is equal to the available quoted market price for similar securities. 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 Level 3 securities are valued by discounted cash flows using the US Treasury rate for the remaining term of the securities. | |||||||||||||||||||||||||||||||||||||
Loans held for sale are priced individually at market rates on the day that the loan is locked for commitment with an investor. All loans in the held for sale account conform to Fannie Mae underwriting guidelines, with the specific intent of the loan being purchased by an investor at the predetermined rate structure. Loans in the held for sale account have specific delivery dates that must be executed to protect the pricing commitment (typically a 30, 45, or 60 day lock period). | |||||||||||||||||||||||||||||||||||||
The net loan portfolio has been valued using a present value discounted cash flow. The discount rate used in these calculations is based upon the treasury yield curve adjusted for non-interest operating costs, credit loss, current market prices and assumed prepayment risk. | |||||||||||||||||||||||||||||||||||||
The fair value of bank owned life insurance is based upon the cash surrender value of the underlying policies and matches the book value. | |||||||||||||||||||||||||||||||||||||
Deposits with stated maturities have been valued using a present value discounted cash flow with a discount rate approximating current market for similar assets and liabilities. Deposits with no stated maturities have an estimated fair value equal to both the amount payable on demand and the recorded book balance. | |||||||||||||||||||||||||||||||||||||
The fair value of all other borrowings is based on the discounted value of contractual cash flows. The discount rates are estimated using rates currently offered for similar instruments with similar remaining maturities. | |||||||||||||||||||||||||||||||||||||
Commitments to extend credit and standby letters of credit are financial instruments generally not subject to sale, and fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, are not considered material for disclosure. The contractual amounts of unfunded commitments are presented in Note 16. | |||||||||||||||||||||||||||||||||||||
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. |
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||
INCOME TAXES | 13 | INCOME TAXES | |||||||||||||||||||||||
The expense for income taxes is summarized below: | |||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Current | $ | 1,036 | $ | 139 | $ | 140 | |||||||||||||||||||
Deferred | 562 | 2,150 | 2,101 | ||||||||||||||||||||||
Income tax expense | $ | 1,598 | $ | 2,289 | $ | 2,241 | |||||||||||||||||||
The reconciliation between the federal statutory tax rate and the Company's effective consolidated income tax rate is as follows: | |||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
AMOUNT | RATE | AMOUNT | RATE | AMOUNT | RATE | ||||||||||||||||||||
(IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||||||||
Income tax expense based on federal statutory rate | $ | 1,571 | 34 | % | $ | 2,544 | 34 | % | $ | 2,475 | 34 | % | |||||||||||||
Tax exempt income | (274 | ) | (5.9 | ) | (359 | ) | (4.8 | ) | (315 | ) | (4.3 | ) | |||||||||||||
Other | 301 | 6.5 | 104 | 1.4 | 81 | 1.1 | |||||||||||||||||||
Total expense for income taxes | $ | 1,598 | 34.6 | % | $ | 2,289 | 30.6 | % | $ | 2,241 | 30.8 | % | |||||||||||||
The following table highlights the major components comprising the deferred tax assets and liabilities for each of the periods presented: | |||||||||||||||||||||||||
AT DECEMBER 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
DEFERRED TAX ASSETS: | |||||||||||||||||||||||||
Allowance for loan losses | $ | 3,272 | $ | 3,437 | |||||||||||||||||||||
Unfunded commitment reserve | 300 | 264 | |||||||||||||||||||||||
Premises and equipment | 1,433 | 1,832 | |||||||||||||||||||||||
Accrued pension obligation | 2,358 | 1,462 | |||||||||||||||||||||||
Net operating loss carryforwards | 242 | 1,307 | |||||||||||||||||||||||
Alternative minimum tax credits | 2,820 | 1,749 | |||||||||||||||||||||||
Other | 349 | 393 | |||||||||||||||||||||||
Total tax assets | 10,774 | 10,444 | |||||||||||||||||||||||
DEFERRED TAX LIABILITIES: | |||||||||||||||||||||||||
Investment accretion | (25 | ) | (18 | ) | |||||||||||||||||||||
Unrealized investment security gains | (950 | ) | (545 | ) | |||||||||||||||||||||
Other | (251 | ) | (309 | ) | |||||||||||||||||||||
Total tax liabilities | (1,226 | ) | (872 | ) | |||||||||||||||||||||
Net deferred tax asset | $ | 9,548 | $ | 9,572 | |||||||||||||||||||||
At December 31, 2014 and 2013, the Company had no valuation allowance established against its deferred tax assets as we believe the Company will generate sufficient future taxable income to fully utilize all net operating loss carryforwards and alternative minimum tax (AMT) credits. | |||||||||||||||||||||||||
The change in net deferred tax assets and liabilities consist of the following: | |||||||||||||||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Unrealized gains recognized in comprehensive income | $ | (404 | ) | $ | 1,595 | ||||||||||||||||||||
Pension obligation of the defined benefit plan not yet recognized in income | 942 | (1,340 | ) | ||||||||||||||||||||||
Deferred provision for income taxes | (562 | ) | (2,150 | ) | |||||||||||||||||||||
Net decrease | $ | (24 | ) | $ | (1,895 | ) | |||||||||||||||||||
The Company has AMT credit carryforwards of approximately $2.8 million at December 31, 2014. These credits have an indefinite carryforward period. The Company also has a $713,000 net operating loss carryforward that will begin to expire in the year 2025. | |||||||||||||||||||||||||
The Company utilizes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. Benefits from tax positions should be recognized in the financial statements only when it is more likely than not that the tax position will be sustained upon examination by the appropriate taxing authority that would have full knowledge of all relevant information. A tax position that meets the more-likely-than-not recognition threshold is measured at the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. Tax positions that previously failed to meet the more-likely-than-not recognition threshold should be recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more-likely-than-not recognition threshold should be derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company has no tax liability for uncertain tax positions. The Company's federal and state income tax returns for taxable years through 2010 have been closed for purposes of examination by the Internal Revenue Service and the Pennsylvania Department of Revenue. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EMPLOYEE BENEFIT PLANS [Abstract] | |||||||||||||
EMPLOYEE BENEFIT PLANS | 14 | EMPLOYEE BENEFIT PLANS | |||||||||||
PENSION PLANS: | |||||||||||||
The Company has a noncontributory defined benefit pension plan covering all employees who work at least 1,000 hours per year. The participants shall 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. Effective January 1, 2013, the Company implemented a soft freeze of its defined benefit pension plan for non-union employees. A soft freeze means that all existing employees as of December 31, 2012 will remain in the defined benefit pension plan but any new non-union employees hired after January 1, 2013 will no longer be part of the defined benefit plan but instead will be offered retirement benefits under an enhanced 401K program. The Company implemented a similar soft freeze of its defined benefit pension plan for union employees effective January 1, 2014. The Company executed these changes to help reduce its pension costs in future years. Plan assets are primarily debt securities (including U.S. Treasury and Agency securities, corporate notes and bonds), listed common stocks (including shares of the Company's common stock valued at $651,000 and is limited to 10% of the plan's assets), mutual funds, and short-term cash equivalent instruments. The following actuarial tables are based upon data provided by an independent third party as of December 31, 2014. | |||||||||||||
PENSION BENEFITS: | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
CHANGE IN BENEFIT OBLIGATION: | |||||||||||||
Benefit obligation at beginning of year | $ | 30,249 | $ | 29,844 | |||||||||
Service cost | 1,601 | 1,703 | |||||||||||
Interest cost | 1,368 | 1,189 | |||||||||||
Actuarial (gain) loss | 3,406 | (757 | ) | ||||||||||
Curtailments | 328 | - | |||||||||||
Special/contractual termination benefits | 376 | - | |||||||||||
Benefits paid | (3,627 | ) | (1,730 | ) | |||||||||
Benefit obligation at end of year | 33,701 | 30,249 | |||||||||||
CHANGE IN PLAN ASSETS: | |||||||||||||
Fair value of plan assets at beginning of year | 26,288 | 21,368 | |||||||||||
Actual return on plan assets | 2,056 | 3,850 | |||||||||||
Employer contributions | 2,650 | 2,800 | |||||||||||
Benefits paid | (3,627 | ) | (1,730 | ) | |||||||||
Fair value of plan assets at end of year | 27,367 | 26,288 | |||||||||||
Funded status of the plan - under funded | $ | (6,334 | ) | $ | (3,961 | ) | |||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
AMOUNTS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC PENSION COST: | |||||||||||||
Amounts recognized in accumulated other comprehensive loss consists of: | |||||||||||||
Prior service cost | $ | - | $ | (19 | ) | ||||||||
Net actuarial loss | 12,596 | 10,107 | |||||||||||
Total | $ | 12,596 | $ | 10,088 | |||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
ACCUMULATED BENEFIT OBLIGATION: | |||||||||||||
Accumulated benefit obligation | $ | 30,914 | $ | 27,566 | |||||||||
The weighted-average assumptions used to determine benefit obligations at December 31, 2014 and 2013 were as follows: | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
WEIGHTED AVERAGE ASSUMPTIONS: | |||||||||||||
Discount rate | 4 | % | 4.5 | % | |||||||||
Salary scale | 2.5 | 2.5 | |||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||||||||||
Service cost | $ | 1,601 | $ | 1,703 | $ | 1,593 | |||||||
Interest cost | 1,368 | 1,189 | 1,234 | ||||||||||
Expected return on plan assets | (1,991 | ) | (1,775 | ) | (1,656 | ) | |||||||
Amortization of prior year service cost | (19 | ) | (19 | ) | (19 | ) | |||||||
Amortization of transition asset | - | (8 | ) | (17 | ) | ||||||||
Special termination benefit liability | 376 | - | - | ||||||||||
Recognized net actuarial loss | 1,181 | 1,375 | 1,094 | ||||||||||
Net periodic pension cost | $ | 2,516 | $ | 2,465 | $ | 2,229 | |||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS | |||||||||||||
Net (gain) loss | $ | 3,669 | $ | (2,832 | ) | $ | 2,376 | ||||||
Recognized loss | (1,181 | ) | (1,375 | ) | (1,094 | ) | |||||||
Recognized prior service cost | 19 | 19 | 19 | ||||||||||
Recognized net initial asset | - | 8 | 17 | ||||||||||
Total recognized in other comprehensive loss before tax effect | $ | 2,507 | $ | (4,180 | ) | $ | 1,318 | ||||||
Total recognized in net benefit cost and other comprehensive loss before tax effect | $ | 5,023 | $ | (1,715 | ) | $ | 3,547 | ||||||
The estimated net loss for the defined benefit pension plan that will be amortized from accumulated other comprehensive loss into net periodic benefit cost over the next year is $1,261,000. | |||||||||||||
The weighted-average assumptions used to determine net periodic benefit cost for the years ended December 31, 2014, 2013 and 2012 were as follows: | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
WEIGHTED AVERAGE ASSUMPTIONS: | |||||||||||||
Discount rate | 4.5 | % | 4 | % | 4.75 | % | |||||||
Expected return on plan assets | 8 | 8 | 8 | ||||||||||
Rate of compensation increase | 2.5 | 2.5 | 2.5 | ||||||||||
The Company has assumed an 8% long-term expected return on plan assets. This assumption was based upon the plan's historical investment performance over a longer-term period of 15 years combined with the plan's investment objective of balanced growth and income. Additionally, this assumption also incorporates a targeted range for equity securities of approximately 60% of plan assets. | |||||||||||||
PLAN ASSETS: | |||||||||||||
The plan's measurement date is December 31, 2014. This plan's asset allocations at December 31, 2014 and 2013, by asset category are as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
ASSET CATEGORY: | |||||||||||||
Cash and cash equivalents | 2 | % | - | % | |||||||||
Domestic equities | 10 | 10 | |||||||||||
Mutual funds/ETFs | 80 | 79 | |||||||||||
International equities | 3 | 6 | |||||||||||
Corporate bonds | 5 | 5 | |||||||||||
Total | 100 | % | 100 | % | |||||||||
The major categories of assets in the Company's Pension Plan as of year end are presented in the following table. Assets are segregated by the level of the valuation inputs within the fair value hierarchy established by ASC Topic 820 utilized to measure fair value. | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
Level 1: | |||||||||||||
Cash and cash equivalents | $ | 639 | $ | — | |||||||||
Domestic equities | 2,753 | 2,741 | |||||||||||
International equities | 851 | 1,478 | |||||||||||
Mutual funds/ETFs | 21,782 | 20,744 | |||||||||||
Level 2: | |||||||||||||
Corporate bonds | 1,342 | 1,325 | |||||||||||
Total fair value of plan assets | $ | 27,367 | $ | 26,288 | |||||||||
Cash and cash equivalents may include uninvested cash balances along with money market mutual funds, treasury bills, or other assets normally categorized as cash equivalents. Domestic equities may include common or preferred stocks, covered options, rights or warrants, or American Depository Receipts which are traded on any U.S. equity market. Mutual funds/ETFs may include any equity, fixed income, balanced, international, or global mutual fund or exchange traded fund including any propriety fund managed by the Trust Company. Agencies may include any U.S. government agency security or asset-backed security. Collective investment funds may include equity, fixed income, or balanced collective investment funds managed by the Trust Company. Corporate bonds may include any corporate bond or note. | |||||||||||||
The investment strategy objective for the pension plan is a balance of growth and income. This objective seeks to develop a portfolio for acceptable levels of current income together with the opportunity for capital appreciation. The balanced growth and income objective reflects a relatively equal balance between equity and fixed income investments such as debt securities. The allocation between equity and fixed income assets may vary by a moderate degree but the plan typically targets a range of equity investments between 50% and 60% of the plan assets. This means that fixed income and cash investments typically approximate 40% to 50% of the plan assets. The plan is also able to invest in ASRV common stock up to a maximum level of 10% of the market value of the plan assets (at December 31, 2014, 2.4% of the plan assets were invested in ASRV common stock). This asset mix is intended to ensure that there is a steady stream of cash from maturing investments to fund benefit payments. | |||||||||||||
CASH FLOWS: | |||||||||||||
The Company presently expects that the contribution to be made to the Plan in 2015 will be approximately $2.5 million. | |||||||||||||
ESTIMATED FUTURE BENEFIT PAYMENTS: | |||||||||||||
The following benefit payments, which reflect future service, as appropriate, are expected to be paid. | |||||||||||||
YEAR: | ESTIMATED FUTURE BENEFIT PAYMENTS | ||||||||||||
(IN THOUSANDS) | |||||||||||||
2015 | $ | 1,939 | |||||||||||
2016 | 2,472 | ||||||||||||
2017 | 2,752 | ||||||||||||
2018 | 2,434 | ||||||||||||
2019 | 2,573 | ||||||||||||
Years 2020 - 2024 | 16,419 | ||||||||||||
401(k) PLAN: | |||||||||||||
The Company maintains a qualified 401(k) plan that allows for participation by Company employees. Under the plan, employees may elect to make voluntary, pretax contributions to their accounts which the Company will match one half on the first 2% of contribution up to a maximum of 1%. The Company also contributes 4% of salaries for union members who are in the plan. Effective January 1, 2013, any new non-union employees receive a 4% non-elective contribution and these employees may elect to make voluntary, pretax contributions to their accounts which the Company will match one half on the first 6% of contribution up to a maximum of 3%. Effective January 1, 2014, any new union employees receive a 4% non-elective contribution and these employees may elect to make voluntary, pretax contributions to their accounts which the Company will match dollar for dollar up to a maximum of 4%. Contributions by the Company charged to operations were $387,000 and $327,000 for the years ended December 31, 2014 and 2013, respectively. The fair value of plan assets includes $1.1 million pertaining to the value of the Company's common stock and Trust Preferred securities that are held by the plan at December 31, 2014. | |||||||||||||
Except for the above benefit plans, the Company has no significant additional exposure for any other post-retirement or post-employment benefits. |
LEASE_COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
LEASE COMMITMENTS Abstract] | |||||
LEASE COMMITMENTS | 15 | LEASE COMMITMENTS | |||
The Company's obligation for future minimum lease payments on operating leases at December 31, 2014, is as follows: | |||||
YEAR: | FUTURE MINIMUM LEASE PAYMENTS | ||||
(IN THOUSANDS) | |||||
2015 | $ | 711 | |||
2016 | 585 | ||||
2017 | 426 | ||||
2018 | 280 | ||||
2019 | 159 | ||||
2020 and thereafter | 1,561 | ||||
In addition to the amounts set forth above, certain of the leases require payments by the Company for taxes, insurance, and maintenance. Rent expense included in total non-interest expense amounted to $732,000, $764,000 and $785,000, in 2014, 2013, and 2012, respectively. |
COMMITMENTS_AND_CONTINGENT_LIA
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended | ||
Dec. 31, 2014 | |||
COMMITMENTS AND CONTINGENT LIABILITIES [Abstract] | |||
COMMITMENTS AND CONTINGENT LIABILITIES | 16 | COMMITMENTS AND CONTINGENT LIABILITIES | |
The Company incurs off-balance sheet risks in the normal course of business in order to meet the financing needs of its customers. These risks derive from commitments to extend credit and standby letters of credit. Such commitments and standby letters of credit involve, to varying degrees, elements of credit risk in excess of the amount recognized in the consolidated financial statements. Commitments to extend credit are obligations to lend to a customer as long as there is no violation of any condition established in the loan agreement. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Because many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. Collateral which secures these types of commitments is the same as for other types of secured lending such as accounts receivable, inventory, and fixed assets. | |||
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including normal business activities, bond financings, and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Letters of credit are issued both on an unsecured and secured basis. Collateral securing these types of transactions is similar to collateral securing the Company's commercial loans. | |||
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 Company uses the same credit and collateral policies in making commitments and conditional obligations as for all other lending. At December 31, 2014, the Company had various outstanding commitments to extend credit approximating $188.0 million and standby letters of credit of $7.2 million, compared to commitments to extend credit of $146.0 million and standby letters of credit of $13.2 million at December 31, 2013. Standby letters of credit had terms ranging from 1 to 2 years with annual extension options available. Standby letters of credit of approximately $3.3 million were secured as of December 31, 2014 and approximately $3.9 million at December 31, 2013. The carrying amount of the liability for AmeriServ obligations related to unfunded commitments and standby letters of credit was $882,000 at December 31, 2014 and $776,000 at December 31, 2013. | |||
Pursuant to its bylaws, the Company provides indemnification to its directors and officers against certain liabilities incurred as a result of their service on behalf of the Company. In connection with this indemnification obligation, the Company can advance on behalf of covered individuals costs incurred in defending against certain claims. 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 operation or cash flows. |
PREFERRED_STOCK
PREFERRED STOCK | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
PREFERRED STOCK [Abstract] | ||||||||
PREFERRED STOCK | 17 | PREFERRED STOCK | ||||||
SBLF: | ||||||||
On August 11, 2011, pursuant to the Small Business Lending Fund (SBLF), the Company issued and sold to the US Treasury 21,000 shares of its Senior Non-Cumulative Perpetual Preferred Stock, Series E (Series E Preferred Stock) for the aggregate proceeds of $21 million. The SBLF is a voluntary program sponsored by the US Treasury that encourages small business lending by providing capital to qualified community banks at favorable rates. The initial interest rate on the Series E Preferred Stock has been initially set at 5% per annum and may be decreased to as low as 1% per annum if growth thresholds are met for qualified outstanding small business loans. The Company used the proceeds from the Series E Preferred Stock issued to the US Treasury to repurchase all 21,000 shares of its outstanding preferred shares previously issued to the US Treasury under the TARP Capital Purchase Program. | ||||||||
The Series E Preferred Stock has an aggregate liquidation preference of approximately $21 million and qualifies as Tier 1 Capital for regulatory purposes. The terms of the Series E Preferred Stock provide for the payment of non-cumulative dividends on a quarterly basis. The dividend rate, as a percentage of the liquidation amount, may fluctuate while the Series E Preferred Stock is outstanding based upon changes in the level of “qualified small business lending” (“QSBL”) by the Bank from its average level of QSBL at each of the four quarter ends leading up to June 30, 2010 (the “Baseline”) as follows: | ||||||||
DIVIDEND PERIOD ANNUALIZED | ||||||||
BEGINNING | ENDING | ANNUALIZED DIVIDEND RATE | ||||||
11-Aug-11 | 31-Dec-11 | 5.00% | ||||||
1-Jan-12 | 31-Dec-13 | 1.0% to 5.0% | ||||||
1-Jan-14 | 7-Feb-16 | 1.0% to 7.0%(1) | ||||||
8-Feb-16 | Redemption | 9.0%(2) | ||||||
-1 | Between January 1, 2014 and February 7, 2016, the Company's dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline. | |||||||
-2 | Beginning on February 8, 2016, the dividend rate will be fixed at nine percent (9%) per annum. | |||||||
As of September 30, 2013, the Company had increased its QSBL to a level that reduced the dividend rate to 1%. Accordingly, this 1% rate will continue through February 7, 2016. | ||||||||
As long as shares of Series E Preferred Stock remain outstanding, we may not pay dividends to our common shareholders (nor may we repurchase or redeem any shares of our common stock) during any quarter in which we fail to declare and pay dividends on the Series E Preferred Stock and for the next three quarters following such failure. In addition, under the terms of the Series E Preferred Stock, we may only declare and pay dividends on our common stock (or repurchase shares of our common stock), if, after payment of such dividend, the dollar amount of our Tier 1 capital would be at least ninety percent (90%) of Tier 1 capital as of June 30, 2011, excluding any charge-offs and redemptions of the Series E Preferred Stock (the “Tier 1 Dividend Threshold”). The Tier 1 Dividend Threshold is subject to reduction, beginning January 1, 2014, based upon the extent by which, if at all, the QSBL at September 30, 2013 has increased over the Baseline. | ||||||||
We may redeem the Series E Preferred Stock at any time at our option, at a redemption price of 100% of the liquidation amount plus accrued but unpaid dividends, subject to the approval of our federal banking regulator. |
STOCK_COMPENSATION_PLANS
STOCK COMPENSATION PLANS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
STOCK COMPENSATION PLANS [Abstract] | |||||||||||||||||||||||||
STOCK COMPENSATION PLANS | 18 | STOCK COMPENSATION PLANS | |||||||||||||||||||||||
The Company uses the modified prospective method for accounting for stock-based compensation and recognized $42,000 of pretax compensation expense for the year 2014, $82,000 in 2013 and $38,000 in 2012. | |||||||||||||||||||||||||
During 2011, the Company's Board adopted, and its shareholders approved, the AmeriServ Financial, Inc. 2011 Stock Incentive Plan (the Plan) authorizing the grant of options or restricted stock covering 800,000 shares of common stock. This Plan replaced the expired 2001 Stock Option Plan. Under the Plan, options or restricted stock can be granted (the Grant Date) to directors, officers, and employees that provide services to the Company and its affiliates, as selected by the compensation committee of the Board. The option price at which a granted stock option may be exercised was not less than 100% of the fair market value per share of common stock on the Grant Date. The maximum term of any option granted under the Plan cannot exceed 10 years. Generally, options vest over a three year period and become exercisable in equal installments over the vesting period. At times, options with a one year vesting period may also be issued. | |||||||||||||||||||||||||
A summary of the status of the Company's Stock Incentive Plan at December 31, 2014, 2013, and 2012, and changes during the years then ended is presented in the table and narrative following: | |||||||||||||||||||||||||
YEAR ENDED DECEMBER 31 | |||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
SHARES | WEIGHTED | SHARES | WEIGHTED | SHARES | WEIGHTED | ||||||||||||||||||||
AVERAGE | AVERAGE | AVERAGE | |||||||||||||||||||||||
EXERCISE | EXERCISE | EXERCISE | |||||||||||||||||||||||
PRICE | PRICE | PRICE | |||||||||||||||||||||||
Outstanding at beginning of year | 487,349 | $ | 2.55 | 398,371 | $ | 2.43 | 313,612 | $ | 3.02 | ||||||||||||||||
Granted | 115,000 | 3.18 | 102,445 | 3.19 | 164,241 | 2.73 | |||||||||||||||||||
Exercised | (10,700 | ) | 2.25 | (3,467 | ) | 1.81 | (1,500 | ) | 1.7 | ||||||||||||||||
Forfeited | (31,740 | ) | 3.08 | (10,000 | ) | 4.25 | (77,982 | ) | 5.47 | ||||||||||||||||
Outstanding at end of year | 559,909 | 2.66 | 487,349 | 2.55 | 398,371 | 2.43 | |||||||||||||||||||
Exercisable at end of year | 330,822 | 2.36 | 257,253 | 2.25 | 167,624 | 2.29 | |||||||||||||||||||
Weighted average fair value of options granted in current year | $ | 0.85 | $ | 0.83 | $ | 0.8 | |||||||||||||||||||
A total of 330,822 of the 559,909 options outstanding at December 31, 2014, are exercisable and have exercise prices between $1.53 and $5.22, with a weighted average exercise price of $2.36 and a weighted average remaining contractual life of 6.10 years. All of these options are exercisable. The remaining 229,087 options that are not yet exercisable have exercise prices between $2.57 and $3.23, with a weighted average exercise price of $3.09 and a weighted average remaining contractual life of 8.63 years. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following assumptions used for grants in 2014, 2013, and 2012. | |||||||||||||||||||||||||
YEAR ENDED DECEMBER 31 | |||||||||||||||||||||||||
BLACK-SCHOLES ASSUMPTION RANGES | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | 2.43 - 2.74 | % | 1.82 - 2.03 | % | 1.66 - 2.28 | % | |||||||||||||||||||
Expected lives in years | 10 | 10 | 10 | ||||||||||||||||||||||
Expected volatility | 28 - 29 | % | 30 - 32 | % | 33 - 36 | % | |||||||||||||||||||
Expected dividend rate | 1.25 - 1.30 | % | 1.3 | % | 0 | % |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | 19 | ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||||||||||||
The following table presents the changes in each component of accumulated other comprehensive loss, net of tax, for the periods ending December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||
YEAR ENDING DECEMBER 31, 2014 | YEAR ENDING DECEMBER 31, 2013 | ||||||||||||||||||||||||
Net | Defined | Total(1) | Net | Defined | Total(1) | ||||||||||||||||||||
Unrealized | Benefit | Unrealized | Benefit | ||||||||||||||||||||||
Gains and | Pension | Gains and | Pension | ||||||||||||||||||||||
Losses on | Items (1) | Losses on | Items (1) | ||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||
Securities AFS (1) | Securities AFS (1) | ||||||||||||||||||||||||
Beginning balance | $ | 1,043 | $ | (6,918 | ) | $ | (5,875 | ) | $ | 4,141 | $ | (9,520 | ) | $ | (5,379 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 917 | (2,354 | ) | (1,437 | ) | (2,963 | ) | 2,161 | (802 | ) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (117 | ) | 527 | 410 | (135 | ) | 441 | 306 | |||||||||||||||||
Net current period other comprehensive income (loss) | 800 | (1,827 | ) | (1,027 | ) | (3,098 | ) | 2,602 | (496 | ) | |||||||||||||||
Ending balance | $ | 1,843 | $ | (8,745 | ) | $ | (6,902 | ) | $ | 1,043 | $ | (6,918 | ) | $ | (5,875 | ) | |||||||||
-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 periods ending December 31, 2014 and 2013 (in thousands): | |||||||||||||||||||||||||
Amount reclassified from accumulated | |||||||||||||||||||||||||
other comprehensive loss (1) | |||||||||||||||||||||||||
Details about accumulated other | YEAR ENDING DECEMBER 31, | YEAR ENDING DECEMBER 31, | Affected line item in the statement | ||||||||||||||||||||||
comprehensive loss components | 2014 | 2013 | of operations | ||||||||||||||||||||||
Unrealized gains and losses on sale of securities | |||||||||||||||||||||||||
$ | (177 | ) | $ | (204 | ) | Net realized gains on investment securities | |||||||||||||||||||
60 | 69 | Provision for income taxes | |||||||||||||||||||||||
$ | (117 | ) | $ | (135 | ) | Net of tax | |||||||||||||||||||
Amortization of defined benefit items (2) | |||||||||||||||||||||||||
Recognized net actuarial loss | $ | 813 | $ | 683 | Salaries and employee benefits | ||||||||||||||||||||
Prior service cost | (14 | ) | (10 | ) | Salaries and employee benefits | ||||||||||||||||||||
Transition asset | - | (4 | ) | Salaries and employee benefits | |||||||||||||||||||||
799 | 669 | Pretax income | |||||||||||||||||||||||
(272 | ) | (228 | ) | Provision for income taxes | |||||||||||||||||||||
$ | 527 | $ | 441 | Net income | |||||||||||||||||||||
Total reclassifications for the period | $ | 410 | $ | 306 | Net income | ||||||||||||||||||||
-1 | Amounts in parentheses indicate credits. | ||||||||||||||||||||||||
-2 | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 14 for additional details). | ||||||||||||||||||||||||
INTANGIBLE_ASSETS
INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||
INTANGIBLE ASSETS | 20 | INTANGIBLE ASSETS | |||||||||||
The Company's Consolidated Balance Sheets show both tangible assets (such as loans, buildings, and investments) and intangible assets (such as goodwill). Goodwill has an indefinite life and is not amortized. Instead such intangible is evaluated for impairment at the reporting unit level at least annually. Any resulting impairment would be reflected as a non-interest expense. Of the Company's goodwill of $11.9 million, $9.5 million is allocated to the retail banking segment and $2.4 million relates to the WCCA acquisition which is included in the trust segment. In the third quarter of 2014, the Company performed a goodwill impairment test and determined that the fair value of WCCA was less than its carrying value and, accordingly, recorded an impairment charge of $669,000. The goodwill impairment charge was the result of a reduction in earnings power caused by the departure of WCCA's former CEO and subsequent loss of a meaningful number of clients. A reconciliation of the Company's goodwill follows (in thousands): | |||||||||||||
2014 | 2013 | ||||||||||||
Balance at January 1 | $ | 12,613 | $ | 12,613 | |||||||||
Goodwill impairment charge | (669 | ) | - | ||||||||||
Balance at December 31 | $ | 11,944 | $ | 12,613 |
DERIVATIVE_HEDGING_INSTRUMENTS
DERIVATIVE HEDGING INSTRUMENTS | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
DERIVATIVE HEDGING INSTRUMENTS [Abstract] | |||||||||||||||||||||||
DERIVATIVE HEDGING INSTRUMENTS | 21 | 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. | |||||||||||||||||||||||
The following table summarizes the interest rate swap transactions that impacted the Company's 2013 performance: | |||||||||||||||||||||||
START DATE | MATURITY | HEDGE TYPE | NOTIONAL | RATE | RATE | REPRICING | INCREASE | ||||||||||||||||
DATE | AMOUNT | RECEIVED | PAID | FREQUENCY | (DECREASE) IN | ||||||||||||||||||
INTEREST | |||||||||||||||||||||||
EXPENSE | |||||||||||||||||||||||
12/12/08 | 9/24/13 | FAIR VALUE | $ | 9,000,000 | 5.25 | % | 2.73 | % | MONTHLY | $ | 165,488 | ||||||||||||
12/12/08 | 9/24/13 | FAIR VALUE | 9,000,000 | 2.73 | 5.25 | MONTHLY | (165,488 | ) | |||||||||||||||
$ | — | ||||||||||||||||||||||
The Company monitors and controls all derivative products with a comprehensive Board of Director 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. |
SEGMENT_RESULTS
SEGMENT RESULTS | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SEGMENT RESULTS [Abstract] | |||||||||||||||||
SEGMENT RESULTS | 22 | 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, trust, 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, and CRE loans. The trust segment contains our wealth management businesses which include the Trust Company, WCCA, our registered investment advisory firm and financial services. Wealth management includes 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 includes the union collective investment funds, namely the ERECT and BUILD 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 guaranteed junior subordinated deferrable interest debentures, and centralized interest rate risk management. Inter-segment revenues were not material. | |||||||||||||||||
The contribution of the major business segments to the Consolidated Results of Operations were as follows: | |||||||||||||||||
YEAR ENDED DECEMBER 31, 2014 | |||||||||||||||||
RETAIL BANKING | COMMERCIAL BANKING | TRUST | INVESTMENT/ PARENT | TOTAL | |||||||||||||
(IN THOUSANDS) | |||||||||||||||||
Net interest income | $ | 20,141 | $ | 16,777 | $ | 47 | $ | (2,921 | ) | $ | 34,044 | ||||||
Provision for loan loss | 57 | 318 | — | — | 375 | ||||||||||||
Non-interest income | 5,633 | 381 | 8,118 | 191 | 14,323 | ||||||||||||
Non-interest expense | 22,531 | 10,868 | 6,967 | 3,005 | 43,371 | ||||||||||||
Income (loss) before income taxes | 3,186 | 5,972 | 1,198 | (5,735 | ) | 4,621 | |||||||||||
Income tax expense (benefit) | 958 | 1,819 | 634 | (1,813 | ) | 1,598 | |||||||||||
Net income (loss) | $ | 2,228 | $ | 4,153 | $ | 564 | $ | (3,922 | ) | $ | 3,023 | ||||||
Total assets | $ | 376,009 | $ | 563,690 | $ | 5,015 | $ | 144,549 | $ | 1,089,263 | |||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
RETAIL BANKING | COMMERCIAL BANKING | TRUST | INVESTMENT/ PARENT | TOTAL | |||||||||||||
(IN THOUSANDS) | |||||||||||||||||
Net interest income | $ | 20,223 | $ | 15,687 | $ | 35 | $ | (3,084 | ) | $ | 32,861 | ||||||
Credit provision for loan loss | (92 | ) | (1,008 | ) | — | — | (1,100 | ) | |||||||||
Non-interest income | 6,512 | 642 | 8,391 | 199 | 15,744 | ||||||||||||
Non-interest expense | 22,870 | 10,148 | 6,605 | 2,600 | 42,223 | ||||||||||||
Income (loss) before income taxes | 3,957 | 7,189 | 1,821 | (5,485 | ) | 7,482 | |||||||||||
Income tax expense (benefit) | 1,165 | 2,166 | 619 | (1,661 | ) | 2,289 | |||||||||||
Net income (loss) | $ | 2,792 | $ | 5,023 | $ | 1,202 | $ | (3,824 | ) | $ | 5,193 | ||||||
Total assets | $ | 347,823 | $ | 545,556 | $ | 4,722 | $ | 157,935 | $ | 1,056,036 | |||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
RETAIL BANKING | COMMERCIAL BANKING | TRUST | INVESTMENT/PARENT | TOTAL | |||||||||||||
(IN THOUSANDS) | |||||||||||||||||
Net interest income | $ | 20,585 | $ | 14,499 | $ | 35 | $ | (2,916 | ) | $ | 32,203 | ||||||
Credit provision for loan loss | (160 | ) | (615 | ) | — | — | (775 | ) | |||||||||
Non-interest income | 6,565 | 585 | 7,784 | 9 | 14,943 | ||||||||||||
Non-interest expense | 22,802 | 8,970 | 6,387 | 2,482 | 40,641 | ||||||||||||
Income (loss) before income taxes | 4,508 | 6,729 | 1,432 | (5,389 | ) | 7,280 | |||||||||||
Income tax expense (benefit) | 1,358 | 2,044 | 487 | (1,648 | ) | 2,241 | |||||||||||
Net income (loss) | $ | 3,150 | $ | 4,685 | $ | 945 | $ | (3,741 | ) | $ | 5,039 | ||||||
Total assets | $ | 336,241 | $ | 497,331 | $ | 4,429 | $ | 162,990 | $ | 1,000,991 |
REGULATORY_CAPITAL
REGULATORY CAPITAL | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
REGULATORY CAPITAL [Abstract] | |||||||||||||||||||||||||
REGULATORY CAPITAL | 23 | 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 financial statements. | |||||||||||||||||||||||||
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 I capital to risk-weighted assets, and of Tier I capital to average assets. As of December 31, 2014 and 2013, the Federal Reserve categorized the Company as Well Capitalized under the regulatory framework for prompt corrective action. The Company believes that no conditions or events have occurred that would change this conclusion. To be categorized as well capitalized, the Company must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. Additionally, while not a regulatory capital ratio, the Company's tangible common equity ratio was 7.56% and 7.64% for 2014 and 2013, respectively. | |||||||||||||||||||||||||
AS OF DECEMBER 31, 2014 | |||||||||||||||||||||||||
FOR CAPITAL | TO BE WELL | ||||||||||||||||||||||||
ADEQUACY | CAPITALIZED UNDER | ||||||||||||||||||||||||
PURPOSES | PROMPT CORRECTIVE | ||||||||||||||||||||||||
ACTUAL | ACTION PROVISIONS | ||||||||||||||||||||||||
AMOUNT | RATIO | AMOUNT | RATIO | AMOUNT | RATIO | ||||||||||||||||||||
(IN THOUSANDS, EXCEPT RATIOS) | |||||||||||||||||||||||||
Total Capital (To Risk Weighted Assets) Consolidated | $ | 131,497 | 14.8 | % | $ | 71,066 | 8 | % | $ | 88,833 | 10 | % | |||||||||||||
AmeriServ Financial Bank | 106,084 | 12.07 | 70,305 | 8 | 87,881 | 10 | |||||||||||||||||||
Tier 1 Capital (To Risk Weighted Assets) Consolidated | 120,992 | 13.62 | 35,533 | 4 | 53,300 | 6 | |||||||||||||||||||
AmeriServ Financial Bank | 95,579 | 10.88 | 35,153 | 4 | 52,729 | 6 | |||||||||||||||||||
Tier 1 Capital (To Average Assets) Consolidated | 120,992 | 11.34 | 42,662 | 4 | 53,327 | 5 | |||||||||||||||||||
AmeriServ Financial Bank | 95,579 | 9.19 | 41,608 | 4 | 52,010 | 5 | |||||||||||||||||||
AS OF DECEMBER 31, 2013 | |||||||||||||||||||||||||
FOR CAPITAL | TO BE WELL | ||||||||||||||||||||||||
ADEQUACY | CAPITALIZED UNDER | ||||||||||||||||||||||||
PURPOSES | PROMPT CORRECTIVE | ||||||||||||||||||||||||
ACTUAL | ACTION PROVISIONS | ||||||||||||||||||||||||
AMOUNT | RATIO | AMOUNT | RATIO | AMOUNT | RATIO | ||||||||||||||||||||
(IN THOUSANDS, EXCEPT RATIOS) | |||||||||||||||||||||||||
Total Capital (To Risk Weighted Assets) Consolidated | $ | 128,469 | 15.28 | % | $ | 67,247 | 8 | % | $ | 84,059 | 10 | % | |||||||||||||
AmeriServ Financial Bank | 103,009 | 12.39 | 66,506 | 8 | 83,132 | 10 | |||||||||||||||||||
Tier 1 Capital (To Risk Weighted Assets) Consolidated | 117,957 | 14.03 | 33,624 | 4 | 50,435 | 6 | |||||||||||||||||||
AmeriServ Financial Bank | 92,611 | 11.14 | 33,253 | 4 | 49,879 | 6 | |||||||||||||||||||
Tier 1 Capital (To Average Assets) Consolidated | 117,957 | 11.45 | 41,204 | 4 | 51,505 | 5 | |||||||||||||||||||
AmeriServ Financial Bank | 92,611 | 9.23 | 40,124 | 4 | 50,155 | 5 | |||||||||||||||||||
On July 2, 2013, the Federal Reserve approved final rules that substantially amend the regulatory risk-based capital rules applicable to the Company and the Bank. The final rules implement the “Basel III” regulatory capital reforms, as well as certain changes required by the Dodd-Frank Act, which will require institutions to, among other things, have more capital and a higher quality of capital by increasing the minimum regulatory capital ratios, and requiring capital buffers. The new rules become effective for the Company on January 1, 2015, with an implementation period that stretches to 2019. For a more detailed discussion see the Capital Resources section of the MD&A. |
PARENT_COMPANY_FINANCIAL_INFOR
PARENT COMPANY FINANCIAL INFORMATION | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION | 24 | PARENT COMPANY FINANCIAL INFORMATION | |||||||||||
The parent company functions primarily as a coordinating and servicing unit for all subsidiary entities. Provided services include general management, accounting and taxes, loan review, internal auditing, investment advisory, marketing, insurance risk management, general corporate services, and financial and strategic planning. The following financial information relates only to the parent company operations: | |||||||||||||
BALANCE SHEETS | |||||||||||||
AT DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
ASSETS | |||||||||||||
Cash | $ | 100 | $ | 100 | |||||||||
Short-term investments in money market funds | 5,784 | 6,561 | |||||||||||
Investment securities available for sale | 11,714 | 11,909 | |||||||||||
Equity investment in banking subsidiary | 100,473 | 99,250 | |||||||||||
Equity investment in non-banking subsidiaries | 5,685 | 5,321 | |||||||||||
Guaranteed junior subordinated deferrable interest debenture issuance costs | 209 | 224 | |||||||||||
Other assets | 4,698 | 4,352 | |||||||||||
TOTAL ASSETS | $ | 128,663 | $ | 127,717 | |||||||||
LIABILITIES | |||||||||||||
Guaranteed junior subordinated deferrable interest debentures | $ | 13,085 | $ | 13,085 | |||||||||
Other liabilities | 1,171 | 1,325 | |||||||||||
TOTAL LIABILITIES | 14,256 | 14,410 | |||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||
Total stockholders' equity | 114,407 | 113,307 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 128,663 | $ | 127,717 | |||||||||
STATEMENTS OF OPERATIONS | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
INCOME | |||||||||||||
Inter-entity management and other fees | $ | 2,432 | $ | 2,355 | $ | 2,355 | |||||||
Dividends from banking subsidiary | 1,500 | 5,500 | 8,000 | ||||||||||
Dividends from non-banking subsidiaries | 870 | 675 | 710 | ||||||||||
Interest and dividend income | 262 | 243 | 306 | ||||||||||
TOTAL INCOME | 5,064 | 8,773 | 11,371 | ||||||||||
EXPENSE | |||||||||||||
Interest expense | 1,121 | 1,121 | 1,121 | ||||||||||
Salaries and employee benefits | 2,576 | 2,502 | 2,368 | ||||||||||
Other expense | 1,996 | 1,608 | 1,582 | ||||||||||
TOTAL EXPENSE | 5,693 | 5,231 | 5,071 | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | (629 | ) | 3,542 | 6,300 | |||||||||
Benefit for income taxes | 1,020 | 895 | 819 | ||||||||||
Equity in undistributed earnings of subsidiaries | 2,632 | 756 | (2,080 | ) | |||||||||
NET INCOME | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
COMPREHENSIVE INCOME | $ | 1,996 | $ | 4,697 | $ | 3,320 | |||||||
STATEMENTS OF CASH FLOWS | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
OPERATING ACTIVITIES | |||||||||||||
Net income | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
Adjustment to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||
Equity in undistributed earnings of subsidiaries | (2,632 | ) | (756 | ) | 2,080 | ||||||||
Stock compensation expense | 42 | 82 | 38 | ||||||||||
Other – net | (505 | ) | (718 | ) | (989 | ) | |||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (72 | ) | 3,801 | 6,168 | |||||||||
INVESTING ACTIVITIES | |||||||||||||
Purchase of investment securities – available for sale | (2,027 | ) | (3,885 | ) | (2,077 | ) | |||||||
Proceeds from maturity of investment securities – available for sale | 2,284 | 2,506 | 2,809 | ||||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 257 | (1,379 | ) | 732 | |||||||||
FINANCING ACTIVITIES | |||||||||||||
Purchase of treasury stock | - | (1,171 | ) | (4,417 | ) | ||||||||
Preferred stock dividends paid | (210 | ) | (209 | ) | (828 | ) | |||||||
Common stock dividends paid | (752 | ) | (566 | ) | - | ||||||||
NET CASH USED IN FINANCING ACTIVITIES | (962 | ) | (1,946 | ) | (5,245 | ) | |||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (777 | ) | 476 | 1,655 | |||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 6,661 | 6,185 | 4,530 | ||||||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $ | 5,884 | $ | 6,661 | $ | 6,185 | |||||||
The ability of the subsidiary Bank to upstream cash to the parent company is restricted by regulations. Federal law prevents the parent company from borrowing from its subsidiary Bank unless the loans are secured by specified assets. Further, such secured loans are limited in amount to ten percent of the subsidiary Bank's capital and surplus. In addition, the Bank is subject to legal limitations on the amount of dividends that can be paid to its shareholder. The dividend limitation generally restricts dividend payments to a bank's retained net income for the current and preceding two calendar years. Cash may also be upstreamed to the parent company by the subsidiaries as an inter-entity management fee. The subsidiary Bank had a combined $105,400,000 of restricted surplus and retained earnings at December 31, 2014. |
SELECTED_QUARTERLY_CONSOLIDATE
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA [Abstract] | |||||||||||||||||
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA | 25 | SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (unaudited) | |||||||||||||||
The following table sets forth certain unaudited quarterly consolidated financial data regarding the Company: | |||||||||||||||||
2014 QUARTER ENDED | |||||||||||||||||
DEC. 31 | SEPT. 30 | 30-Jun | 31-Mar | ||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||||||
Interest income | $ | 10,344 | $ | 10,019 | $ | 9,983 | $ | 10,095 | |||||||||
Interest expense | 1,612 | 1,616 | 1,599 | 1,570 | |||||||||||||
Net interest income | 8,732 | 8,403 | 8,384 | 8,525 | |||||||||||||
Provision for loan losses | 375 | - | - | - | |||||||||||||
Net interest income after provision for loan losses | 8,357 | 8,403 | 8,384 | 8,525 | |||||||||||||
Non-interest income | 3,560 | 3,593 | 3,638 | 3,532 | |||||||||||||
Non-interest expense | 10,770 | 11,243 | 10,620 | 10,738 | |||||||||||||
Income before income taxes | 1,147 | 753 | 1,402 | 1,319 | |||||||||||||
Provision for income taxes | 398 | 388 | 423 | 389 | |||||||||||||
Net income | $ | 749 | $ | 365 | $ | 979 | $ | 930 | |||||||||
Basic earnings per common share | $ | 0.04 | $ | 0.02 | $ | 0.05 | $ | 0.05 | |||||||||
Diluted earnings per common share | 0.04 | 0.02 | 0.05 | 0.05 | |||||||||||||
Cash dividends declared per common share | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||
2013 QUARTER ENDED | |||||||||||||||||
DEC. 31 | SEPT. 30 | 30-Jun | 31-Mar | ||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||||||
Interest income | $ | 10,203 | $ | 9,811 | $ | 9,627 | $ | 9,702 | |||||||||
Interest expense | 1,605 | 1,611 | 1,606 | 1,660 | |||||||||||||
Net interest income | 8,598 | 8,200 | 8,021 | 8,042 | |||||||||||||
Provision (credit) for loan losses | (1,000 | ) | - | 150 | (250 | ) | |||||||||||
Net interest income after provision (credit) for loan losses | 9,598 | 8,200 | 7,871 | 8,292 | |||||||||||||
Non-interest income | 3,867 | 3,986 | 4,075 | 3,816 | |||||||||||||
Non-interest expense | 10,746 | 10,413 | 10,442 | 10,622 | |||||||||||||
Income before income taxes | 2,719 | 1,773 | 1,504 | 1,486 | |||||||||||||
Provision for income taxes | 878 | 547 | 434 | 430 | |||||||||||||
Net income | $ | 1,841 | $ | 1,226 | $ | 1,070 | $ | 1,056 | |||||||||
Basic earnings per common share | $ | 0.1 | $ | 0.06 | $ | 0.05 | $ | 0.05 | |||||||||
Diluted earnings per common share | 0.09 | 0.06 | 0.05 | 0.05 | |||||||||||||
Cash dividends declared per common share | 0.01 | 0.01 | 0.01 | 0 | |||||||||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policy) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
BUSINESS AND NATURE OF OPERATIONS | BUSINESS AND NATURE OF OPERATIONS: | ||||||||||||
AmeriServ Financial, Inc. (the Company) is a bank holding company, headquartered in Johnstown, Pennsylvania. Through its banking subsidiary the Company operates 17 banking locations in five southwestern Pennsylvania counties. These branches provide a full range of consumer, mortgage, and commercial financial products. The AmeriServ Trust and Financial Services Company (Trust Company) offers a complete range of trust and financial services and administers assets valued at approximately $1.8 billion that are not recognized on the Company's Consolidated Balance Sheet at December 31, 2014. | |||||||||||||
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION: | ||||||||||||
The consolidated financial statements include the accounts of AmeriServ Financial, Inc. and its wholly-owned subsidiaries, AmeriServ Financial Bank (the Bank), Trust Company, and AmeriServ Life Insurance Company (AmeriServ Life). The Bank is a state-chartered full service bank with 17 locations in Pennsylvania. AmeriServ Life is a captive insurance company that engages in underwriting as a reinsurer of credit life and disability insurance. | |||||||||||||
Intercompany accounts and transactions have been eliminated in preparing the Consolidated Financial Statements. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (generally accepted accounting principles, or GAAP) requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and accompanying notes. Actual results may differ from these estimates and the differences may be material to the Consolidated Financial Statements. The Company's most significant estimates relate to the allowance for loan losses, goodwill, income taxes, investment securities, pension, and the fair value of financial instruments. | |||||||||||||
INVESTMENT SECURITIES | INVESTMENT SECURITIES: | ||||||||||||
Securities are classified at the time of purchase as investment securities held to maturity if it is management's intent and the Company has the ability to hold the securities until maturity. These held to maturity securities are carried on the Company's books at cost, adjusted for amortization of premium and accretion of discount which is computed using the level yield method which approximates the effective interest method. Alternatively, securities are classified as available for sale if it is management's intent at the time of purchase to hold the securities for an indefinite period of time and/or to use the securities as part of the Company's asset/liability management strategy. Securities classified as available for sale include securities which may be sold to effectively manage interest rate risk exposure, prepayment risk, and other factors (such as liquidity requirements). These available for sale securities are reported at fair value with unrealized aggregate appreciation/depreciation excluded from income and credited/charged to accumulated other comprehensive income/loss within stockholders' equity on a net of tax basis. Any securities classified as trading assets are reported at fair value with unrealized aggregate appreciation/depreciation included in income on a net of tax basis. The Company does not engage in trading activity. | |||||||||||||
Realized gains or losses on securities sold are computed upon the adjusted cost of the specific securities sold. Available-for-sale and held-to-maturity securities are reviewed quarterly for possible other-than-temporary impairment. The review includes an analysis of the facts and circumstances of each individual investment such as the severity of loss, the length of time the fair value has been below cost, the expectation for that security's performance, the creditworthiness of the issuer and the Company's intent and ability to hold the security to recovery. The Company believes 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. 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. | |||||||||||||
FEDERAL HOME LOAN BANK STOCK | FEDERAL HOME LOAN BANK STOCK: | ||||||||||||
The Bank is a member of the Federal Home Loan Bank of Pittsburgh (FHLB) and as such, is required to maintain a minimum investment in stock of the FHLB that varies with the level of advances outstanding with the FHLB. The stock is bought from and sold to the FHLB based upon its $100 par value. The stock does not have a readily determinable fair value and as such is classified as restricted stock, carried at cost and evaluated for by management. The stock's value is determined by the ultimate recoverability of the par value rather than by recognizing temporary declines. The determination of whether the par value will ultimately be recovered is influenced by criteria such as the following: (a) The significance of the decline in net assets of the FHLB as compared to the capital stock amount and the length of time any such situation has persisted (b) Commitments by the FHLB to make payments required by law or regulation and the level of such payments in relation to the operating performance (c) The impact of legislative and regulatory changes on the customer base of FHLB and (d) The liquidity position of the FHLB. Management evaluated the stock and concluded that the stock was not impaired for the periods presented herein. | |||||||||||||
LOANS | LOANS: | ||||||||||||
Interest income is recognized using the level yield method related to principal amounts outstanding. The Company discontinues the accrual of interest income when loans become 90 days past due in either principal or interest. In addition, if circumstances warrant, the accrual of interest may be discontinued prior to 90 days. Payments received on non-accrual loans are credited to principal until full recovery of principal has been recognized; or the loan has been returned to accrual status. The only exception to this policy is for residential mortgage loans wherein interest income is recognized on a cash basis as payments are received. A non-accrual commercial loan is placed on accrual status after becoming current and remaining current for twelve consecutive payments. Residential mortgage loans are placed on accrual status upon becoming current. | |||||||||||||
LOAN FEES | LOAN FEES: | ||||||||||||
Loan origination and commitment fees, net of associated direct costs, are deferred and amortized into interest and fees on loans over the loan or commitment period. Fee amortization is determined by the effective interest method. | |||||||||||||
LOANS HELD FOR SALE | LOANS HELD FOR SALE: | ||||||||||||
Certain newly originated fixed-rate residential mortgage loans are classified as held for sale, because it is management's intent to sell these residential mortgage loans. The residential mortgage loans held for sale are carried at the lower of aggregate cost or market value. | |||||||||||||
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS | ||||||||||||
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company; (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets; and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. | |||||||||||||
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT: | ||||||||||||
Premises and equipment are stated at cost less accumulated depreciation and amortization. Land is carried at cost. Depreciation is charged to operations over the estimated useful lives of the premises and equipment using the straight-line method with a half-year convention. Useful lives of up to 30 years for buildings and up to 10 years for equipment are utilized. Leasehold improvements are amortized using the straight-line method over the terms of the respective leases or useful lives of the improvements, whichever is shorter. Maintenance, repairs, and minor alterations are charged to current operations as expenditures are incurred. | |||||||||||||
ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES | ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: | ||||||||||||
As a financial institution, which assumes lending and credit risks as a principal element of its business, the Company anticipates that credit losses will be experienced in the normal course of business. Accordingly, the Company consistently applies a comprehensive methodology and procedural discipline to perform an analysis which is updated on a quarterly basis at the Bank level to determine both the adequacy of the allowance for loan losses and the necessary provision for loan losses to be charged against earnings. This methodology includes: | |||||||||||||
- | Review of all criticized, classified and impaired loans with aggregate balances over $250,000 to determine if any specific reserve allocations are required on an individual loan basis. The specific reserve allocations established for these criticized, classified and impaired loans are based on careful analysis of the loan's performance, the related collateral value, cash flow considerations and the financial capability of any guarantor. All loans classified as doubtful or worse are specifically reserved. For impaired loans the measurement of impairment may be based upon: 1) the present value of expected future cash flows discounted at the loan's effective interest rate; 2) the observable market price of the impaired loan; or 3) the fair value of the collateral of a collateral dependent loan. | ||||||||||||
- | The application of formula driven reserve allocations for all commercial and commercial real-estate loans by using a three-year migration analysis of net losses incurred within each risk grade for the entire commercial loan portfolio. The difference between estimated and actual losses is reconciled through the nature of the migration analysis. | ||||||||||||
- | The application of formula driven reserve allocations to consumer and residential mortgage loans which are based upon historical net charge-off experience for those loan types. The residential mortgage loan and consumer loan allocations are based upon the Company's three-year historical average of actual loan net charge-offs experienced in each of those categories. | ||||||||||||
- | The application of formula driven reserve allocations to all outstanding loans is based upon review of historical losses and qualitative factors, which include but are not limited to, economic trends, delinquencies, levels of non-accrual and TDR loans, 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. | ||||||||||||
- | Management recognizes that there may be events or economic factors that have occurred affecting specific borrowers or segments of borrowers that may not yet be fully reflected in the information that the Company uses for arriving at reserves for a specific loan or portfolio segment. Therefore, the Company believes that there is estimation risk associated with the use of specific and formula driven allowances. | ||||||||||||
After completion of this process, a formal meeting of the Loan Loss Reserve Committee is held to evaluate the adequacy of the reserve. | |||||||||||||
When it is determined that the prospects for recovery of the principal of a loan have significantly diminished, the loan is charged against the allowance account; subsequent recoveries, if any, are credited to the allowance account. In addition, non-accrual and large delinquent loans are reviewed monthly to determine potential losses. | |||||||||||||
The Company's policy is to individually review, as circumstances warrant, its commercial and commercial mortgage loans to determine if a loan is impaired. At a minimum, credit reviews are mandatory for all commercial and commercial mortgage loan relationships with aggregate balances in excess of $250,000 within a 12-month period. The Company defines classified loans as those loans rated substandard or doubtful. The Company has also identified three pools of small dollar value homogeneous loans which are evaluated collectively for impairment. These separate pools are for small business relationships with aggregate balances of $250,000 or less, residential mortgage loans and consumer loans. Individual loans within these pools are reviewed and evaluated for specific impairment if factors such as significant delinquency in payments of 90 days or more, bankruptcy, or other negative economic concerns indicate impairment. | |||||||||||||
ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT | ALLOWANCE FOR UNFUNDED LOAN COMMITMENTS AND LETTERS OF CREDIT: | ||||||||||||
The allowance for unfunded loan commitments and letters of credit is maintained at a level believed by management to be sufficient to absorb estimated losses related to these unfunded credit facilities. The determination of the adequacy of the allowance is based on periodic evaluations of the unfunded credit facilities including an assessment of the probability of commitment usage, credit risk factors for loans outstanding to these same customers and the terms and expiration dates of the unfunded credit facilities. Net adjustments to the allowance for unfunded loan commitments and letters of credit are provided for in the unfunded commitment reserve expense line item within other expense in the Consolidated Statements of Operations and a separate reserve is recorded within the other liabilities section of the Consolidated Balance Sheets. | |||||||||||||
TRUST FEES | TRUST FEES: | ||||||||||||
Trust fees are recorded on the cash basis which approximates the accrual basis for such income. | |||||||||||||
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE: | ||||||||||||
The Company has purchased life insurance policies on certain employees. These policies are recorded on the Consolidated Balance Sheets at their cash surrender value, or the amount that can be realized. Income from these policies and changes in the cash surrender value are recorded in bank owned life insurance within non-interest income. | |||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS: | ||||||||||||
Goodwill | |||||||||||||
Goodwill arising from business combinations represents the value attributable to unidentifiable intangible elements in the business acquired. The Company accounts for goodwill using a two-step process for testing the impairment of goodwill on at least an annual basis. This approach could cause more volatility in the Company's reported net income because impairment losses, if any, could occur irregularly and in varying amounts. The Company performs an impairment analysis of goodwill at least annually. | |||||||||||||
EARNINGS PER COMMON SHARE | 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 treated as retired for earnings per share purposes. Options to purchase 3,625, 103,570, and 49,842 shares of common stock were outstanding during 2014, 2013 and 2012, respectively, but were not included in the computation of diluted earnings per common share because to do so would be anti-dilutive. Exercise prices of anti-dilutive options to purchase common stock outstanding were $4.60 - $5.22, $3.05 - $5.75, and $2.80 - $5.75 during 2014, 2013 and 2012, respectively. Dividends on preferred shares are deducted from net income in the calculation of earnings per common share. | |||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
Preferred stock dividends | 210 | 209 | 828 | ||||||||||
Net income available to common shareholders | $ | 2,813 | $ | 4,984 | $ | 4,211 | |||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding (basic) | 18,793 | 18,942 | 19,685 | ||||||||||
Effect of stock options | 115 | 92 | 62 | ||||||||||
Weighted average common shares outstanding (diluted) | 18,908 | 19,034 | 19,747 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.15 | $ | 0.26 | $ | 0.21 | |||||||
Diluted | 0.15 | 0.26 | 0.21 | ||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION: | ||||||||||||
The Company uses the modified prospective method for accounting of stock-based compensation. The Company recognized $42,000, $82,000 and $38,000 of pretax compensation expense for the years 2014, 2013 and 2012. The fair value of each option grant is estimated on the grant date using the Black-Scholes option pricing model. See Note 18 for details on the assumptions used. | |||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS: | ||||||||||||
The Company presents the components of other comprehensive income (loss) in the Consolidated Statements of Comprehensive Income. These components are comprised of the change in the defined benefit pension obligation and the unrealized holding gains (losses) on available for sale securities, net of any reclassification adjustments for realized gains and losses. | |||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS | 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. The Company made $1,063,000 in income tax payments in 2014; $137,000 in 2013; and $142,000 in 2012. The Company had non-cash transfers to other real estate owned (OREO) in the amounts of $660,000 in 2014; $766,000 in 2013; and $1,266,000 in 2012. The Company made total interest payments of $6,475,000 in 2014; $6,781,000 in 2013; and $8,154,000 in 2012. | |||||||||||||
INCOME TAXES | INCOME TAXES: | ||||||||||||
Deferred tax assets or liabilities are computed based on the difference between the financial statement and income tax basis of assets and liabilities using the enacted marginal tax rate. Deferred income tax expenses or credits are based on the changes in the corresponding asset or liability from period to period. Deferred tax assets are reduced, if necessary, by the amounts of such benefits that are not expected to be realized based upon available evidence. | |||||||||||||
INTEREST RATE CONTRACTS | INTEREST RATE CONTRACTS: | ||||||||||||
The Company recognizes all derivatives as either assets or liabilities on the Consolidated Balance Sheets and measures those instruments at fair value. For derivatives designated as fair value hedges, changes in the fair value of the derivative and hedged item related to the hedged risk are recognized in earnings. Changes in fair value of derivatives designated and accounted as cash flow hedges, to the extent they are effective as hedges, are recorded in “Other Comprehensive Income,” net of deferred taxes and are subsequently reclassified to earnings when the hedged transaction affects earnings. Any hedge ineffectiveness would be recognized in the income statement line item pertaining to the hedged item. | |||||||||||||
The Company periodically enters into derivative instruments to meet the financing, interest rate and equity risk management needs of its customers. Upon entering into these instruments to meet customer needs, the Company enters into offsetting positions to minimize interest rate and equity risk to the Company. These derivative financial instruments are reported at fair value with any resulting gain or loss recorded in current period earnings. These instruments and their offsetting positions are recorded in other assets and other liabilities on the Consolidated Balance Sheets. | |||||||||||||
PENSION: | PENSION: | ||||||||||||
Pension costs and liabilities are dependent on assumptions used in calculating such amounts. These assumptions include discount rates, benefits earned, interest costs, expected return on plan assets, mortality rates, and other factors. In accordance with GAAP, actual results that differ from the assumptions are accumulated and amortized over future periods and, therefore, generally affect recognized expense and the recorded obligation of future periods. While management believes that the assumptions used are appropriate, differences in actual experience or changes in assumptions may affect the Company's pension obligations and future expense. Our pension benefits are described further in Note 12 of the Notes to Consolidated Financial Statements. | |||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS: | FAIR VALUE OF FINANCIAL INSTRUMENTS: | ||||||||||||
We group our assets at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are: | |||||||||||||
Level I — Valuation is based upon quoted prices for identical instruments traded in active markets. | |||||||||||||
Level II — Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. | |||||||||||||
Level III — Valuation is generated from model-based techniques that use significant assumptions not observable in the market. These unobservable assumptions reflect the Company's own estimates of assumptions that market participants would use in pricing the asset. | |||||||||||||
We base our fair values on the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. It is our policy to maximize the use of observable inputs and minimize the use of unobservable inputs when developing fair value measurements, in accordance with the fair value hierarchy in generally accepted accounting principles. | |||||||||||||
Fair value measurements for most of our assets are obtained from independent pricing services that we have engaged for this purpose. When available, we, or our independent pricing service, use quoted market prices to measure fair value. If market prices are not available, fair value measurement is based upon models that incorporate available trade, bid, and other market information. Subsequently, all of our financial instruments use either of the foregoing methodologies to determine fair value adjustments recorded to our financial statements. In certain cases, however, when market observable inputs for model-based valuation techniques may not be readily available, we are required to make judgments about assumptions market participants would use in estimating the fair value of financial instruments. The degree of management judgment involved in determining the fair value of a financial instrument is dependent upon the availability of quoted market prices or observable market parameters. For financial instruments that trade actively and have quoted market prices or observable market parameters, there is minimal subjectivity involved in measuring fair value. When observable market prices and parameters are not fully available, management judgment is necessary to estimate fair value. In addition, changes in the market conditions may reduce the availability of quoted prices or observable data. When market data is not available, we use valuation techniques requiring more management judgment to estimate the appropriate fair value measurement. Therefore, the results cannot be determined with precision and may not be realized in an actual sale or immediate settlement of the asset. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, that could significantly affect the results of current or future valuations. | |||||||||||||
RECENT ACCOUNTING STANDARDS | RECENT ACCOUNTING STANDARDS: | ||||||||||||
In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This ASU is not expected to have a significant impact on the Company's financial statements. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||
Earnings Per Share | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||
Numerator: | |||||||||||||
Net income | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
Preferred stock dividends | 210 | 209 | 828 | ||||||||||
Net income available to common shareholders | $ | 2,813 | $ | 4,984 | $ | 4,211 | |||||||
Denominator: | |||||||||||||
Weighted average common shares outstanding (basic) | 18,793 | 18,942 | 19,685 | ||||||||||
Effect of stock options | 115 | 92 | 62 | ||||||||||
Weighted average common shares outstanding (diluted) | 18,908 | 19,034 | 19,747 | ||||||||||
Earnings per common share: | |||||||||||||
Basic | $ | 0.15 | $ | 0.26 | $ | 0.21 | |||||||
Diluted | 0.15 | 0.26 | 0.21 |
INVESTMENT_SECURITIES_Tables
INVESTMENT SECURITIES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
INVESTMENT SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||
Schedule of Cost Basis and Fair Values of Investment Securities | Investment securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | ||||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | FAIR | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | VALUE | ||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 5,931 | $ | 21 | $ | (46 | ) | $ | 5,906 | ||||||||||||||||||||||||||||||||
Corporate bonds | 15,497 | 61 | (122 | ) | 15,436 | ||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 102,888 | 3,197 | (317 | ) | 105,768 | ||||||||||||||||||||||||||||||||||||
Total | $ | 124,316 | $ | 3,279 | $ | (485 | ) | $ | 127,110 | ||||||||||||||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | FAIR | |||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | |||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | $ | 12,481 | $ | 395 | $ | (50 | ) | $ | 12,826 | ||||||||||||||||||||||||||||||||
Taxable municipal | 3,364 | 74 | (24 | ) | 3,414 | ||||||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 3,995 | 6 | (28 | ) | 3,973 | ||||||||||||||||||||||||||||||||||||
Total | $ | 19,840 | $ | 475 | $ | (102 | ) | $ | 20,213 | ||||||||||||||||||||||||||||||||
Investment securities available for sale: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | FAIR | |||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | |||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 6,926 | $ | 35 | $ | (126 | ) | $ | 6,835 | ||||||||||||||||||||||||||||||||
Corporate bonds | 11,992 | 21 | (252 | ) | 11,761 | ||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 121,480 | 3,129 | (1,227 | ) | 123,382 | ||||||||||||||||||||||||||||||||||||
Total | $ | 140,398 | $ | 3,185 | $ | (1,605 | ) | $ | 141,978 | ||||||||||||||||||||||||||||||||
Investment securities held to maturity: | |||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||||||||||||||
GROSS | GROSS | FAIR | |||||||||||||||||||||||||||||||||||||||
COST | UNREALIZED | UNREALIZED | VALUE | ||||||||||||||||||||||||||||||||||||||
BASIS | GAINS | LOSSES | |||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | $ | 12,671 | $ | 289 | $ | (477 | ) | $ | 12,483 | ||||||||||||||||||||||||||||||||
Taxable municipal | 1,521 | — | (120 | ) | 1,401 | ||||||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 3,995 | — | (91 | ) | 3,904 | ||||||||||||||||||||||||||||||||||||
Total | $ | 18,187 | $ | 289 | $ | (688 | ) | $ | 17,788 | ||||||||||||||||||||||||||||||||
Schedule of Contractual Maturities of Securities | Investment securities available for sale: | ||||||||||||||||||||||||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||||||||||||||
U.S. | U.S. AGENCY | CORPORATE | TOTAL | ||||||||||||||||||||||||||||||||||||||
AGENCY | MORTGAGE- | BONDS | INVESTMENT | ||||||||||||||||||||||||||||||||||||||
BACKED SECURITIES | SECURITIES | ||||||||||||||||||||||||||||||||||||||||
AVAILABLE | |||||||||||||||||||||||||||||||||||||||||
FOR SALE | |||||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT YIELDS) | |||||||||||||||||||||||||||||||||||||||||
COST BASIS | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 1,000 | 2 | % | $ | — | — | % | $ | — | — | % | $ | 1,000 | 2 | % | |||||||||||||||||||||||||
After 1 year but within 5 years | 4,931 | 1.38 | 1,696 | 4.46 | 7,999 | 1.75 | 14,626 | 1.96 | |||||||||||||||||||||||||||||||||
After 5 years but within 10 years | — | — | 10,340 | 2.74 | 7,498 | 2.05 | 17,838 | 2.46 | |||||||||||||||||||||||||||||||||
After 10 years but within 15 years | — | — | 56,783 | 2.66 | — | — | 56,783 | 2.66 | |||||||||||||||||||||||||||||||||
Over 15 years | — | — | 34,069 | 2.56 | — | — | 34,069 | 2.56 | |||||||||||||||||||||||||||||||||
Total | $ | 5,931 | 1.48 | $ | 102,888 | 2.66 | $ | 15,497 | 1.9 | $ | 124,316 | 2.52 | |||||||||||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | 1,013 | $ | — | $ | — | $ | 1,013 | |||||||||||||||||||||||||||||||||
After 1 year but within 5 years | 4,893 | 1,791 | 7,991 | 14,675 | |||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | — | 10,671 | 7,445 | 18,116 | |||||||||||||||||||||||||||||||||||||
After 10 years but within15 years | — | 58,141 | — | 58,141 | |||||||||||||||||||||||||||||||||||||
Over 15 years | — | 35,165 | — | 35,165 | |||||||||||||||||||||||||||||||||||||
Total | $ | 5,906 | $ | 105,768 | $ | 15,436 | $ | 127,110 | |||||||||||||||||||||||||||||||||
Investment securities held to maturity: | AT DECEMBER 31, 2014 | ||||||||||||||||||||||||||||||||||||||||
U.S. AGENCY | CORPORATE | TOTAL | |||||||||||||||||||||||||||||||||||||||
MORTGAGE- | BONDS | INVESTMENT | |||||||||||||||||||||||||||||||||||||||
BACKED | AND | SECURITIES | |||||||||||||||||||||||||||||||||||||||
SECURITIES | OTHER | HELD TO | |||||||||||||||||||||||||||||||||||||||
MATURITY | |||||||||||||||||||||||||||||||||||||||||
(IN THOUSANDS, EXCEPT YIELDS) | |||||||||||||||||||||||||||||||||||||||||
COST BASIS | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | — | — | % | $ | 2,000 | 1.35 | % | $ | 2,000 | 1.35 | % | |||||||||||||||||||||||||||||
After 1 year but within 5 years | — | — | 1,000 | 1.67 | 1,000 | 1.67 | |||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 2,959 | 2.4 | 851 | 3.63 | 3,810 | 2.67 | |||||||||||||||||||||||||||||||||||
After 10 years but within15 years | — | — | 1,162 | 3.27 | 1,162 | 3.27 | |||||||||||||||||||||||||||||||||||
Over 15 years | 9,522 | 3.45 | 2,346 | 4.49 | 11,868 | 3.66 | |||||||||||||||||||||||||||||||||||
Total | $ | 12,481 | 3.2 | $ | 7,359 | 2.96 | $ | 19,840 | 3.11 | ||||||||||||||||||||||||||||||||
FAIR VALUE | |||||||||||||||||||||||||||||||||||||||||
Within 1 year | $ | — | $ | 1,991 | $ | 1,991 | |||||||||||||||||||||||||||||||||||
After 1 year but within 5 years | — | 981 | 981 | ||||||||||||||||||||||||||||||||||||||
After 5 years but within 10 years | 2,931 | 868 | 3,799 | ||||||||||||||||||||||||||||||||||||||
After 10 years but within15 years | — | 1,140 | 1,140 | ||||||||||||||||||||||||||||||||||||||
Over 15 years | 9,895 | 2,407 | 12,302 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 12,826 | $ | 7,387 | $ | 20,213 | |||||||||||||||||||||||||||||||||||
Schedule of Information Concerning Investments with Unrealized Losses | |||||||||||||||||||||||||||||||||||||||||
Total investment securities: | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||||||||||||||||||
FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | ||||||||||||||||||||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 996 | $ | (4 | ) | $ | 2,858 | $ | (42 | ) | $ | 3,854 | $ | (46 | ) | ||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 2,826 | (13 | ) | 20,408 | (354 | ) | 23,234 | (367 | ) | ||||||||||||||||||||||||||||||||
Taxable municipal | 150 | (1 | ) | 988 | (23 | ) | 1,138 | (24 | ) | ||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 2,960 | (43 | ) | 8,891 | (107 | ) | 11,851 | (150 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 6,932 | $ | (61 | ) | $ | 33,145 | $ | (526 | ) | $ | 40,077 | $ | (587 | ) | ||||||||||||||||||||||||||
The following tables present information concerning investments with unrealized losses as of December 31, 2013 (in thousands): | |||||||||||||||||||||||||||||||||||||||||
Total investment securities: | LESS THAN 12 MONTHS | 12 MONTHS OR LONGER | TOTAL | ||||||||||||||||||||||||||||||||||||||
FAIR | UNREALIZED | FAIR | UNREALIZED | FAIR | UNREALIZED | ||||||||||||||||||||||||||||||||||||
VALUE | LOSSES | VALUE | LOSSES | VALUE | LOSSES | ||||||||||||||||||||||||||||||||||||
U.S. Agency | $ | 3,812 | $ | (64 | ) | $ | 938 | $ | (62 | ) | $ | 4,750 | $ | (126 | ) | ||||||||||||||||||||||||||
U.S. Agency mortgage-backed securities | 52,163 | (1,701 | ) | 669 | (3 | ) | 52,832 | (1,704 | ) | ||||||||||||||||||||||||||||||||
Taxable municipal | 891 | (120 | ) | - | - | 891 | (120 | ) | |||||||||||||||||||||||||||||||||
Corporate bonds and other securities | 9,687 | (300 | ) | 2,957 | (43 | ) | 12,644 | (343 | ) | ||||||||||||||||||||||||||||||||
Total | $ | 66,553 | $ | (2,185 | ) | $ | 4,564 | $ | (108 | ) | $ | 71,117 | $ | (2,293 | ) | ||||||||||||||||||||||||||
LOANS_Tables
LOANS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
LOANS [Abstract] | |||||||||||||
Summary of Loan Portfolio | AT DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
Commercial | $ | 139,126 | $ | 120,102 | |||||||||
Commercial loans secured by real estate | 410,329 | 411,691 | |||||||||||
Real estate-mortgage | 258,616 | 235,689 | |||||||||||
Consumer | 19,009 | 15,864 | |||||||||||
Loans, net of unearned income | $ | 827,080 | $ | 783,346 |
ALLOWANCE_FOR_LOAN_LOSSES_Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||
ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||||||||||||||||||||||||||
Rollforward of the Allowance for Loan Losses by Portfolio Segment | BALANCE AT | CHARGE- | RECOVERIES | PROVISION | BALANCE AT | ||||||||||||||||||||||||
31-Dec-13 | OFFS | (CREDIT) | 31-Dec-14 | ||||||||||||||||||||||||||
Commercial | $ | 2,844 | $ | (172 | ) | $ | 141 | $ | 449 | $ | 3,262 | ||||||||||||||||||
Commercial loans secured by real estate | 4,885 | (708 | ) | 231 | (506 | ) | 3,902 | ||||||||||||||||||||||
Real estate- mortgage | 1,260 | (322 | ) | 71 | 301 | 1,310 | |||||||||||||||||||||||
Consumer | 136 | (121 | ) | 24 | 151 | 190 | |||||||||||||||||||||||
Allocation for general risk | 979 | - | - | (20 | ) | 959 | |||||||||||||||||||||||
Total | $ | 10,104 | $ | (1,323 | ) | $ | 467 | $ | 375 | $ | 9,623 | ||||||||||||||||||
BALANCE AT | CHARGE- | RECOVERIES | PROVISION | BALANCE AT | |||||||||||||||||||||||||
31-Dec-12 | OFFS | (CREDIT) | 31-Dec-13 | ||||||||||||||||||||||||||
Commercial | $ | 2,596 | $ | (50 | ) | $ | 80 | $ | 218 | $ | 2,844 | ||||||||||||||||||
Commercial loans secured by real estate | 7,796 | (1,777 | ) | 481 | (1,615 | ) | 4,885 | ||||||||||||||||||||||
Real estate- mortgage | 1,269 | (139 | ) | 122 | 8 | 1,260 | |||||||||||||||||||||||
Consumer | 150 | (154 | ) | 70 | 70 | 136 | |||||||||||||||||||||||
Allocation for general risk | 760 | - | - | 219 | 979 | ||||||||||||||||||||||||
Total | $ | 12,571 | $ | (2,120 | ) | $ | 753 | $ | (1,100 | ) | $ | 10,104 | |||||||||||||||||
BALANCE AT | CHARGE- | RECOVERIES | PROVISION | BALANCE AT | |||||||||||||||||||||||||
31-Dec-11 | OFFS | (CREDIT) | 31-Dec-12 | ||||||||||||||||||||||||||
Commercial | $ | 2,365 | $ | (345 | ) | $ | 138 | $ | 438 | $ | 2,596 | ||||||||||||||||||
Commercial loans secured by real estate | 9,400 | (796 | ) | 245 | (1,053 | ) | 7,796 | ||||||||||||||||||||||
Real estate- mortgage | 1,270 | (420 | ) | 54 | 365 | 1,269 | |||||||||||||||||||||||
Consumer | 174 | (200 | ) | 47 | 129 | 150 | |||||||||||||||||||||||
Allocation for general risk | 1,414 | - | - | (654 | ) | 760 | |||||||||||||||||||||||
Total | $ | 14,623 | $ | (1,761 | ) | $ | 484 | $ | (775 | ) | $ | 12,571 | |||||||||||||||||
Summary of Primary Segments of Loan Portfolio | AT DECEMBER 31, 2014 | ||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Loans: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL | ||||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | ESTATE- | |||||||||||||||||||||||||||
REAL ESTATE | MORTGAGE | ||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 989 | $ | — | $ | — | $ | 989 | |||||||||||||||||||
Collectively evaluated for impairment | 139,126 | 409,340 | 258,616 | 19,009 | 826,091 | ||||||||||||||||||||||||
Total loans | $ | 139,126 | $ | 410,329 | $ | 258,616 | $ | 19,009 | $ | 827,080 | |||||||||||||||||||
AT DECEMBER 31, 2014 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Allowance for loan losses: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL | ALLOCATION | |||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | ESTATE- | FOR GENERAL | ||||||||||||||||||||||||||
REAL ESTATE | MORTGAGE | RISK | |||||||||||||||||||||||||||
Specific reserve allocation | $ | — | $ | 520 | $ | — | $ | — | $ | — | $ | 520 | |||||||||||||||||
General reserve allocation | 3,262 | 3,382 | 1,310 | 190 | 959 | 9,103 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 3,262 | $ | 3,902 | $ | 1,310 | $ | 190 | $ | 959 | $ | 9,623 | |||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Loans: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL ESTATE- | ||||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | MORTGAGE | |||||||||||||||||||||||||||
REAL ESTATE | |||||||||||||||||||||||||||||
Individually evaluated for impairment | $ | — | $ | 3,005 | $ | — | $ | 61 | $ | 3,066 | |||||||||||||||||||
Collectively evaluated for impairment | 120,102 | 408,686 | 235,689 | 15,803 | 780,280 | ||||||||||||||||||||||||
Total loans | $ | 120,102 | $ | 411,691 | $ | 235,689 | $ | 15,864 | $ | 783,346 | |||||||||||||||||||
AT DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Allowance for loan losses: | COMMERCIAL | CONSUMER | TOTAL | ||||||||||||||||||||||||||
LOANS | REAL | ALLOCATION | |||||||||||||||||||||||||||
COMMERCIAL | SECURED BY | ESTATE- | FOR GENERAL | ||||||||||||||||||||||||||
REAL ESTATE | MORTGAGE | RISK | |||||||||||||||||||||||||||
Specific reserve allocation | $ | — | $ | 812 | $ | — | $ | 1 | $ | — | $ | 813 | |||||||||||||||||
General reserve allocation | 2,844 | 4,073 | 1,260 | 135 | 979 | 9,291 | |||||||||||||||||||||||
Total allowance for loan losses | $ | 2,844 | $ | 4,885 | $ | 1,260 | $ | 136 | $ | 979 | $ | 10,104 | |||||||||||||||||
Schedule of Impaired Loans by Class | 31-Dec-14 | ||||||||||||||||||||||||||||
IMPAIRED LOANS WITH | IMPAIRED | TOTAL IMPAIRED LOANS | |||||||||||||||||||||||||||
SPECIFIC ALLOWANCE | LOANS WITH | ||||||||||||||||||||||||||||
NO SPECIFIC | |||||||||||||||||||||||||||||
ALLOWANCE | |||||||||||||||||||||||||||||
UNPAID | |||||||||||||||||||||||||||||
RECORDED | RELATED | RECORDED | RECORDED | PRINCIPAL | |||||||||||||||||||||||||
INVESTMENT | ALLOWANCE | INVESTMENT | INVESTMENT | BALANCE | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial loans secured by real estate | $ | 989 | $ | 520 | $ | - | $ | 989 | $ | 1,069 | |||||||||||||||||||
Total impaired loans | $ | 989 | $ | 520 | $ | - | $ | 989 | $ | 1,069 | |||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
IMPAIRED | TOTAL IMPAIRED LOANS | ||||||||||||||||||||||||||||
IMPAIRED LOANS WITH | LOANS WITH | ||||||||||||||||||||||||||||
SPECIFIC ALLOWANCE | NO SPECIFIC | ||||||||||||||||||||||||||||
ALLOWANCE | |||||||||||||||||||||||||||||
UNPAID | |||||||||||||||||||||||||||||
RECORDED | RELATED | RECORDED | RECORDED | PRINCIPAL | |||||||||||||||||||||||||
INVESTMENT | ALLOWANCE | INVESTMENT | INVESTMENT | BALANCE | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial loans secured by real estate | $ | 3,005 | $ | 812 | $ | - | $ | 3,005 | $ | 3,118 | |||||||||||||||||||
Consumer | 61 | 1 | - | 61 | 61 | ||||||||||||||||||||||||
Total impaired loans | $ | 3,066 | $ | 813 | $ | - | $ | 3,066 | $ | 3,179 | |||||||||||||||||||
Average Recorded Investment in Impaired Loans and Related Interest Income Recognized | YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Average impaired balance: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | 13 | $ | 13 | |||||||||||||||||||||||
Commercial loans secured by real estate | 1,756 | 2,459 | 3,754 | ||||||||||||||||||||||||||
Consumer | — | 37 | 3 | ||||||||||||||||||||||||||
Average investment in impaired loans | $ | 1,756 | $ | 2,509 | $ | 3,770 | |||||||||||||||||||||||
Interest income recognized: | |||||||||||||||||||||||||||||
Commercial | $ | — | $ | — | $ | — | |||||||||||||||||||||||
Commercial loans secured by real estate | 12 | 11 | — | ||||||||||||||||||||||||||
Consumer | — | 3 | — | ||||||||||||||||||||||||||
Interest income recognized on a cash basis on impaired loans | $ | 12 | $ | 14 | $ | — | |||||||||||||||||||||||
Loan Portfolio Summarized by Categories | 31-Dec-14 | ||||||||||||||||||||||||||||
PASS | SPECIAL | SUBSTANDARD | DOUBTFUL | TOTAL | |||||||||||||||||||||||||
MENTION | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 132,665 | $ | 161 | $ | 6,164 | $ | 136 | $ | 139,126 | |||||||||||||||||||
Commercial loans secured by real estate | 406,195 | 620 | 3,238 | 276 | 410,329 | ||||||||||||||||||||||||
Total | $ | 538,860 | $ | 781 | $ | 9,402 | $ | 412 | $ | 549,455 | |||||||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
PASS | SPECIAL | SUBSTANDARD | DOUBTFUL | TOTAL | |||||||||||||||||||||||||
MENTION | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 108,623 | $ | 8,880 | $ | 2,599 | $ | — | $ | 120,102 | |||||||||||||||||||
Commercial loans secured by real estate | 396,788 | 6,961 | 7,482 | 460 | 411,691 | ||||||||||||||||||||||||
Total | $ | 505,411 | $ | 15,841 | $ | 10,081 | $ | 460 | $ | 531,793 | |||||||||||||||||||
Performing and Non-performing Outstanding Balances | DECEMBER 31, 2014 | ||||||||||||||||||||||||||||
PERFORMING | NON- | ||||||||||||||||||||||||||||
PERFORMING | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Real estate- mortgage | $ | 257,199 | $ | 1,417 | |||||||||||||||||||||||||
Consumer | 19,009 | - | |||||||||||||||||||||||||||
Total | $ | 276,208 | $ | 1,417 | |||||||||||||||||||||||||
31-Dec-13 | |||||||||||||||||||||||||||||
PERFORMING | NON- | ||||||||||||||||||||||||||||
PERFORMING | |||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Real estate- mortgage | $ | 234,450 | $ | 1,239 | |||||||||||||||||||||||||
Consumer | 15,803 | 61 | |||||||||||||||||||||||||||
Total | $ | 250,253 | $ | 1,300 | |||||||||||||||||||||||||
Categories of Loan Portfolio by Aging Categories | DECEMBER 31, 2014 | ||||||||||||||||||||||||||||
30-59 | 60-89 | TOTAL | 90 DAYS | ||||||||||||||||||||||||||
DAYS | DAYS | 90 DAYS | PAST DUE | PAST DUE | |||||||||||||||||||||||||
CURRENT | PAST DUE | PAST DUE | PAST DUE | TOTAL | AND STILL | ||||||||||||||||||||||||
LOANS | ACCRUING | ||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 139,126 | $ | — | $ | — | $ | — | $ | — | $ | 139,126 | $ | — | |||||||||||||||
Commercial loans secured by real estate | 410,049 | 280 | — | — | 280 | 410,329 | — | ||||||||||||||||||||||
Real estate- mortgage | 255,021 | 2,196 | 332 | 1,067 | 3,595 | 258,616 | — | ||||||||||||||||||||||
Consumer | 18,927 | 74 | 8 | — | 82 | 19,009 | — | ||||||||||||||||||||||
Total | $ | 823,123 | $ | 2,550 | $ | 340 | $ | 1,067 | $ | 3,957 | $ | 827,080 | $ | — | |||||||||||||||
DECEMBER 31, 2013 | |||||||||||||||||||||||||||||
60-89 | 90 DAYS | ||||||||||||||||||||||||||||
30-59 | DAYS | PAST DUE | |||||||||||||||||||||||||||
CURRENT | DAYS | PAST DUE | 90 DAYS | TOTAL | TOTAL | AND STILL | |||||||||||||||||||||||
PAST DUE | PAST DUE | PAST DUE | LOANS | ACCRUING | |||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||
Commercial | $ | 120,102 | $ | — | $ | — | $ | — | $ | — | $ | 120,102 | $ | — | |||||||||||||||
Commercial loans secured by real estate | 410,619 | 457 | — | 615 | 1,072 | 411,691 | — | ||||||||||||||||||||||
Real estate- mortgage | 231,740 | 2,232 | 670 | 1,047 | 3,949 | 235,689 | — | ||||||||||||||||||||||
Consumer | 15,804 | 33 | 27 | — | 60 | 15,864 | — | ||||||||||||||||||||||
Total | $ | 778,265 | $ | 2,722 | $ | 697 | $ | 1,662 | $ | 5,081 | $ | 783,346 | $ | — | |||||||||||||||
NONPERFORMING_ASSETS_INCLUDING1
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) [Abstract] | |||||||||||||
Schedule of Non-performing Assets Including TDR | AT DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
Non-accrual loans: | (IN THOUSANDS, EXCEPT PERCENTAGES) | ||||||||||||
Commercial loans secured by real estate | $ | 778 | $ | 1,632 | |||||||||
Real estate-mortgage | 1,417 | 1,239 | |||||||||||
Total | 2,195 | 2,871 | |||||||||||
Other real estate owned: | |||||||||||||
Commercial loans secured by real estate | 384 | 344 | |||||||||||
Real estate-mortgage | 128 | 673 | |||||||||||
Total | 512 | 1,017 | |||||||||||
Total restructured loans not in non-accrual (TDR) | 210 | 221 | |||||||||||
Total non-performing assets including TDR | $ | 2,917 | $ | 4,109 | |||||||||
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned | 0.35 | % | 0.52 | % | |||||||||
Schedule of TDRs | The following table details the TDRs at December 31, 2014 (dollars in thousands). | ||||||||||||
Loans in non-accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 210 | Extension of maturity date | |||||||||
Loans in accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 742 | Extension of maturity date | |||||||||
The following table details the TDRs at December 31, 2013 (dollars in thousands). | |||||||||||||
Loans in non-accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 1,250 | Extension of maturity date | |||||||||
Loans in accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 161 | Extension of maturity date | |||||||||
Consumer | 2 | 61 | Extension of maturity date | ||||||||||
The following table details the TDRs at December 31, 2012 (dollars in thousands). | |||||||||||||
Loans in non-accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 4 | $ | 3,772 | Extension of maturity date | |||||||||
Loans in accrual status | # of Loans | Current | Concession Granted | ||||||||||
Balance | |||||||||||||
Commercial loan secured by real estate | 2 | $ | 169 | Extension of maturity date | |||||||||
Consumer | 1 | 13 | Extension of maturity date | ||||||||||
Schedule of Recorded Investment of Defaults | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Recorded investment of defaults | |||||||||||||
Commercial loan secured by real estate | $ | - | $ | 1,480 | $ | 595 | |||||||
Total | $ | - | $ | 1,480 | $ | 595 | |||||||
Schedule of Interest Income | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
Interest income due in accordance with original terms | $ | 136 | $ | 178 | $ | 231 | |||||||
Interest income recorded | - | - | - | ||||||||||
Net reduction in interest income | $ | 136 | $ | 178 | $ | 231 |
PREMISES_AND_EQUIPMENT_Tables
PREMISES AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
PREMISES AND EQUIPMENT [Abstract] | |||||||||
Schedule of Premises and Equipment | AT DECEMBER 31, | ||||||||
2014 | 2013 | ||||||||
(IN THOUSANDS) | |||||||||
Land | $ | 1,198 | $ | 1,208 | |||||
Premises | 24,175 | 25,752 | |||||||
Furniture and equipment | 8,337 | 8,912 | |||||||
Leasehold improvements | 689 | 803 | |||||||
Total at cost | 34,399 | 36,675 | |||||||
Less: Accumulated depreciation and amortization | 21,387 | 23,556 | |||||||
Net book value | $ | 13,012 | $ | 13,119 |
DEPOSITS_Tables
DEPOSITS (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
DEPOSITS [Abstract] | ||||||||||||
Schedule of Balances of Deposits | AT DECEMBER 31, | |||||||||||
2014 | 2013 | |||||||||||
(IN THOUSANDS) | ||||||||||||
Demand: | ||||||||||||
Non-interest bearing | $ | 167,551 | $ | 154,002 | ||||||||
Interest bearing | 89,676 | 84,926 | ||||||||||
Savings | 90,020 | 87,655 | ||||||||||
Money market | 221,378 | 219,801 | ||||||||||
Certificates of deposit in denominations of $100,000 or more | 50,529 | 47,287 | ||||||||||
Other time | 250,727 | 260,851 | ||||||||||
Total deposits | $ | 869,881 | $ | 854,522 | ||||||||
Schedule of Interest Expense on Deposits | YEAR ENDED DECEMBER 31, | |||||||||||
2014 | 2013 | 2012 | ||||||||||
(IN THOUSANDS) | ||||||||||||
Interest bearing demand | $ | 191 | $ | 138 | $ | 116 | ||||||
Savings | 144 | 139 | 181 | |||||||||
Money market | 761 | 736 | 895 | |||||||||
Certificates of deposit in denominations of $100,000 or more | 268 | 289 | 435 | |||||||||
Other time | 3,525 | 3,862 | 4,875 | |||||||||
Total interest expense | $ | 4,889 | $ | 5,164 | $ | 6,502 | ||||||
Schedule of Balances of Deposits of $100,000 or More | YEAR: | OTHER TIME DEPOSITS | CERTIFICATES OF | |||||||||
DEPOSIT | ||||||||||||
OF $100,000 OR MORE | ||||||||||||
(IN THOUSANDS) | ||||||||||||
2015 | $ | 130,090 | $ | 41,582 | ||||||||
2016 | 30,472 | 8,230 | ||||||||||
2017 | 14,515 | 417 | ||||||||||
2018 | 26,424 | 200 | ||||||||||
2019 | 12,193 | — | ||||||||||
2020 and after | 37,033 | 100 | ||||||||||
Total | $ | 250,727 | $ | 50,529 | ||||||||
Schedule of Maturities of Deposits of $100,000 or More | MATURING IN: | (IN THOUSANDS) | ||||||||||
Three months or less | $ | 4,483 | ||||||||||
Over three through six months | 23,171 | |||||||||||
Over six through twelve months | 13,928 | |||||||||||
Over twelve months | 8,947 | |||||||||||
Total | $ | 50,529 |
SHORTTERM_BORROWINGS_Tables
SHORT-TERM BORROWINGS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
SHORT-TERM BORROWINGS [Abstract] | |||||||||||||
Schedule of Balances and Related Information for Federal Funds Purchased and Other Short-term Borrowings | AT DECEMBER 31, 2014 | ||||||||||||
FEDERAL | SHORT-TERM | ||||||||||||
FUNDS | BORROWINGS | ||||||||||||
PURCHASED | |||||||||||||
(IN THOUSANDS, EXCEPT RATES) | |||||||||||||
Balance | $ | — | $ | 38,880 | |||||||||
Maximum indebtedness at any month end | — | 47,762 | |||||||||||
Average balance during year | — | 18,783 | |||||||||||
Average rate paid for the year | — | 0.29 | % | ||||||||||
Interest rate on year-end balance | — | 0.27 | |||||||||||
AT DECEMBER 31, 2013 | |||||||||||||
FEDERAL | SHORT-TERM | ||||||||||||
FUNDS | BORROWINGS | ||||||||||||
PURCHASED | |||||||||||||
(IN THOUSANDS, EXCEPT RATES) | |||||||||||||
Balance | $ | — | $ | 41,555 | |||||||||
Maximum indebtedness at any month end | — | 41,555 | |||||||||||
Average balance during year | 959 | 16,482 | |||||||||||
Average rate paid for the year | 0.34 | % | 0.26 | % | |||||||||
Interest rate on year-end balance | — | 0.25 | |||||||||||
AT DECEMBER 31, 2012 | |||||||||||||
FEDERAL | OTHER | ||||||||||||
FUNDS | SHORT-TERM | ||||||||||||
PURCHASED | BORROWINGS | ||||||||||||
(IN THOUSANDS, EXCEPT RATES) | |||||||||||||
Balance | $ | — | $ | 15,660 | |||||||||
Maximum indebtedness at any month end | — | 19,755 | |||||||||||
Average balance during year | 117 | 5,225 | |||||||||||
Average rate paid for the year | 0.34 | % | 0.2 | % | |||||||||
Interest rate on year-end balance | — | 0.25 |
ADVANCES_FROM_FEDERAL_HOME_LOA1
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2014 | ||||||||||||
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES [Abstract] | ||||||||||||
Schedule of Balances and Advances | AT DECEMBER 31, 2014 | |||||||||||
MATURING | WEIGHTED | BALANCE | ||||||||||
AVERAGE YIELD | ||||||||||||
(IN THOUSANDS, EXCEPT RATES) | ||||||||||||
2015 | 0.52 | 4,000 | ||||||||||
2016 | 0.81 | 12,000 | ||||||||||
2017 | 1.06 | 12,000 | ||||||||||
2018 | 1.51 | 10,000 | ||||||||||
2019 | 1.88 | 4,000 | ||||||||||
Total advances from FHLB | 1.12 | 42,000 | ||||||||||
AT DECEMBER 31, 2013 | ||||||||||||
MATURING | WEIGHTED | BALANCE | ||||||||||
AVERAGE YIELD | ||||||||||||
(IN THOUSANDS, EXCEPT RATES) | ||||||||||||
2015 | 0.52 | 4,000 | ||||||||||
2016 | 0.81 | 12,000 | ||||||||||
2017 | 1.07 | 7,000 | ||||||||||
2018 | 1.47 | 2,000 | ||||||||||
Total advances from FHLB | 0.89 | 25,000 |
DISCLOSURES_ABOUT_FAIR_VALUE_M1
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||
Schedule of Assets and Liabilities Measured on Recurring Basis | FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2014 USING | ||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
U.S. Agency securities | $ | 5,906 | $ | — | $ | 5,906 | $ | — | |||||||||
U.S. Agency mortgage-backed securities | 105,768 | — | 105,768 | — | |||||||||||||
Corporate bonds | 15,436 | — | 15,436 | — | |||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2013 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
U.S. Agency securities | $ | 6,835 | $ | — | $ | 6,835 | $ | — | |||||||||
U.S. Agency mortgage-backed securities | 123,382 | — | 123,382 | — | |||||||||||||
Corporate bonds | 11,761 | — | 11,761 | — | |||||||||||||
Schedule of Assets Measured at Fair Value on Non-Recurring Basis | |||||||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2014 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 469 | $ | — | $ | — | $ | 469 | |||||||||
Other real estate owned | 512 | — | — | 512 | |||||||||||||
FAIR VALUE MEASUREMENTS AT DECEMBER 31, 2013 USING | |||||||||||||||||
TOTAL | (LEVEL 1) | (LEVEL 2) | (LEVEL 3) | ||||||||||||||
Assets: | |||||||||||||||||
Impaired loans | $ | 2,253 | $ | — | $ | — | $ | 2,253 | |||||||||
Other real estate owned | 1,017 | — | — | 1,017 | |||||||||||||
31-Dec-14 | Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Input | Range(Wgtd Ave) | ||||||||||||||
Impaired loans | $ | 469 | Appraisal of collateral(1) | Appraisal adjustments(2) | 0% to 37%(30%) | ||||||||||||
Liquidation expenses(2) | 1% to 15%(10%) | ||||||||||||||||
Other real estate owned | 512 | Appraisal of collateral(1),(3) | Appraisal adjustments(2) | 47% to 83%(55%) | |||||||||||||
Liquidation expenses(2) | 1% to 61%(9%) | ||||||||||||||||
31-Dec-13 | Quantitative Information About Level 3 Fair Value Measurements | ||||||||||||||||
Fair Value | Valuation Techniques | Unobservable Input | Range(Wgtd Ave) | ||||||||||||||
Impaired loans | $ | 2,253 | Appraisal of collateral(1) | Appraisal adjustments(2) | 0% to 37%(30%) | ||||||||||||
Liquidation expenses(2) | 1% to 15%(10%) | ||||||||||||||||
Other real estate owned | 1,017 | Appraisal of collateral(1),(3) | Appraisal adjustments(2) | 31% to 48%(38%) | |||||||||||||
Liquidation expenses(2) | 1% to 20%(10%) | ||||||||||||||||
-1 | Fair Value is generally determined through independent appraisals of the underlying collateral, which generally include various level 3 inputs which are not identifiable. | ||||||||||||||||
-2 | Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. | ||||||||||||||||
-3 | Includes qualitative adjustments by management and estimated liquidation expenses. |
DISCLOSURES_ABOUT_FAIR_VALUE_O1
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||||
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments | At December 31, 2014 | ||||||||||||||||||||||||||||||||||||
Carrying | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 32,872 | $ | 32,872 | $ | 32,872 | $ | - | $ | - | |||||||||||||||||||||||||||
Investment securities - AFS | 127,110 | 127,110 | - | 127,110 | - | ||||||||||||||||||||||||||||||||
Investment securities – HTM | 19,840 | 20,213 | - | 17,241 | 2,972 | ||||||||||||||||||||||||||||||||
Regulatory stock | 6,173 | 6,173 | 6,173 | - | - | ||||||||||||||||||||||||||||||||
Loans held for sale | 5,051 | 5,127 | 5,127 | - | - | ||||||||||||||||||||||||||||||||
Loans, net of allowance for loan loss and unearned income | 817,457 | 819,935 | - | - | 819,935 | ||||||||||||||||||||||||||||||||
Accrued interest income receivable | 3,127 | 3,127 | 3,127 | - | - | ||||||||||||||||||||||||||||||||
Bank owned life insurance | 37,417 | 37,417 | 37,417 | - | - | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||||||||||||||||||||||
Deposits with no stated maturities | $ | 568,625 | $ | 568,625 | $ | 568,625 | $ | - | $ | - | |||||||||||||||||||||||||||
Deposits with stated maturities | 301,256 | 304,744 | - | - | 304,744 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 38,880 | 38,880 | 38,880 | - | - | ||||||||||||||||||||||||||||||||
All other borrowings | 55,085 | 59,256 | - | - | 59,256 | ||||||||||||||||||||||||||||||||
Accrued interest payable | 1,706 | 1,706 | 1,706 | - | - | ||||||||||||||||||||||||||||||||
At December 31, 2013 | |||||||||||||||||||||||||||||||||||||
Carrying Value | Fair Value | (Level 1) | (Level 2) | (Level 3) | |||||||||||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||||||||||||||
FINANCIAL ASSETS: | |||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 30,066 | $ | 30,066 | $ | 30,066 | $ | - | $ | - | |||||||||||||||||||||||||||
Investment securities - AFS | 141,978 | 141,978 | - | 141,978 | - | ||||||||||||||||||||||||||||||||
Investment securities – HTM | 18,187 | 17,788 | - | 14,822 | 2,966 | ||||||||||||||||||||||||||||||||
Regulatory stock | 6,802 | 6,802 | 6,802 | - | - | ||||||||||||||||||||||||||||||||
Loans held for sale | 3,402 | 3,453 | 3,453 | - | - | ||||||||||||||||||||||||||||||||
Loans, net of allowance for loan loss and unearned income | 773,242 | 771,460 | - | - | 771,460 | ||||||||||||||||||||||||||||||||
Accrued interest income receivable | 2,908 | 2,908 | 2,908 | - | - | ||||||||||||||||||||||||||||||||
Bank owned life insurance | 36,669 | 36,669 | 36,669 | - | - | ||||||||||||||||||||||||||||||||
FINANCIAL LIABILITIES: | |||||||||||||||||||||||||||||||||||||
Deposits with no stated maturities | $ | 546,384 | $ | 546,384 | $ | 546,384 | $ | - | $ | - | |||||||||||||||||||||||||||
Deposits with stated maturities | 308,138 | 313,272 | - | - | 313,272 | ||||||||||||||||||||||||||||||||
Short-term borrowings | 41,555 | 41,555 | 41,555 | - | - | ||||||||||||||||||||||||||||||||
All other borrowings | 38,085 | 40,598 | - | - | 40,598 | ||||||||||||||||||||||||||||||||
Accrued interest payable | 1,784 | 1,784 | 1,784 | - | - |
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||
Schedule of Expense for Income Taxes | YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Current | $ | 1,036 | $ | 139 | $ | 140 | |||||||||||||||||||
Deferred | 562 | 2,150 | 2,101 | ||||||||||||||||||||||
Income tax expense | $ | 1,598 | $ | 2,289 | $ | 2,241 | |||||||||||||||||||
Schedule of Reconciliation Between Federal Statutory Tax Rate and Effective Income Tax Rate | YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
AMOUNT | RATE | AMOUNT | RATE | AMOUNT | RATE | ||||||||||||||||||||
(IN THOUSANDS, EXCEPT PERCENTAGES) | |||||||||||||||||||||||||
Income tax expense based on federal statutory rate | $ | 1,571 | 34 | % | $ | 2,544 | 34 | % | $ | 2,475 | 34 | % | |||||||||||||
Tax exempt income | (274 | ) | (5.9 | ) | (359 | ) | (4.8 | ) | (315 | ) | (4.3 | ) | |||||||||||||
Other | 301 | 6.5 | 104 | 1.4 | 81 | 1.1 | |||||||||||||||||||
Total expense for income taxes | $ | 1,598 | 34.6 | % | $ | 2,289 | 30.6 | % | $ | 2,241 | 30.8 | % | |||||||||||||
Schedule of Deferred Tax Assets and Liabilities | AT DECEMBER 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
DEFERRED TAX ASSETS: | |||||||||||||||||||||||||
Allowance for loan losses | $ | 3,272 | $ | 3,437 | |||||||||||||||||||||
Unfunded commitment reserve | 300 | 264 | |||||||||||||||||||||||
Premises and equipment | 1,433 | 1,832 | |||||||||||||||||||||||
Accrued pension obligation | 2,358 | 1,462 | |||||||||||||||||||||||
Net operating loss carryforwards | 242 | 1,307 | |||||||||||||||||||||||
Alternative minimum tax credits | 2,820 | 1,749 | |||||||||||||||||||||||
Other | 349 | 393 | |||||||||||||||||||||||
Total tax assets | 10,774 | 10,444 | |||||||||||||||||||||||
DEFERRED TAX LIABILITIES: | |||||||||||||||||||||||||
Investment accretion | (25 | ) | (18 | ) | |||||||||||||||||||||
Unrealized investment security gains | (950 | ) | (545 | ) | |||||||||||||||||||||
Other | (251 | ) | (309 | ) | |||||||||||||||||||||
Total tax liabilities | (1,226 | ) | (872 | ) | |||||||||||||||||||||
Net deferred tax asset | $ | 9,548 | $ | 9,572 | |||||||||||||||||||||
Schedule of Change in Net Deferred Tax Assets and Liabilities | YEAR ENDED DECEMBER 31, | ||||||||||||||||||||||||
2014 | 2013 | ||||||||||||||||||||||||
(IN THOUSANDS) | |||||||||||||||||||||||||
Unrealized gains recognized in comprehensive income | $ | (404 | ) | $ | 1,595 | ||||||||||||||||||||
Pension obligation of the defined benefit plan not yet recognized in income | 942 | (1,340 | ) | ||||||||||||||||||||||
Deferred provision for income taxes | (562 | ) | (2,150 | ) | |||||||||||||||||||||
Net decrease | $ | (24 | ) | $ | (1,895 | ) |
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
EMPLOYEE BENEFIT PLANS [Abstract] | |||||||||||||
Schedule of Changes in Benefit Obligations and Plan Assets and Funded Status | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
CHANGE IN BENEFIT OBLIGATION: | |||||||||||||
Benefit obligation at beginning of year | $ | 30,249 | $ | 29,844 | |||||||||
Service cost | 1,601 | 1,703 | |||||||||||
Interest cost | 1,368 | 1,189 | |||||||||||
Actuarial (gain) loss | 3,406 | (757 | ) | ||||||||||
Curtailments | 328 | - | |||||||||||
Special/contractual termination benefits | 376 | - | |||||||||||
Benefits paid | (3,627 | ) | (1,730 | ) | |||||||||
Benefit obligation at end of year | 33,701 | 30,249 | |||||||||||
CHANGE IN PLAN ASSETS: | |||||||||||||
Fair value of plan assets at beginning of year | 26,288 | 21,368 | |||||||||||
Actual return on plan assets | 2,056 | 3,850 | |||||||||||
Employer contributions | 2,650 | 2,800 | |||||||||||
Benefits paid | (3,627 | ) | (1,730 | ) | |||||||||
Fair value of plan assets at end of year | 27,367 | 26,288 | |||||||||||
Funded status of the plan - under funded | $ | (6,334 | ) | $ | (3,961 | ) | |||||||
Schedule of Amounts Not Yet Recognized as a Component of Net Periodic Pension Cost | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
AMOUNTS NOT YET RECOGNIZED AS A COMPONENT OF NET PERIODIC PENSION COST: | |||||||||||||
Amounts recognized in accumulated other comprehensive loss consists of: | |||||||||||||
Prior service cost | $ | - | $ | (19 | ) | ||||||||
Net actuarial loss | 12,596 | 10,107 | |||||||||||
Total | $ | 12,596 | $ | 10,088 | |||||||||
Schedule of Accumulated Benefit Obligation | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
ACCUMULATED BENEFIT OBLIGATION: | |||||||||||||
Accumulated benefit obligation | $ | 30,914 | $ | 27,566 | |||||||||
Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
WEIGHTED AVERAGE ASSUMPTIONS: | |||||||||||||
Discount rate | 4 | % | 4.5 | % | |||||||||
Salary scale | 2.5 | 2.5 | |||||||||||
Schedule of Components of Net Periodic Benefit Cost | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||||||||||||
Service cost | $ | 1,601 | $ | 1,703 | $ | 1,593 | |||||||
Interest cost | 1,368 | 1,189 | 1,234 | ||||||||||
Expected return on plan assets | (1,991 | ) | (1,775 | ) | (1,656 | ) | |||||||
Amortization of prior year service cost | (19 | ) | (19 | ) | (19 | ) | |||||||
Amortization of transition asset | - | (8 | ) | (17 | ) | ||||||||
Special termination benefit liability | 376 | - | - | ||||||||||
Recognized net actuarial loss | 1,181 | 1,375 | 1,094 | ||||||||||
Net periodic pension cost | $ | 2,516 | $ | 2,465 | $ | 2,229 | |||||||
Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE LOSS | |||||||||||||
Net (gain) loss | $ | 3,669 | $ | (2,832 | ) | $ | 2,376 | ||||||
Recognized loss | (1,181 | ) | (1,375 | ) | (1,094 | ) | |||||||
Recognized prior service cost | 19 | 19 | 19 | ||||||||||
Recognized net initial asset | - | 8 | 17 | ||||||||||
Total recognized in other comprehensive loss before tax effect | $ | 2,507 | $ | (4,180 | ) | $ | 1,318 | ||||||
Total recognized in net benefit cost and other comprehensive loss before tax effect | $ | 5,023 | $ | (1,715 | ) | $ | 3,547 | ||||||
Schedule of Weighted-Average Assumptions Used to Determine Net Periodic Benefit Cost | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
WEIGHTED AVERAGE ASSUMPTIONS: | |||||||||||||
Discount rate | 4.5 | % | 4 | % | 4.75 | % | |||||||
Expected return on plan assets | 8 | 8 | 8 | ||||||||||
Rate of compensation increase | 2.5 | 2.5 | 2.5 | ||||||||||
Schedule of Plan's Asset Allocations | 2014 | 2013 | |||||||||||
ASSET CATEGORY: | |||||||||||||
Cash and cash equivalents | 2 | % | - | % | |||||||||
Domestic equities | 10 | 10 | |||||||||||
Mutual funds/ETFs | 80 | 79 | |||||||||||
International equities | 3 | 6 | |||||||||||
Corporate bonds | 5 | 5 | |||||||||||
Total | 100 | % | 100 | % | |||||||||
Schedule of Assets Measured at Fair Value | YEAR ENDED DECEMBER 31, | ||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
Level 1: | |||||||||||||
Cash and cash equivalents | $ | 639 | $ | — | |||||||||
Domestic equities | 2,753 | 2,741 | |||||||||||
International equities | 851 | 1,478 | |||||||||||
Mutual funds/ETFs | 21,782 | 20,744 | |||||||||||
Level 2: | |||||||||||||
Corporate bonds | 1,342 | 1,325 | |||||||||||
Total fair value of plan assets | $ | 27,367 | $ | 26,288 | |||||||||
Schedule of Estimated Future Benefit Payments | YEAR: | ESTIMATED FUTURE BENEFIT PAYMENTS | |||||||||||
(IN THOUSANDS) | |||||||||||||
2015 | $ | 1,939 | |||||||||||
2016 | 2,472 | ||||||||||||
2017 | 2,752 | ||||||||||||
2018 | 2,434 | ||||||||||||
2019 | 2,573 | ||||||||||||
Years 2020 - 2024 | 16,419 |
LEASE_COMMITMENTS_Tables
LEASE COMMITMENTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
LEASE COMMITMENTS Abstract] | |||||
Schedule of Future Minimum Payments on Operating Leases | YEAR: | FUTURE MINIMUM LEASE PAYMENTS | |||
(IN THOUSANDS) | |||||
2015 | $ | 711 | |||
2016 | 585 | ||||
2017 | 426 | ||||
2018 | 280 | ||||
2019 | 159 | ||||
2020 and thereafter | 1,561 |
PREFERRED_STOCK_Tables
PREFERRED STOCK (Tables) | 12 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
PREFERRED STOCK [Abstract] | ||||||||
Schedule of Preferred Dividend Stock Period Annualized | DIVIDEND PERIOD ANNUALIZED | |||||||
BEGINNING | ENDING | ANNUALIZED DIVIDEND RATE | ||||||
11-Aug-11 | 31-Dec-11 | 5.00% | ||||||
1-Jan-12 | 31-Dec-13 | 1.0% to 5.0% | ||||||
1-Jan-14 | 7-Feb-16 | 1.0% to 7.0%(1) | ||||||
8-Feb-16 | Redemption | 9.0%(2) | ||||||
-1 | Between January 1, 2014 and February 7, 2016, the Company's dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline. | |||||||
-2 | Beginning on February 8, 2016, the dividend rate will be fixed at nine percent (9%) per annum. |
STOCK_COMPENSATION_PLANS_Table
STOCK COMPENSATION PLANS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
STOCK COMPENSATION PLANS [Abstract] | |||||||||||||||||||||||||
Schedule of Stock Incentive Plan Activity | YEAR ENDED DECEMBER 31 | ||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||
SHARES | WEIGHTED | SHARES | WEIGHTED | SHARES | WEIGHTED | ||||||||||||||||||||
AVERAGE | AVERAGE | AVERAGE | |||||||||||||||||||||||
EXERCISE | EXERCISE | EXERCISE | |||||||||||||||||||||||
PRICE | PRICE | PRICE | |||||||||||||||||||||||
Outstanding at beginning of year | 487,349 | $ | 2.55 | 398,371 | $ | 2.43 | 313,612 | $ | 3.02 | ||||||||||||||||
Granted | 115,000 | 3.18 | 102,445 | 3.19 | 164,241 | 2.73 | |||||||||||||||||||
Exercised | (10,700 | ) | 2.25 | (3,467 | ) | 1.81 | (1,500 | ) | 1.7 | ||||||||||||||||
Forfeited | (31,740 | ) | 3.08 | (10,000 | ) | 4.25 | (77,982 | ) | 5.47 | ||||||||||||||||
Outstanding at end of year | 559,909 | 2.66 | 487,349 | 2.55 | 398,371 | 2.43 | |||||||||||||||||||
Exercisable at end of year | 330,822 | 2.36 | 257,253 | 2.25 | 167,624 | 2.29 | |||||||||||||||||||
Weighted average fair value of options granted in current year | $ | 0.85 | $ | 0.83 | $ | 0.8 | |||||||||||||||||||
Schedule of Assumptions | YEAR ENDED DECEMBER 31 | ||||||||||||||||||||||||
BLACK-SCHOLES ASSUMPTION RANGES | 2014 | 2013 | 2012 | ||||||||||||||||||||||
Risk-free interest rate | 2.43 - 2.74 | % | 1.82 - 2.03 | % | 1.66 - 2.28 | % | |||||||||||||||||||
Expected lives in years | 10 | 10 | 10 | ||||||||||||||||||||||
Expected volatility | 28 - 29 | % | 30 - 32 | % | 33 - 36 | % | |||||||||||||||||||
Expected dividend rate | 1.25 - 1.30 | % | 1.3 | % | 0 | % |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) [Abstract] | |||||||||||||||||||||||||
Schedule of Changes in Each Component of Accumulated Other Comprehensive Loss | YEAR ENDING DECEMBER 31, 2014 | YEAR ENDING DECEMBER 31, 2013 | |||||||||||||||||||||||
Net | Defined | Total(1) | Net | Defined | Total(1) | ||||||||||||||||||||
Unrealized | Benefit | Unrealized | Benefit | ||||||||||||||||||||||
Gains and | Pension | Gains and | Pension | ||||||||||||||||||||||
Losses on | Items (1) | Losses on | Items (1) | ||||||||||||||||||||||
Investment | Investment | ||||||||||||||||||||||||
Securities AFS (1) | Securities AFS (1) | ||||||||||||||||||||||||
Beginning balance | $ | 1,043 | $ | (6,918 | ) | $ | (5,875 | ) | $ | 4,141 | $ | (9,520 | ) | $ | (5,379 | ) | |||||||||
Other comprehensive income (loss) before reclassifications | 917 | (2,354 | ) | (1,437 | ) | (2,963 | ) | 2,161 | (802 | ) | |||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | (117 | ) | 527 | 410 | (135 | ) | 441 | 306 | |||||||||||||||||
Net current period other comprehensive income (loss) | 800 | (1,827 | ) | (1,027 | ) | (3,098 | ) | 2,602 | (496 | ) | |||||||||||||||
Ending balance | $ | 1,843 | $ | (8,745 | ) | $ | (6,902 | ) | $ | 1,043 | $ | (6,918 | ) | $ | (5,875 | ) | |||||||||
-1 | Amounts in parentheses indicate debits on the Consolidated Balance Sheets. | ||||||||||||||||||||||||
Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss | The following table presents the amounts reclassified out of each component of accumulated other comprehensive loss for the periods ending December 31, 2014 and 2013 (in thousands): | ||||||||||||||||||||||||
Amount reclassified from accumulated | |||||||||||||||||||||||||
other comprehensive loss (1) | |||||||||||||||||||||||||
Details about accumulated other | YEAR ENDING DECEMBER 31, | YEAR ENDING DECEMBER 31, | Affected line item in the statement | ||||||||||||||||||||||
comprehensive loss components | 2014 | 2013 | of operations | ||||||||||||||||||||||
Unrealized gains and losses on sale of securities | |||||||||||||||||||||||||
$ | (177 | ) | $ | (204 | ) | Net realized gains on investment securities | |||||||||||||||||||
60 | 69 | Provision for income taxes | |||||||||||||||||||||||
$ | (117 | ) | $ | (135 | ) | Net of tax | |||||||||||||||||||
Amortization of defined benefit items (2) | |||||||||||||||||||||||||
Recognized net actuarial loss | $ | 813 | $ | 683 | Salaries and employee benefits | ||||||||||||||||||||
Prior service cost | (14 | ) | (10 | ) | Salaries and employee benefits | ||||||||||||||||||||
Transition asset | - | (4 | ) | Salaries and employee benefits | |||||||||||||||||||||
799 | 669 | Pretax income | |||||||||||||||||||||||
(272 | ) | (228 | ) | Provision for income taxes | |||||||||||||||||||||
$ | 527 | $ | 441 | Net income | |||||||||||||||||||||
Total reclassifications for the period | $ | 410 | $ | 306 | Net income | ||||||||||||||||||||
-1 | Amounts in parentheses indicate credits. | ||||||||||||||||||||||||
-2 | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 14 for additional details). | ||||||||||||||||||||||||
INTANGIBLE_ASSETS_Tables
INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
INTANGIBLE ASSETS [Abstract] | |||||||||||||
Schedule of reconciliation of the Company's goodwill | 2014 | 2013 | |||||||||||
Balance at January 1 | $ | 12,613 | $ | 12,613 | |||||||||
Goodwill impairment charge | (669 | ) | - | ||||||||||
Balance at December 31 | $ | 11,944 | $ | 12,613 |
DERIVATIVE_HEDGING_INSTRUMENTS1
DERIVATIVE HEDGING INSTRUMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||
DERIVATIVE HEDGING INSTRUMENTS [Abstract] | |||||||||||||||||||||||
Schedule of Interest Rate Swaps | START DATE | MATURITY | HEDGE TYPE | NOTIONAL | RATE | RATE | REPRICING | INCREASE | |||||||||||||||
DATE | AMOUNT | RECEIVED | PAID | FREQUENCY | (DECREASE) IN | ||||||||||||||||||
INTEREST | |||||||||||||||||||||||
EXPENSE | |||||||||||||||||||||||
12/12/08 | 9/24/13 | FAIR VALUE | $ | 9,000,000 | 5.25 | % | 2.73 | % | MONTHLY | $ | 165,488 | ||||||||||||
12/12/08 | 9/24/13 | FAIR VALUE | 9,000,000 | 2.73 | 5.25 | MONTHLY | (165,488 | ) | |||||||||||||||
$ | — |
SEGMENT_RESULTS_Tables
SEGMENT RESULTS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SEGMENT RESULTS [Abstract] | |||||||||||||||||
Schedule of Segment Results | YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||
RETAIL BANKING | COMMERCIAL BANKING | TRUST | INVESTMENT/ PARENT | TOTAL | |||||||||||||
(IN THOUSANDS) | |||||||||||||||||
Net interest income | $ | 20,141 | $ | 16,777 | $ | 47 | $ | (2,921 | ) | $ | 34,044 | ||||||
Provision for loan loss | 57 | 318 | — | — | 375 | ||||||||||||
Non-interest income | 5,633 | 381 | 8,118 | 191 | 14,323 | ||||||||||||
Non-interest expense | 22,531 | 10,868 | 6,967 | 3,005 | 43,371 | ||||||||||||
Income (loss) before income taxes | 3,186 | 5,972 | 1,198 | (5,735 | ) | 4,621 | |||||||||||
Income tax expense (benefit) | 958 | 1,819 | 634 | (1,813 | ) | 1,598 | |||||||||||
Net income (loss) | $ | 2,228 | $ | 4,153 | $ | 564 | $ | (3,922 | ) | $ | 3,023 | ||||||
Total assets | $ | 376,009 | $ | 563,690 | $ | 5,015 | $ | 144,549 | $ | 1,089,263 | |||||||
YEAR ENDED DECEMBER 31, 2013 | |||||||||||||||||
RETAIL BANKING | COMMERCIAL BANKING | TRUST | INVESTMENT/ PARENT | TOTAL | |||||||||||||
(IN THOUSANDS) | |||||||||||||||||
Net interest income | $ | 20,223 | $ | 15,687 | $ | 35 | $ | (3,084 | ) | $ | 32,861 | ||||||
Credit provision for loan loss | (92 | ) | (1,008 | ) | — | — | (1,100 | ) | |||||||||
Non-interest income | 6,512 | 642 | 8,391 | 199 | 15,744 | ||||||||||||
Non-interest expense | 22,870 | 10,148 | 6,605 | 2,600 | 42,223 | ||||||||||||
Income (loss) before income taxes | 3,957 | 7,189 | 1,821 | (5,485 | ) | 7,482 | |||||||||||
Income tax expense (benefit) | 1,165 | 2,166 | 619 | (1,661 | ) | 2,289 | |||||||||||
Net income (loss) | $ | 2,792 | $ | 5,023 | $ | 1,202 | $ | (3,824 | ) | $ | 5,193 | ||||||
Total assets | $ | 347,823 | $ | 545,556 | $ | 4,722 | $ | 157,935 | $ | 1,056,036 | |||||||
YEAR ENDED DECEMBER 31, 2012 | |||||||||||||||||
RETAIL BANKING | COMMERCIAL BANKING | TRUST | INVESTMENT/PARENT | TOTAL | |||||||||||||
(IN THOUSANDS) | |||||||||||||||||
Net interest income | $ | 20,585 | $ | 14,499 | $ | 35 | $ | (2,916 | ) | $ | 32,203 | ||||||
Credit provision for loan loss | (160 | ) | (615 | ) | — | — | (775 | ) | |||||||||
Non-interest income | 6,565 | 585 | 7,784 | 9 | 14,943 | ||||||||||||
Non-interest expense | 22,802 | 8,970 | 6,387 | 2,482 | 40,641 | ||||||||||||
Income (loss) before income taxes | 4,508 | 6,729 | 1,432 | (5,389 | ) | 7,280 | |||||||||||
Income tax expense (benefit) | 1,358 | 2,044 | 487 | (1,648 | ) | 2,241 | |||||||||||
Net income (loss) | $ | 3,150 | $ | 4,685 | $ | 945 | $ | (3,741 | ) | $ | 5,039 | ||||||
Total assets | $ | 336,241 | $ | 497,331 | $ | 4,429 | $ | 162,990 | $ | 1,000,991 |
REGULATORY_CAPITAL_Tables
REGULATORY CAPITAL (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
REGULATORY CAPITAL [Abstract] | |||||||||||||||||||||||||
Summarized Regulatory Capital Ratio | AS OF DECEMBER 31, 2014 | ||||||||||||||||||||||||
FOR CAPITAL | TO BE WELL | ||||||||||||||||||||||||
ADEQUACY | CAPITALIZED UNDER | ||||||||||||||||||||||||
PURPOSES | PROMPT CORRECTIVE | ||||||||||||||||||||||||
ACTUAL | ACTION PROVISIONS | ||||||||||||||||||||||||
AMOUNT | RATIO | AMOUNT | RATIO | AMOUNT | RATIO | ||||||||||||||||||||
(IN THOUSANDS, EXCEPT RATIOS) | |||||||||||||||||||||||||
Total Capital (To Risk Weighted Assets) Consolidated | $ | 131,497 | 14.8 | % | $ | 71,066 | 8 | % | $ | 88,833 | 10 | % | |||||||||||||
AmeriServ Financial Bank | 106,084 | 12.07 | 70,305 | 8 | 87,881 | 10 | |||||||||||||||||||
Tier 1 Capital (To Risk Weighted Assets) Consolidated | 120,992 | 13.62 | 35,533 | 4 | 53,300 | 6 | |||||||||||||||||||
AmeriServ Financial Bank | 95,579 | 10.88 | 35,153 | 4 | 52,729 | 6 | |||||||||||||||||||
Tier 1 Capital (To Average Assets) Consolidated | 120,992 | 11.34 | 42,662 | 4 | 53,327 | 5 | |||||||||||||||||||
AmeriServ Financial Bank | 95,579 | 9.19 | 41,608 | 4 | 52,010 | 5 | |||||||||||||||||||
AS OF DECEMBER 31, 2013 | |||||||||||||||||||||||||
FOR CAPITAL | TO BE WELL | ||||||||||||||||||||||||
ADEQUACY | CAPITALIZED UNDER | ||||||||||||||||||||||||
PURPOSES | PROMPT CORRECTIVE | ||||||||||||||||||||||||
ACTUAL | ACTION PROVISIONS | ||||||||||||||||||||||||
AMOUNT | RATIO | AMOUNT | RATIO | AMOUNT | RATIO | ||||||||||||||||||||
(IN THOUSANDS, EXCEPT RATIOS) | |||||||||||||||||||||||||
Total Capital (To Risk Weighted Assets) Consolidated | $ | 128,469 | 15.28 | % | $ | 67,247 | 8 | % | $ | 84,059 | 10 | % | |||||||||||||
AmeriServ Financial Bank | 103,009 | 12.39 | 66,506 | 8 | 83,132 | 10 | |||||||||||||||||||
Tier 1 Capital (To Risk Weighted Assets) Consolidated | 117,957 | 14.03 | 33,624 | 4 | 50,435 | 6 | |||||||||||||||||||
AmeriServ Financial Bank | 92,611 | 11.14 | 33,253 | 4 | 49,879 | 6 | |||||||||||||||||||
Tier 1 Capital (To Average Assets) Consolidated | 117,957 | 11.45 | 41,204 | 4 | 51,505 | 5 | |||||||||||||||||||
AmeriServ Financial Bank | 92,611 | 9.23 | 40,124 | 4 | 50,155 | 5 |
PARENT_COMPANY_FINANCIAL_INFOR1
PARENT COMPANY FINANCIAL INFORMATION (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |||||||||||||
Balance Sheets | BALANCE SHEETS | ||||||||||||
AT DECEMBER 31, | |||||||||||||
2014 | 2013 | ||||||||||||
(IN THOUSANDS) | |||||||||||||
ASSETS | |||||||||||||
Cash | $ | 100 | $ | 100 | |||||||||
Short-term investments in money market funds | 5,784 | 6,561 | |||||||||||
Investment securities available for sale | 11,714 | 11,909 | |||||||||||
Equity investment in banking subsidiary | 100,473 | 99,250 | |||||||||||
Equity investment in non-banking subsidiaries | 5,685 | 5,321 | |||||||||||
Guaranteed junior subordinated deferrable interest debenture issuance costs | 209 | 224 | |||||||||||
Other assets | 4,698 | 4,352 | |||||||||||
TOTAL ASSETS | $ | 128,663 | $ | 127,717 | |||||||||
LIABILITIES | |||||||||||||
Guaranteed junior subordinated deferrable interest debentures | $ | 13,085 | $ | 13,085 | |||||||||
Other liabilities | 1,171 | 1,325 | |||||||||||
TOTAL LIABILITIES | 14,256 | 14,410 | |||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||
Total stockholders' equity | 114,407 | 113,307 | |||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 128,663 | $ | 127,717 | |||||||||
Statements of Operations | STATEMENTS OF OPERATIONS | ||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
INCOME | |||||||||||||
Inter-entity management and other fees | $ | 2,432 | $ | 2,355 | $ | 2,355 | |||||||
Dividends from banking subsidiary | 1,500 | 5,500 | 8,000 | ||||||||||
Dividends from non-banking subsidiaries | 870 | 675 | 710 | ||||||||||
Interest and dividend income | 262 | 243 | 306 | ||||||||||
TOTAL INCOME | 5,064 | 8,773 | 11,371 | ||||||||||
EXPENSE | |||||||||||||
Interest expense | 1,121 | 1,121 | 1,121 | ||||||||||
Salaries and employee benefits | 2,576 | 2,502 | 2,368 | ||||||||||
Other expense | 1,996 | 1,608 | 1,582 | ||||||||||
TOTAL EXPENSE | 5,693 | 5,231 | 5,071 | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND EQUITY IN UNDISTRIBUTED EARNINGS OF SUBSIDIARIES | (629 | ) | 3,542 | 6,300 | |||||||||
Benefit for income taxes | 1,020 | 895 | 819 | ||||||||||
Equity in undistributed earnings of subsidiaries | 2,632 | 756 | (2,080 | ) | |||||||||
NET INCOME | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
COMPREHENSIVE INCOME | $ | 1,996 | $ | 4,697 | $ | 3,320 | |||||||
Statements of Cash Flows | STATEMENTS OF CASH FLOWS | ||||||||||||
YEAR ENDED DECEMBER 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
(IN THOUSANDS) | |||||||||||||
OPERATING ACTIVITIES | |||||||||||||
Net income | $ | 3,023 | $ | 5,193 | $ | 5,039 | |||||||
Adjustment to reconcile net income to net cash (used in) provided by operating activities: | |||||||||||||
Equity in undistributed earnings of subsidiaries | (2,632 | ) | (756 | ) | 2,080 | ||||||||
Stock compensation expense | 42 | 82 | 38 | ||||||||||
Other – net | (505 | ) | (718 | ) | (989 | ) | |||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (72 | ) | 3,801 | 6,168 | |||||||||
INVESTING ACTIVITIES | |||||||||||||
Purchase of investment securities – available for sale | (2,027 | ) | (3,885 | ) | (2,077 | ) | |||||||
Proceeds from maturity of investment securities – available for sale | 2,284 | 2,506 | 2,809 | ||||||||||
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES | 257 | (1,379 | ) | 732 | |||||||||
FINANCING ACTIVITIES | |||||||||||||
Purchase of treasury stock | - | (1,171 | ) | (4,417 | ) | ||||||||
Preferred stock dividends paid | (210 | ) | (209 | ) | (828 | ) | |||||||
Common stock dividends paid | (752 | ) | (566 | ) | - | ||||||||
NET CASH USED IN FINANCING ACTIVITIES | (962 | ) | (1,946 | ) | (5,245 | ) | |||||||
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (777 | ) | 476 | 1,655 | |||||||||
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 6,661 | 6,185 | 4,530 | ||||||||||
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $ | 5,884 | $ | 6,661 | $ | 6,185 |
SELECTED_QUARTERLY_CONSOLIDATE1
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Data | 2014 QUARTER ENDED | ||||||||||||||||
DEC. 31 | SEPT. 30 | 30-Jun | 31-Mar | ||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||||||
Interest income | $ | 10,344 | $ | 10,019 | $ | 9,983 | $ | 10,095 | |||||||||
Interest expense | 1,612 | 1,616 | 1,599 | 1,570 | |||||||||||||
Net interest income | 8,732 | 8,403 | 8,384 | 8,525 | |||||||||||||
Provision for loan losses | 375 | - | - | - | |||||||||||||
Net interest income after provision for loan losses | 8,357 | 8,403 | 8,384 | 8,525 | |||||||||||||
Non-interest income | 3,560 | 3,593 | 3,638 | 3,532 | |||||||||||||
Non-interest expense | 10,770 | 11,243 | 10,620 | 10,738 | |||||||||||||
Income before income taxes | 1,147 | 753 | 1,402 | 1,319 | |||||||||||||
Provision for income taxes | 398 | 388 | 423 | 389 | |||||||||||||
Net income | $ | 749 | $ | 365 | $ | 979 | $ | 930 | |||||||||
Basic earnings per common share | $ | 0.04 | $ | 0.02 | $ | 0.05 | $ | 0.05 | |||||||||
Diluted earnings per common share | 0.04 | 0.02 | 0.05 | 0.05 | |||||||||||||
Cash dividends declared per common share | 0.01 | 0.01 | 0.01 | 0.01 | |||||||||||||
2013 QUARTER ENDED | |||||||||||||||||
DEC. 31 | SEPT. 30 | 30-Jun | 31-Mar | ||||||||||||||
(IN THOUSANDS, EXCEPT PER SHARE DATA) | |||||||||||||||||
Interest income | $ | 10,203 | $ | 9,811 | $ | 9,627 | $ | 9,702 | |||||||||
Interest expense | 1,605 | 1,611 | 1,606 | 1,660 | |||||||||||||
Net interest income | 8,598 | 8,200 | 8,021 | 8,042 | |||||||||||||
Provision (credit) for loan losses | (1,000 | ) | - | 150 | (250 | ) | |||||||||||
Net interest income after provision (credit) for loan losses | 9,598 | 8,200 | 7,871 | 8,292 | |||||||||||||
Non-interest income | 3,867 | 3,986 | 4,075 | 3,816 | |||||||||||||
Non-interest expense | 10,746 | 10,413 | 10,442 | 10,622 | |||||||||||||
Income before income taxes | 2,719 | 1,773 | 1,504 | 1,486 | |||||||||||||
Provision for income taxes | 878 | 547 | 434 | 430 | |||||||||||||
Net income | $ | 1,841 | $ | 1,226 | $ | 1,070 | $ | 1,056 | |||||||||
Basic earnings per common share | $ | 0.1 | $ | 0.06 | $ | 0.05 | $ | 0.05 | |||||||||
Diluted earnings per common share | 0.09 | 0.06 | 0.05 | 0.05 | |||||||||||||
Cash dividends declared per common share | 0.01 | 0.01 | 0.01 | 0 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
BUSINESS AND NATURE OF OPERATIONS: | |||
Number of locations | 17 | ||
Number of counties | 5 | ||
Trust and financial services and administers assets | $1,800,000,000 | ||
FEDERAL HOME LOAN BANK STOCK: | |||
Par value | $100 | ||
LOANS: | |||
Threshold for discontinuing accrual of interest income | 90 days | ||
ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: | |||
Threshold for individually evaluating loans | 250,000 | ||
EARNINGS PER COMMON SHARE: | |||
Shares not included in computation of earnings per common share | 3,625 | 103,570 | 49,842 |
Exercisable at end of year | $2.36 | $2.25 | $2.29 |
STOCK-BASED COMPENSATION: | |||
Pretax compensation expense | 42,000 | 82,000 | 38,000 |
CONSOLIDATED STATEMENT OF CASH FLOWS: | |||
Income tax payments | 1,063,000 | 137,000 | 142,000 |
Non-cash transfers to other real estate owned | 660,000 | 766,000 | 1,266,000 |
Total interest payments | 6,475,000 | 6,781,000 | 8,154,000 |
Minimum [Member] | |||
EARNINGS PER COMMON SHARE: | |||
Exercisable at end of year | $4.60 | $3.05 | $2.80 |
Maximum [Member] | |||
EARNINGS PER COMMON SHARE: | |||
Exercisable at end of year | $5.22 | $5.75 | $5.75 |
Commercial [Member] | |||
ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: | |||
Threshold for individually evaluating loans | 250,000 | ||
Small Business Loans [Member] | |||
ALLOWANCE FOR LOAN LOSSES AND CHARGE-OFF PROCEDURES: | |||
Threshold for collectively evaluating loans | $250,000 | ||
Buildings [Member] | |||
PREMISES AND EQUIPMENT: | |||
Useful life | 30 years | ||
Equipment [Member] | |||
PREMISES AND EQUIPMENT: | |||
Useful life | 10 years |
SUMMARY_OF_SIGNIFICANT_ACCOUNT4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Earnings Per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||
Net income | $749 | $365 | $979 | $930 | $1,841 | $1,226 | $1,070 | $1,056 | $3,023 | $5,193 | $5,039 |
Preferred stock dividends | 210 | 209 | 828 | ||||||||
NET INCOME AVAILABLE TO COMMON SHAREHOLDERS | $2,813 | $4,984 | $4,211 | ||||||||
Weighted average common shares outstanding (basic) | 18,793 | 18,942 | 19,685 | ||||||||
Effect of stock options | 115 | 92 | 62 | ||||||||
Weighted average common shares outstanding (diluted) | 18,908 | 19,034 | 19,747 | ||||||||
Earnings per common share: | |||||||||||
Basic | $0.04 | $0.02 | $0.05 | $0.05 | $0.10 | $0.06 | $0.05 | $0.05 | $0.15 | $0.26 | $0.21 |
Diluted | $0.04 | $0.02 | $0.05 | $0.05 | $0.09 | $0.06 | $0.05 | $0.05 | $0.15 | $0.26 | $0.21 |
CASH_AND_DUE_FROM_DEPOSITORY_I1
CASH AND DUE FROM DEPOSITORY INSTITUTIONS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
CASH AND DUE FROM DEPOSITORY INSTITUTIONS [Abstract] | ||
Cash reserves required to be maintained under Federal Reserve Bank regulations | $2,000 | $61,000 |
INVESTMENT_SECURITIES_Schedule
INVESTMENT SECURITIES (Schedule of Cost Basis and Fair Values of Investment Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Investment securities available for sale, Cost Basis | $124,316 | $140,398 |
Investment securities available for sale, Gross Unrealized Gains | 3,279 | 3,185 |
Investment securities available for sale, Gross Unrealized Losses | -485 | -1,605 |
Available for Sale, Fair Value, Total | 127,110 | 141,978 |
Investment securities held to maturity, Cost Basis | 19,840 | 18,187 |
Investment securities held to maturity, Gross Unrealized Gains | 475 | 289 |
Investment securities held to maturity, Gross Unrealized Losses | -102 | -688 |
Held to Maturity, Fair Value, Total | 20,213 | 17,788 |
U.S. Agency [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Investment securities available for sale, Cost Basis | 5,931 | 6,926 |
Investment securities available for sale, Gross Unrealized Gains | 21 | 35 |
Investment securities available for sale, Gross Unrealized Losses | -46 | -126 |
Available for Sale, Fair Value, Total | 5,906 | 6,835 |
U.S. Agency mortgage-backed securities [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Investment securities available for sale, Cost Basis | 102,888 | 121,480 |
Investment securities available for sale, Gross Unrealized Gains | 3,197 | 3,129 |
Investment securities available for sale, Gross Unrealized Losses | -317 | -1,227 |
Available for Sale, Fair Value, Total | 105,768 | 123,382 |
Investment securities held to maturity, Cost Basis | 12,481 | 12,671 |
Investment securities held to maturity, Gross Unrealized Gains | 395 | 289 |
Investment securities held to maturity, Gross Unrealized Losses | -50 | -477 |
Held to Maturity, Fair Value, Total | 12,826 | 12,483 |
Corporate bonds [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Investment securities available for sale, Cost Basis | 15,497 | 11,992 |
Investment securities available for sale, Gross Unrealized Gains | 61 | 21 |
Investment securities available for sale, Gross Unrealized Losses | -122 | -252 |
Available for Sale, Fair Value, Total | 15,436 | 11,761 |
Corporate bonds and other securities [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Investment securities held to maturity, Cost Basis | 3,995 | 3,995 |
Investment securities held to maturity, Gross Unrealized Gains | 6 | |
Investment securities held to maturity, Gross Unrealized Losses | -28 | -91 |
Held to Maturity, Fair Value, Total | 3,973 | 3,904 |
Taxable Municipal [Member] | ||
Available-For-Sale-Securities-And-Held-To-Maturity-Securities | ||
Investment securities held to maturity, Cost Basis | 3,364 | 1,521 |
Investment securities held to maturity, Gross Unrealized Gains | 74 | |
Investment securities held to maturity, Gross Unrealized Losses | -24 | -120 |
Held to Maturity, Fair Value, Total | $3,414 | $1,401 |
INVESTMENT_SECURITIES_Schedule1
INVESTMENT SECURITIES (Schedule of Contractual Maturities of Securities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | $1,000 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 14,626 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 17,838 | |
Available for Sale, Cost Basis, After 10 years but within15 years | 56,783 | |
Available for Sale, Cost Basis, Over 15 years | 34,069 | |
Available for Sale, Cost Basis, Total | 124,316 | |
Available for Sale, Within 1 year, Yield | 2.00% | |
Available for Sale, After 1 year but within 5 years, Yield | 1.96% | |
Available for Sale, After 5 year but within 10 years, Yield | 2.46% | |
Available for Sale, After 10 year but within 15 years, Yield | 2.66% | |
Available for Sale, Over 15 years, Yield | 2.56% | |
Available for Sale, Yield, Total | 2.52% | |
Available for Sale, Fair Value, Within 1 year | 1,013 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 14,675 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 18,116 | |
Available for Sale, Fair Value, After 10 years but within15 years | 58,141 | |
Available for Sale, Fair Value, Over 15 years | 35,165 | |
Available for Sale, Fair Value, Total | 127,110 | 141,978 |
Held to Maturity, Cost Basis, Within 1 year | 2,000 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 1,000 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 3,810 | |
Held to Maturity, Cost Basis, After 10 years but within 15 years | 1,162 | |
Held to Maturity, Cost Basis, Over 15 years | 11,868 | |
Held to Maturity, Cost Basis, Total | 19,840 | 18,187 |
Held to Maturity, Within 1 year, Yield | 1.35% | |
Held to Maturity, After 1 year but within 5 years, Yield | 1.67% | |
Held to Maturity, After 5 years but within 10 years, Yield | 2.67% | |
Held to Maturity, After 10 years but within 15 years, Yield | 3.27% | |
Held to Maturity, Over 15 years, Yield | 3.66% | |
Held to Maturity, Yield, Total | 3.11% | |
Held to Maturity, Fair Value, Within 1 year | 1,991 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 981 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 3,799 | |
Held to Maturity, Fair Value, After 10 years but within 15 years | 1,140 | |
Held to Maturity, Fair Value, Over 15 years | 12,302 | |
Held to Maturity, Fair Value, Total | 20,213 | 17,788 |
U.S. Agency [Member] | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | 1,000 | |
Available for Sale, Cost Basis, After 1 year but within 5 years | 4,931 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | ||
Available for Sale, Cost Basis, After 10 years but within15 years | ||
Available for Sale, Cost Basis, Over 15 years | ||
Available for Sale, Cost Basis, Total | 5,931 | |
Available for Sale, Within 1 year, Yield | 2.00% | |
Available for Sale, After 1 year but within 5 years, Yield | 1.38% | |
Available for Sale, After 5 year but within 10 years, Yield | ||
Available for Sale, After 10 year but within 15 years, Yield | ||
Available for Sale, Over 15 years, Yield | ||
Available for Sale, Yield, Total | 1.48% | |
Available for Sale, Fair Value, Within 1 year | 1,013 | |
Available for Sale, Fair Value, After 1 year but within 5 years | 4,893 | |
Available for Sale, Fair Value, After 5 years but within 10 years | ||
Available for Sale, Fair Value, After 10 years but within15 years | ||
Available for Sale, Fair Value, Over 15 years | ||
Available for Sale, Fair Value, Total | 5,906 | 6,835 |
U.S. Agency mortgage-backed securities [Member] | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | ||
Available for Sale, Cost Basis, After 1 year but within 5 years | 1,696 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 10,340 | |
Available for Sale, Cost Basis, After 10 years but within15 years | 56,783 | |
Available for Sale, Cost Basis, Over 15 years | 34,069 | |
Available for Sale, Cost Basis, Total | 102,888 | |
Available for Sale, Within 1 year, Yield | ||
Available for Sale, After 1 year but within 5 years, Yield | 4.46% | |
Available for Sale, After 5 year but within 10 years, Yield | 2.74% | |
Available for Sale, After 10 year but within 15 years, Yield | 2.66% | |
Available for Sale, Over 15 years, Yield | 2.56% | |
Available for Sale, Yield, Total | 2.66% | |
Available for Sale, Fair Value, Within 1 year | ||
Available for Sale, Fair Value, After 1 year but within 5 years | 1,791 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 10,671 | |
Available for Sale, Fair Value, After 10 years but within15 years | 58,141 | |
Available for Sale, Fair Value, Over 15 years | 35,165 | |
Available for Sale, Fair Value, Total | 105,768 | 123,382 |
Held to Maturity, Cost Basis, Within 1 year | ||
Held to Maturity, Cost Basis, After 1 year but within 5 years | ||
Held to Maturity, Cost Basis, After 5 years but within 10 years | 2,959 | |
Held to Maturity, Cost Basis, After 10 years but within 15 years | ||
Held to Maturity, Cost Basis, Over 15 years | 9,522 | |
Held to Maturity, Cost Basis, Total | 12,481 | 12,671 |
Held to Maturity, Within 1 year, Yield | ||
Held to Maturity, After 1 year but within 5 years, Yield | ||
Held to Maturity, After 5 years but within 10 years, Yield | 2.40% | |
Held to Maturity, After 10 years but within 15 years, Yield | ||
Held to Maturity, Over 15 years, Yield | 3.45% | |
Held to Maturity, Yield, Total | 3.20% | |
Held to Maturity, Fair Value, Within 1 year | ||
Held to Maturity, Fair Value, After 1 year but within 5 years | ||
Held to Maturity, Fair Value, After 5 years but within 10 years | 2,931 | |
Held to Maturity, Fair Value, After 10 years but within 15 years | ||
Held to Maturity, Fair Value, Over 15 years | 9,895 | |
Held to Maturity, Fair Value, Total | 12,826 | 12,483 |
Corporate bonds [Member] | ||
Contractual maturities of securities | ||
Available for Sale, Cost Basis, Within 1 year | ||
Available for Sale, Cost Basis, After 1 year but within 5 years | 7,999 | |
Available for Sale, Cost Basis, After 5 years but within 10 years | 7,498 | |
Available for Sale, Cost Basis, After 10 years but within15 years | ||
Available for Sale, Cost Basis, Over 15 years | ||
Available for Sale, Cost Basis, Total | 15,497 | |
Available for Sale, Within 1 year, Yield | ||
Available for Sale, After 1 year but within 5 years, Yield | 1.75% | |
Available for Sale, After 5 year but within 10 years, Yield | 2.05% | |
Available for Sale, After 10 year but within 15 years, Yield | ||
Available for Sale, Over 15 years, Yield | ||
Available for Sale, Yield, Total | 1.90% | |
Available for Sale, Fair Value, Within 1 year | ||
Available for Sale, Fair Value, After 1 year but within 5 years | 7,991 | |
Available for Sale, Fair Value, After 5 years but within 10 years | 7,445 | |
Available for Sale, Fair Value, After 10 years but within15 years | ||
Available for Sale, Fair Value, Over 15 years | ||
Available for Sale, Fair Value, Total | 15,436 | 11,761 |
Corporate bonds and other securities [Member] | ||
Contractual maturities of securities | ||
Held to Maturity, Cost Basis, Within 1 year | 2,000 | |
Held to Maturity, Cost Basis, After 1 year but within 5 years | 1,000 | |
Held to Maturity, Cost Basis, After 5 years but within 10 years | 851 | |
Held to Maturity, Cost Basis, After 10 years but within 15 years | 1,162 | |
Held to Maturity, Cost Basis, Over 15 years | 2,346 | |
Held to Maturity, Cost Basis, Total | 7,359 | |
Held to Maturity, Within 1 year, Yield | 1.35% | |
Held to Maturity, After 1 year but within 5 years, Yield | 1.67% | |
Held to Maturity, After 5 years but within 10 years, Yield | 3.63% | |
Held to Maturity, After 10 years but within 15 years, Yield | 3.27% | |
Held to Maturity, Over 15 years, Yield | 4.49% | |
Held to Maturity, Yield, Total | 2.96% | |
Held to Maturity, Fair Value, Within 1 year | 1,991 | |
Held to Maturity, Fair Value, After 1 year but within 5 years | 981 | |
Held to Maturity, Fair Value, After 5 years but within 10 years | 868 | |
Held to Maturity, Fair Value, After 10 years but within 15 years | 1,140 | |
Held to Maturity, Fair Value, Over 15 years | 2,407 | |
Held to Maturity, Fair Value, Total | $7,387 |
INVESTMENT_SECURITIES_Schedule2
INVESTMENT SECURITIES (Schedule of Information Concerning Investments with Unrealized Losses) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Less than 12 months, Fair Value | $6,932 | $66,553 |
Investment securities available for sale, Less than 12 months, Unrealized Losses | -61 | -2,185 |
Investment securities available for sale, 12 months or longer, Fair Value | 33,145 | 4,564 |
Investment securities available for sale, 12 months or longer, Unrealized Losses | -526 | -108 |
Investment securities available for sale, Total, Fair Value | 40,077 | 71,117 |
Investment securities available for sale, Gross Unrealized Losses | -587 | -2,293 |
U.S. Agency [Member] | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Less than 12 months, Fair Value | 996 | 3,812 |
Investment securities available for sale, Less than 12 months, Unrealized Losses | -4 | -64 |
Investment securities available for sale, 12 months or longer, Fair Value | 2,858 | 938 |
Investment securities available for sale, 12 months or longer, Unrealized Losses | -42 | -62 |
Investment securities available for sale, Total, Fair Value | 3,854 | 4,750 |
Investment securities available for sale, Gross Unrealized Losses | -46 | -126 |
U.S. Agency mortgage-backed securities [Member] | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Less than 12 months, Fair Value | 2,826 | 52,163 |
Investment securities available for sale, Less than 12 months, Unrealized Losses | -13 | -1,701 |
Investment securities available for sale, 12 months or longer, Fair Value | 20,408 | 669 |
Investment securities available for sale, 12 months or longer, Unrealized Losses | -354 | -3 |
Investment securities available for sale, Total, Fair Value | 23,234 | 52,832 |
Investment securities available for sale, Gross Unrealized Losses | -367 | -1,704 |
Taxable Municipal [Member] | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Less than 12 months, Fair Value | 150 | 891 |
Investment securities available for sale, Less than 12 months, Unrealized Losses | -1 | -120 |
Investment securities available for sale, 12 months or longer, Fair Value | 988 | |
Investment securities available for sale, 12 months or longer, Unrealized Losses | -23 | |
Investment securities available for sale, Total, Fair Value | 1,138 | 891 |
Investment securities available for sale, Gross Unrealized Losses | -24 | -120 |
Corporate bonds and other securities [Member] | ||
Information concerning investments with unrealized losses | ||
Investment securities available for sale, Less than 12 months, Fair Value | 2,960 | 9,687 |
Investment securities available for sale, Less than 12 months, Unrealized Losses | -43 | -300 |
Investment securities available for sale, 12 months or longer, Fair Value | 8,891 | 2,957 |
Investment securities available for sale, 12 months or longer, Unrealized Losses | -107 | -43 |
Investment securities available for sale, Total, Fair Value | 11,851 | 12,644 |
Investment securities available for sale, Gross Unrealized Losses | ($150) | ($343) |
INVESTMENT_SECURITIES_Narrativ
INVESTMENT SECURITIES (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Investment [Line Items] | |||
Gross investment gains | $182,000 | $289,000 | $12,000 |
Gross investment losses | 5,000 | 85,000 | |
Realized gain (loss), net of tax | 117,000 | 135,000 | 8,000 |
Income tax effect | 60,000 | 69,000 | 4,000 |
Weighted average expected maturity for investment securities | 2 years 11 months 12 days | ||
Investment Securities: | |||
Proceeds from sales of investment securities - available for sale | 5,242,000 | 11,185,000 | 4,221,000 |
Book value of securities available for sale and held to maturity | $104,780,000 | $110,780,000 | |
Positions considered temporarily impaired | 38 | ||
U.S. Agency [Member] | |||
Investment [Line Items] | |||
Weighted average expected maturity for available for sale securities | 2 years 11 months 12 days | ||
U.S. Agency mortgage-backed securities [Member] | |||
Investment [Line Items] | |||
Weighted average expected maturity for available for sale securities | 4 years 3 months | ||
Weighted average expected maturity for held to maturity securities | 6 years 4 months 13 days | ||
Corporate bonds [Member] | |||
Investment [Line Items] | |||
Weighted average expected maturity for available for sale securities | 4 years 10 months 6 days | ||
Corporate bonds and other securities [Member] | |||
Investment [Line Items] | |||
Weighted average expected maturity for held to maturity securities | 5 years 9 months 11 days | ||
Standard & Poor's, AAA Rating [Member] | |||
Investment [Line Items] | |||
Portfolio rated | 84.10% | 89.00% | |
Standard & Poor's, A Rating [Member] | |||
Investment [Line Items] | |||
Portfolio rated | 3.80% |
LOANS_Summary_of_Loan_Portfoli
LOANS (Summary of Loan Portfolio) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | $827,080 | $783,346 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 139,126 | 120,102 |
Commercial loans secured by real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 410,329 | 411,691 |
Real estate-mortgage [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | 258,616 | 235,689 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans, net of unearned income | $19,009 | $15,864 |
LOANS_Narative_Details
LOANS (Narative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
LOANS [Abstract] | ||
Loan balances net of unearned income | $554,000 | $581,000 |
Real estate-construction loans, percentage | 3.50% | 3.00% |
Related party loans | $847,000 | $853,000 |
ALLOWANCE_FOR_LOAN_LOSSES_Roll
ALLOWANCE FOR LOAN LOSSES (Rollforward of the Allowance for Loan Losses by Portfolio Segment) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Balance at beginning of period | $10,104 | $12,571 | $10,104 | $12,571 | $14,623 | ||||||
Charge-offs | -1,323 | -2,120 | -1,761 | ||||||||
Recoveries | 467 | 753 | 484 | ||||||||
Credit provision for loan losses | 375 | -1,000 | 150 | -250 | 375 | -1,100 | -775 | ||||
Balance at end of period | 9,623 | 10,104 | 9,623 | 10,104 | 12,571 | ||||||
Commercial [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Balance at beginning of period | 2,844 | 2,596 | 2,844 | 2,596 | 2,365 | ||||||
Charge-offs | -172 | -50 | -345 | ||||||||
Recoveries | 141 | 80 | 138 | ||||||||
Credit provision for loan losses | 449 | 218 | 438 | ||||||||
Balance at end of period | 3,262 | 2,844 | 3,262 | 2,844 | 2,596 | ||||||
Commercial loans secured by real estate [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Balance at beginning of period | 4,885 | 7,796 | 4,885 | 7,796 | 9,400 | ||||||
Charge-offs | -708 | -1,777 | -796 | ||||||||
Recoveries | 231 | 481 | 245 | ||||||||
Credit provision for loan losses | -506 | -1,615 | -1,053 | ||||||||
Balance at end of period | 3,902 | 4,885 | 3,902 | 4,885 | 7,796 | ||||||
Real estate-mortgage [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Balance at beginning of period | 1,260 | 1,269 | 1,260 | 1,269 | 1,270 | ||||||
Charge-offs | -322 | -139 | -420 | ||||||||
Recoveries | 71 | 122 | 54 | ||||||||
Credit provision for loan losses | 301 | 8 | 365 | ||||||||
Balance at end of period | 1,310 | 1,260 | 1,310 | 1,260 | 1,269 | ||||||
Consumer [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Balance at beginning of period | 136 | 150 | 136 | 150 | 174 | ||||||
Charge-offs | -121 | -154 | -200 | ||||||||
Recoveries | 24 | 70 | 47 | ||||||||
Credit provision for loan losses | 151 | 70 | 129 | ||||||||
Balance at end of period | 190 | 136 | 190 | 136 | 150 | ||||||
Allocation for general risk [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Balance at beginning of period | 979 | 760 | 979 | 760 | 1,414 | ||||||
Charge-offs | |||||||||||
Recoveries | |||||||||||
Credit provision for loan losses | -20 | 219 | -654 | ||||||||
Balance at end of period | $959 | $979 | $959 | $979 | $760 |
ALLOWANCE_FOR_LOAN_LOSSES_Summ
ALLOWANCE FOR LOAN LOSSES (Summary of Primary Segments of Loan Portfolio) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | $989 | $3,066 | ||
Collectively evaluated for impairment | 826,091 | 780,280 | ||
Total Loans | 827,080 | 783,346 | ||
Specific reserve allocation | 520 | 813 | ||
General reserve allocation | 9,103 | 9,291 | ||
Total allowance for loan losses | 9,623 | 10,104 | 12,571 | 14,623 |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 139,126 | 120,102 | ||
Total Loans | 139,126 | 120,102 | ||
Specific reserve allocation | ||||
General reserve allocation | 3,262 | 2,844 | ||
Total allowance for loan losses | 3,262 | 2,844 | 2,596 | 2,365 |
Commercial loans secured by real estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 989 | 3,005 | ||
Collectively evaluated for impairment | 409,340 | 408,686 | ||
Total Loans | 410,329 | 411,691 | ||
Specific reserve allocation | 520 | 812 | ||
General reserve allocation | 3,382 | 4,073 | ||
Total allowance for loan losses | 3,902 | 4,885 | 7,796 | 9,400 |
Real estate-mortgage [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | ||||
Collectively evaluated for impairment | 258,616 | 235,689 | ||
Total Loans | 258,616 | 235,689 | ||
Specific reserve allocation | ||||
General reserve allocation | 1,310 | 1,260 | ||
Total allowance for loan losses | 1,310 | 1,260 | 1,269 | 1,270 |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Individually evaluated for impairment | 61 | |||
Collectively evaluated for impairment | 19,009 | 15,803 | ||
Total Loans | 19,009 | 15,864 | ||
Specific reserve allocation | 1 | |||
General reserve allocation | 190 | 135 | ||
Total allowance for loan losses | 190 | 136 | 150 | 174 |
Allocation for general risk [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Specific reserve allocation | ||||
General reserve allocation | 959 | 979 | ||
Total allowance for loan losses | $959 | $979 | $760 | $1,414 |
ALLOWANCE_FOR_LOAN_LOSSES_Sche
ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired Loans by Class) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $989,000 | $3,066,000 |
Related Allowance | 520,000 | 813,000 |
Unpaid Principal Balance | 1,069,000 | 3,179,000 |
Commercial loans secured by real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 989,000 | 3,005,000 |
Unpaid Principal Balance | 1,069,000 | 3,118,000 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 61,000 | |
Unpaid Principal Balance | 61,000 | |
Impaired Loans with Specific Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 989,000 | 3,066,000 |
Related Allowance | 520,000 | 813,000 |
Impaired Loans with Specific Allowance [Member] | Commercial loans secured by real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 989,000 | 3,005,000 |
Related Allowance | 520,000 | 812,000 |
Impaired Loans with Specific Allowance [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | 61,000 | |
Related Allowance | 1,000 | |
Impaired Loans with No Specific Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | ||
Impaired Loans with No Specific Allowance [Member] | Commercial loans secured by real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | ||
Impaired Loans with No Specific Allowance [Member] | Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment |
ALLOWANCE_FOR_LOAN_LOSSES_Aver
ALLOWANCE FOR LOAN LOSSES (Average Recorded Investment in Impaired Loans and Related Interest Income Recognized) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Average recorded investment in impaired loans and related interest income recognized | |||
Average investment in impaired loans | $1,756 | $2,509 | $3,770 |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | 12 | 14 | |
Commercial [Member] | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Average investment in impaired loans | 13 | 13 | |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | |||
Commercial loans secured by real estate [Member] | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Average investment in impaired loans | 1,756 | 2,459 | 3,754 |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | 12 | 11 | |
Consumer [Member] | |||
Average recorded investment in impaired loans and related interest income recognized | |||
Average investment in impaired loans | 37 | 3 | |
Interest income recognized: | |||
Interest income recognized on a cash basis on impaired loans | $3 |
ALLOWANCE_FOR_LOAN_LOSSES_Loan
ALLOWANCE FOR LOAN LOSSES (Loan Portfolio Summarized by Categories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
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 | $549,455 | $531,793 |
Commercial [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 | 139,126 | 120,102 |
Commercial loans secured by 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 | 410,329 | 411,691 |
Pass [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 | 538,860 | 505,411 |
Pass [Member] | Commercial [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 | 132,665 | 108,623 |
Pass [Member] | Commercial loans secured by 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 | 406,195 | 396,788 |
Special Mention [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 | 781 | 15,841 |
Special Mention [Member] | Commercial [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 | 161 | 8,880 |
Special Mention [Member] | Commercial loans secured by 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 | 620 | 6,961 |
Substandard [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 | 9,402 | 10,081 |
Substandard [Member] | Commercial [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 | 6,164 | 2,599 |
Substandard [Member] | Commercial loans secured by 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 | 3,238 | 7,482 |
Doubtful [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 | 412 | 460 |
Doubtful [Member] | Commercial [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 | 136 | |
Doubtful [Member] | Commercial loans secured by 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 | $276 | $460 |
ALLOWANCE_FOR_LOAN_LOSSES_Perf
ALLOWANCE FOR LOAN LOSSES (Performing and Non-performing Outstanding Balances) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Performing [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Outstanding balance of consumer loan | $276,208 | $250,253 |
Performing [Member] | Real estate-mortgage [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Outstanding balance of consumer loan | 257,199 | 234,450 |
Performing [Member] | Consumer [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Outstanding balance of consumer loan | 19,009 | 15,803 |
Non-Performing [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Outstanding balance of consumer loan | 1,417 | 1,300 |
Non-Performing [Member] | Real estate-mortgage [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Outstanding balance of consumer loan | 1,417 | 1,239 |
Non-Performing [Member] | Consumer [Member] | ||
Performing and non-performing outstanding balances of the residential and consumer portfolios | ||
Outstanding balance of consumer loan | $61 |
ALLOWANCE_FOR_LOAN_LOSSES_Clas
ALLOWANCE FOR LOAN LOSSES (Classes of Loan Portfolio by Aging Categories) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | $823,123 | $778,265 |
30-59 Days Past Due | 2,550 | 2,722 |
60-89 Days Past Due | 340 | 697 |
90 Days Past Due | 1,067 | 1,662 |
Total Past Due | 3,957 | 5,081 |
Total Loans | 827,080 | 783,346 |
90 Days Past Due and Still Accruing | ||
Commercial [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 139,126 | 120,102 |
30-59 Days Past Due | ||
60-89 Days Past Due | ||
90 Days Past Due | ||
Total Past Due | ||
Total Loans | 139,126 | 120,102 |
90 Days Past Due and Still Accruing | ||
Commercial loans secured by real estate [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 410,049 | 410,619 |
30-59 Days Past Due | 280 | 457 |
60-89 Days Past Due | ||
90 Days Past Due | 615 | |
Total Past Due | 280 | 1,072 |
Total Loans | 410,329 | 411,691 |
90 Days Past Due and Still Accruing | ||
Real estate-mortgage [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 255,021 | 231,740 |
30-59 Days Past Due | 2,196 | 2,232 |
60-89 Days Past Due | 332 | 670 |
90 Days Past Due | 1,067 | 1,047 |
Total Past Due | 3,595 | 3,949 |
Total Loans | 258,616 | 235,689 |
90 Days Past Due and Still Accruing | ||
Consumer [Member] | ||
Classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans | ||
Current | 18,927 | 15,804 |
30-59 Days Past Due | 74 | 33 |
60-89 Days Past Due | 8 | 27 |
90 Days Past Due | ||
Total Past Due | 82 | 60 |
Total Loans | 19,009 | 15,864 |
90 Days Past Due and Still Accruing |
ALLOWANCE_FOR_LOAN_LOSSES_Narr
ALLOWANCE FOR LOAN LOSSES (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Individual loan balance is classified as nonaccrual status or troubled debt restructure | $100,000 | $100,000 | |||||||||
Loans past due as to maturity, days | 90 days | ||||||||||
Provision (credit) for loan losses | -375,000 | 1,000,000 | -150,000 | 250,000 | -375,000 | 1,100,000 | 775,000 | ||||
Pass [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum individual loan balance requiring quarterly review | 1,000,000 | 1,000,000 | |||||||||
Special Mention [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 | |||||||||
Commercial [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (credit) for loan losses | -449,000 | -218,000 | -438,000 | ||||||||
Threshold for individually evaluating loans | 250,000 | 250,000 | |||||||||
Commercial [Member] | Minimum [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum percent of portfolio to be reviewed | 50.00% | ||||||||||
Commercial [Member] | Maximum [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Minimum percent of portfolio to be reviewed | 55.00% | ||||||||||
Commercial loans secured by real estate [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (credit) for loan losses | 506,000 | 1,615,000 | 1,053,000 | ||||||||
Real estate-mortgage [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (credit) for loan losses | -301,000 | -8,000 | -365,000 | ||||||||
Consumer [Member] | |||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||
Provision (credit) for loan losses | ($151,000) | ($70,000) | ($129,000) |
NONPERFORMING_ASSETS_INCLUDING2
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (Schedule of Non-performing Assets Including TDR) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Non-performing assets including TDR | ||
Non-accrual loans | $2,195 | $2,871 |
Other real estate owned | 512 | 1,017 |
TDR's not in non-accrual | 210 | 221 |
Total non-performing assets including TDR | 2,917 | 4,109 |
Total non-performing assets as a percent of loans, net of unearned income, and other real estate owned | 0.35% | 0.52% |
Commercial loans secured by real estate [Member] | ||
Non-performing assets including TDR | ||
Non-accrual loans | 778 | 1,632 |
Other real estate owned | 384 | 344 |
Real estate-mortgage [Member] | ||
Non-performing assets including TDR | ||
Non-accrual loans | 1,417 | 1,239 |
Other real estate owned | $128 | $673 |
NONPERFORMING_ASSETS_INCLUDING3
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (Schedule of TDRs) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Loans in accrual status [Member] | Commercial loans secured by real estate [Member] | |||
Schedule of TDRs | |||
Number of loans | 2 | 2 | 2 |
Current Balance | $742 | $161 | $169 |
Concession Granted | Extension of maturity date | Extension of maturity date | Extension of maturity date |
Loans in accrual status [Member] | Consumer [Member] | |||
Schedule of TDRs | |||
Number of loans | 2 | 1 | |
Current Balance | 61 | 13 | |
Concession Granted | Extension of maturity date | Extension of maturity date | |
Loans in non-accrual status [Member] | Commercial loans secured by real estate [Member] | |||
Schedule of TDRs | |||
Number of loans | 2 | 2 | 4 |
Current Balance | $210 | $1,250 | $3,772 |
Concession Granted | Extension of maturity date | Extension of maturity date | Extension of maturity date |
NONPERFORMING_ASSETS_INCLUDING4
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (Schedule of Recorded Investment of Defaults) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Recorded investment of defaults | |||
Recorded investment default, total | $1,480 | $595 | |
Commercial loan secured by real estate [Member] | |||
Recorded investment of defaults | |||
Recorded investment default, total | $1,480 | $595 |
NONPERFORMING_ASSETS_INCLUDING5
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (Schedule of Interest Income) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Interest Income | |||
Interest income due in accordance with original terms | $136 | $178 | $231 |
Interest income recorded | |||
Net reduction in interest income | $136 | $178 | $231 |
NONPERFORMING_ASSETS_INCLUDING6
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (Narrative) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
NON-PERFORMING ASSETS INCLUDING TROUBLED DEBT RESTRUCTURINGS (TDR) [Abstract] | ||
Aggregate of multiple consecutive maturity date extensions delay in payment, days | 120 days | |
Borrowers aggregate exposure for loan modification minimum | $250,000 | |
Timely payments on contract terms for minimum consecutive months prior to consideration for removing loan from TDR status | 6 months | |
Minimum consecutive months payment for removing the loan from non-accrual status | 6 months | |
ALL reserve for loans modified as TDR's | $520,000 | $344,000 |
PREMISES_AND_EQUIPMENT_Details
PREMISES AND EQUIPMENT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant and Equipment [Line Items] | ||
Cost | $34,399,000 | $36,675,000 |
Less: Accumulated depreciation and amortization | 21,387,000 | 23,556,000 |
Net book value | 13,012,000 | 13,119,000 |
Depreciation expense | 1,800,000 | 1,700,000 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 1,198,000 | 1,208,000 |
Premises [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 24,175,000 | 25,752,000 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 8,337,000 | 8,912,000 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $689,000 | $803,000 |
DEPOSITS_Schedule_of_Balances_
DEPOSITS (Schedule of Balances of Deposits) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Demand: | ||
Non-interest bearing | $167,551 | $154,002 |
Interest bearing | 89,676 | 84,926 |
Savings | 90,020 | 87,655 |
Money market | 221,378 | 219,801 |
Certificates of deposit in denominations of $100,000 or more | 50,529 | 47,287 |
Other time | 250,727 | 260,851 |
Total deposits | $869,881 | $854,522 |
DEPOSITS_Schedule_of_Interest_
DEPOSITS (Schedule of Interest Expense on Deposits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
DEPOSITS [Abstract] | |||
Interest bearing demand | $191 | $138 | $116 |
Savings | 144 | 139 | 181 |
Money market | 761 | 736 | 895 |
Certificates of deposit in denominations of $100,000 or more | 268 | 289 | 435 |
Other time | 3,525 | 3,862 | 4,875 |
Total interest expense | $4,889 | $5,164 | $6,502 |
DEPOSITS_Schedule_of_Balances_1
DEPOSITS (Schedule of Balances of Deposits of $100,000 or More) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
OTHER TIME DEPOSITS | ||
2015 | $130,090 | |
2016 | 30,472 | |
2017 | 14,515 | |
2018 | 26,424 | |
2019 | 12,193 | |
2020 and after | 37,033 | |
Total | 250,727 | |
CERTIFICATES OF DEPOSIT OF $100,000 OR MORE | ||
2015 | 41,582 | |
2016 | 8,230 | |
2017 | 417 | |
2018 | 200 | |
2019 | ||
2020 and after | 100 | |
Total | $50,529 | $47,287 |
DEPOSITS_Schedule_of_Maturitie
DEPOSITS (Schedule of Maturities of Deposits of $100,000 or More) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DEPOSITS [Abstract] | ||
Three months or less | $4,483 | |
Over three through six months | 23,171 | |
Over six through twelve months | 13,928 | |
Over twelve months | 8,947 | |
Total | $50,529 | $47,287 |
SHORTTERM_BORROWINGS_Details
SHORT-TERM BORROWINGS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Short-term Debt [Line Items] | |||
Average maturity | 1 day | 1 day | 1 day |
Federal Funds Purchased [Member] | |||
Short-term Debt [Line Items] | |||
Balance | |||
Maximum indebtedness at any month end | |||
Average balance during year | 959 | 117 | |
Average rate paid for the year | 0.00% | 0.34% | 0.34% |
Interest rate on year end balance | 0.00% | 0.00% | 0.00% |
Short-Term Borrowings [Member] | |||
Short-term Debt [Line Items] | |||
Balance | 38,880 | 41,555 | 15,660 |
Maximum indebtedness at any month end | 47,762 | 41,555 | 19,755 |
Average balance during year | 18,783 | 16,482 | 5,225 |
Average rate paid for the year | 0.29% | 0.26% | 0.20% |
Interest rate on year end balance | 0.27% | 0.25% | 0.25% |
ADVANCES_FROM_FEDERAL_HOME_LOA2
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES (Schedule of Balances and Advances) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
FEDERAL HOME LOAN BANK STOCK: | ||
2015 | 0.52% | 0.52% |
2016 | 0.81% | 0.81% |
2017 | 1.06% | 1.07% |
2018 | 1.51% | 1.47% |
2019 | 1.88% | |
Total advances from FHLB | 1.12% | 0.89% |
BALANCE | ||
2015 | $4,000 | $4,000 |
2016 | 12,000 | 12,000 |
2017 | 12,000 | 7,000 |
2018 | 10,000 | 2,000 |
2019 | 4,000 | |
Total advances from FHLB | $42,000 | $25,000 |
ADVANCES_FROM_FEDERAL_HOME_LOA3
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES (Narrative) (Details) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2005 | Dec. 31, 2004 | Dec. 31, 2013 | |
ADVANCES FROM FEDERAL HOME LOAN BANK AND GUARANTEED JUNIOR SUBORDINATED DEFERRABLE INTEREST DEBENTURES [Abstract] | ||||
Overnight borrowing capability at the FHLB | $347,000,000 | |||
Unsecured federal funds lines with correspondent banks | 39,000,000 | |||
Debt Instrument [Line Items] | ||||
Guaranteed junior subordinated deferrable interest debentures | 13,085,000 | 13,085,000 | ||
Guaranteed Junior Subordinated Deferrable Interest Debentures [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, principal amount | 34,500,000 | |||
Interest rate | 8.45% | |||
Maturity date | 30-Jun-28 | |||
Earliest redemption date | 30-Jun-03 | |||
Unamortized deferred issuance costs | 209,000 | |||
Early redemption of debt | 22,500,000 | 22,500,000 | ||
Guaranteed junior subordinated deferrable interest debentures | $13,100,000 | $13,100,000 |
DISCLOSURES_ABOUT_FAIR_VALUE_M2
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS (Schedule of Assets and Liabilities Measured on Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | $127,110 | $141,978 |
U.S. Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 5,906 | 6,835 |
U.S. Agency mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 105,768 | 123,382 |
Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 15,436 | 11,761 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 127,110 | 141,978 |
Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Fair Value Measurements, Recurring Basis [Member] | U.S. Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 5,906 | 6,835 |
Fair Value Measurements, Recurring Basis [Member] | U.S. Agency mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 105,768 | 123,382 |
Fair Value Measurements, Recurring Basis [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 15,436 | 11,761 |
Fair Value Measurements, Recurring Basis [Member] | Level 1 [Member] | U.S. Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Fair Value Measurements, Recurring Basis [Member] | Level 1 [Member] | U.S. Agency mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Fair Value Measurements, Recurring Basis [Member] | Level 1 [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Fair Value Measurements, Recurring Basis [Member] | Level 2 [Member] | U.S. Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 5,906 | 6,835 |
Fair Value Measurements, Recurring Basis [Member] | Level 2 [Member] | U.S. Agency mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 105,768 | 123,382 |
Fair Value Measurements, Recurring Basis [Member] | Level 2 [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | 15,436 | 11,761 |
Fair Value Measurements, Recurring Basis [Member] | Level 3 [Member] | U.S. Agency Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Fair Value Measurements, Recurring Basis [Member] | Level 3 [Member] | U.S. Agency mortgage-backed securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale | ||
Fair Value Measurements, Recurring Basis [Member] | Level 3 [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available for sale |
DISCLOSURES_ABOUT_FAIR_VALUE_M3
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS (Schedule of Assets Measured at Fair Value on Non-Recurring Basis) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Carrying value of impaired loans | $989 | $3,066 |
Fair Value Measurements, Nonrecurring Basis [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | 512 | 1,017 |
Carrying value of impaired loans | 469 | 2,253 |
Fair Value Measurements, Nonrecurring Basis [Member] | Impaired Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liquidation Expense | 10.00% | 10.00% |
Appraisal of Adjustment | 30.00% | 30.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liquidation Expense | 9.00% | 10.00% |
Appraisal of Adjustment | 55.00% | 38.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Minimum [Member] | Impaired Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liquidation Expense | 1.00% | 1.00% |
Appraisal of Adjustment | 0.00% | 0.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Minimum [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liquidation Expense | 1.00% | 1.00% |
Appraisal of Adjustment | 47.00% | 31.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum [Member] | Impaired Loans [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liquidation Expense | 15.00% | 15.00% |
Appraisal of Adjustment | 37.00% | 37.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Maximum [Member] | Other Real Estate Owned [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Liquidation Expense | 61.00% | 20.00% |
Appraisal of Adjustment | 83.00% | 48.00% |
Fair Value Measurements, Nonrecurring Basis [Member] | Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | ||
Carrying value of impaired loans | ||
Fair Value Measurements, Nonrecurring Basis [Member] | Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | ||
Carrying value of impaired loans | ||
Fair Value Measurements, Nonrecurring Basis [Member] | Level 3 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Other real estate owned | 512 | 1,017 |
Carrying value of impaired loans | $469 | $2,253 |
DISCLOSURES_ABOUT_FAIR_VALUE_M4
DISCLOSURES ABOUT FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded Investment | $989,000 | $3,066,000 |
Specific valuation allowance | 520,000 | 813,000 |
Net fair value of impaired loans | 469,000 | 2,300,000 |
Fair Value Measurements Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Recorded Investment | $469,000 | $2,253,000 |
DISCLOSURES_ABOUT_FAIR_VALUE_O2
DISCLOSURES ABOUT FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | ||||
FINANCIAL ASSETS: Carrying Value | ||||
Cash and cash equivalents | $32,872 | $30,066 | $26,820 | $34,783 |
Investment securities - HTM | 19,840 | 18,187 | ||
Regulatory stock | 6,173 | 6,802 | ||
Loans held for sale | 5,051 | 3,402 | ||
Loans, net of allowance for loan loss and unearned income | 817,457 | 773,242 | ||
Accrued income receivable | 3,127 | 2,908 | ||
Bank owned life insurance | 37,417 | 36,669 | ||
Cash and cash equivalents | 32,872 | 30,066 | ||
Available for sale | 127,110 | 141,978 | ||
Investment securities - HTM | 20,213 | 17,788 | ||
Regulatory stock | 6,173 | 6,802 | ||
Loans held for sale | 5,127 | 3,453 | ||
Loans, net of allowance for loan loss and unearned income | 819,935 | 771,460 | ||
Accrued income receivable | 3,127 | 2,908 | ||
Bank owned life insurance | 37,417 | 36,669 | ||
FINANCIAL LIABILITIES: Carrying Value | ||||
Deposits with no stated maturities | 568,625 | 546,384 | ||
Deposits with stated maturities | 301,256 | 308,138 | ||
Short-term borrowings | 38,880 | 41,555 | ||
All other borrowings | 55,085 | 38,085 | ||
Accrued interest payable | 1,706 | 1,784 | ||
Deposits with no stated maturities | 568,625 | 546,384 | ||
Deposits with stated maturities | 304,744 | 313,272 | ||
Short-term borrowings | 38,880 | 41,555 | ||
All other borrowings | 59,256 | 40,598 | ||
Accrued interest payable | 1,706 | 1,784 | ||
Level 1 [Member] | ||||
FINANCIAL ASSETS: Carrying Value | ||||
Cash and cash equivalents | 32,872 | 30,066 | ||
Available for sale | ||||
Investment securities - HTM | ||||
Regulatory stock | 6,173 | 6,802 | ||
Loans held for sale | 5,127 | 3,453 | ||
Loans, net of allowance for loan loss and unearned income | ||||
Accrued income receivable | 3,127 | 2,908 | ||
Bank owned life insurance | 37,417 | 36,669 | ||
FINANCIAL LIABILITIES: Carrying Value | ||||
Deposits with no stated maturities | 568,625 | 546,384 | ||
Deposits with stated maturities | ||||
Short-term borrowings | 38,880 | 41,555 | ||
All other borrowings | ||||
Accrued interest payable | 1,706 | 1,784 | ||
Level 2 [Member] | ||||
FINANCIAL ASSETS: Carrying Value | ||||
Cash and cash equivalents | ||||
Available for sale | 127,110 | 141,978 | ||
Investment securities - HTM | 17,241 | 14,822 | ||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance for loan loss and unearned income | ||||
Accrued income receivable | ||||
Bank owned life insurance | ||||
FINANCIAL LIABILITIES: Carrying Value | ||||
Deposits with no stated maturities | ||||
Deposits with stated maturities | ||||
Short-term borrowings | ||||
All other borrowings | ||||
Accrued interest payable | ||||
Level 3 [Member] | ||||
FINANCIAL ASSETS: Carrying Value | ||||
Cash and cash equivalents | ||||
Available for sale | ||||
Investment securities - HTM | 2,972 | 2,966 | ||
Regulatory stock | ||||
Loans held for sale | ||||
Loans, net of allowance for loan loss and unearned income | 819,935 | 771,460 | ||
Accrued income receivable | ||||
Bank owned life insurance | ||||
FINANCIAL LIABILITIES: Carrying Value | ||||
Deposits with no stated maturities | ||||
Deposits with stated maturities | 304,744 | 313,272 | ||
Short-term borrowings | ||||
All other borrowings | 59,256 | 40,598 | ||
Accrued interest payable |
INCOME_TAXES_Schedule_of_Expen
INCOME TAXES (Schedule of Expense for Income Taxes) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [Abstract] | |||||||||||
Current | $1,036 | $139 | $140 | ||||||||
Deferred | 562 | 2,150 | 2,101 | ||||||||
Income tax expense | $398 | $388 | $423 | $389 | $878 | $547 | $434 | $430 | $1,598 | $2,289 | $2,241 |
INCOME_TAXES_Schedule_of_Recon
INCOME TAXES (Schedule of Reconciliation Between Federal Statutory Tax Rate and Effective Income Tax Rate) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
AMOUNT | |||||||||||
Income tax expense based on federal statutory rate | $1,571 | $2,544 | $2,475 | ||||||||
Tax exempt income | -274 | -359 | -315 | ||||||||
Other | 301 | 104 | 81 | ||||||||
Income tax expense | $398 | $388 | $423 | $389 | $878 | $547 | $434 | $430 | $1,598 | $2,289 | $2,241 |
RATE | |||||||||||
Income tax expense based on federal statutory rate | 34.00% | 34.00% | 34.00% | ||||||||
Tax exempt income | -5.90% | -4.80% | -4.30% | ||||||||
Other | 6.50% | 1.40% | 1.10% | ||||||||
Total expense for income taxes | 34.60% | 30.60% | 30.80% |
INCOME_TAXES_Schedule_of_Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
DEFERRED TAX ASSETS: | ||
Allowance for loan losses | $3,272 | $3,437 |
Unfunded commitment reserve | 300 | 264 |
Premises and equipment | 1,433 | 1,832 |
Accrued pension obligation | 2,358 | 1,462 |
Net operating loss carryforwards | 242 | 1,307 |
Alternative minimum tax credits | 2,820 | 1,749 |
Other | 349 | 393 |
Total tax assets | 10,774 | 10,444 |
DEFERRED TAX LIABILITIES: | ||
Investment accretion | -25 | -18 |
Unrealized investment security gains | -950 | -545 |
Other | -251 | -309 |
Total tax liabilities | -1,226 | -872 |
Net deferred tax asset | $9,548 | $9,572 |
INCOME_TAXES_Schedule_of_Chang
INCOME TAXES (Schedule of Change in Net Deferred Tax Assets and Liabilities) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME TAXES [Abstract] | |||
Unrealized gains recognized in comprehensive income | ($404) | $1,595 | |
Pension obligation of the defined benefit plan not yet recognized in income | 943 | -1,340 | 724 |
Deferred provision for income taxes | -562 | -2,150 | -2,101 |
Net (decrease) | ($24) | ($1,895) |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
INCOME TAXES [Abstract] | |
Alternative minimum tax credit carryforwards | $2,800,000 |
Net operating loss carryforwards | $713,000 |
Net operating loss carryforwards, expiration date | 1-Jan-25 |
EMPLOYEE_BENEFIT_PLANS_Narrati
EMPLOYEE BENEFIT PLANS (Narrative) (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
PENSION PLANS: | |||||
Estimated net loss that will be amortized from accumulated other comprehensive income (loss) | $813,000 | [1],[2] | $683,000 | [1],[2] | |
401(k) PLAN: | |||||
Contributions to charged to operations | 387,000 | 327,000 | |||
Employer match percentage | 6.00% | 2.00% | |||
Maximum percent of salary | 4.00% | 3.00% | 1.00% | ||
Contribution for union members | 4.00% | 4.00% | 4.00% | ||
AmeriServ Financial, Inc. common stock and Trust Preferred securities held | 1,100,000 | ||||
Pension Plans, Defined Benefit [Member] | |||||
PENSION PLANS: | |||||
Minimum number of annual hours | 1,000 | ||||
Vesting term | 5 years | ||||
AmeriServ Financial, Inc. common stock held | 651,000 | ||||
Maximum percent of plan assets comprised of AmeriServ Financial, Inc. common stock | 10.00% | ||||
Percent of plan assets comprised of common stock | 2.40% | ||||
Estimated net loss that will be amortized from accumulated other comprehensive income (loss) | 1,261,000 | ||||
Expected return on plan assets | 8.00% | 8.00% | 8.00% | ||
Expected contribution in 2015 | $2,500,000 | ||||
Pension Plans, Defined Benefit [Member] | Domestic Equities [Member] | |||||
PENSION PLANS: | |||||
Target allocation | 60.00% | ||||
Target allocation, minimum | 50.00% | ||||
Target allocation, maximum | 60.00% | ||||
Pension Plans, Defined Benefit [Member] | Fixed Income Securities [Member] | |||||
PENSION PLANS: | |||||
Target allocation, minimum | 40.00% | ||||
Target allocation, maximum | 50.00% | ||||
[1] | Amounts in parentheses indicate credits. | ||||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 14 for additional details). |
EMPLOYEE_BENEFIT_PLANS_Schedul
EMPLOYEE BENEFIT PLANS (Schedule of Changes in Benefit Obligations and Plan Assets and Funded Status) (Details) (Pension Plans, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit [Member] | |||
CHANGE IN BENEFIT OBLIGATION: | |||
Benefit obligation at beginning of year | $30,249 | $29,844 | |
Service cost | 1,601 | 1,703 | 1,593 |
Interest cost | 1,368 | 1,189 | 1,234 |
Actuarial (gain) loss | 3,406 | -757 | |
Curtailments | 328 | ||
Special/contractual termination benefits | 376 | ||
Benefits paid | -3,627 | -1,730 | |
Benefit obligation at end of year | 33,701 | 30,249 | 29,844 |
CHANGE IN PLAN ASSETS: | |||
Fair value of plan assets at beginning of year | 26,288 | 21,368 | |
Actual return on plan assets | 2,056 | 3,850 | |
Employer contributions | 2,650 | 2,800 | |
Benefits paid | -3,627 | -1,730 | |
Fair value of plan assets at end of year | 27,367 | 26,288 | 21,368 |
Funded status of the plan-under funded | ($6,334) | ($3,961) |
EMPLOYEE_BENEFIT_PLANS_Schedul1
EMPLOYEE BENEFIT PLANS (Schedule of Amounts Not Yet Recognized as a Component of Net Periodic Pension Cost) (Details) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Plans, Defined Benefit [Member] | ||
Amounts recognized in accumulated other comprehensive loss consists of: | ||
Prior service cost | ($19) | |
Net actuarial loss | 12,596 | 10,107 |
Total | $12,596 | $10,088 |
EMPLOYEE_BENEFIT_PLANS_Schedul2
EMPLOYEE BENEFIT PLANS (Schedule of Accumulated Benefit Obligation) (Details) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Pension Plans, Defined Benefit [Member] | ||
PENSION PLANS: | ||
Accumulated benefit obligation | $30,914 | $27,566 |
EMPLOYEE_BENEFIT_PLANS_Schedul3
EMPLOYEE BENEFIT PLANS (Schedule of Weighted Average Assumptions Used to Determine Benefit Obligations) (Details) (Pension Plans, Defined Benefit [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
Pension Plans, Defined Benefit [Member] | ||
WEIGHTED AVERAGE ASSUMPTIONS: | ||
Discount rate | 4.00% | 4.50% |
Salary scale | 2.50% | 2.50% |
EMPLOYEE_BENEFIT_PLANS_Schedul4
EMPLOYEE BENEFIT PLANS (Schedule of Components of Net Periodic Benefit Cost) (Details) (Pension Plans, Defined Benefit [Member], USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Pension Plans, Defined Benefit [Member] | |||
COMPONENTS OF NET PERIODIC BENEFIT COST: | |||
Service cost | $1,601 | $1,703 | $1,593 |
Interest cost | 1,368 | 1,189 | 1,234 |
Expected return on plan assets | -1,991 | -1,775 | -1,656 |
Amortization of prior year service cost | -19 | -19 | -19 |
Amortization of transition asset | -8 | -17 | |
Special termination benefit liability | 376 | ||
Recognized net actuarial loss | 1,181 | 1,375 | 1,094 |
Net periodic pension cost | $2,516 | $2,465 | $2,229 |
EMPLOYEE_BENEFIT_PLANS_Schedul5
EMPLOYEE BENEFIT PLANS (Schedule of Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss)) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Recognized loss | ($799) | [1],[2] | ($669) | [1],[2] | |
Pension Plans, Defined Benefit [Member] | |||||
OTHER CHANGES IN PLAN ASSETS AND BENEFIT OBLIGATIONS RECOGNIZED IN OTHER COMPREHENSIVE INCOME (LOSS) | |||||
Net (gain) loss | 3,669 | -2,832 | 2,376 | ||
Recognized loss | -1,181 | -1,375 | -1,094 | ||
Total recognized in other comprehensive loss before tax effect | 2,507 | -4,180 | 1,318 | ||
Recognized prior service cost | 19 | 19 | 19 | ||
Recognized net initial asset | 8 | 17 | |||
Total recognized in net benefit cost and other comprehensive loss before tax effect | $5,023 | ($1,715) | $3,547 | ||
[1] | Amounts in parentheses indicate credits. | ||||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 14 for additional details). |
EMPLOYEE_BENEFIT_PLANS_Schedul6
EMPLOYEE BENEFIT PLANS (Schedule of Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost) (Details) (Pension Plans, Defined Benefit [Member]) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Pension Plans, Defined Benefit [Member] | |||
WEIGHTED AVERAGE ASSUMPTIONS: | |||
Discount rate | 4.50% | 4.00% | 4.75% |
Expected return on plan assets | 8.00% | 8.00% | 8.00% |
Rate of compensation increase | 2.50% | 2.50% | 2.50% |
EMPLOYEE_BENEFIT_PLANS_Schedul7
EMPLOYEE BENEFIT PLANS (Schedule of Plan's Asset Allocations) (Details) (Pension Plans, Defined Benefit [Member]) | Dec. 31, 2014 | Dec. 31, 2013 |
PLAN ASSETS: | ||
Asset allocations | 100.00% | 100.00% |
Cash and Cash Equivalents [Member] | ||
PLAN ASSETS: | ||
Asset allocations | 2.00% | |
Domestic Equities [Member] | ||
PLAN ASSETS: | ||
Asset allocations | 10.00% | 10.00% |
Mutual Funds/ETFs [Member] | ||
PLAN ASSETS: | ||
Asset allocations | 80.00% | 79.00% |
International Equity Securities [Member] | ||
PLAN ASSETS: | ||
Asset allocations | 3.00% | 6.00% |
Corporate Bonds [Member] | ||
PLAN ASSETS: | ||
Asset allocations | 5.00% | 5.00% |
EMPLOYEE_BENEFIT_PLANS_Schedul8
EMPLOYEE BENEFIT PLANS (Schedule of Assets Measured at Fair Value) (Details) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
PLAN ASSETS: | |||
Fair value of plan assets | $27,367 | $26,288 | $21,368 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | |||
PLAN ASSETS: | |||
Fair value of plan assets | 639 | ||
Domestic Equities [Member] | Level 1 [Member] | |||
PLAN ASSETS: | |||
Fair value of plan assets | 2,753 | 2,741 | |
Mutual Funds/ETFs [Member] | Level 1 [Member] | |||
PLAN ASSETS: | |||
Fair value of plan assets | 21,782 | 20,744 | |
International Equity Securities [Member] | Level 1 [Member] | |||
PLAN ASSETS: | |||
Fair value of plan assets | 851 | 1,478 | |
Corporate Bonds [Member] | Level 2 [Member] | |||
PLAN ASSETS: | |||
Fair value of plan assets | $1,342 | $1,325 |
EMPLOYEE_BENEFIT_PLANS_Schedul9
EMPLOYEE BENEFIT PLANS (Schedule of Estimated Future Benefit Payments) (Details) (Pension Plans, Defined Benefit [Member], USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Pension Plans, Defined Benefit [Member] | |
ESTIMATED FUTURE BENEFIT PAYMENTS | |
2015 | $1,939 |
2016 | 2,472 |
2017 | 2,752 |
2018 | 2,434 |
2019 | 2,573 |
2020 and thereafter | $16,419 |
LEASE_COMMITMENTS_Details
LEASE COMMITMENTS (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
FUTURE MINIMUM LEASE PAYMENTS | |||
2015 | $711 | ||
2016 | 585 | ||
2017 | 426 | ||
2018 | 280 | ||
2019 | 159 | ||
2020 and thereafter | 1,561 | ||
Rent expense included in total non-interest expense | $732 | $764 | $785 |
COMMITMENTS_AND_CONTINGENT_LIA1
COMMITMENTS AND CONTINGENT LIABILITIES (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 |
Loss Contingencies [Line Items] | ||
Carrying value of commitment | 882 | $776 |
Commitments To Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 188,000 | 146,000 |
Standby Letters Of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 7,200 | 13,200 |
Amount of commitments secured | 3,300 | $3,900 |
Standby Letters Of Credit [Member] | Minimum [Member] | ||
Loss Contingencies [Line Items] | ||
Term of commitment | 1 year | |
Standby Letters Of Credit [Member] | Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Term of commitment | 2 years |
PREFERRED_STOCK_Schedule_of_Pr
PREFERRED STOCK (Schedule of Preferred Dividend Stock Period Annualized) (Details) (Series E Preferred Stock [Member]) | 1 Months Ended | 12 Months Ended | |
Aug. 11, 2011 | Dec. 31, 2014 | ||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 5.00% | ||
Term 1 [Member] | |||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 5.00% | ||
Minimum [Member] | |||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 1.00% | ||
Minimum [Member] | Term 1 [Member] | |||
Preferred Stock [Line Items] | |||
Dividend Annualized Period | 11-Aug-11 | ||
Minimum [Member] | Term 2 [Member] | |||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 1.00% | ||
Dividend Annualized Period | 1-Jan-12 | ||
Minimum [Member] | Term 3 [Member] | |||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 1.00% | [1] | |
Dividend Annualized Period | 1-Jan-14 | ||
Minimum [Member] | Term 4 [Member] | |||
Preferred Stock [Line Items] | |||
Dividend Annualized Period | 8-Feb-16 | ||
Maximum [Member] | Term 1 [Member] | |||
Preferred Stock [Line Items] | |||
Dividend Annualized Period | 31-Dec-11 | ||
Maximum [Member] | Term 2 [Member] | |||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 5.00% | ||
Dividend Annualized Period | 31-Dec-13 | ||
Maximum [Member] | Term 3 [Member] | |||
Preferred Stock [Line Items] | |||
Annualized Dividend Rate | 7.00% | [1] | |
Dividend Annualized Period | 7-Feb-16 | ||
[1] | Between January 1, 2014 and February 7, 2016, the Company's dividend rate was fixed at 1% based upon the level of percentage change in QSBL between September 30, 2013 and the Baseline. |
PREFERRED_STOCK_Narrative_Deta
PREFERRED STOCK (Narrative) (Details) (Series E Preferred Stock [Member], USD $) | 1 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Aug. 11, 2011 | Dec. 31, 2014 |
Class of Stock [Line Items] | ||
Shares of stock issued | 21,000 | |
Value of stock issued | $21,000 | |
Dividend rate | 5.00% | |
Aggregate liquidation preference | $21,000 | |
Minimum Tier 1 capital required to pay dividends | 90.00% | |
Redemption price, percent of liquidation amount | 100.00% | |
Minimum [Member] | ||
Class of Stock [Line Items] | ||
Dividend rate | 1.00% |
STOCK_COMPENSATION_PLANS_Narra
STOCK COMPENSATION PLANS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
STOCK COMPENSATION PLANS [Abstract] | |||
Pretax compensation expense | $42,000 | $82,000 | $38,000 |
Common stock reserved for issuances | 800,000 | ||
Option price as a percentage of fair market value per share of common stock on the Grant Date | 100.00% | ||
Maximum contractual term | 10 years | ||
Vesting period | 3 years | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of options outstanding | 559,909 | ||
Range One [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of options outstanding and exercisable | 330,822 | ||
Exercise price, minimum | $1.53 | ||
Exercise price, maximum | $5.22 | ||
Weighted average exercise price of options outstanding and exercisable | $2.36 | ||
Weighted average remaining contractual life of options outstanding and exercisable | 6 years 1 month 6 days | ||
Range Two [Member] | |||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |||
Number of options outstanding and exercisable | 229,087 | ||
Exercise price, minimum | $2.57 | ||
Exercise price, maximum | $3.23 | ||
Weighted average exercise price of options outstanding | $3.09 | ||
Weighted average remaining contractual life of options outstanding | 8 years 7 months 17 days |
STOCK_COMPENSATION_PLANS_Sched
STOCK COMPENSATION PLANS (Schedule of Stock Incentive Plan Activity) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
SHARES | |||
Outstanding at beginning of year | 487,349 | 398,371 | 313,612 |
Granted | 115,000 | 102,445 | 164,241 |
Exercised | -10,700 | -3,467 | -1,500 |
Forfeited | -31,740 | -10,000 | -77,982 |
Outstanding at end of year | 559,909 | 487,349 | 398,371 |
Exercisable at end of year | 330,822 | 257,253 | 167,624 |
WEIGHTED AVERAGE EXERCISE PRICE | |||
Outstanding at beginning of year | $2.55 | $2.43 | $3.02 |
Granted | $3.18 | $3.19 | $2.73 |
Exercised | $2.25 | $1.81 | $1.70 |
Forfeited | $3.08 | $4.25 | $5.47 |
Outstanding at end of year | $2.66 | $2.55 | $2.43 |
Exercise price of common shares | $2.36 | $2.25 | $2.29 |
Weighted average fair value of options granted in current year | $0.85 | $0.83 | $0.80 |
STOCK_COMPENSATION_PLANS_Sched1
STOCK COMPENSATION PLANS (Schedule of Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected lives in years | 10 years | 10 years | 10 years |
Expected dividend rate | 1.30% | 0.00% | |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.43% | 1.82% | 1.66% |
Expected volatility | 28.00% | 30.00% | 33.00% |
Expected dividend rate | 1.25% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 2.74% | 2.03% | 2.28% |
Expected volatility | 29.00% | 32.00% | 36.00% |
Expected dividend rate | 1.30% |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Changes in Each Component of Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Accumulated Other Comprehensive Loss [Line Items] | ||||||
Beginning balance | ($5,875) | ($5,379) | [1] | |||
Other comprehensive income (loss) before reclassifications | -1,437 | [1] | -802 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 410 | [1] | 306 | [1] | ||
Other comprehensive loss | -1,027 | -496 | -1,719 | |||
Ending balance | -6,902 | -5,875 | -5,379 | [1] | ||
Net Unrealized Gains and Losses on Investment Securities [Member] | ||||||
Accumulated Other Comprehensive Loss [Line Items] | ||||||
Beginning balance | 1,043 | [1] | 4,141 | [1] | ||
Other comprehensive income (loss) before reclassifications | 917 | [1] | -2,963 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | -117 | [1] | -135 | [1] | ||
Other comprehensive loss | 800 | [1] | -3,098 | [1] | ||
Ending balance | 1,843 | [1] | 1,043 | [1] | ||
Defined Benefit Pension Items [Member] | ||||||
Accumulated Other Comprehensive Loss [Line Items] | ||||||
Beginning balance | -6,918 | [1] | -9,520 | [1] | ||
Other comprehensive income (loss) before reclassifications | -2,354 | [1] | 2,161 | [1] | ||
Amounts reclassified from accumulated other comprehensive loss | 527 | [1] | 441 | [1] | ||
Other comprehensive loss | -1,827 | [1] | 2,602 | [1] | ||
Ending balance | ($8,745) | [1] | ($6,918) | [1] | ||
[1] | Amounts in parentheses indicate debits on the Consolidated Balance Sheets. |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE LOSS (Schedule of Amounts Reclassified out of Each Component of Accumulated Other Comprehensive Loss) (Details) (USD $) | 12 Months Ended | ||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
Unrealized gains and losses on sale of securities: | |||||
Net realized gains on available for sale securities | ($177) | ($204) | ($12) | ||
Provision for income taxes | 60 | 69 | 4 | ||
Net of tax | -117 | [1] | -135 | [1] | |
Amortization of defined benefit items | |||||
Recognized net actuarial loss that will be amortized from accumulated other comprehensive income (loss) | 813 | [1],[2] | 683 | [1],[2] | |
Estimated prior service cost that will be amortized from accumulated other comprehensive income (loss) | -14 | [1],[2] | -10 | [1],[2] | |
Transition asset | [1],[2] | -4 | [1],[2] | ||
Pretax income | 799 | [1],[2] | 669 | [1],[2] | |
Provision for income taxes | -272 | [1],[2] | -228 | [1],[2] | |
Net income | 527 | [1],[2] | 441 | [1],[2] | |
Total reclassifications for the period | $410 | [3] | $306 | [3] | |
[1] | Amounts in parentheses indicate credits. | ||||
[2] | These accumulated other comprehensive loss components are included in the computation of net periodic benefit cost (see Note 14 for additional details). | ||||
[3] | Amounts in parentheses indicate debits on the Consolidated Balance Sheets. |
INTANGIBLE_ASSETS_Narrative_De
INTANGIBLE ASSETS (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Goodwill [Line Items] | ||||
Goodwill | $11,944,000 | $12,613,000 | $12,613,000 | |
Impairment charge | 669,000 | 669,000 | ||
West Chester Capital Advisors [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | 2,400,000 | |||
Retail Banking [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill | $9,500,000 |
INTANGIBLE_ASSETS_Schedule_of_
INTANGIBLE ASSETS (Schedule of Reconciliation of Company's Goodwill) (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of goodwill | ||||
Balance at beginning of period | $12,613,000 | $12,613,000 | ||
Goodwill impairment charge | -669,000 | -669,000 | ||
Balance at end of period | $11,944,000 | $12,613,000 | $12,613,000 |
DERIVATIVE_HEDGING_INSTRUMENTS2
DERIVATIVE HEDGING INSTRUMENTS (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2014 | |
Derivative [Line Items] | ||
Maximum notional amount outstanding permitted | $500,000,000 | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Increase (decrease) in interest expense | ||
Interest Rate Swap One [Member] | ||
Derivative [Line Items] | ||
Start date | 12-Dec-08 | |
Maturity date | 24-Sep-13 | |
Notional amount | 9,000,000 | |
Variable interest rate | 5.25% | |
Fixed interest rate | 2.73% | |
Increase (decrease) in interest expense | 165,488 | |
Interest Rate Swap Two [Member] | ||
Derivative [Line Items] | ||
Start date | 12-Dec-08 | |
Maturity date | 24-Sep-13 | |
Notional amount | 9,000,000 | |
Variable interest rate | 2.73% | |
Fixed interest rate | 5.25% | |
Increase (decrease) in interest expense | ($165,488) |
SEGMENT_RESULTS_Details
SEGMENT RESULTS (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | $8,732 | $8,403 | $8,384 | $8,525 | $8,598 | $8,200 | $8,021 | $8,042 | $34,044 | $32,861 | $32,203 |
Credit provision for loan losses | 375 | -1,000 | 150 | -250 | 375 | -1,100 | -775 | ||||
Non-interest income | 3,560 | 3,593 | 3,638 | 3,532 | 3,867 | 3,986 | 4,075 | 3,816 | 14,323 | 15,744 | 14,943 |
Non-interest expense | 10,770 | 11,243 | 10,620 | 10,738 | 10,746 | 10,413 | 10,442 | 10,622 | 43,371 | 42,223 | 40,641 |
PRETAX INCOME | 1,147 | 753 | 1,402 | 1,319 | 2,719 | 1,773 | 1,504 | 1,486 | 4,621 | 7,482 | 7,280 |
Provision for income taxes (benefit) | 398 | 388 | 423 | 389 | 878 | 547 | 434 | 430 | 1,598 | 2,289 | 2,241 |
NET INCOME | 749 | 365 | 979 | 930 | 1,841 | 1,226 | 1,070 | 1,056 | 3,023 | 5,193 | 5,039 |
Total assets | 1,089,263 | 1,056,036 | 1,089,263 | 1,056,036 | 1,000,991 | ||||||
Retail Banking [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 20,141 | 20,223 | 20,585 | ||||||||
Credit provision for loan losses | 57 | -92 | -160 | ||||||||
Non-interest income | 5,633 | 6,512 | 6,565 | ||||||||
Non-interest expense | 22,531 | 22,870 | 22,802 | ||||||||
PRETAX INCOME | 3,186 | 3,957 | 4,508 | ||||||||
Provision for income taxes (benefit) | 958 | 1,165 | 1,358 | ||||||||
NET INCOME | 2,228 | 2,792 | 3,150 | ||||||||
Total assets | 376,009 | 347,823 | 376,009 | 347,823 | 336,241 | ||||||
Commercial Banking [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 16,777 | 15,687 | 14,499 | ||||||||
Credit provision for loan losses | 318 | -1,008 | -615 | ||||||||
Non-interest income | 381 | 642 | 585 | ||||||||
Non-interest expense | 10,868 | 10,148 | 8,970 | ||||||||
PRETAX INCOME | 5,972 | 7,189 | 6,729 | ||||||||
Provision for income taxes (benefit) | 1,819 | 2,166 | 2,044 | ||||||||
NET INCOME | 4,153 | 5,023 | 4,685 | ||||||||
Total assets | 563,690 | 545,556 | 563,690 | 545,556 | 497,331 | ||||||
Trust [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | 47 | 35 | 35 | ||||||||
Credit provision for loan losses | |||||||||||
Non-interest income | 8,118 | 8,391 | 7,784 | ||||||||
Non-interest expense | 6,967 | 6,605 | 6,387 | ||||||||
PRETAX INCOME | 1,198 | 1,821 | 1,432 | ||||||||
Provision for income taxes (benefit) | 634 | 619 | 487 | ||||||||
NET INCOME | 564 | 1,202 | 945 | ||||||||
Total assets | 5,015 | 4,722 | 5,015 | 4,722 | 4,429 | ||||||
Investment/ Parent [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net interest income | -2,921 | -3,084 | -2,916 | ||||||||
Credit provision for loan losses | |||||||||||
Non-interest income | 191 | 199 | 9 | ||||||||
Non-interest expense | 3,005 | 2,600 | 2,482 | ||||||||
PRETAX INCOME | -5,735 | -5,485 | -5,389 | ||||||||
Provision for income taxes (benefit) | -1,813 | -1,661 | -1,648 | ||||||||
NET INCOME | -3,922 | -3,824 | -3,741 | ||||||||
Total assets | $144,549 | $157,935 | $144,549 | $157,935 | $162,990 |
REGULATORY_CAPITAL_Details
REGULATORY CAPITAL (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Summarized regulatory capital ratio of company | ||
Tangible common equity ratio | 7.56% | 7.64% |
Consolidated [Member] | ||
Summarized regulatory capital ratio of company | ||
Total Capital (To Risk Weighted Assets), Actual Amount | 131,497 | 128,469 |
Total Capital (To Risk Weighted Assets), Actual Ratio | 14.80% | 15.28% |
Total Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Amount | 71,066 | 67,247 |
Total Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 88,833 | 84,059 |
Total Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 Capital (To Risk Weighted Assets), Actual Amount | 120,992 | 117,957 |
Tier 1 Capital (To Risk Weighted Assets), Actual Ratio | 13.62% | 14.03% |
Tier 1 Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Amount | 35,533 | 33,624 |
Tier 1 Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 53,300 | 50,435 |
Tier 1 Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital (To Average Assets), Actual Amount | 120,992 | 117,957 |
Tier 1 Capital (To Average Assets), Actual Ratio | 11.34% | 11.45% |
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Amount | 42,662 | 41,204 |
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 53,327 | 51,505 |
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
AmeriServ Financial Bank [Member] | ||
Summarized regulatory capital ratio of company | ||
Total Capital (To Risk Weighted Assets), Actual Amount | 106,084 | 103,009 |
Total Capital (To Risk Weighted Assets), Actual Ratio | 12.07% | 12.39% |
Total Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Amount | 70,305 | 66,506 |
Total Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Ratio | 8.00% | 8.00% |
Total Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 87,881 | 83,132 |
Total Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 10.00% | 10.00% |
Tier 1 Capital (To Risk Weighted Assets), Actual Amount | 95,579 | 92,611 |
Tier 1 Capital (To Risk Weighted Assets), Actual Ratio | 10.88% | 11.14% |
Tier 1 Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Amount | 35,153 | 33,253 |
Tier 1 Capital (To Risk Weighted Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 52,729 | 49,879 |
Tier 1 Capital (To Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 6.00% | 6.00% |
Tier 1 Capital (To Average Assets), Actual Amount | 95,579 | 92,611 |
Tier 1 Capital (To Average Assets), Actual Ratio | 9.19% | 9.23% |
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Amount | 41,608 | 40,124 |
Tier 1 Capital (To Average Assets), For Capital Adequacy Purposes Ratio | 4.00% | 4.00% |
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount | 52,010 | 50,155 |
Tier 1 Capital (To Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio | 5.00% | 5.00% |
PARENT_COMPANY_FINANCIAL_INFOR2
PARENT COMPANY FINANCIAL INFORMATION (Balance Sheets) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and due from depository institutions | $23,780 | $20,288 | |
Short-term investments in money market funds | 6,140 | 6,811 | |
Investment securities available for sale | 127,110 | 141,978 | |
Other assets | 5,712 | 7,478 | |
TOTAL ASSETS | 1,089,263 | 1,056,036 | 1,000,991 |
LIABILITIES | |||
Guaranteed junior subordinated deferrable interest debentures | 13,085 | 13,085 | |
Other liabilities | 11,010 | 8,567 | |
TOTAL LIABILITIES | 974,856 | 942,729 | |
STOCKHOLDERS' EQUITY | |||
Total stockholders' equity | 114,407 | 113,307 | 110,468 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 1,089,263 | 1,056,036 | |
Parent Company [Member] | |||
ASSETS | |||
Cash and due from depository institutions | 100 | 100 | |
Short-term investments in money market funds | 5,784 | 6,561 | |
Investment securities available for sale | 11,714 | 11,909 | |
Guaranteed junior subordinated deferrable interest debenture issuance costs | 209 | 224 | |
Other assets | 4,698 | 4,352 | |
TOTAL ASSETS | 128,663 | 127,717 | |
LIABILITIES | |||
Guaranteed junior subordinated deferrable interest debentures | 13,085 | 13,085 | |
Other liabilities | 1,171 | 1,325 | |
TOTAL LIABILITIES | 14,256 | 14,410 | |
STOCKHOLDERS' EQUITY | |||
Total stockholders' equity | 114,407 | 113,307 | |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 128,663 | 127,717 | |
Parent Company [Member] | Banking Subsidiary [Member] | |||
ASSETS | |||
Equity investment | 100,473 | 99,250 | |
Parent Company [Member] | Non-Banking Subsidiaries [Member] | |||
ASSETS | |||
Equity investment | $5,685 | $5,321 |
PARENT_COMPANY_FINANCIAL_INFOR3
PARENT COMPANY FINANCIAL INFORMATION (Statements of Operations) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
INCOME | |||||||||||
Interest and dividend income | $10,344 | $10,019 | $9,983 | $10,095 | $10,203 | $9,811 | $9,627 | $9,702 | $40,441 | $39,343 | $39,917 |
EXPENSE | |||||||||||
Interest expense | 1,612 | 1,616 | 1,599 | 1,570 | 1,605 | 1,611 | 1,606 | 1,660 | 6,397 | 6,482 | 7,714 |
Salaries and employee benefits | 24,960 | 25,115 | 24,424 | ||||||||
Other expense | 4,906 | 5,105 | 5,073 | ||||||||
PRETAX INCOME | 1,147 | 753 | 1,402 | 1,319 | 2,719 | 1,773 | 1,504 | 1,486 | 4,621 | 7,482 | 7,280 |
Benefit for income taxes | -398 | -388 | -423 | -389 | -878 | -547 | -434 | -430 | -1,598 | -2,289 | -2,241 |
NET INCOME | 749 | 365 | 979 | 930 | 1,841 | 1,226 | 1,070 | 1,056 | 3,023 | 5,193 | 5,039 |
Comprehensive income | 1,996 | 4,697 | 3,320 | ||||||||
Parent Company [Member] | |||||||||||
INCOME | |||||||||||
Inter-entity management and other fees | 2,432 | 2,355 | 2,355 | ||||||||
Interest and dividend income | 262 | 243 | 306 | ||||||||
TOTAL INCOME | 5,064 | 8,773 | 11,371 | ||||||||
EXPENSE | |||||||||||
Interest expense | 1,121 | 1,121 | 1,121 | ||||||||
Salaries and employee benefits | 2,576 | 2,502 | 2,368 | ||||||||
Other expense | 1,996 | 1,608 | 1,582 | ||||||||
TOTAL EXPENSE | 5,693 | 5,231 | 5,071 | ||||||||
PRETAX INCOME | -629 | 3,542 | 6,300 | ||||||||
Benefit for income taxes | 1,020 | 895 | 819 | ||||||||
Equity in undistributed earnings of subsidiaries | 2,632 | 756 | -2,080 | ||||||||
NET INCOME | 3,023 | 5,193 | 5,039 | ||||||||
Comprehensive income | 1,996 | 4,697 | 3,320 | ||||||||
Parent Company [Member] | Banking Subsidiary [Member] | |||||||||||
INCOME | |||||||||||
Dividends from subsidiaries | 1,500 | 5,500 | 8,000 | ||||||||
Parent Company [Member] | Non Banking Subsidiaries [Member] | |||||||||||
INCOME | |||||||||||
Dividends from subsidiaries | $870 | $675 | $710 |
PARENT_COMPANY_FINANCIAL_INFOR4
PARENT COMPANY FINANCIAL INFORMATION (Statements of Cash Flows) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
OPERATING ACTIVITIES | |||
Net income | $3,023 | $5,193 | $5,039 |
Adjustment to reconcile net income to net cash (used in) provided by operating activities: | |||
Net cash provided by operating activities | 4,962 | 14,854 | 3,212 |
INVESTING ACTIVITIES | |||
Proceeds from maturities of investment securities - available for sale | 22,900 | 43,307 | 59,800 |
Net cash used in investing activities | -30,894 | -66,301 | -32,154 |
FINANCING ACTIVITIES | |||
Preferred stock dividend paid | -210 | -209 | -828 |
Common stock dividend paid | -752 | -566 | |
Net cash provided by financing activities | 28,738 | 54,693 | 20,979 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 2,806 | 3,246 | -7,963 |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 30,066 | 26,820 | 34,783 |
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | 32,872 | 30,066 | 26,820 |
Parent Company [Member] | |||
OPERATING ACTIVITIES | |||
Net income | 3,023 | 5,193 | 5,039 |
Adjustment to reconcile net income to net cash (used in) provided by operating activities: | |||
Equity in undistributed earnings of subsidiaries | -2,632 | -756 | 2,080 |
Stock compensation expense | 42 | 82 | 38 |
Other - net | -505 | -718 | -989 |
Net cash provided by operating activities | -72 | 3,801 | 6,168 |
INVESTING ACTIVITIES | |||
Purchase of investment securities - available for sale | -2,027 | -3,885 | -2,077 |
Proceeds from maturities of investment securities - available for sale | 2,284 | 2,506 | 2,809 |
Net cash used in investing activities | 257 | -1,379 | 732 |
FINANCING ACTIVITIES | |||
Purchase of regulatory stock | -1,171 | -4,417 | |
Preferred stock dividend paid | -210 | -209 | -828 |
Common stock dividend paid | -752 | -566 | |
Net cash provided by financing activities | -962 | -1,946 | -5,245 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | -777 | 476 | 1,655 |
CASH AND CASH EQUIVALENTS AT JANUARY 1 | 6,661 | 6,185 | 4,530 |
CASH AND CASH EQUIVALENTS AT DECEMBER 31 | $5,884 | $6,661 | $6,185 |
PARENT_COMPANY_FINANCIAL_INFOR5
PARENT COMPANY FINANCIAL INFORMATION (Narrative) (Details) (USD $) | Dec. 31, 2014 |
PARENT COMPANY FINANCIAL INFORMATION [Abstract] | |
Restricted surplus and retained earnings | $105,400,000 |
SELECTED_QUARTERLY_CONSOLIDATE2
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
SELECTED QUARTERLY CONSOLIDATED FINANCIAL DATA [Abstract] | |||||||||||
Interest income | $10,344 | $10,019 | $9,983 | $10,095 | $10,203 | $9,811 | $9,627 | $9,702 | $40,441 | $39,343 | $39,917 |
Interest expense | 1,612 | 1,616 | 1,599 | 1,570 | 1,605 | 1,611 | 1,606 | 1,660 | 6,397 | 6,482 | 7,714 |
Net Interest Income | 8,732 | 8,403 | 8,384 | 8,525 | 8,598 | 8,200 | 8,021 | 8,042 | 34,044 | 32,861 | 32,203 |
Credit provision for loan losses | 375 | -1,000 | 150 | -250 | 375 | -1,100 | -775 | ||||
Net Interest Income after Provision (credit) for Loan Losses | 8,357 | 8,403 | 8,384 | 8,525 | 9,598 | 8,200 | 7,871 | 8,292 | 33,669 | 33,961 | 32,978 |
Non-interest income | 3,560 | 3,593 | 3,638 | 3,532 | 3,867 | 3,986 | 4,075 | 3,816 | 14,323 | 15,744 | 14,943 |
Non-interest expense | 10,770 | 11,243 | 10,620 | 10,738 | 10,746 | 10,413 | 10,442 | 10,622 | 43,371 | 42,223 | 40,641 |
PRETAX INCOME | 1,147 | 753 | 1,402 | 1,319 | 2,719 | 1,773 | 1,504 | 1,486 | 4,621 | 7,482 | 7,280 |
Provision for income taxes | 398 | 388 | 423 | 389 | 878 | 547 | 434 | 430 | 1,598 | 2,289 | 2,241 |
NET INCOME | $749 | $365 | $979 | $930 | $1,841 | $1,226 | $1,070 | $1,056 | $3,023 | $5,193 | $5,039 |
Basic | $0.04 | $0.02 | $0.05 | $0.05 | $0.10 | $0.06 | $0.05 | $0.05 | $0.15 | $0.26 | $0.21 |
Diluted | $0.04 | $0.02 | $0.05 | $0.05 | $0.09 | $0.06 | $0.05 | $0.05 | $0.15 | $0.26 | $0.21 |
Cash dividends declared | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0.01 | $0 | $0.04 | $0.03 | $0 |